Longtime Egypt investor Actis to merge with General Atlantic

Wednesday, 17 Jan 2024

Longtime Egypt investor Actis to merge with General Atlantic

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Today at a glance

M&A WATCH

In bid to double-down on infrastructure, General Atlantic will acquire emerging markets PE giant Actis.

DEBT WATCH

Gov’t is getting USD 250 mn to boost food + energy security.

RED SEA WATCH

More companies pause Red Sea traffic after another Houthi attack.

What We're Tracking Today

It’s Day three of Davos.

LEGISLATION WATCH

MPs give the go ahead to Criminal Procedures Code amendments.

LAST NIGHT’S TALK SHOWS

El Moselhi on the hot seat.

PLANET FINANCE

Panmure Gordon and Liberum join forces to create the UK’s largest independent broker.

HARDHAT

El Sisi’s third term comes bearing major export and transport targets.

What We're Tracking Today

Rania Al Mashat is off to Davos

Good morning, wonderful people. It’s day threeof Davos and we’ve finally got news of who will be jetting off to the World Economic Forum to represent us. International Cooperation Minister Rania Al Mashat will be our person on the inside and we’re eagerly awaiting news of sideline chats with international lenders, world leaders, and the like to bring to you.

In today's issue, we’ve got a rundown of what to look out for today at Davos, Actis’ new owner and why this is important to Egypt, a loan to support our food and energy security, the latest on disruptions in the Red Sea, and plenty in between.

AND- Don’t forget, there is now an EnterpriseAM for the UAE: Think of it as the UAE analogue to your morning read in Egypt — your essential report on business, finance, the economy, and regulation in one of the world’s most vibrant and exciting economies. You can sign up to have the newsletter delivered fresh to your inbox here.

EnterpriseAM UAE is produced in the United Arab Emirates and in Egypt by the same team that brings you EnterpriseAM and EnterprisePM in Egypt as well as our MENA industry reports, Enterprise Climate and Enterprise Logistics.

** You can also stay tuned for the launch later this month of EnterpriseAM KSA. Tap or click here if you’d like to be added to our list for launch day.

HAPPENING TODAY-

Davos rolls into day three: Today’s headline events will likely be speeches from the US State Secretary Anthony Blinken and UN Secretary-General Antonio Guterres, but we’re more focussed on appearances from regional heavyweights that we think you should tune into.

We’re sending Rania Al Mashat to the frontlines of the conference: International Cooperation Minister Rania Al Mashat will be attending Davos “to participate in several discussion sessions to strengthen the framework of international cooperation and development financing for Egypt” a statement from the ministry said yesterday.

Rania’s got a busy schedule: On Thursday, the minister is set to participate in a session entitled Building Equitable Transitions: Green and Fair at 11:15am CLT and will later take part in MENA's Economic Dilemma: Reforming amid Uncertainty alongside Saudi Planning Minister Faisal Al Ibrahim, Moroccan Finance MinisterNadia Fettah Alaoui, Hikma Pharma Chairman Mazen Darwazeh, Dubai Future Foundation CEO Khalfan Belhoul, DAMAC Chairman Hussain Sajwani, and others at 2:15pm CLT. The minister is also set to meet with regional and international private sector companies, including the UAE’s Majid Al Futtaim Holding to German firm Siemens and British lender Standard Chartered.

From the private sector: MNT Halan CEO Mounir Nakhla is in Davos as part of the WEF’s Innovator Forum and will speak on a Thursday panel on financial inclusion moderated by the Queen of the Netherlands.

From the region: Starting the day off will be a session on the direction of the Middle East conflict at 11:15am CLT, followed by a deep dive into everything UAE at 5:15pm CLT. Rounding out the focus on the region will be two sessions focusing on the creation of a sustainable MENA and women’s rights in Iran, both at 6:30pm CLT.

Fireside chats: Iranian Foreign Affairs Minister Hossein Amir Abdollahian will sit down with CNN journalist Fareed Zakaria at 2:30pm CLT, while the Palestine Investment Fund’s chair Mohammad Mustafa will be in conversation with World Economic Forum President Børge Brende at 3:45pm CLT.

** You can watch the live session here and check out the full program here.

WATCH THIS SPACE-

#1- EGX wants to overhaul its disclosure system: The Egyptian Exchange wants todigitize its disclosure system next year as part of a wider strategy to modernize the bourse and make it more tech savvy, according to its annual strategy report picked up by Al Borsa. Egypt for Information Dissemination — the sole aggregator and authorized distributor of EGX-listed companies’ information — is working to finalize an agreement with an international tech solutions provider that will launch the EGX’s new e-disclosure system that uses the eXtensible Business Reporting Language (XBRL).

XBRL? XBRL is a digital reporting language that facilitates the exchange of information between listed companies by unifying the language used in reports like financial statements, risk reports, and performance reports. The system aims to “improve the accountability and transparency of business performance globally,” Ayman Taha, the media advisor to the EGX’s chairman, told Enterprise. “This will make things easier both for us and for listed companies. Rather than each company sending documents in a different format or font for example, having a unified format will facilitate the exchange of information between companies,” Taha added

#2- More commodities to hit the EMX: The Egyptian Mercantile Exchange (EMX) plans to list 13 new commodities — spanning agricultural, oil derivatives, and food categories, Al Mal reports, quoting EMX chair Ibrahim Ashmawy, who did not provide a timeline. Ashmawy added that steel, aluminum, and petrochemicals are also in the EMX’s listing plans.

THE BIG STORY ABROAD-

THE BIG STORY ABROAD- The global business press is digesting Donald Trump’s landslide victory in the Iowa caucuses yesterday. He was always tipped to come out on top, but a much stronger than expected showing has pundits openly suggesting that his appeal has expanded beyond his base (at least in very white, very Republican midwestern states…) and that Nikki Haley and Ron Desantis are “running out of time” to stop him. (Financial Times | Wall Street Journal | Politico | Axios | Reuters)

Must-read on the topic:A wary world braces for Trump’s return to the White House, in Bloomberg.

IT’S A BIG DAY FOR: Tech nerds, as Samsung holds its Galaxy Unpacked event. Expect a new S24 line with new artificial intelligence capabilities to take center stage. Samsung faithful expecting a big redesign will be as disappointed as were iSheep this past fall with the, let’s say “extreme stability” of Apple’s iPhone design language.

Want more? You can check out Samsung’s Unpacked page or head over to its Youtube channel when the event starts at 10pm UAE time tonight.

Speaking of Samsung: The company is no longer the world’s largest mobile phone maker. Apple, which already led the industry in terms of value, has overtaken Samsung by volume — the first time in a dozen years of heavy competition that the Cupertino company has edged out its Korean rival.

And speaking of Apple: The tech giant is going to let third-party apps in the United States link to their developer’s website to process payments for in-app purchases. While doing so would bypass Apple’s built-in payment system, it will still ask for a percentage of the sale, Bloomberg reports. Apple and Google face pressure from regulators around the world to open their app marketplaces to sideloading and third-party payment methods.

Curious about Apple’s Vision Pro? With the order and delivery window coming up (for readers in the United States only), you might want to head over to The Verge not just for a Samsung recap this evening, but for Victoria Song’s take on Vision Pro after getting to spend 30 minutes hands-on with it. Her take: “I know what I saw, but I’m still trying to figure out where this headset fits in real life.”

AND- Interim BP boss Murray Auchincloss will get the job permanently, the Financial Times reports. Expect an announcement later today.

WAR WATCH-

Qatari-French brokered agreement to get meds, aid to both vulnerable Gazans, Israeli hostages: Following weeks of negotiations, Qatar and France brokered an agreement between Hamas and Israel that would see medical and humanitarian aid delivered through the Rafah border crossing for 45 injured Israeli hostages held by Hamas in exchange for aid to be delivered to the most endangered civilians in Gaza, Reuters reports.

Saudi Arabia’s recognition of Israel would hinge on the establishment of a Palestinian state, Reuters reported yesterday, citing statements by Foreign Minister Faisal bin Farhan during a panel at the Word Economic Forum in Davos. "We agree that regional peace includes peace for Israel, but that could only happen through peace for the Palestinians through a Palestinian state," he said.

MORNING MUST READ-

Latest US inflation data and geopolitical tensions should reinforce caution when it comes to monetary policy: While US inflation has been slowing down from its peak in 2022, the Fed should exercise caution in its policy as geopolitical tensions and disruptions to the Red Sea will impact the availability of goods and drive prices higher, placing pressure on the central bank’s inflation targets, Enterprise HQ fan favorite Mohamed El Erian writes in an opinion piece published by the Financial Times.

Don’t forget: Annual headline inflation in the US rose to 3.4% last month from 3.1% in November, surpassing economists’ expectations of 3.2%. Markets are anticipating that the Fed could start cutting rates as early as March.

CIRCLE YOUR CALENDAR-

Join the BEBA for breakfast: The British Egyptian Business Association (BEBA) willhost a breakfast briefing under the theme Cyber Security: How to Mitigate the Growing Digital Risks & Hazardsat the Conrad Cairo Hotel next Monday at 9:30am CLT. Sign up for the event here.

Cyber security is a hot topic right now: Last year saw unconfirmed reports alleging that two Egyptian blue chip companies were hacked by LockBit — the world’s most successful ransomware gang — compromising personal and financial data. We have been unable to verify all of LockBit’s claims, but the hack suggests that LockBit has turned its sights on Egypt and other emerging markets — likely banking on companies here taking a less-sophisticated approach to cybersecurity.

One of those hits was on Fawry: We had a chat with Fawry CEO Ashraf Sabry, who explained to us the nitty gritty of what happened and the steps the company is taking to prevent this from happening again.

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

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’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 take a look at the government’s ambitious export, transport, and aviation targets for President Abdel Fattah El Sisi’s third term.

Tags:

Davos What We're Tracking Today

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M&A WATCH

Actis, a longtime investor in Egypt and champion of emerging markets, will merge with General Atlantic

General Atlantic is on track to buy Actis to form USD 96 bn asset manager: US private equityfirm General Atlantic has agreed to acquire London-based, emerging markets-focussed infrastructure fund manager Actis, according to statements from the companies (here and here). The move will add USD 12.5 bn worth of assets under management to General Atlantic’s USD 83 bn portfolio. The value of the acquisition wasn’t disclosed.

But don’t worry, Actis ain’t going away any time soon: Actis will become General Atlantic’s sustainable infrastructure arm and will retain its name, independence over investment decisions, and familiar faces at the top of the organization.

THE EGYPT ANGLE- Actis invested in Egypt when other PE firms weren’t interested: Actis has a “20 year track-record of investing over USD 1 bn in some of the country’s most strategically important businesses and projects,” our friend Sherif El Kholy, both partner and head of Middle East and Africa Infrastructure and of private equity in MENA at Actis, said in back in 2022.

Actis has made big investments in Egypt across sectors including food and beverage, healthcare, and power and has completed landmark investments in market-leading businesses including CIB, Edita Food Industries, and El-Rashidi El-Mizan. The emerging markets champion has also doubled down on big ticket investments in physical infrastructure, when other private equity shied away from investing here, and remains a major shareholder of Integrated Diagnostics Holdings.

AND- Actis is an importantplayer in our green energy and privatization ambitions: The Madbouly government was on tract to accept Actis' bid to add the state-owned 580-MW Gabal El Zeit wind farm to its long list of renewable holdings here in Egypt, a source at the New Renewable Energy Authority told Enterprise in July. This could mean a lot of money for the state coffers, with the government reportedly hoping to up the price to USD 600-800 mn from USD 400 mn. Outside of its renewables portfolio, Actis could also be on its way to acquiring the 4.8-GW Siemens power plant in Beni Suef from the government for USD 2 bn.

** Sherif El Kholy (LinkedIn) took to the stage at Enterprise Finance Forum to offer his thoughts on the state of funding in Egypt. You can check out our rundown of the session here.

What they said: “Addressing the global paradigm shift toward sustainability requires aneconomic transformation and a capital investment on a massive scale,” said Bill Ford, General Atlantic’s chairman and CEO. “With the addition of Actis, we are taking a significant step forward to add a sustainable investment capability which positions General Atlantic to capture this [potential] set for our investors.”

THE GLOBAL ANGLE- It’s not just General Atlantic who thinks there’s an infrastructure boom around the corner:US investment giant BlackRock agreed to acquire energy- and transport-focussed infrastructure investment fund Global Infrastructure Partners for a grand total of USD 12.5 bn last week — creating the world’s second-largest infrastructure firm.

The int’l business press all gave the news some ink:Financial Times | Bloomberg | Reuters

Tags:

Actis asset management Gabal El Zeit wind farm General Atlantic infrastructure M&A Watch sustainability

DEBT WATCH

Egypt secures USD 250 mn from AFC, IFTC for food + energy security. PLUS: Arab Bank to help fund Cairo Metro Line 4

Fresh funds to boost our food and energy security: Egypt will receive a USD 250 mnsharia-compliant trade loan facility from the Africa Finance Corporation (AFC) and International Islamic Trade Finance Corporation (IFTC) to support Egypt’s food and oil security, the AFC said in a statement.

The beneficiaries: The one-year facility will be split evenly between the state-owned EgyptianGeneral Petroleum Corporation (EGPC) and state grain buyer the General Authority for Supply Commodities (GASC) to fund purchases of fuel and petroleum products and commodity imports including wheat, corn, vegetable oils, and sugar, the lender said.

Just the tip of the AFC iceberg: The AFC plans to invest USD 1 bn in with an “immediate project pipeline” already on the table targeting our renewable energy, natural gas, heavy industries, tech, telecoms, banking, and finance sectors, the lender said in March last year. Egypt became a fully paid-up AFC member in 2022, unlocking access to big ticket investments.

FUNDING FOR CAIRO METRO LINE 4-

Cairo Metro Line 4 to get Arab Bank boost: Orascom Construction signed a EGP 4.2bn cooperation agreement with Arab Bank to help fund the fourth phase of Cairo Metro Line 4 connecting Giza to Fustat, according to statement (pdf ). The fourth phase will also link up with the line with the first and second lines of the Cairo Metro.

Cairo Metro Line 4? The first, 19-km phase of the line will connect Cairo, Giza, and Sixthof October City and provide access to the Grand Egyptian Museum and the Giza Pyramids. It is being constructed by Thales, Orascom Construction, and Colas Rail. Construction kicked off last year and is expected to take six years to complete.

More funding might be on its way soon for the fourth line: The National Tunnels Authority is looking to secure an EGP 17 bn loan from a consortium of local banks led by Banque Misr and the National Bank of Egypt to help fund the line’s construction, according to unconfirmed reports in November. Part of the new line is also being financed by a JPY loan provided by the Japanese International Corporation Agency (JICA).

Tags:

Africa Finance Corporation Arab Bank debt watch Energy security food security International Islamic Trade Finance Corporation Orascom Construction transport

RED SEA WATCH

More companies pause Red Sea traffic after another Houthi attack

Shell hits pause on Red Sea shipments: Global oil giant Shell has suspended shipments through the Red Sea indefinitely amid fears of further escalations in the waterway after the US and UK launched air strikes on Houthi facilities across Yemen on Friday, the Wall Street Journal reports. Japanese shipping giant Mitsui OSK Lines also paused transit through the waterway, Bloomberg reports. The two companies are the latest in a growing number of shipping and oil firms to halt shipments after the Houthis started targeting commercial vessels..

Another ship struck in the waterway: Greek-owned bulk carrier Zografia was hit by a missileabout 122 kilometers northwest of the Yemeni port of Al Saleef en route from Vietnam to Israel, Reuters reports. There were no injuries and the vessel was empty of cargo. The Houthis appear undeterred, as their attack on the vessel was preceded by US strikes targeting Houthis missiles while being prepared earlier during the day, according to the Washington Post. The attack also came a day after the Houthis targeted a US commercial vessel with an anti-ship ballistic missile.

Consumers will start feeling the impact of it all: Shipping disruptions in the Red Sea areexpected to elevate the prices of consumer goods and derail the Fed’s timeline of when it hopes to cut rates, sources told Reuters. “The cost of goods into Europe from Asia will be significantly higher ... It will hit developed economies more than it will hit developing economies,” DP World CFO Yuvraj Narayan told the newswire, adding that he expects the disruptions to heavily hit European imports.

BUT- some vessels remain unfazed by Red Sea escalations: A large number of commercial vessels are pressing ahead with the Red Sea route despite the US and UK navies advising against it, according to data compiled by Bloomberg. Some 114 vessels continued their course along the waterway, down only 17 from a week ago.

Qatari LNG shipments included: Four Qatari vessels carrying liquified natural gas haveresumed their course along the Red Sea after several days’ pause triggered by the recent US and UK strikes in Yemen, according to shipping tracking data cited in Reuters.

By the numbers: Different carriers have been differently impacted by the current tension in thewaterway — the number of gas carriers has dropped by 96% from last month, followed by container ships with a 80% m-o-m dip, oil tankers (55%), and bulk carriers (25%).

Yemen isn’t intimidated by the US’ task force: The US-led maritime task force — dubbedOperation Prosperity Guardian — aiming to ensure safe passage of vessels through the Red Sea, is weak due to lack of regional participation from Saudi Arabia, the UAE, and Egypt, Yemeni Vice President Aidarous Al Zubaidi told Reuters yesterday.

The EU wants to launch its own naval mission: The EU’s Political and Security Committee has given its initial support to another naval mission aimed at protecting vessels in the Red Sea, after some European countries voiced concerns about Operation Prosperity Guardian and reluctance to operate under US leadership, Reuters reports. Foreign ministers will meet on 22 January to discuss the mission, which the EU is looking to set up by 19 Feb.

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logistics RED SEA WATCH

LEGISLATION WATCH

The House greenlights overhauls to criminal appeal procedures

MPs gave their final approval to proposed amendments to the CriminalProcedures Code yesterday, allowing defendants in felony cases to ask courts of appeal to rule on verdicts issued by criminal courts before being passed to the Court of Cassation for a final ruling, according to the local media reports (here and here).

The why: While verdicts in less serious crimes — think misdemeanors — are subject to a two-levellitigation during the appeals process, felonies — which are more severe — are not, as appeals go straight to the Court of Cassation without passing through an intermediary appeals court.

SOUND SMART: The Court of Cassation is one of three of the highest courts in the land. We have the Court of Cassation, which is the highest court in the land on both criminal and civil matters, the Supreme Administrative Court trumps all when it comes to matters of administrative law, and judgements of the Supreme Constitutional Court, which are binding on all other courts.

So what’s changed?

Rules regulating the establishment of appellate felony courts: The new provisionsoutline the rules regulating appellate felony courts, their sessions, locations, and the criteria used to select their judges.
Streamlined appeal procedures: New provisions regulate the procedures followedbefore the appellate felony courts. This entails notifying the defendants of the scheduled session for the appeal, the qualifications of the attorneys allowed to plead before the court along with their role and fees, penalties for any misconduct, and the procedures for presenting cases to the court. The provisions also outline the court's authorities when it comes to arresting, detaining, or releasing the defendants.

And the amendments have come just in time: The amendments implement a constitutional obligation to ensure that defendants have the material and human capabilities to appeal felonies before the Courts of Appeal within ten years of issuing the new constitution — which, conveniently, was issued ten years ago to the day today.

What’s next? The amendments will go into effect a day after being published in the official gazette.

Tags:

House of Representatives legislation Legislation Watch regulation

LAST NIGHT’S TALK SHOWS

El Moselhi on the hot seat

It was a shouty night on the airwaves yesterday, as an unusually rowdy House earlier in the day aimed their sights on Supply Minister Ali El Moselhi to vent their frustration over commodity shortages and price hikes.

Supply minister under fire: “This is not a House that pats [on the back]. This is a House whips,” Ahmed Moussa told his viewers last night as he commented on the sharp criticism levelled at Supply Minister Ali Moselhi from MPs over repeated hikes to basic commodities prices and supply shortages (watch, runtime: 15:04). Mirroring his fellow MPs’ frustration, House Budget Committee Secretariat Abdelmoneim Emam told Yahduth Fi Masr that the ministry’s performance has plummeted to an “unjustifiable, indefensible extent,” while they blame the situation on global conditions (watch, runtime: 5:09). The story also got airtime on Masa DMC (watch, runtime: 9:46) and Al Hayah Al Youm (watch, runtime: 8:13).

News of the arrival of Palestinian journalist Wael Al Dahdouh into Egypt from the Rafah border crossing before flying off to Qatar to get medical treatment was warmly welcomed by the nation’s talking heads, who praised his heroic role in the war on Gaza. (Kelma Akhira | watch, runtime: 4:44) (Ala Masouleety | watch, runtime: 2:33) (Masa DMC | watch, runtime: 00:35) (Al Hayah Al Youm | watch, runtime: 00:46)

Securitizing Suez Canal proceeds is “just media talk,” Suez Canal Authority (SCA) head Osama Rabie told El Hadidi in a phone interview (watch, runtime: 18:02), dismissing rumors about securitizing the canal revenues as mere media speculation.

Rabie spoke about developments in the Red Sea and their impacts on the canal, estimating that the current 30% drop in traffic will last until the end of the month. (Salet El Tahrir | watch, runtime: 3:28) (Yahduth Fi Misr | watch, runtime: 11:06) (Masa DMC | watch, runtime: 13:53)

Tags:

commodities LAST NIGHT’S TALK SHOWS Middle East politics Sugar wheat

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EGYPT IN THE NEWS

Gunfire on the border puts Egypt in the news

The exchange of gunfire along Egypt’s border is leading theconversation in the international press,as military forces from both Egypt and Israel clashed with as many as 20 drug smugglers in the Sinai Peninsula, leading to the killing of one suspect and six others being arrested. An Israeli soldier was injured in the incident, while no casualties were reported on the Egyptian side. (Reuters | AP | The National | Time)

Tags:

Egypt-Israel relations Middle East politics

Also on our Radar

Heidelberg Materials commences waste heat recovery system. PLUS: Egypt’s Paymob to launch in Oman

INDUSTRY-

Heidelberg Materials installs waste heat recovery system at Helwan plant: Germancement manufacturer Heidelberg Materials has set up a waste heat recovery system at its factory in Helwan with a USD 30 mn investment, the German Embassy said in a statement on social media. The new system will supply 30% of the factory’s electricity needs, Al Borsa reported.

STARTUPS-

Paymob gets go-ahead to launch in Oman: Egyptian fintech company Paymob has received a Payment Service Provider license from the Central Bank of Oman, making it the first international fintech company to be licensed in Oman, the company announced in a statement (pdf). The license will allow Paymob to process online and in-store payments in the Sultanate as well as overseas payments.

Tags:

ALSO ON OUR RADAR cement Fintech Heidelberg Materials Paymob startups

PLANET FINANCE

Panmure Gordon and Liberum join forces to create the UK’s largest independent broker

London brokers Panmure Gordon and Liberum are merging to create the largest advisor to London-listed companies, the two said in a joint statement yesterday. The all-stock transaction will also see Panmure Liberum become the largest advisor to UK-quoted investment funds. The transaction makes Panmure Liberum the top player by volume in the under GBP 1 bn IPO market over the past five years.

The transaction comes as brokers struggle with dealflow as the IPO market in London remains stagnant, the Financial Times notes. Panmure boss Rich Ricci (pictured above) will lead the merged entity while Liberum founder Shane Le Prevost will be non-executive chairman.

THE LOCAL ANGLE: EFG Holding took a 10% stake in Panmure Gordon back in 2008, exiting it in a 2017 sale to Atlas Merchant Capital (owned by former Barclays chief Bob Diamond) and QInvest. Atlas Merchant remains a shareholder after the merger with Liberum and will provide the new outfit with “substantial financial backing and the liquidity to support its long-term strategic ambitions.”

ALSO WORTH NOTING-

#1- Goldman Sachs and Morgan Stanley are reporting their lowest profits in four yearsafter a slow 2023 for investment bankers weighed on earnings. Blame depressed M&A dealflow and anemic IPO execution.

But, but, but… Top execs at both banks said on earnings calls that they’re seeing signs that corporate appetite to raise capital, do M&As, and go public is on the rise, with both Morgan CFO Sharon Yeshaya and Goldman CEO David Solomon pointing to growing pipelines of transactions. “I’m pretty optimistic,” Solomon said on his results call. “I’m not going to say it’s running back to 10-year averages right away, but it has materially improved.”

#2- Elon Musk wants more shares of Tesla to stick around and help the carmaker tackle AI. Tesla CEOElon Musk said he would be willing to grow the EV maker into an AI and robotics leader only if he has at least 25% voting control — roughly double his current c.13% stake. He added in a later post that having a voting power of 15% or lower “makes a takeover by dubious interests too easy.” (Reuters)

It would be a shame if something were to happen to your nice company, fellas… Don’t give him the shares? Elon will look to build new things outside Tesla, he warned. “Unless that is the case, I would prefer to build products outside of Tesla,” he wrote on X. Musk is basically asking Tesla to give him the bns of USD he spent on his ill-fated acquisition of Twitter — and then some.

EGX30	26,938	+2.6% (YTD: +8.2%)
USD (CBE)	Buy 30.83	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	19.25% deposit	20.25% lending
Tadawul	12,078	-0.4% (YTD: +0.9%)
ADX	9,761	-0.2% (YTD: +1.9%)
DFM	4,082	-0.5% (YTD: +0.6%)
S&P 500	4,766	-0.4% (YTD: -0.1%)
FTSE 100	7,558	-0.5% (YTD: -2.3%)
Euro Stoxx 50	4,447	-0.2% (YTD: -1.7%)
Brent crude	USD 78.29	+0.2%
Natural gas (Nymex)	USD 2.84	-2.0%
Gold	USD 2,030.20	-1.0%
BTC	USD 43,447.92	+1.7% (YTD: +2.9%)

THE CLOSING BELL-

The EGX30 rose 2.6% at yesterday’s close on turnover of EGP 6.46 bn (122.6% above the 90-day average). Foreign investors were net buyers. The index is up 8.2% YTD.

In the green: TMG Holding (+11.8%), Abu Dhabi Islamic Bank-Egypt (+6.6%) and B Investments (+6.5%).

In the red: Edita (-0.3%).

Asian markets are mixed in early trading this morning ahead of the release today of Chinese economic data and after all three major Us indexes closed Tuesday in the red. Futures point to a weak opening in Europe and on Wall Street later this morning.

CORPORATE ACTION-

EgyptAlum pushes back rehabilitation tender: State-owned, EGX-listed Egypt Aluminum (EgyptAlum) said it will postpone receiving technical and financial offers for an external public tender for rehabilitating the company to 31 March — originally scheduled for 15 January — according to a bourse disclosure (pdf).

Tags:

Financial Markets Planet Finance

HARDHAT

The Egyptians government wants to boost export, transport, aviation sectors by 2030

More exports and more roads are just some of the few goals laid out for President AbdelFattah El Sisi’s third term as seen in the Cabinet Information and Decision Support Center’s report (pdf).

** Read more: We have already dissected other aspects of the report, including thegovernment’s economic, green energy, infrastructure, manufacturing, and education targets through 2030.

EXPORT STRATEGY-

EgyEx Triple 10: The government plans to launch a six-year export strategy — dubbed EgyExTriple 10 — to increase exports to USD 145 bn by 2030. The strategy will entail establishing ten specialized export zones, developing ten export-oriented industrial zones, and focusing on ten unidentified key export markets.

Remember: The state is looking to increase exports to USD 100 bn a year by 2025, partially through a new focus on localizing manufacturing and increasing revenues from gas exports, which it hopes to double to USD 1 bn a month. Exports weakened nearly 20% y-o-y to USD 8.3 bn in the first quarter of the current fiscal year, triggered by oil exports more than halving during the quarter to USD 1.6 bn. Meanwhile, non-oil exports inched higher to USD 6.7 bn from USD 6.3 bn the year before.

The road to boosting exports: The Madbouly cabinet will start offloading the management offreezones and industrial zones to private sector players, who will be able to offer investors a fresh batch of services and act as a bridge between investors and the government. Export boosting efforts also include revamping the export subsidy payout program so the payouts happen more swiftly and setting up a national academy that will churn out at least 500k industry-ready workers annually through specialized technical training.

TRANSPORT + LOGISTICS AMBITIONS-

Steady growth for the transport + storage sector through 2030: The state sees thetransport and storage sector rising at an average of 6% annually through 2030, compared to an average of 4.7% during the nine-year period between 2014-2023. It also plans to invest some EGP 1.5 tn in the sector and EGP 680 bn in infrastructure projects during the six-year period of El Sisi’s third term.

Enhanced connectivity: The government wants to increase the length of major roads by some50% over the coming six years to reach a combined 10.5k kilometers. It also plans to enhance connectivity by constructing 34 new corridors across the Nile River and 1.2k overpasses, compared to the 13 corridors and 1k overpasses built during the 2014-2023 period.

A number of giant national projects are scheduled for completion over the coming six years,including a EGP 544 bn high-speed electric train, a EGP 26 bn monorail, and a EGP 341 bn metro expansion. The state also has plans to more than triple the number of railway passengers to 3.5 mn a day by the end of the decade.

AVIATION-

The state will be working towards a long list of aviation-related targets to be reached by2030, that includes:

#1- A bigger fleet: Growing the air freight fleet to at least 130 aircrafts to bolster logisticscapacity.

#2- Better ranked national flag carrier: Improving EgyptAir’s global ranking to 30th place — itis currently ranked 95th globally.

#3- Boosting the country’s airports capacity to 97.4 mn passengers a year from last year’s64.8 mn — with particular focus on Cairo International Airport, with the aim of raising its capacity to an annual 31.6 mn passengers.

Expanding abroad: The country’s six-year aviation strategy sees our aviation sector expandinginternationally, particularly in Africa. It also sees the country diversifying the travel routes offered and attracting more tourists. Attracting private investment through strategic plans remains a key focus, alongside the ongoing restructuring of the Civil Aviation Ministry’s companies.

Your top infrastructure stories for the week:

A new USD 50 mn logistics area in the works: The government plans to build a USD50 mn logistics area behind the Safaga sea port to load and unload goods aboard the high-speed electric rail linking the Red Sea to the Mediterranean
Telecom Egypt and ZOI to build new digital corridor: State-run Telecom Egypt has teamed up with Zain Omantel International (ZOI) to build a digital corridor using both subsea and overland cables that will link the Mediterranean Sea to the Arabian Sea and the Arabian Gulf.

Tags:

aviation Hardhat trade transport

CALENDAR

2024

JANUARY

17 January (Wednesday): A delegation of Egyptian companies to visit Istanbul.

22 January (Monday): The British Egyptian Business Association’s briefing Cyber Security: How to Mitigate the Growing Digital Risks and Hazards, Conrad Cairo Hotel.

25 January (Thursday): Revolution Day / Police Day (national holiday).

30 January (Tuesday): The IMF’s World Economic Outlook report dueto be published.

FEBRUARY

1 February (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

1 February (Thursday): OPEC+ oil market monitoring online meeting.

8 February (Thursday): Deadline to apply to Shalateen Mining Company’s international gold exploration tender.

11 February (Sunday): Deadline to apply for the Chicago Booth Executive Programin El Gouna.

25 February 2024 (Sunday): Deadline to bid for 23 blocks in an international oil and gas tender.

MARCH

20 March (Wednesday): End of sugar export ban.

28 March (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

29 March (Friday): Egypt removed from JPMorgan Chase’s Emerging Local Markets Index Plus.

APRIL

9 April (Tuesday): Eid El Fitr (TBC) (national holiday).

25 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC) (national holiday).

MAY

1 May (Wednesday): National holiday in observance of Labor Day (TBC) (national holiday).

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (national holiday).

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

29 May (Wednesday): Virtual launch of Chicago Booth Executive Program.

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC) (national holiday).

30 June (Sunday): June 30 Revolution Day (national holiday).

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

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

23 July (Tuesday): Revolution Day (national holiday).

SEPTEMBER

2-5 September (Monday-Thursday): Egypt International Airshow, El Alamein International Airport.

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

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

25-26 September (Wednesday - Thursday): The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting, Samarkand, Uzbekistan.

OCTOBER

6 October (Sunday): Armed Forces Day.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

NOVEMBER

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

DECEMBER

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

EVENTS WITH NO SET DATE

January 2024: The Red Sea Ports Authority is set to finalize an agreement with the Abu Dhabi Ports Group for the operation and maintenance of the tourist passenger terminal in the Sharm El Sheikh Sea Port.

1Q 2024: Egyptian-Qatari Joint Supreme Committee.

1Q 2024: Opening of the newly developed Pyramids Plateau in Giza.

February-May: The Grand Egyptian Museum could officially open to visitors.

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

1H 2024: The European Union is set to hold an investment conference in Egypt during spring.

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

November 2024: Egypt to host the World Urban Forum (WUF12).

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

2024: Standard Chartered Bank to open a branch in Egypt.

2025

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

EVENTS WITH NO SET DATE

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

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