The fourth review of Egypt’s IMF loan agreement kicks off tomorrow

Monday, 4 Nov 2024

The fourth review of Egypt’s IMF loan agreement kicks off tomorrow

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Today at a glance

Economy

IMF to begin Egypt’s fourth loan review tomorrow.

Energy

Egypt hikes household gas prices.

Automotive

Auto sales fall for the second consecutive month in September.

DEBT WATCH

Tasaheel raises EGP 3.92 bn from third securitized social sustainability bond issuance.

EARNINGS WATCH

CIB’s net income jumps 77% y-o-y in 3Q 2024.

Moves

Alexbank brings in new CEO and deputy CEO.

What We're Tracking Today

World Urban Forum kicks off today.

PLANET FINANCE

Expect rate cuts around the world following this week’s US presidential elections.

BLACKBOARD

The Education Ministry’s new AI-powered education platform takes aim at private tutoring industry.

What We're Tracking Today

Central bank reportedly eases import restrictions

Good morning, all. The news flow is showing no signs of slowing down as we gear up for the fourth IMF loan review to kick off and digest the latest in a series of energy price hikes.

WATCH THIS SPACE-

#1- CBE quietly relaxes import restrictions for non-essential items: The Central Bank of Egypt is reportedly allowing local banks to issue letters of credit for the import of non-essential goods — including cars — based on each lender’s USD reserves — its first such move in two months, six bankers told Asharq Business. The move is expected to help clear the backlog of non-essential import requests that have been piling up since 2022, one CEO of a private bank told the news outlet.

#2- A local manufacturing partnership: Ebda’s Nile Fund for Industrial Investment, and the Sovereign Fund of Egypt’s industrial sub-fund are reportedly exploring cooperation to set up new companies specialized in the local manufacture of imported production inputs, Al Borsa reports, citing sources it said to have knowledge of the matter.

Potential projects on the table: The Egyptian Businessmen’s Association and the Federation of Egyptian Industries have submitted feasibility studies for potential investments to both funds.

FX WATCH-

The EGP continues to weaken against the greenback: The USD continued its rise against the EGP during the first day of the week, exchanging hands at up to EGP 49.10 and inching closer to its peak recorded during August’s global market meltdown,

IN THE HOUSE-

MPs are meeting today to continue their discussion of the amended Criminal Procedures Law. The amended law reduces the maximum length of pretrial detention and provides further regulations around financial compensation for the wrongly detained, travel bans, and asset freezes. The House’s legislative and constitutional affairs committee approved the amendments in September.

Timing is everything: The amendments come ahead of the UNHRC conducting its periodic review of Egypt’s human rights record early next year, Foreign Minister Badr Abdelatty told MPs yesterday.

The House yesterday gave its final approval to amendments to the law governing the Police Authority. The amendments aim to modernize police training and grant the Interior Minister greater authority.

PSA-

WEATHER- The capital is in for another cool day, with a high of 26°C and a low of 18°C, according to our favorite weather app.

It’s more or less the same in Alexandria, with a high of 25°C and a low of 16°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.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at Egypt’s localization efforts. Check out the story here.

HAPPENING THIS WEEK-

#1- The World Urban Forum kicks off today: The UN’s World Urban Forum will run from today to Friday in Cairo, and will bring together a global array of policymakers, urban planners, academics, business leaders, and community representatives to address today’s critical urban challenges. Co-organized by the Egyptian government, the forum will feature discussions and workshops aimed at reshaping urban policies and fostering sustainable, inclusive cities for the future. Check out the agenda or register to attend via the links available on the event’s official website.

#2- El Khatib is in Turkey to drum up investments: Investment Minister Hassan El Khatib is in Turkey for a visit that will see him meet with Turkish officials and businessmen in efforts to boost trade and investment relations between the two sides, Ahram Gate reports. El Khatib will introduce the Turkish business community to potential investors in Egypt and will attend the final days of the COMCEC session.

#3- Attention, executives: The AUC School of Business is hosting another webinar for those interested in its upcoming executive MBA program on Tuesday, 5 November at 7pm, a few weeks ahead of the program’s 30 November application deadline. The webinar will be led by AUC Associate Professor of Operation Management Sherwat Elwan Ibrahim along with El Alamein Pack Managing Vice President Amr Abourida and fintech and innovation consultant Yasmine Helal — two alumni of the program. You can find the link to register for the webinar on the School of Business’ LinkedIn account.

THE BIG STORY ABROAD-

On the eve of voting day, the international press has its attention fixed firmly on the US presidential election as both Kamala Harris and Donald Trump deliver their closing messages.

The race remains very much neck-and-neck this morning, with the New York Times / Siena College polls showing that Harris and Trump’s standings in seven key states are “within the margin of sampling error,” which means that a clear lead remains uncertain. However, Harris currently has a narrow lead in Nevada, North Carolina, and Wisconsin, while Trump is closing the gap in Pennsylvania and is in the lead in Arizona.

Who’s going to tip the scales? For Harris, it’s likely to be young women, while for Trump it’s likely to be “disaffected young men.” The elections are leading the front pages of the Financial Times, New York Times, Wall Street Journal, Bloomberg, and CNBC, among others.

*** 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 dive into the Education Ministry’s new AI-powered education platform.

Tags:

Central Bank of Egypt What We're Tracking Today

Discover the essence of paradise at Somabay: Join us at the World Travel Market in London, Stand #S12-200 from November 5-7, 2024.

Let’s connect and explore the experiences that make Somabay a world class destination. From pristine beaches to exhilarating sports, we can’t wait to share the beauty of Somabay with you.

Economy

IMF to begin Egypt’s fourth loan review tomorrow + more from IMF head’s visit

Egypt’s fourth IMF review is right around the corner: The International Monetary Fund will begin the long-awaited fourth review of Egypt’s IMF loan program tomorrow, Prime Minister Moustafa Madbouly said during a presser (watch, runtime: 10:43) with the IMF’s managing director Kristalina Georgieva attended by EnterpriseAM yesterday. The news came during Georgieva’s second day of talks in Egypt following her arrival on Saturday.

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

It's been a while since the third review: The Fund completed its third review of the country’s loan program in late July and the USD 820 mn tranche landed in state coffers just days later. The fourth review, which was initially scheduled for September, is set to unlock USD 1.3 bn in funds — the biggest of the four tranches to date.

What will the fourth review look like? Georgieva mentioned three main areas that will be subject to discussions during the review, pointing to “what more can be done for a resilient Egyptian economy for macroeconomic and financial stability and how to make sure inflation continues on the way down; What more can be for the private sector to flourish; How can we support Egyptian objectives in the area of greening the economy.”

The talks also gave some insight into how the IMF views the nation’s economic reforms: President Abdel Fattah El Sisi and the IMF chief’s meeting prior to the presser yesterday struck a largely positive tone, with Georgieva saying that Egypt's macroeconomic indicators have improved despite significant regional and international headwinds. She singled out as particularly positive signs the country’s recent credit rating upgrade, positive outlooks from international rating agencies, and increased investment.

Getting inflation under control is key: Georgieva also noted in the readout of her meeting with El Sisi that the Fund agrees with its Egyptian counterparts that tackling inflation needs to be a key priority for the government and its international partners. Rising energy costs — a substantial part of which is accounted for by fuel prices — have been acknowledged as driving two consecutive monthly upticks in inflation.

Georgieva defended the reform program overall, saying at the press conference that the reforms had made Egypt safer in a world marked by economic shocks. “Reforms are not easy. I would like to recognize the efforts of the government and recognize the Egyptian people … I have full confidence that you will see the full benefit of these reforms in a more dynamic, more prosperous Egyptian economy,” she said.

Could we finally unlock climate financing from the fund? The IMF team will be discussing green financing through its Resilience and Sustainability Facility next week, Georgieva said. The government applied for an additional USD 1.2 bn in long-term, low-cost climate financing from the IMF's Resilience and Sustainability Facility back in August

The background: The IMF head’s visit comes as the state seeks to renegotiate the terms of the USD 8 bn loan agreement. President Abdel Fattah El Sisi last month stated that the country might need to revisit the IMF agreement in light of the economic pressures the country is facing as it undergoes agreed-upon reforms.

The news caught the attention of the foreign press: Reuters | The National.

Tags:

economy IMF Kristalina Georgieva Moustafa Madbouly

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Energy

Egypt hikes household gas prices

Natural gas for households just got pricer: The Madbouly government has hiked the prices of natural gas for households by EGP 0.40-1 per cubic meter as part of wider plans to phase out fuel subsidies, according to local media outlets Al Mal and Masrawy.

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

Natural gas consumers will now pay:

EGP 3 per cbm for up to 30 cbm of consumption, up from EGP 2.60/cbm;
EGP 4 per cbm for up to 60 cbm of consumption, up from EGP 3.35/cbm;
EGP 5 per cbm for anything over 60 cbm, up from EGP 4/cbm.

The when: The decision was issued in September and the new prices have gone into effect this month, the Oil Ministry clarified in a statement in response to media reports which have been amended since.

Now all households pay more for gas: The government also hiked subsidized butane gas cylinders in September by 50% for households and 33.3% for commercial institutions in response to global price increases pushing up the cost of butane.

And factories could be next, as a government source confirmed to EnterpriseAM in September that the government has been studying the possibility of raising the price of natural gas supplies for the country’s industrial sector since July.

Remember: The Madbouly government has hiked fuel prices three times this year, most recently last month raising prices by 8-17%.

The endgame is to suspend fuel subsidies altogether: The government had initially planned to phase out subsidies for butane and other petroleum products entirely by the end of 2025, but that date could be pushed back depending on how the current talks with the IMF go.

A note from the editors: An earlier version of this story suggested that the government decided this month to raise the prices of natural gas for households. The story has been amended on 4 November 2024 to clarify that the Oil Ministry decided the price increases in September.

Tags:

commodities energy fuel subsidies

Automotive

Auto sales fall for the second consecutive month in September

Auto sales continued to decline in September: Auto sales in September dropped 5% m-o-m to record 9.5k vehicles, down from 10k in August, according to figures from the Automotive Marketing Information Council (AMIC) seen by EnterpriseAM. This marks the second consecutive decline in monthly vehicle sales, signaling a slowdown after four months of growth between April and July.

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

Remember: The vehicle market witnessed a 43% m-o-m drop in March, with sales plummeting to just 4.2k vehicles — the lowest number of auto sales we’ve seen since we started keeping track in January 2019.

The decline was driven by car sales: Passenger car sales registered a 8.9% m-o-m decline to 7.6k vehicles. However, bus sales rose 20.4% m-o-m to 727 vehicles and truck sales continued their growth from the previous month, rising 10.3% m-o-m to 1.2k units.

On a yearly basis: September’s total auto sales were down 3.4% y-o-y from the nearly 9.9k units sold during the same month last year. The fall was driven by a 3.7% y-o-y drop in passenger car sales, as well as a 6.8% y-o-y decrease in truck sales. Bus sales, however, saw a 5.5% y-o-y increase.

We saw this coming: The auto market remains volatile due to a continued slowdown in the number of cars entering the country, driving “crazy price increases” in both the new and used car markets, head of the Federation of Chambers of Commerce's auto division Nour Darwish previously told EnterpriseAM. Hatla2ee CEO Samy Swellam similarly told us how an “ongoing halt in imports, difficulties in accessing foreign currency for import transactions, and global economic crises have further driven up international car prices.”

Could localizing the industry tackle the problem? With the continued import restrictions on vehicles that hit the sector, foreign companies are increasingly looking towards local manufacturing operations.We ran an Inside Industry last month that dove into the challenges automakers in Egypt are facing in the push to localize the auto industry.

The decline may carry over to the end of the year: Khaled Saad, head of the Association of Automobile Manufacturers, told EnterpriseAM that the market could close 2024 with a 10-15% decline in sales due to recent restrictions.

Relaxed import financing rules could help: On the bright side, news that the government is loosening restrictions on bank financing for non-essential imports — including vehicles — may bode well for the embattled sector. We have more on the reported policy shift in the news well, above.

The figures don’t quite tell the whole story: AMIC figures reflect data contributed by member distributors, who include most, but not all, industry participants.

Tags:

AMIC automotive

A MESSAGE FROM HSBC

Opportunity is rarely a straight line. Our international network connects you to what’s next. Search HSBC Egypt

DEBT WATCH

Egypt’s Tasaheel raises EGP 3.92 bn from third securitized social sustainability bond issuance

Tasaheel concludes third sustainability bond issuance: MNT-Halan microfinance subsidiary Tasaheel Finance has issued EGP 3.92 bn worth of securitized sustainability bonds, its third issuance in a three-year EGP 13 bn program and Egypt’s largest non-sovereign securitization bond issuance to date, the transactions’ financial advisor CI Capital said in a statement (pdf). The issuance came in six tranches with maturities ranging from 6-31 months, rated A- and P1 by the Middle East Rating Services (MERIS).

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

Remember: Tasaheel kicked off its securitization program in January with an EGP 3.8 bn issuance, which marked the first time securitized social sustainability bonds had been issued in Egypt and Africa.

Sound smart- Social sustainability bonds are bonds whose proceeds are used to finance projects with a positive social income, including poverty alleviation, improving electricity access, and making education more accessible. In this case, the proceeds will be used to finance projects “with a social dimension” that “contribute to sustainable development goals,” the company said during its first issuance at the start of the year.

Who bought in? “Nearly 60% of this issuance was covered by asset managers beyond the banking sector, which reflects CI Capital’s commitment to diversifying its investor base,” CI Capital’s head of debt capital markets Mohamed Abbas said.

Advisors: CI Capital acted as financial advisor, issuance manager, bookrunner, and lead arranger. Matouk Bassiouny & Hennawy was legal counsel and Russell Bedford was auditor.

DATA POINT- This issuance brings the total value of securitized bonds issued in Egypt this year to EGP 26.4 bn, according to data tracked by EnterpriseAM Egypt.

Tags:

debt debt watch securitization Tasaheel

EARNINGS WATCH

CIB’s net income jumps 77% y-o-y in 3Q 2024

CIB ended 3Q 2024 on a “positive note,” with its income recording EGP 14.8 bn, rising 77% y-o-y. The country’s largest private lender saw its top line jump 83% y-o-y to EGP 25.3 bn during the three-month period, according to a pre ss release (pd f).

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

The details: The bank’s net interest income grew 74% y-o-y during the three-month period to EGP 24 bn and non-interest income sat at EGP 1.1 bn.

The bigger picture: The lender saw its net income jump 89% y-o-y during the first nine months of the year to EGP 42.3 bn and its revenues rise 82% y-o-y to EGP 71.5 bn. Net interest income saw a 74% y-o-y jump to EGP 65.7 bn during the first nine months of the year and non-interest income came in at EGP 5.9 bn. CIB also saw its gross loan portfolio grow 33% y-o-y during the nine months, recording EGP 353 bn, with its deposits also growing 33% y-o-y to EGP 897 bn.

What they said: “In a quarter that exhibited relative macroeconomic stability, this upheld financial performance comes as a further testament to the true metal of CIB, as it came primarily backed by genuine and organic growth in business acquisitions, while simultaneously not compromising on spreads and margins, which management deems as the Bank’s core sustainable stream of revenue growth,” management commented on the earnings.

Tags:

banking CIB earnings earnings watch

Moves

Alexbank brings in new CEO and deputy CEO

New leadership duo at Alexbank: The lender has tapped Paolo Vivona (LinkedIn) as its CEO, managing director, and executive board member and Antonio Bergalio (LinkedIn) as deputy CEO and executive board member, after receiving the regulatory greenlight, according to a statement (pdf). Vivona, with over 35 years of banking experience, previously served as CEO of Intesa Sanpaolo Bank Romania and chief risk officer at Alexbank. Meanwhile, Bergalio brings 30 years of experience, having held CFO roles at Intesa Sanpaolo subsidiaries, including Slovakia’s VUB Banka, Ukraine’s PRAVEX Bank, and most recently, Croatia’s Privredna Banka Zagreb.

Vivona takes over from Dante Campioni, who has led the bank since January 2015.

Remember: The state is looking to sell its remaining 20% stake in the lender — last we heard, the government has resumed negotiations for the sale.

Tags:

Alexbank moves

LAST NIGHT’S TALK SHOWS

All about the IMF

All about the latest on Egypt’s IMF agreement: Talk shows were hyper focused on IMF managing director Kristalina Georgieva's time in Egypt, during which she held meetings with President Abdel Fattah El Sisi and Prime Minister Moustafa Madbouly ahead of the Fund commencing the fourth review of the country’s USD 8 bn program.

“Georgieva's visit to Egypt reflects the IMF's support for the country's economic reform efforts,” cabinet spokesperson Mohamed Homsani told Ala Masouleety’s Ahmed Moussa in a phone interview (watch, runtime: 20:32). The IMF chief expressed appreciation for both the government's efforts and the Egyptian people's endurance, Homsani added.

The IMF was the main talking point across the airwaves, receiving airtime from Ala Masouleety (watch, runtime: 9:49) and Salet El Tahrir (watch, runtime: 30:27).

** We have more on the story in the news well, above.

Tags:

economy IMF LAST NIGHT’S TALK SHOWS

Also on our Radar

Cairo Housing’s bid for a larger stake in United Housing moves forward

M&A-

#1- Cairo Housing approves capital increase ahead of share swap with United Housing: EGX-listed real estate player Cairo Housing and Development’s extraordinary general assembly has approved a decision to increase its capital to nearly EGP 648 mn from EGP 448 mn in preparation for its share swap with United for Housing and Development, the company said in an EGX disclosure (pdf). The company looks to acquire a maximum of 133 mn shares in United Housing, and will issue up to 399 mn shares at a fair value of EGP 3.03.

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

Remember: Cairo Housing and Development last month announced that it would submit an MTO for a stake in United for Housing and Development via share swap after its board greenlit the move. The company is looking to increase its parent company and its subsidiaries’ stake in United to up to 90% — Aspire and its subsidiaries own a combined minority 49.9% stake in United.

#2- Al Areej International Investment reduces stake in Eastern Company: Al Areej International Investment has sold some 9 mn shares of its stake in tobacco giant Eastern Company to an undisclosed buyer at EGP 25 per share putting the transaction’s value at EGP 225 mn, according to an EGX disclosure (pdf). The transaction pushed the company’s stake in Eastern to 2.99% from 3.29%. The company holds another 30% stake in Eastern Company through its Global Investments Holding.

DEBT-

#1- Aur Capital to lead EverGrow’s debt negotiations: Local fertilizer producer EverGrow has appointed Aur Capital as its financial advisor to handle its EGP 32 bn debt restructuring talks with creditor banks, Al Shorouk reports citing informed sources. Aur will also look into debt restructuring proposals, including rescheduling parts of the debt payment, exploring debt-for-equity swaps with the banks, and potentially writing off some interest and fines while restructuring the remainder.

Remember:A banking committee led by the National Bank of Egypt, Banque Misr, and EG Bank was formed in July to look into proposals for restructuring EverGrow’s debt — with the company looking at a 16-year repayment plan, seeking a EGP 2 bn working capital loan, lower interest rates on its debts, and partial debt-for-equity swaps with the banks.

AND- Bringing in a new investor: EverGrow is looking to bring in a strategic investor to acquire around 30% of its capital. If the plan materializes, the company will overhaul its board of directors as part of broader restructuring efforts following its debt restructuring.

#2- Kredit secures EGP 875 mn in facilities: GB Corp’s SME lender Kredit has secured EGP 875 mn in credit financing from nine local and international banks to support its expansion plans and help it support local SMEs, Al Mal reports. The banks include the National Bank of Egypt, Banque du Caire, Al Baraka Bank, the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and the Egyptian Arab Land Bank (EALB).

COMMODITIES-

GASC launches international wheat tender: State grain buyer GASC has launched an international tender for an undisclosed amount of wheat for shipment between 25 November and 15 December, Al Borsa reports. The authority will review the offers submitted later today.

ENERGY-

The Satis gas field is back on the market: EGAS has launched a tender for the development of the Satis gas field in the North El Burg offshore concession after the BP-Adnoc JV abandoned the concession, a government official told Asharq Business. The Satis field has some 1 tn cbf of gas reserves, according to the source.

Tags:

ALSO ON OUR RADAR debt Eastern Company EGAS energy GASC M&A Watch oil and gas real estate wheat

PLANET FINANCE

Expect rate cuts around the world following this week’s US presidential elections

Analysts anticipate a flurry of rate cuts following this week’s US elections: The US Federal Reserve and its peers around the world are expected to cut interest rates following Tuesday’s US presidential elections, Bloomberg reports. Analysts expect central banks responsible for over a third of the global economy to make their decisions partly based on the results of the election — all with their own guesses over how each result could shape American economic policy over the next four years.

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

Remember: The expected cuts come just two months after the Fed’s 50 bps rate cut in September — its first in over four years.

While some were skeptical of an incoming loosening cycle, employment data begged to differ: Weak US employment data for October released on Friday showed hiring increase at its slowest pace since 2020, pushing up analysts’ expectations of multiple rate cuts this year even further, according to Bloomberg. This comes after top Wall Street executives — including the chief executives of Goldman Sachs, Morgan Stanley, and Standard Chartered, among others — suggested last week that the US Federal Reserve is unlikely to enact more than one more interest rate cut by year-end.

The question is, by how much? Economists see the Fed opting for a 25 bps cut on Thursday, with another such cut penciled in for December, Bloomberg writes, with the UK, Sweden, the Czech Republic, and a number of other countries anticipated to cut rates following election day. However, central banks could hold off on their decisions until there’s a settled result, which — if 2020’s drawn-out process is any indication — could extend several days beyond election day.

Economists see the result as having big implications for global trade policy: “With polls showing the campaign in a dead heat, the stakes couldn’t be higher. The winner will be able to reshape trade policy — Trump, especially, is likely to make use of this power if he wins,” economists from research service Bloomberg Economics said.

MARKETS THIS MORNING-

Most Asian markets are in the green this morning — South Korea’s Kospi is leading the gains, up over 1.5% in early trading. The Shanghai is up 0.4% and the Hang Seng is up 0.2%.

EGX30	30,833	+0.6% (YTD: +23.9%)
USD (CBE)	Buy 48.94	Sell 49.07
USD (CIB)	Buy 48.96	Sell 49.06
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,048	+0.2% (YTD: +0.7%)
ADX	9,349	+0.2% (YTD: -2.4%)
DFM	4,621	+0.7% (YTD: +13.8%)
S&P 500	5,729	+0.4% (YTD: +20.1%)
FTSE 100	8,177	+0.8% (YTD: +5.7%)
Euro Stoxx 50	4,878	+1.0% (YTD: +7.9%)
Brent crude	USD 73.10	+0.4%
Natural gas (Nymex)	USD 2.66	-1.6%
Gold	USD 2,749	0%
BTC	USD 68,743	-1.0% (YTD: +62.6%)

THE CLOSING BELL-

The EGX30 rose 0.6% at yesterday’s close on turnover of EGP 3.6 bn (14.5% below the 90-day average). Local investors were the sole net buyers. The index is up 23.9% YTD.

In the green: Credit Agricole (+3.8%), ADIB (+3.3%), and AMOC (+1.8%).

In the red: Juhayna (-1.2%), Abu Qir Fertilizers (-1.2%), and Emaar Misr (-1.1%).

CORPORATE ACTIONS-

Alexandria Pharma will pay out a dividend of EGP 30 per share on its FY 2023-2024 earnings, with the payment set to be made on 20 November, according to an EGX disclosure (pdf).

Tags:

Financial Markets interest rates Planet Finance US Federal Reserve

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

Published every Monday in EnterpriseAM.

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BLACKBOARD

The Education Ministry’s new AI-powered education platform takes aim at private tutoring industry

Egypt to launch AI-powered learning platform: The Education Ministry is set to launch a large-scale, AI-powered educational platform designed to reshape how students across Egypt access and engage with curricula, Education Minister Mohamed Abdellatif (announced last week. Through the platform, students will have access to all the resources they need for coursework, assessment, and revision in one place, a move that could potentially eliminate the need for private tutoring.

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

How it works: The platform — accessible to students and teachers across public, private, and language schools via a code-based system — aims to reduce reliance on traditional tutoring centers by offering interactive, AI-driven learning resources, a senior Education Ministry source told EnterpriseAM. Inspired by some of the more widespread language-learning applications, the platform provides detailed lesson explanations, personalized progress tracking, and automated homework grading.

What’s the rollout plan? The ministry plans to pilot the platform in select governorates, with broader rollout contingent on local infrastructure readiness in schools and communities. Public school students will access the platform free of charge, while those in private schools will pay a nominal fee. International schools are not included in the program.

A broader push to enhance digital literacy: The ministry is looking to bring Egypt’s education system more in line with global standards by incorporating digital tools and automated learning, according to the source. The platform’s blended learning model is part of a broader push to give students experience in dealing with automated systems and educational robots — areas of growing demand in the job market. Head of the Egyptian-Russian University’s AI department Sameh Zareef also echoed that the platform’s tech focus helps bridge the gap between high school and university studies in programming.

The platform seeks to reduce the private tutoring burden: Officials hope the platform’s free, AI-powered “tutor” will help reduce reliance on costly private tutoring. Similar systems have proven effective in other countries, potentially easing the financial strain tutoring places on families.

Private tutoring undermines the Education Ministry’s efforts: Unregulated and highly profitable private tutoring remains a major obstacle to reform, Private School Owners Association deputy chairman Badawy Allam told EnterpriseAM, adding that it undermines government efforts to strengthen public education and generates profits that can exceed those of top private and international schools. Allam also mentioned that his association urged the ministry to address barriers to investment in the education sector, particularly given the severe shortage of classroom capacity.

Allam hailed the ministry’s AI-driven approach as a positive step toward modernizing education and reducing reliance on private lessons, pointing to the success of the ministry’s Madrasetna platform, which evolved from a TV channel into a mobile app.

Infrastructure is the elephant in the room: A successful rollout, Zareef noted, depends on strong IT infrastructure in underserved areas, requiring substantial investment in school and home resources.

But will AI replace teachers? Although AI will play a key role in monitoring student progress and tailoring content, the ministry considers it a supplement to, not a substitute for, traditional teaching. The platform’s AI tools will be implemented alongside efforts to enhance teacher training, with the aim of raising Egypt’s standing in pre-university education.

Remember: Egypt’s education sector is grappling with an acute teacher shortage, with the ministry in August reporting a deficit of 469.9k teachers.

Not the first rodeo for the Education Ministry: The platform is one of several digital initiatives from the education ministry aimed at overhauling Egypt's education system. Earlier efforts include the Egyptian Knowledge Bank, the Madrasetna platform, and the live broadcast platform, which offers a personalized learning experience across governorates, connecting them with top teachers from their local governorates.

Your top education stories for the week:

Egypt to host IAP in 2025 for the first time: Egypt will host the General Assembly of the InterAcademy Partnership (IAP) for the first time in 2025. (Statement)
Exploring education cooperation with UAE, Bahrain: Education Minister Mohamed Abdellatif met separately with Emirati and Bahraini officials to discuss enhancing bilateral cooperation in pre-university education, according to ministry statements.

Tags:

AI Blackboard Education Ministry

CALENDAR

2024

NOVEMBER

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

7-9 November (Thursday-Saturday): FinExpo Conference and Exhibition, Cairo.

8-9 November (Friday-Saturday): Carerha Summit 2024, Cairo, Egypt.

10-12 November (Sunday-Tuesday): Falak Startups’ Fund Manager Masterclass, Cairo, Egypt.

12-15 November (Tuesday-Friday): Arab African Investment and International Cooperation Summit, Aswan, Egypt.

17-19 November (Sunday-Tuesday): Autotech Exhibition for Automotive Aftermarket & Feeder Industries, Cairo, Egypt.

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

25-27 November (Monday-Wednesday): Annual Digital Nation Conference, Cairo, Egypt.

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

28-30 November (Thursday-Wednesday): Cairo International Wood and Wood Machinery Show, Cairo, Egypt

30 November (Saturday): Deadline to apply for renewable energy projects under the peer-to-peer (P2P) system.

DECEMBER

16-17 December (Monday-Tuesday): Mining World Conference 2024, London, UK.

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

EVENTS WITH NO SET DATE

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

3Q 2024: Egyptian-Armenian Joint Committee.

First week of November: Egypt-Turkey high-level trade consultation mechanism.

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

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

2025

28 January (Tuesday): Nigeria to inaugurate the USD 5 bn Africa Energy Bank in Abuja.

7-10 April 2025 (Monday-Thursday) : EFG Hermes One on One conference, Dubai, UAE.

May 2025: Egyptian Exporters Association (Expolink) exhibition, Italy.

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

March 2025: Operation of phase one of the Amotope wind farm

EVENTS WITH NO SET DATE

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

2Q 2025: Safaga Terminal 2 to start operations.

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

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

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

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