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Monday, 1 May 2023

What We're Tracking Today
Diplomacy
War Watch
Economy
Automotive
A Message From Hsbc
Legislation Watch
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Blackboard
Calendar

Japan’s Kishida brings USD 733 mn Cairo Metro money bomb

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Today at a glance

1

Diplomacy

 Japan to lend Egypt c. USD 733 mn for Cairo Metro Line 4 + El Sisi holds talks with Japan PM.
2

WAR WATCH

 Warring Sudanese factions agree to extend ceasefire for 72 hours.
3

What We're Tracking Today

 Grand Egyptian Museum to open in November?
4

Economy

 S&P lowers credit outlook on NBE, Banque Misr + CIB to negative.
5

Automotive

 Car, bus sales fall again y-o-y in March — but were up month-on-month for the second time in a row.
6

What We're Tracking Today

 Shoukry in Jordan for regional meeting on Syria rapprochement.
7

WHAT WE'RE TRACKING TODAY

 Subsidized commodities just got more expensive.
8

LEGISLATION WATCH

 MPs give initial approval to new rules on dog ownership.
9

A MESSAGE FROM HSBC

 Huge growth potential in trade between MENAT, ASEAN regions -HSBC.
10

BLACKBOARD

 Private universities are officially bidding farewell to Tansik system.

Monday, 1 May 2023

What We're Tracking Today
Diplomacy
War Watch
Economy
Automotive
A Message From Hsbc
Legislation Watch
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Blackboard
Calendar
1

What We're Tracking Today

The Grand Egyptian Museum could open in November -report

Good morning, friends, and happy Labour Day to those of you observing the occasion in Egypt and around the world.

We have another long weekend ahead of us thanks to Labor Day, Prime Minister Moustafa Madbouly confirmed yesterday. The private sector, civil servants and public-sector workers will all take the day off on Thursday, 4 May, Madbouly said.

GEM to open by November? The government has set November as the date for the long-awaited opening of the Grand Egyptian Museum (GEM) at the Giza Pyramids complex, Asharq Business reports an unnamed official as saying. Prime Minister Moustafa Madbouly and Japan’s Fumio Kishida, who on a three-day visit to Cairo, toured the facility yesterday and held a joint presser with Prime Minister Moustafa Madbouly. Japan has been on of the primary backers of the museum, with JICA having provided hundreds of mns of USD in funding for the GEM.

What to look for: Given the importance of the GEM to our tourism strategy — and its cultural significance internationally — President Abdel Fattah El Sisi will want to host a world-scale opening ceremony with participation from heads of state and prime ministers. November, being six months out, sounds about right, but it’s not real until someone in government says it is.

Background: The opening of the USD 1 bn museum — which had been initially set for June 2020 — was postponed thanks to the outbreak of covid-19. The GEM is part of our tourism revival strategy, which aims to bring in 30 mn visitors annually by 2028 and help raise much needed hard currency.

^^ Kishida also pledged yesterday some USD 733 mn in new funding for the Cairo Metro. We have the rundown in Diplomacy, below, and additional coverage of his visit in Last Night’s Talk Shows.

IT’S THE START OF A NEW MONTH- Here are the key data points to look out for in May:

  • PMI: S&P Global should publish the April purchasing managers’ index this Wednesday, 3 May;
  • Foreign reserves: The central bank is due to release April’s foreign reserves figures sometime this week;
  • Inflation: Inflationfigures for April will be out next Wednesday, 10 May;
  • Interest rates: The Central Bank of Egypt will next meet on Thursday, 18 May to discuss interest rates.

WATCH THIS SPACE- Government officials yesterday met with officials from two of the countries we’re counting on for game-changing FDI:

  • The UAE and ADQ: Prime Minister Moustafa Madbouly held talks yesterday with the CEO of Abu Dhabi sovereign wealth fund ADQ, Mohamed Hassan Alsuwaidi, according to a cabinet statement. Alsuwaidi said the fund was interested in acquiring more assets in Egypt and expressed interest in the government’s privatization program.
  • Qatar: Finance Minister Mohamed Maait met with his Qatari counterpart, Ali bin Ahmed Al Kuwari, to discuss boosting investment inflows from Qatar as well as cooperation on tax, customs, and in the financial sector, the ministry said in a statement yesterday. The Qatari minister also invited Maait to attend the Qatar Economic Forum in Doha later this month.

Subsidized commodities just got more expensive: The Supply Ministry is from today raising the prices of almost all subsidized commodities sold to ration card holders, Ala Mas’ouleety’s Ahmed Moussa (watch, runtime: 4:41) said last night.

As of today:

  • the price of a bottle of cooking oil will rise 20% to EGP 30, up from EGP 25;
  • 1 kg of rice will rise 14% to EGP 12, from EGP 10.50;
  • 1 kg of sugar will increase 20% to EGP 12.6, up from EGP 10.50;
  • Pasta will rise to EGP 13 for 800g or EGP 6.50 for 400g;
  • 500 grams of lentils will be sold at EGP 21;
  • 40 grams of tea will rise to EGP 5.

Background- The ministry announced over the weekend that it would soon begin to incrementally raise prices to lower its subsidy bill and cut costs. Minister Ali El Moselhy justified the move saying that without such price hikes “the government will not be able to fund or provide these commodities.”

HAPPENING TODAY-

#1- The African Private Equity and Venture Capital Association’s annual summit:AVCA’s annual get-together and VC summit gets underway at the Four Seasons Nile Plaza today. Billing itself as the world’s largest Africa-focused private capital gathering, the five-day summit will bring together investors with more than USD 1.5 tn in assets under management. Multilateral lenders and policymakers are also attending.

#2- Shoukry in Amman to talk rapprochement with Syria: Foreign Ministry Sameh Shoukry is in Jordan today for talks with the top diplomats of several Arab countries about bringing Syria back into the Arab League. The foreign ministers of Jordan, Syria, Saudi Arabia, and Iraq will participate in the meeting alongside Shoukry, the Foreign Ministry said yesterday. This is a follow-up on last month’s meeting, which saw regional diplomats agree to “intensify consultations” to find a political solution to the Syrian crisis.

Remember: Egypt and Saudi Arabia are leading efforts to bring Syria back into the Arab fold after more than a decade as a regional pariah due to its civil war. Shoukry and Saudi foreign minister Faisal bin Farhan Al Saud have met multiple times with Syria’s top diplomat, Faisal Mekdad, in recent weeks to discuss restoring diplomatic ties ahead of the Arab League summit in Riyadh later this month.

#3- CBE treasury auction: The Central Bank of Egypt will try to sell USD 1 bn of one-year USD-denominated treasury bills in an auction today, according to its website.

It will also hold an auction this week for three-year EGP bonds: The central bank is looking to sell EGP 3 bn of bonds. The central bank sold less than 0.1% of the bonds offered in two similar auctions last month after investors demanded high yields due to rising uncertainty about the trajectory of the EGP.

HAPPENING THIS WEEK-

National Dialogue kicks off: The National Dialogue will hold its first session on Wednesday. The dialogue was initially set to kick off in January but was postponed after the political parties failed to name their representatives to the sessions on time.

It’s Fed week: The Federal Reserve will hold its two-day policy meeting on Tuesday and Wednesday — and signs point to a 25-bps interest rate hike as the Fed works to contain soaring inflation, according to Bloomberg. A 25-bps hike will push the fed funds rate to 5-5.25% — the highest level since 2007 — and would be the tenth consecutive hike by the central bank since it started aggressively tightening policy to curb inflation last year.

But it could be one of the Fed’s hikes last for the foreseeable future as the US inches towards a recession. “After hiking the fed funds rate one more notch at the May 2-3 meeting, the FOMC will probably declare they think they’ve done enough to bring inflation back down to the 2% target,” one analyst said. Another described this week’s meeting as “pivotal” as it comes at a point in the tightening cycle “where backlash to rate hikes will intensify, in ways no one on the Fed has had to weather.”

THE BIG STORY ABROAD-

First Republic is leading the conversation in the global business press for the second day as US regulators continue efforts to find a buyer for the embattled lender. The Federal Deposit Ins. Corporation’s (FDIC) is expected to unveil its chosen buyer before the start of the business day in America today.

Who’s in the running? JPMorgan Chase, PNC Financial Services, and Citizens Financial Group, were among the banks that had submitted takeover bids for First Republic, sources familiar with the matter have reportedly said. (AP | Reuters | Bloomberg | Financial Times | Wall Street Journal | BBC)

ALSO- Saudi + Iran to reopen embassies in days: Saudi Arabia and Iran will reopen their embassies in Tehran and Riyadh “within days,” Iranian Foreign Minister Hossein Amirabdollahian is quoted by Reuters as saying during a conference. This would mark the latest sign of warming ties between the two countries after years of hostility.

ICYMI: Earlier this year Saudi Arabia and Iran agreed to normalize relations in a China-brokered agreement. The groundwork is being laid for Saudi King Salman and Iranian President Ebrahim Raisi to visit each other's countries in what would be a historic rapprochement between the former foes.

ICYMI-

Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at the Federation of Egyptian Industries’ work with manufacturers operating in the shadow economy to assist them with going legit.

The Enterprise Exports & FDI Forum, our latest industry-specific conference, is taking place on Monday, 15 May at the Four Seasons Cairo Nile Plaza The Enterprise Exports & FDI Forum will give insiders and newcomers alike the chance to talk about how to develop an export-centered business and how their companies can help Egypt build an export-led economy that makes us a magnet for foreign direct investment (FDI).

Why exports & FDI? In the wake of successive floats of EGP, exports and FDI have never been more important to our economy — or our businesses. We’re gathering some of the CEOs, top execs from local companies and multinationals, investors, bankers and finance folks to speak on how businesses can adapt their strategies to be export-oriented and what Egypt as a country can do to draw foreign investment and much-needed FX. Expect it to be heavy on lessons learned in Egypt and other global growth markets — and lots of success stories.You can learn more on our conference website here.

Some of the biggest names in business and finance are on board — are you? The Enterprise Exports and FDI Forum is taking place with the generous support of our friends, including:

Banking partners: Banque Misr | Al Baraka Bank | Emirates NBD | HSBC

Lead partners: DB Schenker | DP World | East Port Said Development | IDG | IFC | Madinat Masr

Event partners: Beyti | Concrete | Global Corp | Grant Thornton | Hassan Allam Utilities

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

HAVEN’T REQUESTED AN INVITE YET? If you’re a C-suite exec, business owner, DFI staff, export executive, investor or banker, please fill out the form here to signal your interest, letting us know your name, title and where you work.

CIRCLE YOUR CALENDAR-

Attention, squash players and fans: Our friends at upmarket real estate developer SODIC are hosting the SODIC Squash Tour at Club S Allegria, a series of tournaments held under the auspices of the Professional Squash Association, it said in a statement(pdf). The company is playing host to nine tournaments this year, three of which took place in February.

Need funding for a project involving job creation? Look no further. German development agency GIZ’s Facility Investing for Employment will start accepting proposals for its latest competition round on 1 June, it said in astatement (pdf). The selected projects can secure grants of EUR 1-10 mn, covering between 25-90% of the investment cost of the project depending on its type.

Interested? Companies can submit applications from 1-30 June. The competition is open to private and public sector companies operating in all sectors of the economy, on the condition that the project contributes to sustainable job creation in the private sector. Also participating this time around are Côte d’Ivoire, Ethiopia, Ghana, Rwanda, Senegal, and Tunisia, alongside Egypt.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: Two years later, private universities are officially leaving the Tansik system behind and sticking to direct admissions.

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Kokomo is now open at Somabay Red Sea: Indulge in our slow-cooking methods and natural wood smoke that brings the best out of each ingredient, resulting in dishes that are both tender and flavorful. From our smoked briskets to our paellas, every dish is a tribute to the timeless tradition of cooking over an open flame, creating a unique dining experience that is sure to impress. Visit Kokomo at the S.Cape Beach daily from 12pm until 6pm, and Kokomo at Marina daily from 6pm until 12am. For more information, please call 012 0033 3111 or 012 0044 4111.

2

Diplomacy

Japan to lend Egypt c. USD 733 mn for Cairo Metro Line 4

Egypt + JICA sign funding agreement for Metro Line 4: The Japanese International Corporation Agency (JICA) will lend JPY 100 bn (c. USD 733 mn) to Egypt to finance the construction of Cairo Metro Line 4, Prime Minister Moustafa Madbouly said yesterday. Officials inked the funding agreement yesterday following talks between President Abdel Fattah El Sisi and Japanese PM Fumio Kishida in Cairo, according to readouts from Ittihadiya and the Japanese prime minister’s office. Madbouly was speaking at the Egyptian-Japanese Business Forum, held to coincide with Kishida’s visit to the country.

Metro Line 4: The first, 19-km phase of the fourth line will connect Cairo, Giza and Sixth of October City. It is expected to take six years to complete. The second, 23.5-km phase, will connect to New Cairo.

Sisi x Kishida: El Sisi met in Cairo yesterday with Kishida, who is in Egypt for the first time since taking office in 2021. The two discussed cooperation in investment and trade, education, health, transportation, and renewable energy. They also talked about recent economic, legislative, and structural reforms in Egypt and a number of regional issues, including the situation in Libya, Palestine, and Sudan, El Sisi said during a joint presser following the meeting.

Kishida praises Egypt: Kishida, in town for a three-day visit, expressed interest in the Suez Canal Economic Zone and discussed a number of infrastructure projects that Japanese companies are working on in Egypt. The Japanese prime minister pointed to Egypt’s “major infrastructure and promising economic zones,” highlighting Japan’s appetite for Egyptian investments.

More cooperation: Officials also inked yesterday a number of MoUs covering IT and legal affairs, as well as a strategic partnership agreement between Egypt’s International Cooperation Ministry and the Japan Bank for International Cooperation. The value of trade exchange between Egypt and Japan over the past five years recorded USD 1.3 bn, Prime Minister Moustafa Madbouly said at the business forum.

A message of appreciation: El Sisi thanked Japan for its “contributions to the development process and national projects in Egypt,” pointing towards the Grand Egyptian Museum, Egyptian-Japanese schools, and the Egypt-Japan University of Science and Technology.

ALSO- MAAIT MEETS ARAB COUNTERPARTS-

Finance Minister Mohamed Maait met his Tunisian and Moroccancounterparts yesterday on the sidelines of the annual meeting of Arab financial institutions. The meetings focused on emerging markets’ role during global economic disturbances and the investment climate in Egypt.

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3

WAR WATCH

Warring Sudanese factions agree to extend ceasefire for 72 hours

Sudan ceasefire extended for another 72 hours: The Sudanese armyand the Rapid Support Forces (RSF) militia have agreed to extend the ceasefire for another 72 hours to end Wednesday night, the two sides said in separate statements last night. The ceasefire aims to “open humanitarian corridors, facilitate movement for Sudanese and foreign nationals, and ensure that they receive access to necessities and can reach safe areas,” the RSF said.

Remember: Previous ceasefires haven’t held, each accusing the other of breaching the agreements and fighting largely continuing unabated in Khartoum and elsewhere in the country. Gunfire was heard around the capital yesterday, airstrikes hit Omdurman on the other side of the Nile, and fighting intensified in Darfur, according to the Guardian.

RSF won’t agree to talks until the army stops bombing: That’s according to the group’s leader, Gen. Mohamed Hamdan “Hemedti” Dagalo, who told the BBC he will not agree to direct talks with the country’s de facto leader, Gen. Abdel Fattah Al Burhan, until a genuine ceasefire holds.

In numbers:More than 75k people have been internally displaced in Sudan during the first two weeks of the fighting, the International Organization for Migration said yesterday. This is in addition to the thousands who have fled the country altogether. Thousands of others have remained trapped in the areas where the fighting is taking place. The death toll has not been updated since 29 April, when it stood at 528.

Aid arrives: The Red Cross has shipped 8 tons of surgical material to Sudan, volunteers are awaiting guarantees of safe passage in order to deliver the items to hospitals and to start working with hospitals to help restore their water and power lines. The majority of health facilities have shut down, with only 16% of Khartoum's healthcare facilities operating as usual, according to the UN.

IN EGYPT-

No new refugee figures: No updated figures were released yesterday regarding the number of people who have fled Sudan into Egypt. The Foreign Ministry said at the weekend that as of Saturday more than 16k people had crossed the border, most of whom were Sudanese refugees.

More Egyptians evacuated: Officials have evacuated 561 Egyptian citizens over the past two days, bringing the total number to almost 7k, the ministry said yesterday.

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4

Economy

S&P lowers outlook of three Egyptian banks

S&P Global Ratings has cut its outlook on the National Bank of Egypt, Banque Misr, and CIB to negative, it said Friday. The change mirrors the agency’s negative outlook on Egypt’s sovereign credit rating, which it announced last week, warning that the country risks not being able to meet its external funding needs if it doesn’t deliver on economic reforms tied to its IMF assistance program. The ratings agency held the three banks’ credit ratings at B, aligned with Egypt’s sovereign rating.

It’s all about the sovereign ceiling: “Our rated banks operate solely in Egypt. Therefore, we do not believe they would withstand a sovereign default without defaulting on their financial obligations,” the ratings agency said.

Moody’s already did the same: Earlier this year, Moody’s downgraded the long-term deposit ratings of five Egyptian banks — the National Bank of Egypt, Banque Misr, Banque du Caire, CIB, and Bank of Alexandria — after it downgraded the country’s sovereign credit rating.

Madbouly is trying to maintain market confidence: Prime Minister Moustafa Madbouly last week moved to reassure the markets that Egypt will meet its debt obligations amid rising concern among investors that the country is at risk of default. “I reassure you that the Egyptian state has not failed, nor will it fail, to pay back its international debt,” he said in televised statements.

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5

Automotive

Egypt auto sales fall 72% y-o-y in March 2023 as foreign exchange crunch bites

The auto industry has yet to recover: The auto sector’s year-long slump extended for another month in March as a shortage of foreign currency continued to negatively impact imports. Sales were down 72% y-o-y in March, with distributors selling fewer than 6.7k vehicles, according to figures released yesterday by the Automotive Marketing Information Council (AMIC).

The breakdown: Passenger car sales fell 76% y-o-y to 4.6k units, while bus sales were down 63% and truck sales were 58% lower. AMIC figures reflect data contributed by member distributors, who include most (but not all) industry participants.

The silver lining: Total sales volumes rose slightly on a monthly basis for a second consecutive month. Passenger car sales were up almost 9% from Februaryand truck sales increased by nearly a third. Bus sales volumes were 17% lower than in February. Industry players that Enterprise spoke with in March were optimistic that 2023 will mark a turning point for the sector, which has been struggling with supply issues for more than a year.

REFRESHER- Total auto sales volumes fell more than a third in 2022 after capital controls in place for most of the year made it almost impossible for distributors to import cars and components, and forced a number of global car manufacturers to suspend sales to Egypt.

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6

A MESSAGE FROM HSBC

Huge growth potential in trade between MENAT, ASEAN regions -HSBC

The historic Middle East to Southeast Asia trade corridor was the focus of an international business roadshow earlier this year led by HSBC Group Regional CEO for the Middle East, North Africa and Turkiye (MENAT) Stephen Moss, and attended by clients and colleagues from both regions at events held in Hong Kong and Singapore.

It’s an opportune time for those living and working in these regions, as they witness the growth of a trade corridor that dates back over one thousand years. Today, these are the world’s two most economically dynamic regions, with trade and investment opportunities abounding across multiple sectors.

Trade between the Middle East and Southeast Asia has resumed its upward trajectory since the pandemic, and the opportunities are highlighted in a recent report from HSBC, ASEAN-MENAT Corridor 2023: Tapping into Transformation, which focuses on five countries within each region: Malaysia, Indonesia, Singapore, Thailand and Vietnam (ASEAN-5); and Qatar, the UAE, Egypt, Saudi Arabia and Turkey (QUEST-5).

The report highlights that as of 2021, the two regions accounted for 7% of global GDP but were home to 15% of the global population, with relatively young demographics auguring well for rapid future growth. GCC-ASEAN trade rose 3.7% a year on average between 2010 and 2021, and although the pandemic caused a 27.8% drop in trade between the regions in 2020, it increased 30.5% from 2020 to 2021.

International Trade Centre (ITC) projections for 2027 show an export potential of USD 53 bn between ASEAN-5 and QUEST-5 countries, with Vietnam and Thailand demonstrating the greatest potential, while the UAE and Turkey stand to benefit most from interconnected trade from Asia.

The two regions are also key players in the energy sector, with businesses capitalizing on GCC governments’ energy diversification and decarbonization policies that are opening up opportunities in renewable technologies.

An estimated USD 100 tn will be invested globally to deliver net zero by the year 2050.

To get to net zero, more than half of the investments in power projects, almost half of the industrial investments, and 40-45% of investments in real estate, will be made in Asia and the Middle East.

The wider economic diversification agendas being pursued across the Middle East are some of the world’s most ambitious transformation programs and have given rise to growth in the travel and tourism, real estate and construction, manufacturing, and telecommunications sectors.

Recent trans-corridor investment includes Egypt and Singapore, where the Egyptian trade and industry minister noted last December that Singaporean investments in Egypt, valued at a total USD 175 mn, were distributed among 33 projects in the agriculture, manufacturing, services, information technology, and tourism sectors.

There is further work to be done, with greater formalization of trade relations to plug existing gaps ongoing. It is hoped that the coming years will see new bilateral FTAs signed between ASEAN-5 and QUEST-5 countries. This will truly help supercharge this globally significant trade corridor, bringing with it huge prosperity dividends for the markets involved.

HSBC’s column in Enterprise appears every second Monday.

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7

LEGISLATION WATCH

Egyptian lawmakers give initial approval to new rules on dog ownership, with a focus on “dangerous” animals

MPs want to introduce strict rules on dog ownership:The House gave preliminary approval to legislation that would introduce strict rules on dog ownership, including new penalties on owners who fail to license their animals.

Dog ownership is about to get more expensive: Under the legislation, dog owners will be required to purchase licenses costing between EGP 1k and EGP 50k. Anyone under the age of 18 would be banned from owning dogs.

Not licensing your pup could land you with a hefty fine: Dog owners and breeders who fail to obtain licenses will be fined at least EGP 10k. Fines of more than EGP 500k and jail terms as long as seven years could be handed out if a person’s dog attacks another person.

The rationale: “The bill aims to safeguard citizens from the deadly attacks of dangerous animals and dogs which have become everywhere on public streets, wreaking havoc among citizens and spreading noise and environmental pollution,” said House Local Administration Committee chair Ahmed El Sigini.

Treating dog bites? In this economy? Some 400k dog bites last put “massive financial cost” on the government, which had to import rabies shots to treat people, said Agriculture Committee chair Hesham El Hossary.

Yes, but… We’re not quite sure how handing out six-figure fines for unlicensed poodles is going to do anything to stop reproduction of baladi dogs on our streets.

On the plus side: We will finally be able to commute without fear of being attacked by tigers: “The draft bill comes to meet a pressing need as parliament has received hundreds of complaints from citizens urging MPs to take a legislative action against stray dogs which are threatening human lives on streets, and also regulate the possession of dangerous animals — lions, tigers, and monkeys — which attack citizens,” El Sigini said.

What’s next: The bill will be up for a final vote in an upcoming session.

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8

LAST NIGHT’S TALK SHOWS

Egyptian talk shows cover the latest from Sudan + the Cleopatra controversy

It was another busy night on the airwaves as the nation’s talking heads covered the latest from Sudan, a proposal to calm the rally in the gold market, and the Cleopatra controversy.

First up, the latest from Sudan: Violence continues in central Sudandespite an ongoing ceasefire between the country’s army and the Rapid Support Forces (RSF), Al Qahera News reporter Mohamed Ibrahim told Kelma Akhira (watch, runtime: 7:30). Khartoum residents are facing power cuts that could last days on end, he said.

Pro-Burhan vibes: “The conflict in Sudan won’t end except with the end of the RSF,” Sudanese researcher Salah Khalil told El Hekaya’s Amr Adib (watch, runtime: 0:43), adding that he expects the conflict to be resolved “within days.”

At the border:Masa’a DMC (watch, runtime: 6:51) reported on the situation at the Egyptian-Sudanese border as thousands of people flee into Egypt to escape the fighting.

The Queen Cleopatra controversy makes it onto the airwaves: Netflix’s upcoming Queen Cleopatra docuseries has been widely criticized here at home for its depiction of Cleopatra as black. “It’s not about whether Cleopatra was black or white, it’s about the fact that there are people trying to take over our Egyptian culture and attributing it to other cultures,” Kelma Akhira’s Lamees El Hadidi said (watch, runtime: 1:54). “We’ve always known that Queen Cleopatra was of Greek heritage and not black,” Hussein Abdel Basir, head of the Archaeology Museum at the Bibliotheca Alexandrina, said during a phone-in with Masa’a DMC (watch, runtime: 8:05).

We could get a more authentic version soon: State-owned media giant United Media Services’s documentary channel has announced its plans to produce its own documentary depicting the life of Queen Cleopatra. “Egyptian history is constantly being subject to attempts of distortion and falsification,” Sherif Saeed, head of the documentary channel, told Al Hayah Al Youm (watch, runtime: 7:36).

More on the Supply Ministry’s plan to calm gold prices: Earlier this week Supply Minister AliEl Moselhy said that the Supply Ministry is planning to allow expats to import a certain amount of gold into the country without paying customs — a move which policymakers hope will help to hold down the price of the precious metal which has soared over the past year due to economic uncertainty. The decision would allow expats and Egyptians coming from abroad to bring up to 150 grams of gold into the country custom-free, a move which will “significantly help stabilize gold prices in the local market,” Nagy Farag, an advisor to the Supply Ministry on gold told Ala Mas’ouleety last night (watch, runtime: 11:51).

Gold prices have more than doubled over the past year as the currency crisis and wave of inflation push Egyptians to put their savings into gold. “It’s all about supply and demand,” Hani Milad, head of Fedcoc’s gold and jewelry division, told El Hekaya (watch, runtime: 9:14).

Japanese PM in town: Japanese Prime Minister Fumio Kishida kicked off his three-day visit to Egypt yesterday, with a meeting with President Abdel Fattah El Sisi, Prime Minister Moustafa Madbouly and a number of other officials. Fumio kicking off his Africa tour with Egypt reflects the strength of the Egyptian-Japanese relations, former foreign minister Mohamed El Orabi told Al Hayah Al Youm (watch, runtime: 9:49). Masa’a DMC (watch, runtime: 1:19) and Kelma Akhira (watch, runtime: 4:11) also had coverage. We have the details of the visit in this morning’s Diplo section, above.

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9

Also on our Radar

Egypt approves new regs to help SMEs access finance

REGULATION-

Helping SMEs access finance: The Madbouly cabinet last week approvedchanges to the regulations governing finance handed out to SMEs by the Micro, Small, and Medium Enterprises Development Agency (MSMEDA). The changes will allow small businesses to use MSMEDA finance as collateral to leverage other forms of funding including bank loans.

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10

PLANET FINANCE

China manufacturing unexpectedly falls in April

April manufacturing data suggests China isn’t out of the woods yet: China’s manufacturing activity unexpectedly contracted in April for the first time since December, Bloombergreports, citing official data. The country’s manufacturing purchasing managers’ index (PMI) dropped to 49.2 in April — below the 50.0 mark that separates growth from contraction — from 51.9 a month before. “This is a mixed PMI report and suggests that China’s post-covid recovery has somewhat lost steam and calls for continued policy support,” said one economist.

EGX30

17,668

-0.7% (YTD: +21%)

USD (CBE)

Buy 30.84

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

18.25% deposit

19.25% lending

Tadawul

11,308

+0.3% (YTD: +7.9%)

ADX

9,789

+0.4% (YTD: -4.1%)

DFM

3,545

+0.8% (YTD: +6.3%)

S&P 500

4,170

+0.8% (YTD: +8.6%)

FTSE 100

7,871

+0.5% (YTD: +5.6%)

Euro Stoxx 50

4,359

0.0% (YTD: +14.9%)

Brent crude

USD 80.33

+2.7%

Natural gas (Nymex)

USD 2.41

+2.3%

Gold

USD 1,999.10

0.0%

BTC

USD 29,311

+0.3% (YTD: +77.1%)

THE CLOSING BELL-

The EGX30 rose 0.7% at yesterday’s close on turnover of EGP 2.5 bn (about 40% above the trailing 90-day average). Local investors were net buyers. The index is up 21.0% YTD.

In the green: Ibnsina Pharma (+3.3%), GB Auto (+2.5%) and Juhayna (+2.3%).

In the red: Oriental Weavers (-4.9%), Sidi Kerir Petrochemicals (-3.9%) and Edita (-3.8%).

It’s a sea of green in early trading across Asia this morning, but things could get bumpier as the day grinds on: Futures show most major European indexes opening in the green later today, but suggest Wall Street will see red at the opening bell as the market waits for news on the latest US banking crisis.

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Our weekly deep dive into education in Egypt, from K-12 to post-secondary.

Published every Monday in EnterpriseAM.

Read Blackboard
11

BLACKBOARD

Private universities in Egypt are officially bidding farewell to a centralized admissions system

Two years later, private universities are officially leaving the Tansik system behind and sticking to direct admissions: The Higher Education Ministry’s Supreme Council of Private Universities is set to officially scrap the centralized admissions platform that imposed a Tansik-style system for private and nonprofit universities, two years after it introduced the platform, several sources confirmed to Enterprise. The council had temporarily changed the admissions process for the current academic year after determining that it was not best serving the needs of universities or students. After a further assessment, the council has decided to make the change official for the 2023-24 academic year, with a few additional changes, our sources said.

REFRESHER- The council had launched the centralized admissions platform in February 2021 as it looked to create an administrative and regulatory platform for the admissions process. The system was designed to end the practice of universities opening up seats to students who have the ability to pay but do not necessarily meet the academic requirements imposed on the rest of the student body. The original Tansik-style system required students to apply to the platform and indicate their preferred majors and university, and provide their grades. The platform would then assign students to universities, with the assignments based primarily on their grades and the number of places available at each faculty at each university. Assignments were prioritized based on grade points, with students with the highest grades getting first dibs.

Things weren’t exactly working out: One year after its introduction, the council decided tochange the system ​​to one that more closely resembles the UK’s UCAS platform, allowing students to apply to their university of choice through the university website. Universities are then responsible for registering the student’s application on the portal, but these portals are wired with a mirroring system allowing the council to track the applications as they are submitted and monitor how they are processed to keep things transparent.

The new system has fared much better, pushing the council to make it official: The reworked admissions system was introduced last year on a trial basis as the council looked to address issues of corruption, with the understanding that it could change the system again. Connecting the universities’ admissions portals to the council allowed the council and ministry to oversee the process, making procedures more transparent, council head Mohamed Helmy El Ghar told Enterprise.

There are some tweaks: The council has decided to cancel aptitude test requirements for students applying to mass media, nursing, tech, and industrial education faculties, as well as health and nursing technical institutes, but these requirements will remain in place for students applying to physical education, sports, music, arts, applied arts, fine arts, and educational faculties, our sources told us. The council has also decided to do away with rules governing the geographical distribution of students with a Thanaweya Amma degree or equivalent international degrees who are applying for spots in nursing and education or specialized education faculties, as well as those applying to technical institutes for health or nursing, according to our sources.

Private universities are cheering the move: After voicing their concerns about the centralized admissions system and its effects on their profitability, private university representatives we spoke with are all broadly happy with the council’s decision to scrap the Tansik system and allow universities to select their students based on their own criteria, including language skills and other abilities. “Keeping the new system in place is a move in the right direction, and giving private universities the authority to determine what they need to maintain their competitiveness — with oversight and supervision from the Higher Education Ministry — is ideal,” Future University President Obada Sarhan told Enterprise. Nahda University President Hossam El Malahy echoed the sentiment, telling us that the direct admissions system is in the best interest of students and universities alike.

Your top education story for the week:German will be introduced as an elective second language in public schools in the 2024-2025 academic year, according to an Education Ministry statement.

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CALENDAR

APRIL

26 April - 5 May (Wednesday-Friday): African Basketball Championship.

Late April – 15 May: 1Q2023 earnings season.

MAY

1 May (Monday): Labor Day.

1 May (Monday): Deadline to apply to VC funds program by GIZ Egypt, AfricaGrow and Dutch development bank FMO.

1-5 May (Monday-Friday): African Private Equity and Venture Capital Association annual summit, Four Seasons Nile Plaza, Cairo.

2 May (Tuesday): National Paints Holding’s and Eagle Chemicals’ MTOs for Pachin ends.

2-3 May (Tuesday-Wednesday): Federal Reserve interest rate meeting.

3 May (Wednesday): National Dialogue begins.

4 May (Thursday): National holiday in observance of Labor Day (TBC).

7 May (Sunday): Senate back in session.

7-11 May (Sunday-Thursday): First round of applications for sixth phase of export subsidy program.

9-11 May (Tuesday-Thursday): First edition of the Arab Actuarial Conference, Cairo.

12-15 May (Friday-Monday): Egypt Fashion Week.

14 May (Sunday): Expat car import scheme ends.

14 May (Sunday): EgyptAir to launch a new route to Dhaka, Bangladesh.

14 May (Sunday) Egytrans’ shareholders to vote on NOSCO acquisition.

15 May (Monday): Enterprise Exports & FDI Forum, Four Seasons Hotel Cairo at Nile Plaza.

16-18 May (Tuesday-Thursday): Egypt will host its first conferenceon cybersecurity and defense intelligence systems (CDIS-Egypt).

17-31 May (Wednesday - Wednesday): Second round of applications for sixth phase of export subsidy program.

18 May (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

19 May (Friday): Arab League summit, Riyadh.

19-21 May (Friday-Sunday): G7 summit, Hiroshima, Japan.

20-21 May (Saturday-Sunday): eGlob Expo, St. Regis Almasa Hotel, Cairo.

22-26 May (Monday-Friday): Egypt will host the African Development Bank (AfDB) annual meetings in Sharm El Sheikh.

29 May (Monday): IEF-IGU Ministerial Gas Forum, Cairo.

30 May (Tuesday): Listed companies have until this date to report and publish their 1Q results.

JUNE

June: Indian representatives to discuss prospect investments in the Suez Canal.

7-10 (Wednesday-Saturday): The second edition of Africa Health Excon.

10 June (Saturday): Thanaweya Amma examinations begin.

12 June - 15 July (Monday-Saturday): Thanaweya Amma exams.

13-14 June (Tuesday-Wednesday): Federal Reserve interest rate meeting.

15 June (Thursday): Deadline for bids in EGPC’s mature oil fields tender.

19-21 June (Monday-Wednesday): Egypt Infrastructure and Water Expo debuts at the Egypt International Exhibition Center.

22 June (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

28 June-2 July (Wednesday-Sunday): Eid El Adha (TBC).

30 June (Friday): June 30 Revolution Day.

30 June (Friday): Egypt to exit Grains Trade Convention.

JULY

1 July: House of Representatives deadline to approve the FY 2023-2024 budget.

1 July: GAFI to launch the country’s first integrated electronic platform to facilitate setting up a business.

5 - 6 July (Monday - Tuesday): Gov’t to pay out subsidies to first wave of applicants under its sixth export subsidy program.

18 July (Tuesday): Islamic New Year.

19 - 20 July (Wednesday - Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

20 July (Thursday): National holiday in observance of Islamic New Year (TBC).

23 July (Sunday): Revolution Day.

25-26 July (Tuesday-Wednesday): Federal Reserve interest rate meeting.

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

Late July-14 August: 2Q2023 earnings season.

AUGUST

August: Hassan Allam Utilities + Agility to open Yanmu East logistics park.

2 - 3 August (Wednesday - Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

3 August (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

10 August (Thursday): Shalateen Mineral Resources gold mining tender closes.

22-24 August (Tuesday-Thursday): BRICS summit, Johannesburg, South Africa.

SEPTEMBER

September: Sustainable Debt Coalition Initiative agreed at COP27 to launch.

9-10 September (Saturday-Sunday): G20 summit, New Delhi, India.

15 September (Friday): IMF to review USD 3 bn program.

19-20 September (Tuesday-Wednesday): Federal Reserve interest rate meeting.

21 September (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

21-23 September (Thursday-Saturday): Narrative PR Summit, Somabay.

25 September (Monday): Nasdaq deadline for Swvl Holdings Corp to increase its market value of publicly held shares to a minimum of USD 15 mn.

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

28 September (Thursday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

OCTOBER

October: Deadline for ins. providers to link their databases with the FRA.

2-5 October (Monday-Thursday): ADIPEC 2023, Abu Dhabi National Exhibition Center.

6 October (Friday): Armed Forces Day.

13 October- 20 October (Friday-Friday): The sixth edition of El Gouna Film Festival (GFF).

Late October-14 November: 3Q2023 earnings season.

26 October (Thursday): Daylight saving time ends.

31 October - 1 November (Tuesday-Wednesday): Federal Reserve interest rate meeting.

NOVEMBER

November: Cairo to hostIntra-African Trade Fair.

2 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

15-24 November (Wednesday-Friday): Cairo International Film Festival, Cairo.

DECEMBER

12-13 December (Tuesday-Wednesday): Federal Reserve interest rate meeting.

21 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

2023: Egypt will host the Asian Infrastructure Investment Bank’s Annual Meeting of the Board of Governors in 2023.

Summer 2023: EGX to launch a shariah-compliant index.

1H 2023: GAFI roadshow set to launch to drum up foreign investment for golden licenses

1H 2023: Abu Dhabi Islamic Bank intends to launch a digital consumer finance company

2H 2023: Egyptian government expected to sign agreements with a consultant for the EuroAfrica electricity interconnector.

2H 2023: President Abdel Fattah El Sisi and Turkish President Recep Tayyip Erdogan expected to hold a summit.

4Q 2023: EGX to launch its new futures exchange.

End of 2023: A Developments’ first phase of the Lazoghly development completed.

November 2024: Egypt to host the 12th session of the World Urban Forum (WUF12).

2Q 2025: Safaga Terminal 2 to initiate operations.

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