Ramses Central building fire causes partial telecom outage

Tuesday, 8 Jul 2025

Ramses Central building fire causes partial telecom outage

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Today at a glance

Telecoms

Partial telecom outage hits the country following fire in Ramses Central building.

IPO

Bonyan could make its EGX debut before the end of the month.

What We're Tracking Today

Gov’t is looking to increase its imports of Israeli gas.

What We're Tracking Today

Trump threatens extra 10% tariff on Brics-aligned nations.

Banking

Net foreign assets bounce back to record USD 14.7 bn in May.

LEGISLATION WATCH

House approves in principle cabinet’s bill seeking to amend Education Law.

Automotive

Updated Automotive Industry Development Program slashes local component ratios.

Also on our Radar

Polaris Parks will soon acquire two new plots to set up industrial zones.

PLANET FINANCE

Brics’ alternative payment system seems to drag on.

Going Green

Feed-in tariff for sanitary landfill-, sewage waste-derived energy raised in a bid to boost investor appetite.

What We're Tracking Today

Egypt is looking to increase its imports of Israeli gas

Brace yourselves for a difficult day of doing business in Omm El Donia, wonderful people: Internet access is still severely curtailed across the country in the wake of a fire at Telecom Egypt’s Ramses central communications hub yesterday.

The outage has impacted everything from mobile internet to voice connectivity and banking services since late afternoon yesterday. TE staff and government officials worked overnight to re-route traffic to other hubs, but we still have less than half Egypt’s usual “allocation” of bandwidth left to serve every business and individual consumer nationwide. Fixed-line and mobile broadband, data service on handsets, voice calls — it’s all being impacted.

When will it end? Officials have been saying (for hours) that we’ll be back online “in hours.” An outage of this type is highly unusual and a difficult technical problem to solve, so we think you’d best brace yourselves for a challenging day to come. One TE engineer we spoke with suggested it could still be “days” before connectivity returns to normal even with all of the state-owned telecoms giant’s top resources being thrown at the problem. Have a good thought for the TE and MCIT teams trying to get us all back online, folks.

Do you have connectivity right now? Have an important meeting coming up later today with someone outside the country? You might want to think about dropping them a note letting them know what’s up — and be prepared to reschedule to tomorrow. This is why our lawyers force us all to put force majeure clauses in our contracts.

Frustrating? Sure. Or maybe all of you kids out there pining for a magical, pre-interwebs “1980s summer” can just sit back and think that you’re in your personal Hot Tub Time Machine and enjoy the ride?

^^ We have a rundown of all the details as of 5:55am in this morning’s news well, below.

WATCH THIS SPACE-

We’re looking to increase our imports of Israeli gas by 200 mcf/d to meet rising summer demand, a government source told EnterpriseAM. Though an agreement is in place to boost supplies to both Egypt and Jordan, flows remain at their usual seasonal level of 800-850 mcf/d due to high domestic consumption in Israel. Talks are expected to resume soon to activate the agreed increase, especially as Egypt works to strengthen its regasification infrastructure. There is also a possibility of bringing in a fifth floating regasification unit to support industrial and power sector needs, a separate source told us.

ICYMI- Egypt has secured gas supplies to all sectors through four floating storage and regasification units this summer, with a combined capacity of 2.7 bcf/d, the Oil Ministry confirmed earlier this week.

INFLATION WATCH-

Inflation seen easing slightly in June: Annual headline inflation is forecasted to have dipped 0.6 percentage points in June to 16.2%, down from 16.8% in May, according to a median forecast of 15 analysts polled by Reuters.

The rationale: “It's mainly driven by fluctuating food and beverages prices which overall contribute the most to the change in the CPI index reading,” Thndr Securities Brokerage’s Chief Equity Strategist Amr El Alfy told the newswire.

But brace for a pickup in July: “We expect some inflationary pressures in July as the Egyptian Parliament approved some amendments to the VAT Law for some businesses, including cigarettes and tobacco,” said HC Securities’ Heba Monir. “Cigarette prices are expected to increase by c.16% within days besides a potential increase in electricity prices due to higher natural gas prices.”

PSA-

WEATHER- It’s another hot day in Cairo, with a high of 37°C and a low of 24°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 31°C and a low of 22°C.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

THE BIG STORY ABROAD-

Most of the attention has returned to the revival of US President Donald Trump’s trade war, as the US began sending countries letters, including Japan and South Korea — two of the US’ biggest trade partners — with their reciprocal tariffs, with the two Asian countries getting hit with a 25% tariff as of 1 August. Others like Kazakhstan, Myanmar, and Laos were slapped with a 40% tariff.

The letters reportedly hinted at the potential for trade talks to resume, possibly even beyond the 1 August deadline, but also threatened a tariff hike in case tariffs are raised on US exports. (Reuters | Bloomberg | Financial Times | CNN)

ALSO- Trump threatens 10% tariff on Brics-aligned nations: Trump said that countries aligned with the “anti-American policies of Brics” will face an extra 10% in tariffs with “no exceptions” in a post on Truth Social. The warning followed a joint statement (pdf) by Brics leaders criticizing tariff hikes, deeming them a threat to global trade and inconsistent with World Trade Organization regulations. A source familiar with the matter later downplayed the threat, saying it’s not a blanket threat against Brics nations, but on any of the countries agreeing policies deemed “anti-American.” (Reuters)

Meanwhile, Israeli Prime Minister Benjamin Netanyahu was hosted by Trump at the White House, with talks focusing on the potential ceasefire Trump hinted could be reached this week. (Reuters)

AND- The death toll from the floods in Texas — now deemed one of the deadliest in the country’s history — has exceeded 100 as search efforts continue. (Guardian | Wall Street Journal | New York Times)

*** It’s Going Green day — your weekly briefing of all things green in Egypt: EnterpriseAM’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We take a look at the move to raise feed-in tariff for sanitary landfill-, sewage waste-derived energy in a bid to boost investor appetite.

Tags:

oil and gas What We're Tracking Today

Whether you’re diving into turquoise waters, catching the golden hour from your terrace, or just letting time drift by — Somabay is summer, redefined. Your ultimate escape, every single time.

Telecoms

Partial telecom outage hits Egypt following fire in Ramses Central building

Mobile service, internet connectivity, and banking services were all heavily affected across the country after a fire broke out in the Ramses telecoms data center yesterday afternoon, disrupting network connection. ATMs, POSs, and online transactions — including InstaPay — have also been impacted by the connectivity outage, as were some hotlines.

PSA- The Health Ministry published alternative main ambulance, emergency police hotline, and urgent care numbers (here, here, and here).

Flights temporarily affected: The connectivity disruption also caused “limited” flight delays, the Civil Aviation Ministry said. Operations have since returned to normal at Cairo International Airport, with all passenger terminals operating normally and all flights that had been affected by the outage taking off, the ministry said this morning.

Where things stand: Broadband services have been moved entirely to El Rawda, the NTRA said. The most recent update from Netblocks, which tracks global internet connectivity, suggests that connectivity levels across the country are at “44% of ordinary levels,” falling from an earlier report that connectivity was at 62% of ordinary levels.

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

The blaze injured at least 22 people, with most suffering from smoke inhalation, Health Ministry spokesperson Hossam Abdel Ghaffar told Reuters. A large number of fire trucks were dispatched to contain the blaze, with Cairo Governor Ibrahim Saber personally overseeing efforts to put out the fire. The fire was brought under control last night, the National Telecom Regulatory Authority (NTRA) confirmed in a statement overnight.

What caused the fire? The fire broke out in an equipment room at Telecom Egypt’s Ramses switchboard, the NTRA said. Investigators think right now that it is likely the result of an electrical short circuit, according to MENA news agency. Power was cut off to the entire building as a safety measure, but service is being gradually restored, the NTRA said. The regulator added that it will compensate all those impacted by the network disruptions. El Hekaya’s correspondent said the fire reignited several times in different floors throughout the night (watch, runtime: 4:50).

SOUND SMART- The Ramses telecoms data center is the focal point of internet in the country, used by Telecom Egypt, Vodafone, and Orange to route calls and connect users to the internet.

We have backup plans: Speaking to El Hekaya’s Amr Adib, NTRA official Mohamed Ibrahim emphasized the importance of the Ramses telecoms data center but noted that contingency measures are in place for such emergencies (watch, runtime: 6:35). “There are other telecoms data centers of similar size and importance capable of performing the one in Ramses’ role, and we’ve already started shifting all traffic and lines to alternative centers to gradually restore services,” he said.

The two floors of the data center that were affected by the fire housed technical equipment that connects many Telecom Egypt services, Ibrahim said. “Naturally, if Telecom Egypt is impacted, other services like mobile and home internet will also see disruptions,” he said, explaining that telecom services are interlinked among operators.

The fire received coverage across the foreign press: Reuters | Bloomberg | AP.

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TELECOMS

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IPO

Bonyan could make its EGX debut before end of July

Bonyan could hit the EGX this month: Real estate investment firm Bonyan expects trading on its shares to begin before the end of this month, Chairman Shamel Aboul Fadl said during a presser attended by EnterpriseAM yesterday. The first day of IPO subscription saw “very strong demand that exceeded expectations,” Aboul Fadl said, though he declined to disclose exact figures. The offering is already oversubscribed, our sources told us.

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

REMEMBER- Bonyan is looking to raise EGP 1.8 bn by taking a 20-21.9% stake public. The retail and institutional tranches launched on Sunday with an indicative price range set at EGP 4.96-5.44 per share, while the independent financial advisor valued the stock at a fair value of EGP 7.52 a pop.

What does Bonyan do? The company focuses on acquiring high-quality, income-generating commercial properties rather than developing or selling units. “This IPO isn’t just about raising funds, but about redefining real estate investment in Egypt, similar to global REIT models,” Aboul Fadl said.

Investors will be getting quite the deal: The IPO values Bonyan at EGP 8.2-9 bn, up to 34% below analysts’ average valuation of up to EGP 13.4 bn, according to Chief Financial Officer Fady Raafat. Aboul Fadl said this aims to attract long-term investors seeking stable, regularly distributed returns rather than speculators.

Growth plans in the pipeline: Bonyan owns 10 properties — with a 93% occupancy rate — valued at EGP 16.7 bn as of the end of 2024. The company is currently evaluating seven new assets to expand its portfolio in East and West Cairo, targeting fully leased grade A properties, Aboul Fadl said.

ADVISORS- CI Capital and Arqaam Capital are coordinators and bookrunners, with Mubasher acting as placement agent. Matouk Bassiouny & Hennawy is legal counsel, Baker Tilly is independent financial advisor, and PwC is auditor.

WANT THE DETAILS? We break down everything you need to know about the IPO in our coverage of the IPO prospectus earlier this week. Check it out here.

Tags:

bonyan capital markets EGX IPO watch real estate

Banking

Egypt’s net foreign assets bounce back to record USD 14.7 bn in May

Net foreign assets in Egypt’s banking sector rose 8.7% in May to USD 14.7 bn, up USD 1.2 bn from April, according to data from the Central Bank of Egypt (CBE). This marks an improvement from April, when the country's net foreign assets in the banking sector saw their first decline in four months.

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

Driving the rebound: The rebound was mainly driven by commercial banks’ net foreign assets hitting their highest level since February 2021, reaching USD 4.8 bn in May, a significant USD 3.2 bn increase from the USD 1.6 bn recorded a month prior. In May, foreign assets edged up to around USD 35.5 bn from USD 31.3 bn in April, while liabilities rose to USD 30.6 bn, up from USD 29.7 bn in the previous month.

This could be a sign of renewed confidence in the economy: The rise in net foreign assets in Egypt “partially reflects a return of confidence and growing inflows through official channels,” Alraya Consulting CEO Hany Abou El Fotouh told EnterpriseAM.

The central bank recorded a surplus of around USD 9.9 bn in May, down from USD 11.9 bn in April. Net foreign assets increased to USD 47.2 bn in May, up from USD 46.7 bn a month, while liabilities reached about USD 37.3 bn, compared to USD 34.8 bn in April. However, “the noticeable USD 2 bn decline in the central bank’s surplus raises legitimate questions: Was part of the reserves used to support the [local] currency, or perhaps to settle short-term liabilities?” Abou El Fotouh added.

Reason to be optimistic? “The continued growth of net foreign assets in the banking system, despite the delay in the fifth review of our loan agreement with the IMF, reflects increase confidence among credit rating agencies in Egypt’s ability to successfully carry out its ambitious economic reforms and paves the way for these institutions to upgrade Egypt's credit rating soon,” banking expert Mohamed Abdel Aal told us.

REMEMBER- Net foreign assets hit a record high in March, which surpassed the previous peak of USD 14.3 bn recorded in May 2024 — courtesy of the second and final tranche of the USD 35 bn Ras El Hekma agreement, which brought in some USD 14 bn in fresh inflows. Before that, Egypt had been in a prolonged net foreign asset deficit since February 2022, when the outbreak of the war in Ukraine triggered capital outflows of around USD 20 bn.

ALSO FROM THE CBE- Foreign reserves ticked up to USD 48.7 bn at the end of June, marking an increase of USD 174 mn from May, according to data released by the CBE. Net foreign reserves increased by around USD 2.3 bn since June 2024, according to our calculations based on CBE data.

Mixed bag for FX + gold + SDRs: FX reserves rose to USD 35.1 bn in June, up from USD 34.8 bn in May, while gold reserves slightly decreased to USD 13.6 bn, down from USD 13.7 bn in May. Meanwhile, special drawing rights were unchanged m-o-m at USD 41 mn, after having risen to USD 194 mn in April.

Tags:

banking Central Bank of Egypt foreign exchange

LEGISLATION WATCH

House approves in principle cabinet’s bill seeking to amend Education Law

MPs approvedinprinciple cabinet-proposed amendments to the Education Law after the House Education Committee proposed some fresh amendments, which are set to shake up the sector for students, parents, and teachers alike.

REFRESHER- The Madbouly government submitted a draft law to the House last month, seeking to amend the Education Law. The amendments would, if passed, expand vocational training, keep Thanaweya Amma as a three‑year track, and introduce new pathways.

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

Clarification of the baccalaureate system: The draft law includes defined guidelines for the baccalaureate system, which was previously only briefly mentioned in the government’s notes. This aims to give students a full and complete picture of the system and enable them to efficiently choose between enrolling in the Thanaweya Amma or baccalaureate systems. The amendments emphasize that the baccalaureate is optional, free, and three years in duration.

REMEMBER- The Education Committee previously approved amendments to the Education Law to introduce a new baccalaureate system that will run alongside Thanaweya Amma.

Coursework submitted throughout the year is now a part of the final grade: A percentage of annual coursework — not exceeding 20% — is now mandated for students in the final stage of basic education. This move aims to eliminate student absenteeism.

Free education is still a core idea in the draft law, as it states that the government’s power to raise exam fees for retakes has been limited. Any fees outlined in the government's proposed draft law have also been reduced and capped at a maximum limit.

The draft law stipulates that university admissions must take into account the number of students applying from each secondary education system, aiming to ensure equality and equal chance among all students, especially those from the Thanaweya Amma and baccalaureate systems.

DIVE DEEPER- We broke down the details of cabinet-proposed amendments to the Education Law in a Blackboard published last month. Check out the story here.

HOUSE GREENLIGHTS MINING DRAFT LAW-

The House approves minerals contract: The House approved a draft law allowing the Oil Ministry to contract the Egyptian Mineral Resources Authority and Centamin to exploit gold ore and other minerals in the Sukkari region, where the LSE-listed gold miner currently operates the Sukkari Gold Mine — Egypt’s largest. The authority and Centamin will have the right to exploit the area for up to 30 years.

Tags:

Education House of Representatives legislation Legislation Watch

Automotive

Updated Automotive Industry Development Program slashes local component ratios

The new and improved Automotive Industry Development Program kicked off at the start of this month, with the amended seven-year program starting with the new fiscal year said to attract more investments and deepen the localization of the sector, according to an Industry Ministry statement. But contrary to expectations, the minimum local component ratio was slashed, pointing to the government possibly prioritizing bringing over automakers for assembly projects as the first step in its plan to truly localize the automotive sector.

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

Under the new rules, factories should roll out at least 10k fossil fuel-powered cars per year, with at least 5k models per model. The minimum local component ratio is set at 20% and will be updated every two years.

Companies assembling — and hopefully one day manufacturing EVs — will start out with a minimum annual production quota of 1k vehicles, which will be raised to 7k by the end of the program. EVs will also have a 10% local component ratio to meet, which will be reviewed annually.

The targeted local component ratios are much easier to meet than previously — the previous iteration of the program that ended on 30 June laid out a 45% ratio. There was even chatter that the rate could be raised to 65%.

Build it and they will come? The change of approach could be a sign that the government is prioritizing getting companies to shift assembly to Egypt first and foremost. Under this logic, the government may think it has a better stab at moving towards proper automotive manufacturing and developing a local ecosystem of feeder industries to increase the local component ratio once there’s already a sizable auto assembly industry that would be more than happy to swap out imported components for locally made ones.

The incentives will apply for vehicles costing no more than EGP 1.25 mn for consumers, with engines smaller than 1.6l.

Incentives will also be pegged at a maximum of EGP 150k, with the ratio also pegged at a maximum 30% of the value of the car once it leaves the factory floor. The incentives will be paid out by deducting tax and customs dues owed by the companies.

But companies producing cars exceeding a 35% local component ratio will be given an extra EGP 5k for every percent increase in the ratio that can push up incentives beyond the EGP 150k maximum. By the end of the seven-year program, the local component ratio will be raised to 25% across the board.

Companies really doubling down on auto localization will also be reimbursed for the land cost of the projects, with factories producing over 100k fossil fuel-powered cars or 10k EVs eligible. Companies that export will also qualify for greater incentives.

Tags:

automotive EVs Manufacturing

EARNINGS WATCH

Qalaa Holdings sees revenues rise 53% in 2024

Qalaa Holdings saw its revenues increase 53% y-o-y throughout 2024, coming in at EGP 148.9 bn for the 12-month period, which the company attributes to “solid” performance across its subsidiaries, according to its latest p ress releas e (pdf). Despite the jump in revenues, the company saw its bottom line dip 2% y-o-y to EGP 6.4 bn as refining margins from its Egyptian Refining Company (ERC) shrank.

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

The main driver of top line growth was its USD revenue from ERC, which the company mostly attributed to the devaluation of the EGP. ERC also wrapped up its senior and subordinated restructuring in December 2024 and is “on track to fully settle its senior debt ahead of schedule,” which currently stands at USD 228.0 mn.

On a quarterly basis, revenues were up 35% y-o-y in 4Q, coming in at EGP 35.6 bn, which the company also attributes to ERC. The same period registered a 91% y-o-y drop in net income to EGP 420.7 mn due to one-off gains in 4Q 2023 from divesting Taqa Arabia shares.

Looking ahead: “Moving forward, we will continue pushing ahead with our growth strategies across our diverse platforms over the coming months. I am confident that the group’s outlook remains bright despite the challenging market conditions, and we will continue pushing forward with our strategy of undertaking small, incremental investments with the aim of continuously advancing Qalaa’s investments portfolio,” Qalaa Holdings Chairman Ahmed Heikal said.

AND- TMG Holding saw new sales rise 59% y-o-y in 1H 2025 to EGP 211 bn, which the company said was driven by sales at its SouthMed, Madinaty, Privado, Noor, Celia, and Saudi Banan projects, the company said in a statement (pdf). The company expects further growth as it follows through with its Iraq and Oman expansions.

Tags:

earnings watch Qalaa Holdings Talaat Moustafa Group

Also on our Radar

Polaris Parks will soon acquire two new plots to set up industrial zones

INDUSTRY-

Polaris Parks eyes expansion in Egypt: Industrial real estate developer Polaris Parks is nearing agreements to develop a total of 3.5 mn sqm across two sites in the new capital and Sadat City, General Manager Bassel Shoirah told EnterpriseAM. The company expects the new industrial zones to attract investments exceeding USD 5 bn. Polaris plans to finalize the contracts in 3Q 2025.

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

Focus sectors: The new zone will target high-value industries including engineering, textiles, chemicals, and building materials, Shoirah added.

Bigger ambitions: Polaris has earmarked EGP 6 bn for its new capital project and EGP 4.5 bn for the first phase of its New October City development, where construction began this year with completion targeted within two years.

MANUFACTURING-

Supreme Holding is planning to invest EGP 1 bn in a chemicals project in the Suez Canal Economic Zone, Chairman Moharram Helal told Al Arabiya. The company will partner with two unnamed local investors for the project and is in discussion to secure funding from three local banks to finance 60% of the project’s total investment ticket. The firm is also planning to invest USD 5 mn to open a butane cylinder plant in Angola within the next three months at most.

PHARMA-

EGX-listed pharma firm Rameda has acquired two products in the central nervous system (CNS) and pain management segments, marking its first acquisitions of the year, the pharma player said in a press release (pdf). The products target major depressive disorders, anxiety, neuropathic pain, and generalized anxiety disorder — therapeutic areas with a combined market value of over EGP 1.3 bn and a three-year CAGR exceeding 25%.

More acquisitions on the horizon: “This transaction represents a first step in our acquisition strategy for 2025,” said COO and CFO Mahmoud Fayek, adding that Rameda remains actively engaged in pursuing additional acquisitions to drive sustainable growth and enhance shareholder value.

DEBT-

CIB inked a EGP 963 mn loan agreement with Orascom Investment Holding’s OSL for the Giza Pyramids sound and light overhaul, the bank said in a statement seen by EnterpriseAM. The medium-term credit facility is part of Orascom Investment Holding’s larger project to revamp the plateau and improve the visitor experience.

Tags:

ALSO ON OUR RADAR CIB debt Manufacturing Orascom Investment Holding Polaris Parks Supreme Holding

PLANET FINANCE

Brics reaffirms commitment to payment system despite slow progress

Progress on Brics’ cross-border payments system has stalled, despite a decade of discussions, Bloomberg reported yesterday. Leaders reaffirmed their commitment to continue talks on the initiative during the Brics summit in Brazil, but acknowledged the slow pace amid the challenges of a rapidly changing global trade environment.

SOUND SMART- Brics Pay is a financial system that, if developed, would allow Brics nations to trade directly with one another using their own local currencies, instead of relying on the USD. The system’s goal is to create an independent financial network that is separate from the US-dominated Swift system.

A window of opportunity: The USD has its worst start to a year since 1973, pressured by US President Donald Trump’s trade policies and critiques of the Federal Reserve, creating a potential opening for alternatives.

So, what’s the hold-up? For one, the technical execution is complex, involving decisions on payment mechanisms, currencies, infrastructure, and cost-sharing. This is compounded by the unpreparedness of some member nations’ central banks to integrate, alongside serious security concerns over a unified system. Some members have also questioned if the substantial setup and maintenance costs of this unified system are justified when compared to existing bilateral trade arrangements.

Political realities aren’t helping as well, with the bloc's recent expansion to 10 members complicating decision-making. Existing international sanctions on members like Russia and Iran, coupled with the use of several non-convertible currencies within the bloc also present additional obstacles.

Parallel discussions on investment and finance are taking place: Brics is also working on expanding local currency financing to reduce trade financing costs, Tatiana Rosito, secretary for international relations at Brazil’s Finance Ministry, told Bloomberg. However, discussions around a new investment platform — reducing dependence on hard currency financing — have also stalled due to the complexity of the proposals and the need for further technical dialogue.

The US hangs more tariffs over the bloc: Trump threatened an additional 10% tariff on any country aligning with what he calls “Anti-American” Brics policies, rattling global trade with even more uncertainty. This follows his December threat of 100% tariffs if Brics nations ditched the USD in bilateral trade, a move that paradoxically spurred the bloc’s interest in developing alternative local payment systems.

MARKETS THIS MORNING-

Asian markets are modestly inching up in early trading, despite Trump’s new tariff announcements. The Shanghai Composite and Hong Kong’s Hang Seng are both up 0.2%, while Japan’s Nikkei remained virtually unchanged. Meanwhile, Wall Street futures are mostly in the red.

EGX30	33,038	+0.4% (YTD: +11.1%)
USD (CBE)	Buy 49.60	Sell 49.74
USD (CIB)	Buy 49.61	Sell 49.71
Interest rates (CBE)	24.00% deposit	25.00% lending
Tadawul	11,345	+0.3% (YTD: -5.7%)
ADX	10,007	+0.3% (YTD: +6.2%)
DFM	5,803	+0.9% (YTD: +12.5%)
S&P 500	6,230	-0.8% (YTD: +5.9%)
FTSE 100	8,807	-0.2% (YTD: +7.8%)
Euro Stoxx 50	5,342	+1.0% (YTD: +9.1%)
Brent crude	USD 69.58	+1.9%
Natural gas (Nymex)	USD 3.41	+0.1%
Gold	USD 3,343	0.0%
BTC	USD 109,044	-1.1% (YTD: +15.6%)
S&P Egypt Sovereign Bond Index	878.46	+0.1% (YTD: +13.0%)
S&P MENA Bond & Sukuk	145.82	-0.1% (YTD: +4.2%)
VIX (Volatility Index)	17.79	+1.8% (YTD: +2.5%)

THE CLOSING BELL-

The EGX30 rose 0.4% at yesterday’s close on turnover of EGP 5.5 bn (10.7% above the 90-day average). Regional investors were the sole net sellers. The index is up 11.1% YTD.

In the green: Sidi Kerir Petrochemicals (+4.2%), Alexandria Mineral Oils (+3.9%), and Qalaa Holdings (+3.8%).

In the red: EFG Holding (-2.0%), Emaar Misr (-1.9%), and Beltone Holding (-1.7%).

Tags:

BRICS Financial Markets Planet Finance

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Published every Tuesday in EnterpriseAM.

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Going Green

Feed-in tariff for sanitary landfill-, sewage waste-derived energy raised in a bid to boost investor appetite

One man’s trash is another man’s treasure — even when it comes to sewage sludge. Companies generating electricity from sewage sludge and sanitary landfills to help power the national grid will now be paid the EGP equivalent of USD 0.44 per kWh as a feed-in tariff, according to a new law issued in the Official Gazette last month. The tariff adjustment was introduced to meet private sector demands for higher rates and to attract more investments into waste-to-energy (WtE) projects, a government source at the Environment Ministry told EnterpriseAM.

By the numbers: The changes raise sanitary landfill-derived feed-in tariffs by 57.1% and sewage sludge feed-in tariffs by 109.5%, based on the EGP’s current value against the greenback.

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

The amount paid out will also be pegged to the value of the EGP against the greenback on the day of the invoice, which the producer will get from the distribution arms of the Egyptian Electricity Holding Company (EEHC), providing current and future project operators extra security from potential swings in the foreign exchange rate. The exact rate will follow that published by the Central Bank of Egypt on the day.

On top of that, projects will also be able to get golden licenses and other tax and non-tax incentives, which will stem from the existing investment law, as well as and future amendments to it according to the ministry source.

In recognition of the investment that these projects need, land for these projects will be used under 25-year usufruct agreements. Concerns about distribution companies' failure to pay producers were also addressed, with a commitment from the EEHC to hold offtakers accountable for any unpaid bills.

SOUND SMART- Electricity is produced from sanitary landfills and sewage sludge by capturing the gas that is released from these sites, which can then be used as fuel to generate electricity. By capturing this gas or burning certain types of waste and using the heat to generate electricity, this doesn’t only reduce the need for more polluting forms of energy, it also prevents polluting gases from decomposition from making their way into the atmosphere.

A total of 36 companies are currently involved in various projects within the WtE system, reflecting the attractive investment environment in the sector, our source told us.

And this list could soon grow, with 84 companies looking to set up WtE projects, including eight projects that are just awaiting their final contracts to be signed, our source told us. The government is also about to sign contracts with eight Egyptian-foreign consortiums to produce 1.7 bn KWh annually of electricity from waste recycling and recycle 3.5 mn tons of waste a year in eight governorates soon, Environment Ministry Advisor for Waste Khaled El Farra told EnterpriseAM. The total targeted investments for the projects combined will reach somewhere between USD 900 mn-1.2 bn and be situated in the governorates of Giza, Alexandria, Gharbia, Beheira, Damietta, Fayoum, Sharqia, and Monufia, according to El Farra.

Who are the local stakeholders in the partnerships? These alliances include companies like Orascom Construction, Hassan Allam Holding, Taqa Arabia, Elsewedy Group, Infinity, Arab Organization for Industrialization, National Authority for Military Production, and Medaf Investments, we were told.

Energy diversification is the name of the game, especially with the country’s rising energy import bill, our source told us. Green energy supplies will also help shield many of the country’s key sectors from the EU’s incoming Carbon Border Adjustment Mechanism — known by its acronym CBAM — particularly in the energy-intensive fertilizer, cement, iron, and aluminum industries.

Your top green economy stories for the week:

Yanmu East Logistics Park secured Edge Advanced certification for three of its warehouses, which have reduced energy consumption by 49%, water use by 53%, and embodied carbon by 59%. The HAU Logistics and Kuwait-based global supply chain and infrastructure player Agility JV has three more in-the-works warehouses it believes will also meet the certification criteria. (Statement, pdf)
The Red Sea Wind Energy consortium has completed the full commissioning of its 650 MW wind farm in Ras Ghareb, with the final 150 MW phase coming online four months earlier than planned. All units are now connected to the national grid.

Tags:

electricity energy environment going green recycling renewable energy

CALENDAR

JULY

10 July (Thursday): Monetary Policy Committee’s fourth meeting

10 July (Thursday): Capmas to release inflation data for June

15-16 July (Tuesday-Wednesday): The Egypt Mining Forum.

July: The first operational trail of Egypt-KSA electricity interconnection line

16 - 18 July (Wednesday-Friday): Egypt’s New Era: Investment Opportunities: Business mission to the UK organized by The British Egyptian Business Association (Beba)

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

7 August (Thursday): The Finance Ministry to begin disbursement of 50% of exporters’ pre-June 2024 dues over a four-year plan.

28 August (Thursday): Monetary Policy Committee’s fifth meeting.

Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

The Egyptian-Moroccan Business Council to send a delegation of 23 local companies to Rabat.

The Engineering Export Council of Egypt will ship a commercial delegation to Russia to ramp up exports to European markets.

Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026

OCTOBER

2 October (Thursday): Monetary Policy Committee’s sixth meeting.

7 October (Tuesday): The 2025 EnterpriseAM Egypt Forum.

12-16 October (Sunday-Thursday): Cairo Water Week, Cairo.

19-22 October (Sunday-Wednesday): Arab African Investment and International Cooperation Summit.

October: The third iteration of the Export Smart Exhibition and Conference.

NOVEMBER

16-19 November: Cairo ICT 2025, Egypt International Exhibition Centre.

20 November (Thursday): Monetary Policy Committee’s seventh meeting.

November: Egypt to join the EU’s Horizon Europe research and innovation program.

DECEMBER

1-4 December: Egypt Defence Expo (EDEX), Egypt International Exhibition Centre.

25 December: (Thursday): Monetary Policy Committee’s eighth meeting.

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

3Q 2025: Nasr Automotive begins locally manufacturing passenger cars.

Mid-2025: The Administrative Capital for Urban Developments to roll out the second phase of offering industrial plots to investors

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2026

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.

1 January: European Union’s Carbon Border Adjustment Mechanism (CBAM) to fully come into effect

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

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 for 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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