The Enterprise Finance Forum starts today

Monday, 18 Sep 2023

The Enterprise Finance Forum starts today

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What We're Tracking Today

The Enterprise Finance Forum starts today.

POLL

CBE to leave interest rates unchanged in September -poll.

DEBT WATCH

valU closes EGP 922 mn securitized bond issuance.

again

Has the IMF’s review been delayed to 1Q 2024?

Also on our Radar

Pachin to delist from EGX.

Investment Watch

Abu Dhabi’s Chimera launches USD 50 bn alternative investment manager.

What We're Tracking Today

Here’s what’s happening with Uber.

Also on our Radar

MPs want answers on blackouts.

BLACKBOARD

A rundown of the tuition fees at Egypt’s major private + int’l K-12 schools.

What We're Tracking Today

Uber blames glitch for customers being charged in FX

IT’S TODAY- The Enterprise Finance Forum kicks off in just a few hours at the St. Regis Hotel on the Nile Corniche. This flagship forum is the latest in our must-attend series of invitation-only events, where CEOs, bankers, investors, founders, and corporate leaders will meet to discuss the trends shaping the future of banking, finance, NBFIs, and fintech — and of their clients.

We’re starting the event at 8:00am with a standing networking breakfast, with the opening panels starting at 9:00am. Panel discussions will end at 1:20pm both days.

We are very grateful for the interest we’ve seen from many of you and are looking forward to meeting those attending.

** For those of you joining us, please remember to bring the personal QR code you received yesterday on both days to ensure access to the venue.

There will be plenty of parking available.

Tap or click here to view the FULL AGENDA with SPEAKERS.

** We are honored to count some of the region’s most important financial institutions as our partners for this special event. The Enterprise Finance Forum could not take place without the support of our partners including Banque Misr, Al Baraka Bank, FABMISR, HSBC, Mashreq, Banque du Caire, CI Capital, Global Corp, Visa, Hassan Allam Utilities, the IFC, and Post for Investment.

FACT CHECK- Uber isn’t charging us in FX and it hasn’t closed its bank accounts in Egypt. Uber said yesterday that a technical glitch led to customers in Egypt being charged additional fees and said that customers will continue to be charged in EGP. This came in response to a flood of reports that the ride-hailing giant had treated card payments as foreign-currency transactions, leading to banks charging additional fees. Rumors on social media alleged that the company had closed its bank accounts in Egypt.

We speak from experience: A number of us have been hit with foreign exchange fees on credit card transactions for rides taken right here in Omm El Donia that appear to have been invoiced from the firm’s Lagos office.

Remember: Most of us with local bank accounts are facing higher fees on foreign transactions — as well as lower monthly foreign transaction limits — amid the country’s ongoing FX crunch.

Compensation will be on the way: In the statement, the company pledged to refund to customers any additional fees charged on their rides “as soon as possible.” Masrawy and Al Mal have more.

WATCH THIS SPACE-

Has the IMF’s review been delayed (again) to 1Q 2024? Yasser Omar, deputy chair of the House Planning and Budget Committee, has denied giving comment to the media, which reported yesterday that the IMF’s anticipated review of our loan program could be delayed to 1Q 2024. “The initial review by IMF experts this month will not proceed due to the government’s delay in fulfilling some of the commitments it made with the IMF under the recent agreement,” Asharq Alawsat quoted the MP as saying.

Remember: An IMF team was expected to arrive in Egypt earlier this month to conduct the first review of the USD 3 bn program. The first of the review has been postponed since March after authorities didn’t meet several key conditions of the financing, including moving to a fully flexible exchange rate.

This isn’t the first we’ve heard of a delay: Earlier this month, Asharq Business quoted an unnamed government official as saying the review could be pushed until the end of the year.

HAPPENING THIS WEEK-

The Al Ezz Dekheila share buyback starts tomorrow: Steel maker Ezz Dekheila Steel will invite shareholders objecting to its delisting decision to sell their shares back to the company starting from tomorrow, 19 September, it said in a statement (pdf) yesterday. The company is offering to buy the shares at EGP 1,250 apiece, a 4% premium on the current share price. Shareholders have until next Monday, 25 September, to make a decision.

Remember: Al Ezz Dekheila announced plans in July to delist from the exchange in the wake of its agreement to buy back the government’s 31% stake in the company.

Conference season gets well underway this week, with several several events opening their doors in the capital and beyond:

Sunday-Monday: Arab Security Conference and Exhibition, Nile Ritz Carlton, Cairo.
Sunday-Tuesday: Sharm Rendezvous ins. conference, Rixos Premium Seagate, Sharm El Sheikh.
Wednesday-Saturday: Cityscape Egypt, Egypt International Exhibition Center, Cairo.

Shoukry is in the Big Apple for the UN General Assembly: Foreign Minister Sameh Shoukry is in New York this week to participate in the UN General Assembly kicking off on Tuesday. The foreign minister will meet his Israeli counterpart, Eli Cohen, Israeli media reported yesterday.

NEXT MONTH-

House to approve the fresh financial support after recess: The cabinet has sent the recently announced wage hikes, tax cuts and social support measures to the House of Representatives for deliberation and approval once MPs return from summer recess in October, the Finance Ministry said in a stateme nt yesterday.

The official cost: EGP 60 bn, according to the ministry, which gave a full breakdown of how much each measure would cost the treasury.

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

THE BIG STORIES ABROAD-

There are two stories leading the conversation on the front pages of the Western press this morning:

#1- Ukraine: As Zelenskiy heads to New York for the UN General Assembly, the Ukrainian military is under pressure to make territorial gains as summer comes to a close. (Associated Press | Reuters | Wall Street Journal)

#2- Trump: The former president and favorite for the Republican nomination sat down for his first broadcast interview since leaving the White House to talk January 6, abortion, and more. (Associated Press | Reuters | New York Times | Washington Post)

ALSO- Grain ships are heading from the Ukraine to Egypt: Two cargo vessels of wheat arrived in the Ukraine’s Chornomorsk port on Sunday to collect some 20k tons of wheat bound for Egypt and Israel, Reuters reports, citing a post on Telegram by the Ukrainian agriculture ministry. These are the first food shipments to use an alternative trade corridor since Russia in July suspended the agreement with Kyiv to allow it to export grain via the Black Sea. The temporary “humanitarian corridor” reroutes Ukrainian exports via the western Black Sea coast near Romania and Bulgaria, to avoid the risk of Russian attacks on river ports.

It’s Fed week: Expect the Federal Reserve to leave rates unchanged when it meets for its policy meeting on Tuesday and Wednesday this week. A higher-than-expected US inflation print in August now has raised the prospect of another 25-bps hike before the year is out, though for this meeting the consensus is that the central bank will sit tight and see what happens in September before making another move.

More than 25 bps? The majority of economists polled by the Financial Times expect the Fed to raise rates by at least 25 bps before calling time on tightening, with more than 40% forecasting another two or more hikes.

The market isn’t seeing it: Global equity funds saw their largest weekly inflows since mid-June last week, as investors bet that the Federal Reserve will bring its tightening to a close on the back of softening inflation data, writes Reuters. London Stock Exchange data shows global equity funds took in almost USD 10 bn last week as the prospect of steadier rates into 2024 boosted investors' risk appetite.

But the sour mood in EM continued: Emerging-market equity funds saw net outflows of almost USD 2 bn last week, while investors pulled USD 795 mn from bond funds, the seventh consecutive week of outflows.

EGP WATCH-

Flexible exchange rate the only solution to red-hot inflation, says economist: Moving to a flexible exchange rate is the only solution to Egypt’s rising inflation, Aathira Prasad, director of macroeconomics at Nasser Saidi & Associates, told Bloomberg TV on Thursday (watch, runtime: 6:30). “Your food inflation is growing much faster than your overall headline numbers, so something has to change at least within this year to see some movement,” she said.

Remember: Inflation hit an all-time high in August for a third consecutive month, jumping to 37.4% from 36.5% the month before, largely on the back of ballooning food and beverage prices.

Devaluation is not enough: The three currency devaluations over the past 18 months have not yielded “any significant impact on export proceeds,” she said. “You haven't seen an increase in remittances because most of the people are expecting another phase of devaluation. So people are kind of stuck and not really putting in resources.” That’s in addition to trouble with imports, “which are getting more and more expensive on the market,” she says.

Prasad’s advice is the latest in a string of growing calls for the move: The Institute of International Finance (IIF) last week published a note saying that a floating exchange rate is needed to alleviate pressure on the EGP and achieve macroeconomic stability. The IMF in April postponed its first review of our USD 3 bn loan program partially due to inadequate progress in moving to a flexible exchange rate. Neither the IMF or the government have confirmed whether Fund officials will be coming to Egypt this month, which is when the second review was scheduled to take place.

Futures hint that the EGP will break the 40 mark: EGP futures contracts moved even further away from the official rate, with 12-month non-deliverable forwards (NDFs) jumping to EGP 41.5 on Friday, according to As harq Busin ess. This suggests that the currency will fall a further 34.6% over the coming 12 months. CIB certificates of deposit trading on the London Stock Exchange price the EGP at 46 against the USD.

ICYMI-

Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we broke down the recently-announced incentives for industrial projects and what they mean for manufacturers.

CORRECTION- In yesterday’s edition of EnterpriseAM, we wrote that foreigners looking to acquire Egyptian citizenship by purchasing real estate now have the option to pay the USD 10k administrative fee in its EGP equivalent. In fact, foreigners previously had that option but must now pay the fee in USD. The story has been corrected on our websi te.

*** 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 break down this academic year’s tuition fees at the country’s major international and private K-12 schools.

Tags:

ride-hailing transport Uber What We're Tracking Today

Get ready to embark on a sensational journey of entertainment: From October through December, London will be illuminated by the brilliance of three remarkable events sponsored exclusively by Somabay. The laughter will be unstoppable at the uproarious Egyptian Trilogy comedy tour, followed by the enchanting Samar Tarik. Brace yourselves for a captivating finale with the mesmerizing Farah El Dibany. Somabay brings you an unforgettable trifecta of events that will leave you utterly captivated and eagerly anticipating each spectacular moment.

POLL

Egypt’s central bank to leave interest rates unchanged in September -poll

The Central Bank of Egypt is expected to leave interest rates unchanged when it meets on Thursday ahead of a potential currency devaluation in the coming months, according to our interest rate poll. All of the seven analysts and economists we surveyed expect the Monetary Policy Committee (MPC) to hold rates steady, citing slowing monthly inflation and the need to retain policy space in response to further currency weakness later down the road.

Where rates currently stand: The overnight deposit rate stands at 19.25%, while the overnight lending rate is 20.25%, and the main operation and disc. rates are at 19.75%.

#1- The inflation waiting game: Several analysts said that the central bank is unlikely to raise interest rates for a second consecutive meeting to counter inflation, and will prefer to assess how the previous hikes are impacting the economy. The MPC is expected to hold rates in the upcoming meeting, “considering the impact of the previous increase approved in August, which has not yet become clear in terms of inflation,” EFG Hermes chief economist Mohamed Abu Basha told Enterprise.

Remember: The central bank has increased rates by 1.1k bps since March 2022, with 300 bps of hikes coming this year. The MPC last raised rates in August when it decided on a 100-bps hike.

Inflation is showing signs of moderating: Though annual inflation clocked a new record high in August, on a monthly basis price growth slowed for the third consecutive month to 1.6%, indicating weakening price pressures. Given this, there is “no need” for the central bank to raise rates this week when it will likely need to soon make moves following the expected devaluation of the EGP, said Beltone Financial’s head of research Ahmed Hafez.

Don’t be surprised if the trend ends this month: Several analysts said that shortages of imported goods and the ongoing FX crunch will offset a strengthening base effect in the final quarter of 2023 and heading into 2024. Securities banking and macro analyst Heba Monir said these factors will push monthly inflation to accelerate to 1.8% and the annual rate to notch a fresh record high of 37.8% in September.

#2- Policy space is going to be important going forward: Economic analyst Hany Geneina believes the CBE will pause on Thursday to “gather ammunition for a significant hike in the fourth quarter of 2023,” predicting an increase of 200-300 bps.

Remember: Analysts broadly expect the central bank to devalue the currency again to coincide with the IMF’s anticipated review of the USD 3 bn loan program. Despite committing to a flexible exchange rate under the loan agreement, the EGP-USD rate has remained fixed for the past six months, contributing to the IMF’s decision to postpone the review.

We could be looking at a 30% decline over the next year: Non-deliverable forward contracts currently indicate an expectation for the EGP to reach 32.65 / USD within three months and 41.5 / USD within 12 months, according to banking expert Hany Aboul Fotouh.

How far could the CBE move? Analysts expect the CBE to move aggressively if and when a devaluation comes, with EFG Hermes’ Abu Basha forecasting a 200-bps hike and Hany Geneina penciling in a 200-300-bps increase.

A tough time for forecasters: “The MPC meetings until the end of the year are surrounded by a lot of ambiguity and lack of clarity,” said economist Mona Bedeir. “There is no clear path for monetary policy in Egypt, which is closely linked to the escalating inflation figures fueled by expectations of a depreciation of the EGP and the ongoing foreign exchange crisis.”

Inflation: where’s the peak? Analysts broadly see inflation continuing its upward trajectory through the end of 2023, though there’s little consensus about where and when the peak might come. On the lower end, EFG Hermes’ Abu Basha is forecasting inflation to average 34% in 4Q 2023 before slowing to an average 27% by the end of the fiscal year in June. More pessimistically, Hany Aboul Fotouh thinks it could exceed 40% before the end of the year and exceed 45% in 2Q 2024 in the event of a currency devaluation and a slowdown of the government’s asset sale program.

Tags:

Central Bank of Egypt economy foreign exchange inflation interest rates POLL

DEBT WATCH

valU closes EGP 922 mn securitized bond issuance

valU issues EGP 922.3 mn worth of securitized bonds: Fintech platform valU has issued EGP 922.3 mn worth of securitized bonds, according to a statement (pdf). The single-tranche issuance has a 12-month tenor and a Prime 1 rating, according to the statement.

The issuance renews a short term, EGP 4 bn securitization program that kicked off in November 2022. The most recent issuance in the program was for EGP 856.5 mn of bonds in March of this year. valU has now made six securitizations in total, including three this year alone.

Who subscribed? Arab Banking Corporation (ABC), aiBank, Attijariwafa Bank, and Banque Misr were subscribers to the issuance. EFG Hermes and Arab African International Bank (AAIB) were underwriters.

Advisors: EFG Hermes acted as the sole financial advisor and sole transaction manager, and was joined by AAIB as lead arrangers and book-runners. AAIB also acted as the custodian bank on the issuance. KPMG was the financial auditor and ALC-Alieldean Weshahi & Partners acted as the legal advisor.

DATA POINT- This brings the total value of securitized bonds issued in Egypt so far this year to more than EGP 51.7 bn — almost 14% more than total volumes across the whole of 2022, according to data tracked by Enterprise.

Tags:

aiBank ALC Alieldean Weshahi & Partners Arab African International Bank Attijariwafa Bank Bank ABC Banque Misr debt watch EFG Hermes financial services Fintech non-banking financial services securitization ValU

Investment Watch

Abu Dhabi’s Chimera launches USD 50 bn alternative investment manager

Chimera Investment to launch one of MENA’s biggest investment management firms: Our friends at Abu Dhabi-based Chimera Investment are launching a global investment manager with more than USD 50 bn of assets under management (AUM), according to a press release ( pd f). The private-markets focused firm, dubbed Lunate, is set to begin operations out of its Abu Dhabi HQ in 4Q 2023.

Who’s involved: Lunate will be joint-owned by Chimera and the new firm’s senior management, the release reads, without disclosing the ownership split. Its managing partners include our friend Seif Fikry, the Egyptian veteran of regional financial markets who helms Chimera; Khalifa Al Suwaidi, CEO of the Abu Dhabi Growth Fund; and Murtaza Hussain, chief investment officer at Abu Dhabi wealth fund ADQ.

Where the money’s coming from: The firm is targeting institutional investors, pension funds, family offices and other investment firms, and has already signed contracts to manage the assets of “multiple” unnamed clients, it said.

Lunate looks set to invest across the board: The firm “will invest globally through a combination of Limited Partner (LP) commitments, co-investments and direct investments across private equity, venture capital, private credit, real assets, public equities, and public credit,” according to the release.

Drawing bankers to Abu Dhabi: Lunate will employ a 150-strong team, including some 80 investment bankers. The firm eventually plans to set up offices in North America, Europe, and Adia.

Tags:

Chimera Investment investment watch Lunate private equity

EARNINGS WATCH

Qalaa Holdings reports 2Q loss on higher borrowing costs

Qalaa Holdings r evenues rose 2% y-o-y to EGP 27.7 bn during 2Q 2023 as growth at Taqa Gas helped offset lower revenues at the Egyptian Refining Company (ERC),according to its latest earnings release (pdf). Qalaa Holdings reported a EGP 381.2 mn loss in the April-June quarter as rising interest rates more than doubled the company’s financing costs from a year earlier. Qalaa reported EGP 361.6 mn in net income in the same period last year.

Higher borrowing costs hit profitability: A sharp rise in interest rates caused Qalaa’s finance costs to more than double to EGP 2.3 bn from EGP 1.1 bn in 2Q 2022, which the company said was primarily responsible for the loss.

ERC revenues fall: ERC’s USD-denominated revenues fell 3% in EGP terms to EGP 20.7 bn on the back of falling refined petroleum prices. The company’s gross refining margins declined “significantly” to USD 1.86 mn per day from USD 5.36 mn in 2Q 2022 as oil prices normalized from last year’s highs and feedstock prices rose. The refinery continued to account for the bulk of the company’s top line, contributing some 75% of Qalaa’s 2Q revenues.

Qalaa’s other business helped to plug the gap: Revenues excluding ERC increased 26% y-o-y to EGP 6.9 bn in 2Q 2023. Energy distribution subsidiary Taqa Arabia’s revenues rose 30% y-o-y to EGP 3.2 bn on the back of a strong performance from Taqa Gas as well as an increase in the price and volume of both fuel and lubricants at Taqa Petroleum. Revenue was stable y-o-y at National Printing at EGP 1.1 bn, while Dina Farms Holding Company’s revenue grew 40% y-o-y to EGP 480 mn. Cement and construction subsidiary ASEC Holding took a 25% hit to its revenue due to the impact of the conflict in Sudan on its operations.

What they said: “I am pleased with Qalaa’s results over the past quarter, which continue to showcase our strength and resilience in the face of a highly difficult operating environment,” said Qalaa founder and chairman Ahmed Heikal. “Qalaa’s top-line increased slightly year-on-year, supported by stable results at the ERC and solid performances across all subsidiaries.”

Looking ahead: Qalaa warned that a shutdown of the refinery in July will likely weigh on results in July. It also said it is studying multiple new “medium-sized, export-oriented, and predominantly green investments with high local value-added components.” On the flip side, the company may look to divest “a few small non-core or under-performing businesses and assets,” it said.

Tags:

earnings watch Egyptian Refining Company energy oil and gas Qalaa Holdings

Moves

Hani Suleiman named executive managing director of HCCD

The Public Enterprises Ministry has appointed Hani Soliman as executive managing director and acting non-executive chairman of the Holding Company for Construction and Development (HCCD), according to a ministry statement released on Sunday.

Tags:

Hani Soliman Heliopolis Housing and Development Holding Company for Construction and Development moves Public Enterprises Ministry real estate

LAST NIGHT’S TALK SHOWS

Social support measures dominate Egypt’s talk shows for the second night running

The new raft of financial support measures continued to dominate the conversation on the airwaves for a second night running last night: Masaa DMC (watch, runtime: 4:32), Al Hayah Al Youm (watch, runtime: 2:10 | 8:22), Ala Masouleety, Kelma Akhira (watch, runtime: 2:11 | 4:06), and El Hekaya all covered Saturday’s announcement by the president, which includes another hike to the public-sector minimum wage, another boost to pension payouts, and a wage tax cut.

Joining the talking heads to parse the details were:

Deputy minister of finance Ahmed El Said, who appeared on Kelma Akhira (watch, runtime: 12:19) and Ala Masouleety (watch, runtime: 13:42) to go over the details of the measures.
Pensions Syndicate Secretary Ibrahim Abu Al Ata, who appeared on Al Hayah Al Youm (watch, runtime: 5:13 | 3:42) to talk about the pension hikes, as well as the higher bonus payouts for the elderly.

ALSO GETTING ATTENTION-

Aid efforts in Libya: Masaa DMC (watch, runtime: 6:41), Kelma Akhira (watch, runtime: 1:46), and Ala Mas’ouleety (watch, runtime: 3:07) continued their coverage of the aftermath of the floods in Libya that left more than 5k dead and tens of thousands missing, and Egypt’s humanitarian efforts.

Uber tells Lamees “We’re sorry”: Kelma Akhira host Lamees El Hadidi talked to an Uber representative about the reports that customers had been hit with FX transaction fees for paying for rides. They told her viewers that the error was due to a technical glitch and that the company still accepts EGP for rides (watch, runtime: 1:51). We have more on this in this morning’s What We’re Tracking Today section, above.

Tags:

LAST NIGHT’S TALK SHOWS Libya social welfare Uber

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EGYPT IN THE NEWS

Presidential election gets attention in the foreign press

Politics is on the agenda in the foreign press this morning: The new raft of financial supp ort measures announced by President Abdel Fattah El Sisi on Saturday “leaves little doubt he will seek a third term” in the upcoming presidential elections, the National’s Hamza Hendawi writes. Meanwhile, AFP reports that opposition coalition El Tayar El Hurr will no longer nominate a presidential candidate after its potential nominee, Hisham Kassem, was this week sentenced to six months in prison for alleged libel and verbal assault.

Also making headlines:

S hark attack in the Red Sea: An Egyptian woman was injured in a shark attack in Dahab on Wednesday. (The National)
Egyptian villages mourn relatives lost in Libyan floods: At least 74 young men from the same Egyptian village died in the recent devastating floods in Libya, where they had traveled for work. (BBC | Associated Press)

Families are struggling to cover the soaring price of school supplies as the new academic year gets underway. (The National)
Egypt reopens restored Ottoman mosque: The government has inaugurated the newly-restored 16th century Ottoman Sariya mosque in Cairo citadel. (Reuters)

Tags:

economy Election 2024 inflation Libya politics tourism

Also on our Radar

Pachin to delist from EGX. PLUS: MPs want answers on blackouts + news from Qatari Diar, Capricorn Energy and the SME development authority

CAPITAL MARKETS-

Pachin to delist from EGX: The board of directors of Paint and Chemical Industries (Pachin), now owned by Dubai-based National Paints Holding, has approved plans to voluntarily delist its shares from the EGX, according to an EGX disclosure (pdf). The company offered to buy back the shares from objecting shareholders for EGP 39.80 per share.

Refresher: Dubai-based National Paints Holding’s (NPH) acquired more than 80% of the formerly state-owned company in a mandatory tender offer in May.

ENERGY-

The cabinet is getting heat from MPs as blackouts get worse: Several MPs have raised concerns to Prime Minister Moustafa Madbouly and his government about the continued rolling blackouts, which in some areas have started lasting longer than the scheduled one-hour outage. MPs criticized the lack of an official explanation about why the blackouts are now lasting longer, despite previous pledges that the outages would end by the middle of September. “These blackouts also come just a few days before the new school year starts on the first of October and nobody knows whether these blackouts will continue next month,” said independent Rep. Mahmoud Qassem.

REAL ESTATE-

Qatari Diar launches St. Regis Residences: Qatari real estate developer Qatari Diar has launched its USD 1 bn St. Regis Residences project, a luxury mixed-use development located at the St. Regis Hotel, it said in a statement (pdf) yesterday.

ENERGY-

Capricorn goes ahead with big investor payout… Oil and gas firmCapricorn Energy is sticking with plans to pay out a total of USD 575 mn to shareholders this year, it said in its 1H 2023 results. The company paid a USD 450 mn special dividend in May and expects to issue another USD 100 mn special dividend in October. Shareholders will gather on 5 October to vote on the USD 100 mn payout.

…despite a rise in receivables outstanding from Egypt: The company had some USD 144.2 mn in receivables outstanding from Egypt by the end of 1H, up from USD 97 mn at the start of 2023. Some USD 113.3 mn of that is overdue.

Remember: Capricorn’s new leadership is scaling back the company’s operations to focus only on Egypt and putting a new focus on dividend payouts. Its former board was ousted earlier this year by activist investors who torpedoed plans for a merger with Israel’s NewMed Energy.

SMES-

#1- SME development authority x KfW: German development bank KfW will provide EUR 12 mn in financing to the Micro, Small and Medium Enterprises Development Agency to provide financial and technical support to micro projects working with renewable energy or energy efficiency, the agency said in a statement yesterday.

#2- SME development authority x Tamweely: Microfinance player Tamweely has inked a EGP 150 mn financing agreement with the Micro, Small and Medium Enterprises Development Agency to fund projects in rural villages in four governorates, the agency said in a stateme nt yesterday. The agreement will finance 6k projects in 30 villages in Kafr El Sheikh, Beni Suef, Minya, and Aswan, according to the statement.

ALSO- Tamweely has applied to the Financial Regulatory Authority (FRA) for a fintech license and approval for its new sharia-compliant financing product for MSMEs, Al Masdar reports, citing CEO Ahmed Khorshid. Tamweely will launch its new product upon getting the green light from the regulator.

TRANSPORT-

Cairo to Cologne: Nile Air is set to launch a new route to Cologne Bonn Airport, Germany, next month, according to Al Mal. The airline will start the new route in October, and will operate two flights a week.

LEGISLATION-

Nuclear safety: Egypt will join the International Atomic Energy Agency’s convention on nuclear energy safety after President Abdel Fattah El Sisi ratified the move in the Official Gazette.

TECH-

Talaat hits Silicon Valley to talk semiconductors, outsourcing: Communications Minister Amr Talaat was in California at the weekend for talks with tech industry leaders on localizing semiconductor chip manufacturing and boosting tech outsourcing projects here, according to a ministry statement. Talaat talked about bringing chip manufacturing to Egypt with Jodi Shelton, CEO of the Global Semiconductor Alliance. He also discussed outsourcing with top execs from chipmakers and tech firms including Qualcomm, Broadcom, Dell, and Cisco.

Tags:

ALSO ON OUR RADAR Amr Talaat aviation Capricorn Energy CIT ministry EGX energy financial inclusion financial services microfinance National Paints Holding non-banking financial services nuclear energy oil and gas outsourcing Pachin Qatari Diar real estate semiconductors SME Development Authority SMEs state privatization program Tamweely transport

PLANET FINANCE

Saudi in talks for USD 11 bn syndicated loan

Saudi plans what could be one of the world’s biggest financing agreements of the year: Saudi Arabia wants to raise USD 11 bn from a syndicated loan to finance ambitious investment plans as the country continues its pivot away from oil, Bloomberg reports, citing sources it says are in the know. The 10-year senior, unsecured loan carries an interest rate 100 bps higher than the standard USD lending rate known as the Secured Overnight Financing Rate. Industrial & Commercial Bank of China (ICBC) is acting as coordinator and bookrunner.

A boost for the regional debt market: Syndicated loan issuances in the EMEA region aredown 27% year-to-date, according to Bloomberg data.

ALSO WORTH NOTING-

Instacart targeting USD 10 bn valuation: The grocery delivery platform raised its initial share price range to USD 28-30 for its upcoming Nasdaq IPO, aiming for a valuation of up to USD 10 bn. (CNBC)
US share buybacks slump: Faced with a combination of new investment demands and more expensive borrowing, US corporates are easing off repurchases of their shares. S&P 500 buybacks fell to USD 175 bn in 2Q 2023, down by around a fifth on both the previous year and the previous quarter. Analysts project that the slowdown will likely stick around for some time and could cause stock markets to dip. (Financial Times)

EGX30	19,669	+0.7% (YTD: +34.7%)
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	11,104	-0.5% (YTD: +6.0%)
ADX	9,880	+0.9% (YTD: -3.2%)
DFM	4,043	+0.2% (YTD: +21.2%)
S&P 500	4,450	-1.2% (YTD: +15.9%)
FTSE 100	7,711	+0.5% (YTD: +3.5%)
Euro Stoxx 50	4,295	+0.4% (YTD: +13.2%)
Brent crude	USD 93.93	+0.3%
Natural gas (Nymex)	USD 2.64	-2.4%
Gold	USD 1,946.20	+0.7%
BTC	USD 26,443	-0.4% (YTD: +60.3%)

THE CLOSING BELL-

The EGX30 rose 0.7% at yesterday’s close on turnover of EGP 2.0 bn (3.2% below the 90-day average). Local investors were net buyers. The index is up 34.7% YTD.

In the green: Alexandria Containers and Cargo Handling (+6.8%), Beltone Holding (+5.5%), and Mopco (+4.9%).

In the red: Abu Dhabi Islamic Bank (-2.1%), Heliopolis Housing (-1.4%), and Elsewedy Electric (-1.1%).

Tags:

Financial Markets Instacart Planet Finance Saudi Arabia

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

Published every Monday in EnterpriseAM.

Read Blackboard

BLACKBOARD

A rundown of the tuition fees at Egypt’s major private + int’l K-12 schools

What tuition fees are looking like at high-end private + international schools this academic year: After months of delay in announcing their tuition fees as private and international schools waited on the Education Ministry to approve their fees, schools have recently begun announcing to parents their fees for the 2023-24 academic year. Many of these schools began their academic years before the ministry issued a decision on fee hikes — students at Cairo American College were back in class on Wednesday, 16 August, followed by BISC and NCBIS on 28 August, while El Alsson and AIS started their academic year on 3 September. Today, we run down the tuition fees being charged at the country’s biggest international and private schools.

REMEMBER- The Education Ministry issued a decree earlier this month introducing a new tiered system of caps on annual hikes of tuition fees at privately owned schools teaching both local and international curriculums. Under the new system, schools that charge tuition fees of EGP 35k and above will not be allowed to hike fees by more than 6% for this academic year, down from the previous 7% cap. The decision does not impact schools that fall outside of the ministry’s purview, among them institutions owned by associations and other bodies. These include the likes of CAC, MBIS, and BISC.

Editor’s note- Most of these schools detail their fees in foreign currency. For the purposes of this story, we are detailing the EGP-equivalent of these fees based on the current official exchange rate.

At the uppermost end of the spectrum is CAC, which charges EGP 638k per year for kindergarten students, while annual tuition fees for high school students (grades 9-12) stands at EGP 845k, according to figures administrative staff provided to Enterprise. The school is managed by a board that includes representatives from the US embassy and other stakeholders and its tuition fees are not regulated by the Egyptian Ministry of Education. It offers its students American education and the International Baccalaureate Diploma Program (IB Diploma) for grades 11 and 12.

Next is the British International School in Cairo (BISC), which charges tuition fees starting from EGP 232k per year for foundation stage 1 (KG1) kids, excluding registration, supplies, and admission fees. Foundation stage 2 through to year 6 tuition is EGP 469k per year, while years 7, 8, and 9 cost EGP 543k per year. Years 10 and 11 cost EGP 552k per year, and years 12 and 13 cost EGP 585k per year, according to the tuition fees for the 2023-2024 academic year (pdf). BISC teaches the British curriculum until year 9, after which students study IGCSE and GCSE courses. Students in their final two years of schooling (12 and 13) follow the IB program. BISC is an association-owned school and not subject to the Education Ministry’s tuition cap.

Next up comes the American International School in Egypt (AIS), which is — relatively speaking — on the higher end of the spectrum. AIS has only announced the fees for the first of its three semesters, according to a copy of the payment plan seen by Enterprise. The school typically charges more for its first semester than for the second and third, making it difficult to estimate exact fees for the full academic year, according to parents we spoke with. AIS’ tuition fees range from EGP 80k per semester for its youngest students to EGP 100k per semester for high school. The school has two branches in Cairo, one located in New Cairo and the other in Sheikh Zayed. The school provides its students with an American education until grade 11, when students can choose to continue on the American Diploma program or enter the IB program.

More or less within the same range is El Alsson, with tuition fees starting at EGP 161k for foundation stage 1 until EGP 252k for year 13 students following the British curriculum, and EGP 158k for preschool until EGP 247k for grade 12 for those in the American school’s American division.

CIRA Education British Columbia Canadian International School (BCCIS),whichfollows the British Columbia Canada curriculum (BC Curriculum) and offers its seniors Advanced Placement (AP) courses, charges annual tuition fees of EGP 123k for KG1 students and EGP 198k for high school students.

The German Saxony International School (SIS) charges annual tuition fees ranging from EGP 115k-145k for kindergarten and EGP 205k for high school students. The school is the Egyptian branch of the Saxony International School - Carl Hahn GmbH in Germany. SIS also offers its students the IB Diploma program.

Also worth mentioning:

Regent British School’s annual tuition fees range between EGP 84k for kindergarten stages and EGP 118k for high school students.
GEMS British School’s tuition ranges between EGP 104k and EGP 207k.
Majesty International Schools’ tuition fees start at EGP 110k reaching EGP 147k for high school students.

Your top education stories for the week:

Robotics and AI are picking up steam in Egypt, although funding and accessibility issues are holding students back.
Niqab school ban: The Education Ministry’s decision to ban the niqab in schools, arguing that wearing the niqab is not an Islamic duty, has sparked debate on social media and on the airwaves.
Education Minister Reda Hegazy met with USAID Egypt director Sean Jones yesterday to discuss the agency’s support for education projects in Egypt.
Nahdet Misr has signed an MoU with the Saudi-based Obeikan Investment Group for a strategic partnership to develop education in the MENA region. Under the agreement, the companies will work to set up programs using innovative education courses and advanced technologies.
Communication Ministry concludes his US visit: Communication Minister Amr Talaat has met with a number of high level executives from American and multinational tech firms to discuss avenues of cooperation, as the minister concludes his visit to the US.

Tags:

AIS BISC Blackboard CAC CIRA Education Education El Alsson inflation

CALENDAR

SEPTEMBER

17-18 September (Sunday-Monday): Arab Security Conference and Exhibition, Nile Ritz Carlton, Cairo.

17-19 September (Sunday-Tuesday): Sharm Rendezvous (insurance conference), Rixos Premium Seagate, Sharm El Sheikh.

18-19 September (Monday-Tuesday): Enterprise Finance Forum, St. Regis Hotel, Cairo.

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

19-26 September (Tuesday-Tuesday): UN General Assembly, New York.

20-23 September (Wednesday-Saturday): Cityscape Egypt, Egypt International Exhibition Center, Cairo.

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

23-29 September (Saturday-Friday): Engineering Export Council of Egypt Iraqi trade mission.

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

25-26 September (Monday-Tuesday): Egypt to host the Asian Infrastructure Investment Bank’s annual board meeting, Sharm El Sheikh.

27 September (Wednesday): Prophet Muhammad’s birthday.

26 September (Tuesday): Taqa Arabia’s ordinary general assembly meeting.

27 September (Wednesday): Deadline for bidding in the fifth phase of the investment map offered by the Industrial Development Authority (IDA).

27 September (Wednesday): Deadline for bidding in tender for five solar plants on north coast.

28 September (Thursday): Eastern Company will hold an ordinary general assembly meeting to approve the company’s financials for the 2022-2023 FY.

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

28-29 September (Thursday-Friday): Medical Tourism Conference, Sharm El Sheikh.

30 September (Saturday): The start of the new academic year for Egyptian universities.

30 September (Saturday): The start of the new academic year for Egyptian schools.

Signposted to happen sometime in September:

Sustainable Debt Coalition Initiative agreed at COP27 to launch
IDH to open first branch in Saudi Arabia
The Egypt-Germany trade and investment joint conference in Cairo
ADQ to acquire stakes in Elab, Ethydco and EDC by end of month

OCTOBER

1-3 October (Sunday-Tuesday) International Expotec for water economics management, Egypt International Exhibition Center, Fifth Settlement, Cairo.

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

2 October (Monday): Government meeting with investors to look into liberalizing electricity grid.

6 October (Friday): Armed Forces Day.

7 October (Saturday): HHD shareholders to consider NOSI’s offer to acquire Heliopark land.

9 October (Monday): The Narrative PR Summit, Somabay Red Sea.

9-11 October (Monday-Wednesday): Arabs Savings and Financial Literacy Conference, Four Seasons Hotel.

10-12 October ( Tuesday-Thursday) Ceramica Expo, Cairo International Convention Center.

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

Late October-14 November: 3Q2023 earnings season.

15-17 October (Sunday-Tuesday): Egypt Automotive Aftermarket Exhibition, Cairo International Convention Center.

26 October (Thursday): Daylight saving time ends.

29-31 October (Sunday-Tuesday): Egypt Energy, Egypt International Exhibition Center.

29 October - 2 November (Sunday- Thursday): Cairo Water Week.

30-31 October (Monday-Tuesday): Intelligent Cities Exhibition and Conference, Dusit Thani LakeView, Cairo.

30-31 October (Monday-Tuesday): Global Business School Network (GBSN), American University of Cairo.

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

Signposted to happen some time in October:

Deadline for ins. providers to link their databases with the FRA
Egyptian-Jordanian Business Council, Amman, Jordan
Gov’t expects to finalize sale of Gabal El Zeit wind plant
October or November: Gov’t expects to finalize stake sale for military-owned fuel retailer Wataniya

NOVEMBER

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

8 November (Wednesday): Turkish-Arab Economic Forum 2023, Istanbul.

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo.

14-15 November (Tuesday-Wednesday): Destination Africa, Royal Maxim Palace Kempinski Hotel.

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

19-22 November (Sunday-Wednesday): Cairo ICT, Egypt International Exhibition Center.

22 November (Wednesday): Deadline to apply to FRA for credit rating license.

23 November (Thursday): Worldview Education Fair, Cairo. (Register here)

30 November-12 December (Thursday-Tuesday): COP28, Dubai.

DECEMBER

9-15 December (Saturday-Friday) :The Engineering Export Council of Egypt’strade mission to Saudi Arabia.

10-11 December (Sunday-Monday): eGlobe Expo, St. Regis Almasa Hotel, Cairo.

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

12-14 December (Tuesday-Thursday): Food Africa Expo, Egypt International Exhibition Center.

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

Signposted to happen sometime in December:

Gov’t expects to finalize sale of a stake in military-owned bottled drinks company Safi
Gov’t expects to finalize sale of Zafarana wind farm

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

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

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

3Q 2023: E-Finance to launch in Saudi Arabia.

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

4Q 2023: EGX to launch a shariah-compliant index.

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

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

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.

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

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

2Q 2025: Safaga Terminal 2 to start operations.

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