Good morning, friends. Leading the local business news cycle this morning is news that the state’s privatization program is back with a big-ticket exit from microfinance company Tamweely. But that’s not all, with announcements stemming from El Sisi’s visit to Turkey continuing to trickle in, new tax incentives set to be announced in the coming days, important energy updates, and more in today’s issue.

WATCH THIS SPACE-

#1- New tax incentives are set to be announced within the coming days, Cabinet Spokesperson Mohamed El Homsani said in a cabinet statement yesterday, following a meeting between Prime Minister Moustafa Madbouly and Finance Minister Ahmed Kouchouk. He added that the incentives are designed to “protect investors’ rights and support them as they grow and expand their investment, production, and development activities.”

The incentives will be announced on Wednesday and will pave the way for the issuance of the government’s long-awaited tax policy document, a senior government source told Enterprise, adding that they will also provide a solution for tax delays and disputes and facilitate the inclusion of the informal economy.

Remember: We first heard about the new incentives back in August, with the relevant authorities framing them as a way to streamline services, enhance relations between investors and the Tax Authority, and modernize the tax system through new technologies.

#2- That proposed Cyprus-Egypt energy corridor you’ve been hearing about, may actually happen: Egypt and Cyprus have “begun serious steps” to reach an agreement to build a 90-km marine natural gas pipeline to connect the two countries, Asharq Business reports, citing an unnamed government official. We also finally heard some concrete details on the pipeline, with the official telling the outlet that the pipeline will connect the Aphrodite gas field in Cypriot waters to the Zohr field’s production facilities in Egypt, carrying 1 bn cubic feet of gas per day.

Egypt’s days of being a net energy exporter, for now at least, are firmly in the rearview mirror as declining local production and rising domestic demand led to energy shortages that led to rolling blackouts and a USD 1.2 bn energy import plan to keep the lights (and ACs) on for the hottest months of the year. Government source told Enterprise earlier this week that LNG imports were set to continue during winter seasons and a pipeline with Cyprus presents a potentially cheaper and more reliable alternative.

But feeding the national grid isn’t the only aim, with the unnamed government official in addition to TotalEnergies officials along with Oil Minister Karim Badawi and his Cypriot counterpart last week all saying that the Cypriot gas could be liquified in Egypt and re-exported as LNG. Despite having energy supply gaps to fill at home, the government is keen to stave off arbitration claims from liquefaction plant shareholders if the plants remain inoperational for too long and is eager to use energy exports receipts to pay dues to foreign energy companies in the country that they want to carry on investing.

The when: Even if an agreement is reached, it would be a few years before the gas starts flowing in, with Cyprus penciling in 2027 or 2028 as when they could start supplying gas to Egypt.

#3- Meds shortages are set to be “completely over” by the end of September, head of the Pharma Industry Chamber of the Federation of Egyptian Industries Gamal El Leithy told Asharq Business on the sidelines of the Pharmaconex exhibition in Cairo yesterday, adding that shortages were currently around 85% resolved.

Remember: Egypt has been suffering from a meds and medical supplies shortage all year that has seen the government and private sector explore a number of options to remedy the situation — including hiking drug prices and offering loans to manufacturers.

PSA-

There’s a long weekend coming up: The public and private sector are getting Sunday 15 September off as a paid holiday in observance of Prophet Muhammad’s birthday, Prime Minister Moustafa Madbouly confirmed in a cabinet statement out last night.

WEATHER- Temperatures are dipping below the mid-30s mark in Cairo today, with a high of 34°C and a low of 26°C, according to our favorite weather app. But summer hasn’t ended just yet, with a heatwave beginning on Tuesday and peaking on Wednesday with a high of 38°C.

It’s only a couple of degrees cooler in Alexandria today, with a high of 32°C and a low of 24°C, but temperatures are also expected to rapidly pick up starting tomorrow and reach a high of 37°C, before gradually cooling throughout the rest of the week.

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Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at the Industry Ministry’s newly launched Egypt Digital Industrial Paltorm. Check out the story here.

HAPPENING TODAY-

It’s day one of the EFG Hermes London Conference: EFG Hermes’s four-day annual conference in London will be kicking off today and offering its insights into “what is shaping and moving the region” and exploring important investments in our part of the world.

HAPPENING TOMORROW-

#1- Inflation to creep down for the sixth consecutive month? Analysts, policymakers and the business community are eagerly awaiting inflation figures for August set to be released tomorrow by state statistics agency Capmas. The last set of inflation data showed the annual urban inflation falling to 25.7% — its lowest level since December 2022 and a beating expectations by a whole 0.9 percentage points.

The polls are in: Annual headline inflation is expected to have slowed 0.6 percentage points from the month before to 25.1%, according to a median forecast of 19 analysts polled by Reuters. However, despite the decrease on an annual basis, some see inflation on a monthly basis picking up, with Naeem Holding forecasting a 1.24% m-o-m increase and HC Securities’ Heba Mounir a 1.0% m-o-m uptick on the back of energy and transport price hikes. Meanwhile, core inflation is seen falling to 0.5 percentage points from the month before to 23.9% y-o-y, according to a median poll of five analysts.

#2- Kouchouk to address AmCham tomorrow: Finance Minister Ahmed Kouchouk will be speaking at AmCham’s monthly luncheon tomorrow. The event — which will be moderated by Grant Thornton Managing Partner Kamel Saleh — will be held at Cairo’s Nile Ritz Carlton from 1-4pm. Register to attend here.

#3- Attention, techies: Tech Invest 5 is set to open tomorrow, with a long list of experts in in the tech field set to attend the conference. The event will bring together over 200 tech companies, 50 investors, and 20 incubators and accelerators. The conference is taking place next Tuesday in New Cairo. Get your ticket for the one-day event here.

KUDOS-

The 2024 Paralympic Games in Paris wrapped up yesterday in a closing ceremony that saw the French national anthem play as Paris’ Stade de France lit up with the red, blue, and white of the French flag. The day marks the end of a long summer of feats of sporting skill in Paris — and happily, Egypt is coming home with seven more medals.

President Abdel Fattah El Sisi extended his congratulations to the Egyptian winners at the Paralympic Games, who include:

• Mohamed Elmenyawy, gold medalist in men’s powerlifting in the up to 59 kg weight category.
• Rehab Radwan, gold medalist in women’s powerlifting in the up to 55 kg weight category.
• Mohamed Sobhy, silver medalist in men’s powerlifting in the up to 88 kg weight category.
• Fatma Mahrous, silver medalist in women’s powerlifting in the up to 67 kg weight category.
• Safaa Hassan, bronze medalist in women’s powerlifting in the up to 79 kg weight category.
• Nadia Fekry, bronze medalist in women’s powerlifting in the over 86 kg weight category.
• The men’s Paralympic volleyball team, which received the bronze medal.

CIRCLE YOUR CALENDAR-

First locally-produced Jeep Grand Cherokee L could hit the market next month: Automotive player Stellantis plans to deliver the first batch of locally-produced Jeep Grand Cherokee L models to customers in October, Al Mal reports, citing an unnamed source at the company. This comes hot on the heels of Stellantis’ announcement last week that it has kicked off the local assembly of the model at the Arab Organization for Industrialization’s Arab American Vehicles plant.

ICYMI- Citroen models could be next: Stellantis is reportedly in talks with the Industry Ministry over assembling Citroen’s C4X model in Egypt.

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 mixed bag in the international press this morning once again, with a scattering of business, finance, and tech news fighting for digital ink as the world’s press remains firms focussed on the US presidential election ahead of Harris and Trump’s first televised showdown set to kick off tomorrow.

Leading the day is a poll showing Harris and Trump neck and neck ahead of this Tuesday’s US presidential debate, with Trump edging Harris out by one percentage point — well within the poll’s three-point margin. Kamala Harris’ honeymoon period may be over, with some commentators pointing to Harris’ slipping poll numbers as a sign that the enthusiasm that swelled behind Harris following her whirlwind nomination will not be as sticky as her supporters had hoped.

BACK OVER IN BUSINESS NEWS- Boeing and its biggest union finally reach agreement that may avoid a strike, which looked set to add to the scandal-plagued multinational troubles. The aviation giant agreed to provide workers with a 25% wage increase spread over the next four years, as well as the promise that the firm’s next plane will be built in the company's traditional home base of Seattle.

WHILE IN TECH NEWS- iSheep are getting ready for Apple’s reveal of its latest iPhone later today, which is set to lay out what the device will look like in the years to come with its new-found embrace of AI. Tune in to watch in the livestream here set to kick at 8pm Cairo time.

AND CLOSER TO HOME- Algerian president Abdelmajid Tabboune cruised to a second term with 94.7% of the vote in an election marred by allegations of vote count irregularities and low participation.

*** 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 spoke to international schools and parents about recently announced amendments to the curriculum set to shake up the way things are done in schools up and down the country.