Inflation inches higher in February

Wednesday, 11 Mar 2026

Inflation inches higher in February

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Today at a glance

The Big Story Today

Inflation jumps in February.

Economy

Cabinet unleashes preemptive shields to survive regional volatility.

Logistics

Berenice Port is back on the block.

What We're Tracking Today

EGP posts gains against the USD.

Also on our Radar

Abu Dhabi’s ADQ moves closer to consolidating Egypt port stakes.

PLANET FINANCE

IMF warns war could add 40 bps to int’l inflation.

HARDHAT

Turning commercial fleets green doesn’t just make environmental sense, but financial sense too.

What We're Tracking Today

Fuel price hikes send ripple effects through goods and services

Good morning, all. We have some good news to kick off the issue after yesterday’s surprise fuel price hike — the EGP is strengthening against the greenback, the bourse is up, and we’re hoping we’re on the path to recovery after what has been a volatile March so far.

To balance out the good news, February’s inflation reading came in higher than expected, primarily driven by a jump in food and beverage prices and the road ahead points to further increases, which could put monetary easing on the backburner for now.

***

WISH THIS MORNING’S ISSUE was a podcast? We’ve got you. Tap or click here to listen to Morning Drive, a 10-minute version of today’s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, or while stomping around the house wondering where the [redacted] you left your [redacted] reading glasses.***

Watch this space

FUEL PRICES — Yesterday’s fuel price hikes are already starting to filter through to the price of goods and services, with the Chambers of Commerce’s Land Transport Division considering hiking prices by 15-20% on the back of the 17.1% jump in diesel prices to EGP 20.50 per liter, a source with knowledge of the matter tells EnterpriseAM.

Your mobile bill may also soon rise as operators push for price adjustments following the fuel price hikes, further adding to the already increasing costs of operating cell towers, a source working at a mobile operator tells us. The proposal is currently under study, with a final decision to raise prices likely next month, a government source in the sector said.

But some goods will remain shielded from potential increases, like subsidized bread purchased with ration cards, which will remain at EGP 0.20 a loaf as the state covers the extra EGP 134 mn in additional expenses from fuel price hikes, Supply Minister Sherif Farouk said. The price of unsubsidized fino bread, however, is expected to rise 20%, with a final decision to be made tomorrow as the Bakeries Division meets, head of the division Abdullah Ghorab tells us.

Prices of subsidized goods at the proper outlets and from cooperatives are likewise set to remain stable, the minister said. Agricultural goods should also see a limited impact, as the use of large-capacity vehicles to transport produce helps distribute the added fuel costs across more units, effectively reducing potential price increases per item, Vegetables and Fruits Division head Hatem El Naguib explained.

The road to recovery?

After days of weakening, the EGP posted gains against the greenback yesterday, with the USD changing hands at EGP 51.94-52.04 at state-owned banks, falling from record highs seen earlier in the week.

The bourse also saw gains, with the EGX30 rising 2.9% yesterday, driven by local institutions.

Interbank activity didn’t reflect the strengthening EGP, with interbank volume surpassing USD 1.3 bn, banking sources told EnterpriseAM. The increase was the result of banks looking to meet higher import demand, amid growing concerns that the continuation of the war could extend shipping times and delay deliveries, in addition to foreign investor outflows.

AND- Checking in on the citizen bonds. The debt instrument brought in EGP 5 bn since its debut late last month, a senior government source told us, adding that this exceeds expectations and reflects a recovery in the local debt market.

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Market watch

Saudi Arabia, the UAE, Iraq, and Kuwait cut production by some 6.7 mn bbl / d — shaving some 6% off global oil supply, Bloomberg reports, citing people it says are familiar with the matter. Saudi trimmed some 2.5 mn bbl / d, Iraq roughly 2.9 mn bbl / d, the UAE 500k-800k bbl / d, and Kuwait about 500k bbl / d. For Saudi Arabia, the UAE, and Kuwait, that translates to roughly 20-25% below February output levels.

The spillover: The crisis is triggering a “severe chain reaction” across shipping, [ins.], aviation, agriculture, and automotive supply chain,” Aramco’s CEO Amin Nasser said, noting that global inventories are already sitting near five-year lows.

Following Monday’s drop, oil prices eased further yesterday after the Wall Street Journal reported that the International Energy Agency is considering releasing more than 182 mn barrels of oil to curb the surge in prices seen since the outbreak of the US-Israel-Iran war. A decision on the motion is anticipated today. The plan requires unanimous approval for immediate adoption, otherwise the process could be stalled.

Prices fell on the news, with Brent futures dropping 0.26% to USD 87.57 / bbl and West Texas Intermediate dipping 0.44% to USD 83.08.

Could this be the second wind we need? Egypt’s status as a net oil importer has made it especially sensitive to the war’s impact on fuel pricing, which makes a stabilizing force very welcome for our economy. Morgan Stanley downgraded the outlook of Egyptian equities due to the economy’s relative vulnerability to oil supply shocks earlier this week.

Data point

22% — that’s how much global air cargo capacity was reduced last week as disruptions from the war mounted, Reuters reported on Thursday, citing aviation-focused consulting firm Aevean. The impact was most severe on the Asia-Middle East-Europe corridor, where capacity has been slashed by 39%.

PSA

WEATHER- The temperature is slowly rising — but still chilly — in Cairo today, with a high of 23°C and a low of 13°C, according to our favorite weather app.

It might drip in Alexandria, with a high of 21°C and a low of 13°C.

The big story abroad

It’s another morning with the front pages all about the US and Israel’s continued campaign against Iran, which saw the most intense night of aerial bombardment on Tuesday. Earlier today, Iran retaliated by launching attacks on central Israel and US military sites in Bahrain.

That said, Washington urged Israel not to launch further strikes on Iranian energy facilities, especially oil infrastructure, three unnamed sources told Axios. The Trump administration reportedly argued that such attacks would harm the Iranian public and jeopardize future US cooperation with Iran’s oil sector post-conflict. Washington also cautioned that these strikes could provoke retaliatory strikes against Gulf allies and their own energy sites.

Meanwhile on Wall Street: Microsoft has cemented its support for Anthropic’s lawsuit against the Pentagon, arguing that moves to punish the AI startup would be detrimental to the broader US tech scene.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: EnterpriseAM’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We look at why electrifying commercial fleets is the way to go, taking into account the environmental and fiscal benefits.

Tags:

exchange rate inflation oil & gas What We're Tracking Today

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A gathering of sound, movement, and creative expression set against one of the Red Sea’s most extraordinary landscapes.

22 March 2026 — Somabay Egypt

The Big Story Today

Inflation jumps in February

Annual urban inflation surged to 13.4% in February, up from 11.9% in January, according to the latest Capmas data seen by EnterpriseAM. The reading, which preceded the full impact of the regional conflict that erupted in late February, has prompted analysts to forecast a definitive pause — and potentially a reversal — of the Central Bank of Egypt’s monetary easing cycle. Prices climbed 2.8% m-o-m, a sharp acceleration from the 1.2% seen in January.

Behind the jump: This uptick was primarily fueled by a 4.6% y-o-y and 2.8% m-o-m increase in food and non-alcoholic beverages prices, and a 15.7% y-o-y and 3.2% m-o-m uptick in alcoholic beverages, tobacco, and narcotics prices.

The figure came in above expectations: “February’s inflation came higher than our estimate of 12.0% y-o-y and 1.5% m-o-m, and higher than the Reuters poll’s median estimate of 12.0% y-o-y,” HC’s Heba Monir told EnterpriseAM. Thndr’s Esraa Ahmed noted that while pressures were anticipated, the magnitude was unexpected, adding that the jump in education prices also pushed the headline figure up.

Annual core inflation — which excludes volatile items like food and fuel — jumped to 12.7% in February, up from 11.2% the month before. Monthly core inflation rose to 3%, almost double the 1.6% seen in January.

All this came before the outbreak of the regional conflict on 28 February, which has since pushed the EGP down nearly 8.4% against the USD amid sharp hot money outflows and increased import demand.

Where is inflation heading for the months to come? “Given the heightened geopolitical tensions and their notable spillover effects, particularly on energy and rising import costs, we believe short-term inflationary pressures are skewed to the upside,” Beltone’s Ahmed Hafez tells us. “We estimate the monthly momentum could further accelerate to c. 3% in March on the back of the petroleum product price hikes, and as lead indicators suggest a continuation of higher food prices, which could see annual headline inflation rebound to a 9-month high of 14.9%,” he added.

Adding pressure: The government implemented an earlier-than-planned fuel price hike this week after global oil prices saw extreme fluctuations in response to regional escalations. This hike is expected to push March and April’s inflation readings higher as it filters through the economy. A favorable base effect may keep the annual figure “within a reasonable range,” HC’s Neamat Choukri anticipates.

Speaking of the hike, it is expected to generate EGP 40 bn in savings by the end of June and a combined EGP 80-100 bn annually, a government source told us, noting that without the hike, the oil subsidy bill would have ballooned to over EGP 110 bn, far exceeding the budgeted EGP 75 bn.

And while we’re on the topic of subsidies: A government source in the electricity sector told us that officials are mulling two scenarios in response to rising prices — a 10-15% price hike for the highest consumption brackets or keeping prices as they are until the end of the fiscal year.

What can we expect from the CBE? Those we spoke to expect a wait-and-see approach at the next Monetary Policy Committee meeting in April. “The central bank is expected to keep the rate unchanged […] and monitor the impact of fuel price hikes on inflation, particularly if oil prices decline quickly and the conflict lasts only a few more days,” London-based economist Ali Metwally tells us. Thndr’s Ahmed agreed, noting that “merely pausing the monetary easing cycle effectively constitutes a form of tightening” and highlighting that the CBE's comfortable real interest rate margin provides flexibility for now.

The risk of a hike: Metwally cautioned that an immediate hike would be “costly for economic growth,” but warned that if the shock evolves into a broader inflationary wave while FX pressure persists, “tightening could become more likely.” For now, the CBE is expected to rely on other tools, such as liquidity management and market expectations management, to stabilize conditions and mitigate shocks, he added.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

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CAPMAS economy inflation THE BIG STORY TODAY

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Logistics

Berenice Port is back on the block

The Transport Ministry has re-offered the right to operate and develop Berenice International Port after Kuwait’s Alghanim Group was withdrawn from the project last month, three government sources tell EnterpriseAM. The ministry is working with the General Authority for Investment and Freezones to find an investor for the public-private partnership, we were told.

REMEMBER- The ministry decided to take the reins of the project due to a lack of progress on infrastructure and the submission of technical proposals, despite interest and requests from shipping agencies and international shipping lines to operate within the port, a senior government source told us at the time. The reasons for Alghranim’s withdrawal were not disclosed, but our source said that uncertainty regarding the Suez Canal waterway, the timeline for recovery of traffic through the strait, and the return of international shipping agencies to the Bab El Mandeb region may have played a part.

The details: The project includes a 1.2 km-long cargo quay with a depth of 17 meters and a 1.1 mn sqm logistics area designed to handle large cargo ships and integrate port operations with inland logistics corridors.

The ministry has also separately offered Nuweiba Seaport for private investment, covering completion of port infrastructure and operational management, in addition to the construction of a nearby yacht marina, the sources said. A tender is also live for the construction of a yacht marina at El Quseir port on the Red Sea, we were told.

On land, the ministry is also rolling out a string of integrated logistics zone projects to investors, which are designed to streamline cargo flow, reduce port congestion, and integrate maritime, river, and land transport, maximizing economic returns and supporting regional trade growth.

The network will cover Egypt’s key trade arteries and include West Alexandria Port, the Tahya Misr 2 terminal, Sadat City, Kom Abu Radi in Beni Suef, and Port Tawfiq. It also includes Arqin on the Egyptian-Sudanese border and Gargoub on the Mediterranean to support trade with the country’s African neighbours.

There are plans for additional logistics zones along the Nile, including Dandara River Port in Qena, which aim to improve inland cargo movement and link river transport to national supply chains.

Tags:

infrastructure investment watch logistics RAIL trade

Economy

Cabinet unleashes preemptive shields to survive regional volatility

The Madbouly government has activated a package of temporary preemptive and social measures, according to a cabinet statement. With this high-stakes intervention, the government hopes to lock down essential energy supplies, keep the economic engine running, and shield the domestic market from the worst shockwaves of an unpredictable global crisis.

IN CONTEXT- This came only hours after the government raised fuel prices, a move it felt it needed to re-justify in yesterday’s weekly press conference — it was a necessity driven by international pressures. Prime Minister Mostafa Madbouly explained that while the state previously held fuel prices steady, the cost of a barrel of oil globally surged by 50%, rising to around USD 93 / bbl from USD 61.3. State institutions and financing bodies simply could no longer fully absorb the staggering global price shocks on their own.

Despite the increases at the pump, Oil Minister Karim Badawi argued that the public is only asked to share a portion of the burden. The state is still shouldering bns in subsidies, including roughly EGP 30 bn specifically for butane cylinders. The state will also absorb the EGP 1.6 bn annual increase in bread production costs resulting from the fuel hikes, pushing the total annual bread subsidy bill to EGP 160 bn while keeping subsidized bread prices completely unchanged, Supply Minister Sherif Farouk said.

Leading by example: Before asking the public to tighten their belts, the government is tightening its own. An immediate, sweeping austerity mandate is now active across all state entities to drastically slash public spending. Budgets are being reprioritized: authorities are freezing non-urgent expenditure, stripping away advertising and conference funds, and severely restricting official travel.

Extending to energy use: A strict mandate is now in place to ration electricity across public buildings and streets, while state projects heavily reliant on diesel, fuel oil, and gasoline are undergoing operational reviews to slash fuel bills.

Social measures on the table

Minimum wage hike on the horizon: To further offset the rising cost of living, the government is gearing up to raise the minimum wage for state employees starting next fiscal year. We were told earlier this month to expect a minimum wage of EGP 8k. Finance Minister Ahmed Kouchouk promised that the upcoming raise — set to be announced next week — will be substantial and “significantly outpace inflation rates.”

More social safety net measures: The government is also injecting EGP 20 bn to extend heightened payouts for an additional two months, directly targeting Takaful and Karama beneficiaries alongside ration card holders.

Beyond domestic belt-tightening

The hunt for hard currency: The government is moving to shore up its foreign exchange liquidity. Foreign Minister Badr Abdel Ati said the government is lobbying international heavyweights — including the US, EU, World Bank, and other major development banks — to fast-track scheduled loans and concessional financing. Coupled with a renewed push to attract foreign direct investment and expand the state IPO program, Abdel Ati expects “tangible results” within weeks.

What’s next? Prime Minister Madbouly was clear: these are temporary band-aids, not permanent policies, and they will be reviewed the moment this global storm passes. The ultimate endgame hasn’t shifted — the state remains focused on crushing inflation and maintaining a flexible exchange rate. It’s all about ensuring the market has the hard currency it needs to keep the country’s production lines humming.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Tags:

Cabinet economy energy Mabouly Cabinet social protection

A MESSAGE FROM AUC ONSI SAWIRIS SCHOOL OF BUSINESS EXECUTIVE EDUCATION

The HR risk map for 2026: where talent, technology, and leadership collide

HR risk is no longer a distant forecast; it is an operating reality. It appears in missed delivery targets, fragile leadership pipelines, and transformation programs that stall under sustained pressure. Across sectors, four fault lines are becoming harder to ignore: skills churn, leadership turnover, engagement erosion, and succession gaps.

What once appeared cyclical now signals structural change. The World Economic Forum’s Future of Jobs Report 2025 projects that nearly 40% of core skills will shift by 2030, driven by AI, automation, and evolving operating models. Gartner’s 2026 HR Trends similarly place AI transformation, workforce redesign, and leadership readiness at the center of CHRO priorities.

Regionally, the tension is more nuanced. PwC’s Middle East Workforce Survey 2025 indicates a workforce that is digitally confident and engaged, yet increasingly fatigued and more focused on job security and skills progression than compensation alone.

Egypt reflects the same inflection point. ExecEd’s latest study on Egypt’s corporate learning and development landscape identifies rising demand for technical and AI-related training, alongside a preference for customized, application-based programs that more directly link learning to business outcomes.

As these pressures converge, execution becomes decisive. When skills shift faster than organizations adapt and leadership readiness lags behind strategic ambition, transformation slows. Capability development, therefore, moves from optional training to strategic levers tied to competitiveness, retention, and operational continuity.

In this environment, executive education becomes a risk-management instrument rather than a training service. As an FT-ranked institution rooted in the Egyptian and regional business landscape, AUC Onsi Sawiris School of Business ExecEd works with organizations to co-design leadership journeys addressing operational fault lines, from AI integration to operating-model redesign.

Without sustained investment in capability, exposure to disruption compounds. For CHROs, the HR risk map now functions as a strategic blueprint for institutional resilience.

Additional insights are outlined in the AUC Onsi Sawiris School of Business Executive Education’s Corporate Learning & Development Landscape in Egypt 2024 report.

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A MESSAGE FROM AUC ONSI SAWIRIS SCHOOL OF BUSINESS EXECUTIVE EDUCATION AUC

Also on our Radar

Abu Dhabi’s ADQ moves closer to consolidating Egypt port stakes

AD Ports gets MTO deadline extension for ALCN

The Financial Regulatory Authority granted a 60-day extension for the mandatory tender offer (MTO) targeting Alexandria Container and Cargo Handling Company, according to an EGX disclosure (pdf). The regulatory decision allows Black Caspian Logistics — acting on behalf of Abu Dhabi sovereign wealth fund ADQ — a new window to finalize its bid for up to 90% of the maritime logistics company’s shares.

Why it matters: This MTO is a necessary regulatory step to officially consolidate the indirect holdings of ADQ and its subsidiary AD Ports Group. After initially acquiring a 32% stake in 2022, ADQ secured an indirect 51.3% majority control last November when AD Ports purchased an additional 19.3% stake. Because Egyptian securities law mandates an MTO when a shareholder’s stake exceeds 33%, the Emirati group is utilizing this extra time to finalize its offer and bring its Egyptian port investments under direct, unified control.

Mopco sees net income drop 25% y-o-y in 2025 despite sales surge

Misr Fertilizer Production Co.’s (Mopco) net income fell 25.3% y-o-y to EGP 11.3 bn in 2025, even as sales grew 36.6% y-o-y to EGP 26.8 bn, up from EGP 19.6 bn in 2024, according to the fertilizer giant’s latest earnings release (pdf).

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

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AD Ports Alexandria Container and Cargo Handling ALSO ON OUR RADAR earnings logistics Mopco Paragon real estate SumouHolding

PLANET FINANCE

IMF warns Middle East conflict could add 40 bps to global inflation

The IMF is sounding the alarm on a potential oil-led inflation spike, with the Fund's Managing Director Kristalina Georgieva warning on Monday that a sustained 10% increase in oil prices throughout the year would result in a 40 bps rise in global inflation, Reuters reports. “We are seeing resilience tested again by the new conflict in the Middle East,” Georgieva said, urging policymakers to “think of the unthinkable and prepare for it.”

Oxford Economics also sees global inflation rising by 0.3-0.4% in 4Q 2026, accompanied by a 0.1 percentage point dip in global growth. While energy price trajectories remain volatile, Oxford Economics anticipates that Brent crude will average USD 79 / bbl in 2Q 2026 — a USD 15 upward revision from February estimates — before potentially retreating as supply conditions normalize, according to a report seen by EnterpriseAM.

The most exposed regions: The UK and the Eurozone, due to their exposure to gas prices. The agency sees rising energy prices pushing UK inflation up by 0.5 percentage points in 4Q compared to previous forecasts.

What’s the prognosis on rate cuts? The Bank of England will likely avoid cutting interest rates at its March meeting — or beyond if energy prices remain elevated for long — though rate cuts could resume in April or June if energy prices retreat quickly. In the Eurozone, the European Central Bank (ECB) is expected to maintain interest rates at 2% throughout the year. The ECB might raise rates by 25-50 bps if the energy shock persists.

As for the US Federal Reserve, Oxford Economics’ forecasts remain unchanged, pointing toward potential interest rate cuts of 25 bps in June and September, given the energy shock is less likely to impact inflation.

MARKETS THIS MORNING-

It’s another morning with Asia-Pacific markets opening in the green as oil prices dipped further on hopes that the International Energy Agency will release its largest-ever stock to keep prices under control. The Kopsi is leading gains, up 3.4%, with the Nikkei trailing behind.

EGX30	47,773	+2.9% (YTD: +14.2%)
USD (CBE)	Buy 51.92	Sell 52.06
USD (CIB)	Buy 51.94	Sell 52.04
Interest rates (CBE)	19.00% deposit	20.00% lending
Tadawul	10,930	+0.9% (YTD: +4.2%)
ADX	9,997	+1.4% (YTD: 0.0%)
DFM	5,867	+2.0% (YTD: -3.0%)
S&P 500	6,781	-0.2% (YTD: -0.9%)
FTSE 100	10,412	+1.6% (YTD: +4.8%)
Euro Stoxx 50	5,837	+2.7% (YTD: +0.8%)
Brent crude	USD 87.80	-11.3%
Natural gas (Nymex)	USD 3.05	+1.1%
Gold	USD 5,204	-0.7%
BTC	USD 70,056	+1.3% (YTD: -20.1%)
S&P Egypt Sovereign Bond Index	1,033	+0.2% (YTD: +4.0%)
S&P MENA Bond & Sukuk	151.48	-0.2% (YTD: -0.3%)
VIX (Volatility Index)	24.93	-2.2% (YTD: +66.8%)

THE CLOSING BELL-

The EGX30 rose 2.9% at yesterday’s close on turnover of EGP 6.6 bn (2.4% above the 90-day average). Local investors were the sole net buyers. The index is up 14.2% YTD.

In the green: ADIB (+6.6%), Raya Holding (+6.2%), and CIB (+5.3%).

In the red: AMOC (-8.0%), Abu Qir Fertilizers (-5.0%), and Valmore Holding -EGP (-3.2%).

Tags:

economy inflation interest rates Planet Finance US Federal Reserve

HARDHAT

The green transition of Egypt’s commercial fleets

For years, electrifying commercial fleets in Egypt was more about sustainability headlines than bottom-line considerations. But with diesel prices at EGP 20.50 per liter as of yesterday and the Financial Regulatory Authority (FRA) talking about mandating carbon offsets, the calculus is changing, and sticking with traditional combustion engines could soon be a liability.

Why it matters: The biggest hurdle has always been the 40-80% higher upfront cost of a new electric truck. Companies like Shift EV are using a transition-as-a-service model: they cover the conversion cost of an existing diesel fleet, and the fleet owner repays them via a monthly subscription funded by fuel savings. This allows the client to see zero upfront capex and an immediate 60% reduction in operating expenses from day one.

The private sector is already making the move, with Egypt having more “EVs on the road as a percentage and more EV sales in the commercial sector than any other country in Africa and the Middle East,” Aly Eltayeb, CEO and co-founder of Shift EV, tells EnterpriseAM. A sizable 5% of the total commercial vehicle market in Egypt is now EVs, he added.

Snackmaker Edita is moving its 1.2k-truck fleet to electric through a partnership with Shift EV. Similarly, Alexbank and Orascom Investment Holding’s Blu EV are developing a new microfinancing model to move Egypt’s two-wheeled delivery fleet to electric.

The pitch

The carbon factor: A major new catalyst arrived last month from the FRA — under which new rules mandate that non-banking financial institutions with capital over EGP 100 mn must disclose emissions and offset 20% of their footprint through Egypt’s voluntary carbon market. As this mandate eventually trickles down to larger corporations, an electric fleet becomes both a cost-saver and a source of tradable carbon credits — or a way to dodge mandatory offset costs.

Cost is key: “We’ve worked with 30 different customers. They span over multinationals, Egyptian market leaders, and state-owned enterprises — there’s one common thread that they all have: Going green has only one meaning, it’s generating cost savings for them. We’ve always been very cognizant that our product is fundamentally a cost-saving product,” Eltayeb tells us.

By the numbers: The core financial driver is the widening gap between electricity and diesel prices. Driving 100 km on electricity costs roughly EGP 50-65. The same 100 km in a diesel van — averaging 8 km per liter — costs EGP 220.

Savings at the repair shop: Maintenance costs for trucks “have increased by three to five times” over the last few years, but when you retrofit a vehicle, up to 80% of the operating costs are eliminated, with EVs having 60% fewer moving parts.

Retrofitting helps on replacement costs: To keep fleets reliable, vehicles need to be upgraded and swapped out for newer models on a regular basis — an increasingly expensive task given the rise in vehicle prices over recent years, Eltayeb notes. “When we offer to retrofit vehicles, we’re giving them a second life of 8-12 more years on the road. Doing so eliminates a massive capex spend. For a 100-vehicle fleet — made of mid-sized trucks — this could amount to EGP 100 mn saved,” he adds.

But grid constraints and charging infrastructure costs remain an issue. While the last-mile — bikes and small vans — is easy to electrify, heavy-duty long-haul remains difficult due to Egypt’s grid constraints and heat-related battery degradation. Companies still face shadow costs in upgrading their depots, as a fleet of 25 vans can require the same power draw as 40 homes.

What’s next?

In the next few years, we can expect to see “a higher level of vehicle penetration,” Eltayeb tells us, including an expansion from a B2B-dominated market into B2BC and B2C. “I think the future here is really bright from an adoption perspective,” he added.

We could see more international players stepping in: Strategic partners like the European Bank for Reconstruction and Development are stepping in to bridge this — financing electric bus expansions for Abou Ghaly Motors and Go Bus last year. The move signals that the institutional green funding is now targeting the transport sector specifically.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Tags:

automotive EVs Hardhat logistics renewables transport

CALENDAR

2026

MARCH

21 March: (Saturday): Eid El Fitr starts (TBC).

30 March - 1 April (Monday-Wednesday): Egypt International Energy Conference and Exhibition (EGYPES).

APRIL

2 April (Thursday): Monetary Policy Committee’s second meeting of 2026.

12 April (Sunday): Coptic Easter.

25 April (Saturday): Sinai Liberation Day.

MAY

1 May (Friday): Labor Day.

21 May (Thursday): Monetary Policy Committee’s third meeting of 2026.

27-29 May (Wednesday-Friday): Eid El Adha (TBC).

JUNE

30 June (Tuesday): National holiday in observance of the June 30 Revolution (TBC).

JULY

9 July (Thursday): Monetary Policy Committee’s fourth meeting of 2026.

23 July (Thursday): National holiday in observance of Revolution Day (TBC).

AUGUST

20 August (Thursday): Monetary Policy Committee’s fifth meeting of 2026.

26 August (Wednesday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

SEPTEMBER

15 September (Tuesday): IMF to hold its eighth review of Egypt’s USD 8 bn EFF arrangement.

24 September (Thursday): Monetary Policy Committee’s sixth meeting of 2026.

27-29 September (Sunday-Tuesday): Global Conference on Population, Health, and Human Development.

OCTOBER

6 October (Tuesday): Armed Forces Day.

29 October (Thursday): Monetary Policy Committee’s seventh meeting of 2026.

DECEMBER

17 December (Thursday): Monetary Policy Committee’s eighth meeting of 2026.

EVENTS WITH NO SET DATE

Early 2026: Passenger operations on the New Administrative Capital-Nasr City monorail scheduled to begin.

1Q 2026: Trial operations for the Ain Sokhna-Sixth of October section of Egypt’s first high-speed rail line scheduled to begin.

May 2026: End of extension for developers on 15% interest rates for land installment payments.

2H 2026: Operations at Deli Glass Co’s new USD 70 mn glassware factory kick off.

2027

20 January-7 February: Egypt to host the African Games.

April 2027: Tenth of Ramadan dry port and logistics hub to begin operations.

EVENTS WITH NO SET DATE

2027: Egypt to host EBRD’s annual meetings.

2027: Egypt-EU Summit 2027.

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

September 2028: First unit of the Dabaa nuclear power plant begins operations.

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