Admit it — you’re a bit grumpy right now. Relieved, maybe. But in a mood. A funk. Just … out of sorts. ADQ, the European Union, and the IMF together ensured we averted disaster, but the way forward is still a bit opaque. You’re not alone in feeling that way.

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and our competitive advantages are clear to many of them: We’re a massive consumer opportunity and the regional export hub of tomorrow.

…but here at home, our community is in a rut. The enthusiasm gap between domestic business leaders and global investors is stark.

We’d all do well to remember: It’s a chicken-and-egg kind of thing. Foreign strategic investors will be reluctant to commit capital here until they see Egyptian businesses leading the way.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

WEATHER- Get ready for rising temperatures in Cairo today, with a high of 33°C and a low of 20°C, according to our favorite weather app.

It’s almost just as hot in Alexandria today, with a high of 31°C and a low of 20°C.

WATCH THIS SPACE-

#1- Another USD 820 mn from the IMF: Egypt has reportedly received the second USD 820 mn tranche under the IMF’s USD 8 bn loan program, two unnamed government sources reportedly told Asharq Business.

This is earlier than we expected: We were expecting the tranche this summer after the fund completes its third review of the facility. The rest of the facility will be disbursed in USD 1.3 bn tranches, following reviews that will take place every six months until the program comes to an end in fall of 2026.

Remember: The IMF’s Executive Board signed off on a USD 5 bn extension for our extendedf und facility and completed its long-delayed first and second reviews of the facility in late March. Of the total USD 8 bn program, the Fund also approved a decision to let the state immediately draw around USD 820 mn earlier this month.

#2-Offering up of government HQs will bring in EGP 10 bn of private investment into Cairo’s downtown: The private sector is expected to pour close to EGP 10 bn into setting up projects in former HQs of government ministries that are currently being offered up as part of the state’s privatization efforts, move to the new administrative capital, and plan to develop the downtown area, Planning Minister Hala El Said told Al Arabiya (watch, runtime: 5:13).

Investors are already queuing: The government has so far received seven offers from international hotel chains and investors who want to get their hands on these buildings, El Said told Asharq Business over the weekend.

Still early stages: The government is still working on the valuation of these buildings. Whatever offer the government ends up selecting will see the government maintain ownership of the buildings while granting the selected parties temporary usufruct rights, El Said continued.

ICYMI: Earlier this year, the government transferred its ownership of a set of ministerial headquarters to the Sovereign Fund of Egypt, including the landmark headquarters of the Foreign Ministry on the Nile Corniche along with the ministries of trade, tourism, transport, justice, education, housing, health, supply, social solidarity, military production, and government buildings.

#3- Egypt to halt LNG exports starting May: The Oil Ministry is reportedly stopping all LNG exports to European markets starting from next month, two unnamed government sources told Al Arabiya.

Déjà vu? Oil Minister Tarek El Molla said in February that the ministry could opt to suspend exports of liquefied natural gas during the coming summer on the back of increased domestic demand as rising temperatures strain supplies. LNG imports are also back, with the state gas firm EGAS looking to import no less than one LNG shipment a month until July or August.

#4- Int’l consultant for airport management tender to be chosen by June. The Civil Aviation Ministry is already receiving offers and wants to select an international consultant by the end of the first of the year that will oversee offers from the private sector to manage Egyptian airports, unnamed sources told Al Borsa. The international consultant will be responsible for selecting the airports that will be handed over to be managed by the private sector and setting a timetable for the program.

#5- Desalination plant tenders are weeks away from going live: The Madbouly government plans to launch tenders for an unspecified number of water desalination projects in the Mediterranean Sea, Red Sea, and the Suez Canal within weeks, Sovereign Fund of Egypt CEO Ayman Soliman said, according to Asharq Business. The companies will build the plants in exchange for the right to run the plants under a usufruct agreement for 25 years, Soliman told the outlet.

Sound familiar? We heard from the Cabinet Information and Decision Support Center’s plan for El Sisi’s third term that the government was planning to offer up four desalination plants to the private sector in the first half of 2024.

IN THE HOUSE-

#1-It’s budget day: Finance Minister Mohamed Maait and Planning Minister Hala El Said will head to the House today to give statements on the draft state budget and socioeconomic development plan for the next fiscal year.

The draft budget at a glance:

• Growth projection slashed again to 4.0% y-o-y;
• Inflation targets revised upwards to an average of 18.1% for the year;
• Budget deficit to widen slightly by 0.1 percentage point to 7.3%;
• Revenues expected to rise by 22.6% y-o-y to some EGP 2.6 tn;
• Funding for education up 45% y-o-y to just under EGP 858 bn;
• Healthcare to get a 25% y-o-y boost to EGP 496 bn;
• Social protection funding up 20% y-o-y to EGP 636 bn;
• And petrol subsidies up 30% y-o-y to EGP 155 bn.

ICYMI: Budget season is going to be a bit different this time round, with the issuing of the first Public Government Budget. The new budget — which does not replace the state budget — shows the budgets of all the state’s economic bodies in addition to the state budget collated together. The first phase includes some 40 economic bodies.

What’s next? The state budget and development plan will be voted on before the start of the next fiscal year on 1 July.

#2- MPs gave the thumbs up to the Unified Ins. Law: The House representatives yesterday gave their preliminary approval to the new government-drafted Unified Ins. law that aims to draw up new and comprehensive rules for regulating the ins. industry and widen compulsory ins. coverage. “The law will regulate ins. companies, special funds, obligatory operations such as highway accidents, and state the new supervisory rules for the ins. industry,” said Economic Affairs Committee Head Mohamed Soliman.

But this could just be the start: “We also aim to introduce ins. against natural disasters such as earthquakes, floods, heavy rains, tsunamis, hurricanes, and epidemics like coronavirus,” said Financial Regulatory Authority head Mohamed Farid.

#3- Oil Ministry wants to ink five exploration agreements: MPs yesterday received exploration licensing agreements the Oil Ministry wants to sign with the Khalda Petroleum, Tharwa Petroleum, IPR TransOil, HPS International Egypt, North Petroleum International in the Western Desert and an oil and gas exploration agreement in the Nile Delta with Dana Gas.

PSA-

#1-It’s another short work week: The public and private sectors will be off on Thursday, 25 April in observance of Sinai Liberation Day, according to a cabinet statement.

#2- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at how international investments in the country’s home appliances sector is heating up. Check out the story on EnterprisePM Egypt here.

CIRCLE YOUR CALENDAR-

The Federation of Egyptian Industries is heading off on a Libya tour this May: A federation delegation will head to Tripoli, Benghazi, and Misrata next month to promote local products and ink reconstruction agreements, senior federation official Mohamed Al Bahey told Al Borsa.

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

THE BIG STORY ABROAD-

It’s a quiet morning in the global business press, with earnings season looking set to dominate headlines for the rest of the week.

Reporting this week: Everyone from General Motors, Tesla, Visa, and Halliburton to Microsoft, Hilton, Nestlé, TotalEnergies, and Sainsbury’s. Tech giants Alphabet and Meta will also release results. Pundits hope strong earnings will hit the ‘reset’ button for US investors who have soured after the S&P’s day-over-day losses last week.

Donald Trump will become the first former US president to stand trial on criminal charges when opening arguments begin in a Manhattan courtroom today. The Donald is estimated to have spent more than 25% of his campaign donations on legal fees.

The war in Gaza and tensions between Iran and Israel continue to get plenty of front-page space in the business press, with the FT noting that Washington is set to impose sanctions on an ultra-orthodox Israeli military unit over human rights abuses (Axios first broke the story) and the WSJ giving prominent placement to a piece headlined Inside the white house’s frenetic scramble to avert a full-blown Middle East war.

Israel killed 18 children yesterday in attacks on Rafah in which four adults also died, the Associated Press reports.

ALSO WORTH A MOMENT of your time this morning:

• US companies are becoming more intolerant of “office activists,” as underlined by Google’s firing of staff who had occupied the office of its cloud CEO in protest of a contract with Israel. (WSJ)
• Golden visas are losing their appeal in much of Europe, with Spain being the latest to phase out its program. (NYT)
• Bns in dirty money are flying under the radar at the world’s busiest airports. (WSJ)

SIGN OF THE TIMES- BTC miners are looking at AI and power centers as they look to cope with reduced revenues following the halving this past weekend, CNBC writes.

AND- It’s the first day of Passover (our best wishes to readers who are celebrating) and International Earth Day.

*** 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: We take a look at how the education sector is gearing up for a tech-driven job market.