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Monday, 17 Jul 2023

What We're Tracking Today
Ipo
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Real Estate
Mining
Energy
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The government wants to relax foreign ownership rules on real estate to raise FX

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Today at a glance

1

IPO

Qalaa wants to take the National Printing Company public on the EGX.
2

M&A WATCH

Maersk bids to acquire Zafarana wind farm.
3

Real estate

The government wants to relax foreign ownership rules on real estate to raise FX.
4

Mining

Centamin, Barrick to ink seven gold exploration licenses this week.
5

Energy

SolarizEgypt to invest up to USD 50 mn in Africa solar projects this year.
6

Also on our Radar

EIB could provide EUR 300 mn for new rail line.
7

Diplomacy

El Sisi discusses Sudan conflict with Kenyan president.
8

What We're Tracking Today

Khazna, Grinta + Yalla Fel Sekka founders named on Forbes Middle East list of top tech women.
9

BLACKBOARD

Meet the startups bringing cashless fintech products to Egyptian students + parents.
10

PLANET FINANCE

 Rate hikes fuel profit surge among big US banks.

Monday, 17 Jul 2023

What We're Tracking Today
Ipo
M&a Watch
Real Estate
Mining
Energy
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Diplomacy
Around The World
Blackboard
Calendar
1

What We're Tracking Today

IMF happy with privatization progress + the mercury isn’t getting any lower today

Good morning, ladies and gents: We got confirmation yesterday from the central bankand the Labor Ministry that banks and the private sector will be taking Thursday 20 July and Sunday 23 July as holiday in observance of the Islamic New Year and Revolution Day. Expect the EGX to be out with a similar statement in the next day or two.

PSA- The weekend’s heatwave is continuing into the workweek: The EgyptianMeteorological Authority (EMA) is forecasting extreme heat across Greater Cairo over the coming five days, with the mercury jumping to highs of 38°C. The weather will feel even warmer thanks to high levels of humidity. Max temperatures across other parts of the country will remain above 40°C for much of the week, including in Upper Egypt and South Sinai.

IMF is happy with Egypt’s privatization progress: The IMF has welcomed the government’s progress selling down state assets in the privatization program, Ahram Online reported on Thursday.

Reminder: The government announced last Tuesday that it has agreed contracts to sell USD1.9 bn worth of state-owned assets under its privatization program aimed at ending the ongoing FX crunch and increasing the private sector’s role in the economy.

What they said: “Divesting is a critical component of the Extended Fund Facility-supported program, supporting the gradual withdrawal of the state from economic activity and providing resources for external financing and debt reduction,” the IMF’s comms head, Julie Kozack, said at a press briefing, according to the state-owned newspaper.

Smokes are getting more expensive (just not now): Tobacco giant Philip Morris has reversed a price hike on its cigarette brands — L&M and Marlboro — following news of an upcoming tax hike on cigarettes,the Federation of Egyptian Industries’ (FEI) cigarettes division head Ibrahim Embaby told Enterprise yesterday. The tax hikes could range from EGP 0.50 on cheaper cigarettes to more than EGP 2.00 on more expensive, imported smokes, he added.

Market disruptions blamed on tax delay: Embaby said that there are currently shortages of some types of cigarettes and that recent price hikes have been exaggerated, which he blamed on the delayed introduction of the new tax rises.

FYI-The government is aiming to raise some EGP 88.2 bn from taxing cigarettes and tobacco during the current fiscal year, up 2% from last year.

HAPPENING TODAY-

The North Africa fintech community is gathering in Cairo: The Seamless North Africafintech conference starts today at the Egypt International Exhibition Center and runs until tomorrow.

HAPPENING THIS WEEK-

Russian delegation + electricity minister to visit Dabaa: Electricity Minister Mohamed Shaker, Nuclear Power Plant Authority head Amgad El Wakeel and a delegation from the Russian state nuclear company Rosatom have a visit scheduled to the site of the under-construction Dabaa nuclear power plant later this week.

G20 finance ministers are meeting in India this week: The war in Ukraine, rising global interest rates, climate finance and crypto regulations will all be on the table when G20 finance ministers meet in Gandhinagar this week, according to Bloomberg.

Reminder: Egypt has a seat at the table. India has invited Egypt to take part as a guest at this year’s G20 meetings.

The deadline for two USAID scholarships is approaching: The application deadline for the USAID Scholars Activity and USAID EgyptianPioneers scholarship programs is this Thursday, 20 July. The programs offer scholarships to 250 Thanaweya Amma students in public, experimental and STEM schools. Apply here.

NEXT WEEK-

The National Dialogue is back: The National Dialogue will resume sessions on Tuesday, 25 July, Kamal Zayed, member of the dialogue’s board of trustees, told Al Masry Al Youm. The dialogue kicked off in May, holding three weekly sessions discussing political, economic, and social issues. Sessions have been on pause since the Eid Al Adha break.

THE BIG STORY ABROAD-

It’s a quiet morning for the international business press, with no story dominating the global front pages. Among the stories getting coverage:

  • The global heatwave: Several news outlets are continuing to focus on soaring temperatures in the US and Europe. (Associated Press |Reuters | Washington Post)
  • A brighter outlook for the US economy as inflation slows: After US inflation fell to its slowest pace since March 2021 in June some experts believe that the Federal Reserve can follow through with its monetary tightening policies without hurting the economy, while others aren’t as optimistic. (Wall Street Journal | CNBC | CNN)
  • We seem to be moving closer to Microsoft’s USD 69 bn Activision mergerwith Sony receiving a 10-year license for Activision’s Call of Duty post acquisition. The agreement will allow Sony to continue offering CoD on its PlayStation after the acquisition is concluded. (Financial Times | The Verge | CNBC| BBC)

WATCH THIS SPACE- Could Egypt and Turkey ditch the USD? The two countries are looking into using their own local currencies for cross-border trade, Turkey’s ambassador to Egypt Salih Mutlu Sen reportedly told Al Shorouk. The move is on Industry and Trade Minister Ahmed Samir’s agenda, who will apparently be visiting Turkey in the coming months to discuss strengthening economic ties, the diplomat said.

Remember: Egypt and Turkey restored formal diplomatic ties and reappointment ambassadors for the first time in a decade earlier this month. Egypt has been in talks with Russia, India and China about increasing the use of local currencies in bilateral trade and reducing dependence on the greenback.

Three Egyptians made it onto Forbes Middle East’s 2023 list of top women behind tech brands in the region:Khazna co-founder Fatma El Shenawy (bio), Grinta co-founder Yosra Badr (bio), and Yalla Fel Sekka’sYasmine Abdel Karim (bio) were among the 20 names on the list, making Egypt the second most present country on the list alongside Saudi Arabia. The UAE came in first with 11 entries.

ICYMI-

Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at the new automotive manufacturing zone being set up in East Port Said.

CIRCLE YOUR CALENDARS- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial, or fill out this form and we’ll be in touch.

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

ENTERPRISE IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. Enterprise — the essential morning read on all the important news shaping business and the economy in Egypt and the region — is looking for writers, reporters and editors to help us build out new publications.

NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the Enterprise Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors and entrepreneurs.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists, while also working on and filing stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

Apply directly to jobs@enterprisemea.com and mention “reporter development program” in your subject line.

*** 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: How are fintech startups — Spare and Klickit — helping public and private schools adopt digital payment systems?

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2

IPO

Qalaa Holdings wants to take the National Printing Company public on the EGX

Qalaa wants to follow up TAQA Arabia with another direct listing on the EGX:Qalaa Holdings is planning to take its printing subsidiary public on the EGX, Chairman Ahmed Heikal told Hapi Journal in an interview published yesterday. The National Printing Company is close to meeting the EGX’s listing requirements and will soon join the bourse via a direct listing, he said. The interview comes a week after Qalaa’s energy distribution company TAQA Arabia made its debut on the EGX via a direct listing. Company representatives could not be reached for comment on the interview when we reached out.

Firm to file registration docs within three months:Heikal said that the company plans to submit its registration documents to the EGX and the Financial Regulatory Authority by October. The company will then have six months to start trading.

About the firm: National Printing Company was set up in 2006 by Qalaa subsidiary Grandview, which currently owns c.53% of the company, according to its website. The company is one of the country’s largest producers of packaging and printing products, and reported a 54% increase in revenues to EGP 1.4 bn in 1Q 2023.

Restructuring planned: The company is planning to restructure its ownership after listing, where debts owed to shareholders will be converted into equity and some indirect stakes will be converted into direct stakes, Heikal told the newspaper. “It’s too early to disclose the shares resulting from the debts to be settled, or the shares to be converted to direct contributions,” he said.

Advisors: EFG Hermes is acting as the financial advisor and Zulficar & Partners is providing counsel, Hapi reported, citing anonymous sources.

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3

M&A WATCH

Maersk bids to acquire Zafarana wind farm

Maersk could be looking to purchase the Zafarana wind farm: The government has received an offer from Denmark's global shipping bellwether Maersk for the acquisition of the state-owned 545-MW Zafarana wind farm, a government source told Enterprise Climate, confirming an earlier report by Al Mal citing government sources in the know. The global shipping giant is looking to acquire the farm to use the generated energy in its own green hydrogen projects, they said.

What we know: Sources told the newspaper that the Egyptian government, the Sovereign Fund of Egypt (SFE) and the electricity minister are currently studying the offer. They are also assessing assets related to its leading state-owned 580-MW Gabal El Zeit wind farm and Zafarana wind farm after receiving acquisition bids from global unnamed investors.

REMEMBER- Gabal El Zeit, along with the state-owned 545-MW Zafarana wind farm, was included in the list of 32 companies and assets earmarked for privatization announced by the government earlier this year. The farms have attracted significant interest among investors, including Saudi Arabia’s ACWA Power, the UAE’s Alcazar Energy, and our friends at local renewables firm Infinity.

The Gabal El Zeit wind farm has also been garnering interest: UK private equity giant Actis threw its hat in the ring to acquire the Gabal El Zeit wind farm last week, a government source confirmed to us. An SFE-led committee including representatives from the finance, electricity, and planning ministries reviewed multiple initial offers, the source told Enterprise, with Actis getting top marks for both its financial offer and technical know-how. The UK-based EM giant will be given full access to the data and the asset ahead of making a final offer.

What’s next: The Egyptian government is looking to secure over USD 300 mn by selling the Gabal El Zeit plant, Planning Minister Hala El Said said last week, adding that it accepted the highest bid in June after receiving a number of non-binding offers. The buyer will be given 60 days to conduct due diligence on the asset, which the government expects will see the sale wrap up by October.

Maersk is already investing heavily in Egypt: Maersk unveiled plans last year for a USD 15 bn clean fuel project in Egypt as part of the Egyptian government’s plans to position the country as a regional hub for green energy. It plans to work with the Egyptian government to set up a national network to produce and distribute green energy and fuel for ships. The cabinet also approved in May requests by Norwegian renewables producer Scatec and Maersk to allocate a piece of land in the Gulf of Suez for a 320-MW wind farm that will power their green projects, which include a green hydrogen plant and the USD 15-bn clean fuel project for the latter.

There could be more to come: The government source told Enterprise Climate he expects the government to offer other investment opportunities in the Gulf of Suez by December amid a growing interest by investors in renewable energy projects.

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4

Real estate

Egypt wants to relax foreign ownership rules on real estate to raise FX

Foreign investors might soon be able to own as many properties as they want: As part of its efforts tosecure much-needed hard currency, the Madbouly government has been taking steps to attract more foreigners and Egyptian expats to purchase property in Egypt. After making its citizenship-for-FX scheme more generous in March, the government this month announced that it plans to ask the House of Representatives to remove the cap on how many properties foreigners can own. We spoke to people in government to get the details on the potential regulatory changes and caught up with industry association officials to gauge the reaction from the private sector.

First things first: You’re a foreigner and you want to buy more than two properties. For the first time ever, this will be allowed under the new rules, which if passed, will permit foreigners to own as many properties as they want in Egypt.

BUT- Terms and conditions apply: Foreigners must purchase the property with foreign currency. The FX has to be brought from outside the country and deposited in a local state-owned bank. The identity of the seller doesn’t matter: whether you’re buying from a state-owned company or a private developer, no FX, no property, a government source told us.

This applies to your first, second or 20th property — if you’re purchasing from the government: State-owned entities such as the New Urban Communities Authority (NUCA) and the Tourism Development Authority will now only sell their properties to foreigners in FX, a government source with knowledge of the matter told Enterprise.

Avoiding the FX rules is easy if you’re just getting on the housing ladder or buying a second home: Foreigners will still be able to buy the first two properties using EGP if they’re buying from a private seller or developer, our sources confirmed.

Remember: Relaxing foreign ownership rules on real estate was one of the 22 economicreforms approved by the Supreme Investment Council in May. Currently, foreigners are allowed to own a maximum of two properties in different cities. NUCA and other state-owned developers are targeting foreigners and Egyptian expats as lucrative sources of FX.

It’s now less expensive for foreign investors to become Egyptian citizens: Amendments to the Citizenship Act passed this year lowered the amount of money foreigners have to bring into the country in order to obtain Egyptian passports. Foreigners can now invest USD 300k into local assets such as real estate to get the green passport, down from USD 500k previously.

INDUSTRY REAX-

A win for real estate developers: This bill could give a boost to local real estate developers, the head of the Federation of Egyptian Chambers of Commerce’s real estate division, Mohamed El Bustani, told Enterprise. “Egypt boasts many luxurious real estate investments for which we need to attract more buyers from abroad. Gearing real estate to foreign investors serves as a decent FX revenue stream.”

More construction + exhibitions = more foreign investment: More real estate units will spur an increase in the number of foreigners purchasing property in Egypt, Real Estate Export Council Chairman Hisham Shoukry told Enterprise. According to Bustani, the government needs to hold more real estate exhibitions abroad to promote property ownership in Egypt, and sign agreements and bring more FX transfers.

What’s next? The changes will be discussed in the House when MPs return from recess for the new legislative cycle in October, Ahmed Othman, a member of the House Housing Committee, told us.

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5

Mining

Centamin, Barrick to bag new gold exploration licenses in Egypt

Seven gold exploration licenses up for grabs: The Oil Ministry will this week award seven gold exploration licenses to LSE-listed gold miner Centamin and Canadian firm Barrick Gold, Asharq Business reported yesterday, citing a government source. This comes following months of negotiations between the sides.

Gov’t to retain 50% of income: Under the agreements, the Madbouly government will receive 50% of the net income from any commercial discoveries, according to the news outlet.

Neither firm is a stranger to Egypt: Centamin operates the country’s largest gold mine — the Sukkari mine in the Eastern Desert — and Barrick entered the country in 2021 after winning USD 8.8 mn-worth of exploration contracts to search for and mine gold in the Eastern Desert.

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6

Energy

SolarizEgypt to invest up to USD 50 mn in Africa solar projects this year

SolarizEgypt is looking to invest in African solar: Egypt-based renewables player SolarizEgypt is looking to invest between USD 40-50 mn in solar PV projects across Africa by the end of the year, SolarizEgypt founder and managing director Yaseen Abdel Ghaffar told Al Borsa. The investments are part of SolarizEgypt’s expansion plans aimed at adding 80 MW to its clean energy portfolio, Abdel Ghaffar said. No specific projects or countries were indicated in the interview, not a timeline for deployed projects. We were unable to reach a company representative for comment on the story yesterday.

The company’s Africa ambitions were made clear earlier this year: Abdel Ghaffar said the company was interested in entering the Kenyan, Tanzanian, and South African markets in an interview in January. The company is also planning to invest USD 100 mn in its Egypt operations over the next three years, he said.

What we know so far: The company is looking to raise 75% of the financing needed for its Africa expansion from loans and 25% from equity funding, Abdel Ghaffar says. It is already in talks for financing with six banks including HSBC, CIB, QNB Alahli, Arab African International Bank, and Alexbank as well as undisclosed African lenders, he added.

About SolarizEgypt: Last year, European solar player Amarenco Groupacquired 74% of the company’s portfolio. The two companies established a JV to co-develop 300 MW worth of solar power projects over a four-year period. SolarizEgypt has a portfolio of over 50 MW of signed solar power purchase agreements with firms including Orascom Development Holding, Arabian Cement Company, Coca Cola Bottling, and others operating in various industries.

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7

LAST NIGHT’S TALK SHOWS

Egypt’s talks shows cover President El Sisi’s time in Kenya + a potential disease outbreak in Qena

It was a busy night on the airwaves, with the nation’s talking heads covering President Abdel Fattah El Sisi’s trip to Kenya, a potential disease outbreak in Qena governorate, and updates on the Marsa Matrouh murder.

El Sisi at the African Union meeting in Kenya: President El Sisi was in Kenya yesterday to participate in the African Union’s mid-year coordination meeting. His speech at the gathering presented “a path to resolve the African issues. Egypt is working towards complete African integration through its diplomatic strength and finding solutions to all African issues,” foreign affairs professor Hamed Fares told Al Hayah Al Youm (watch, runtime: 2:54). The story also received attention from Masa’a DMC (watch, runtime: 3:40) and Ala Mas’ouleety (watch, runtime: 21:08).

Qena outbreak: A number of people in a village in Qena have been found to be suffering from the same flu symptoms, including high fever, bone pain, and fatigue, according to the Health Ministry, which said yesterday that it has sent a delegation to the village to investigate. “We have surveyed around two-thirds of the households in the infected village and we found 67 cases of people suffering from similar symptoms, which align with a number of diagnoses including the seasonal flu and heat strokes,” Amr Kandil, head of preventive medicine at the ministry, told Kelma Akhira’s Lamees El Hadidi (watch, runtime: 14:52). The worst case scenario is there are some 100-200 cases across the village, he said, adding that all the cases have mild to medium symptoms and are receiving treatment at home. Kandil made the rounds, joining El Hekaya (watch, runtime: 4:20) and Ala Mas’ouleety (watch, runtime: 3:32) to brief them on the matter.

Sidi Barrani police officer charged for killing man: The Public Prosecution yesterday referred a police officer who killed a Bedouin man in the Marsa Matrouh village of Sidi Barrani to criminal court. Kelma Akhira (watch, runtime: 9:37) El Hekaya (watch, runtime: 7:56), and Ala Mas’ouleety (watch, runtime: 10:55) all had the news.

The IMF is content with our progress on privatization, so what’s the hold up on the first review? “The one issue that the two sides are still stuck on is the fully flexible exchange rate. Any new exchange rate fluctuations would be a burden,” economist Medhat Nafea told El Hadidi (watch, runtime: 6:08). “The IMF’s statement is a sign that we are on the right track when it comes to a number of issues concerned with our macroeconomic stability,” he added. The first review of our USD 3 bn loan program has been on hold since mid-March after we fell short on meeting several key conditions of the loan agreement. We have the details of the IMF’s statement in the news well, above.

REMEMBER- The government announced last Tuesday that it has agreed to sell USD 1.9 bnworth of state-owned assets under its privatization program as part of its efforts to bring in more hard currency into the country and decrease its role in the economy.

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8

Also on our Radar

EIB could provide USD 300 mn for new rail line in Egypt. . PLUS: Madinet Masr acquires Minka, Tenth of Ramadan dry port, green methanol, new freezones incoming

TRANSPORT-

EIB money for rail line?The government is in talks with the European Investment Bank (EIB) over a potential USD 300 mn loan to finance the construction of the Robeiky-Tenth of Ramadan-Belbeis freight and passenger railway line, Al Mal quotes a source at the Egyptian National Railways as saying. The railway line is expected to transport some 1 mn tons of goods a year. The railway received a EUR 40 mn loan from the European Bank for Reconstruction and Development last year.

M&A-

Madinet Masr acquires Minka: Madinet Masr has completed its EGP 200 mn acquisition of Minka Development and EgyCan for Real Estate Development, a special purpose vehicle, the company said in an EGX disclosure (pdf) yesterday. A fair value study in 2021 valued Minka and EgyCan at EGP 232 mn.

LOGISTICS-

#1- MSC’s Medlog to finalize contracts for Tenth of Ramadan dry port in mid-August:MSC cargo subsidiary Medlog could ink an agreement with the government for the design, construction, operation, maintenance, and financing of the Tenth of Ramadan dry port and logistics center in mid-August, Al Mal quotes Atter Hannoura, the director of the Finance Ministry's PPP unit, as saying.

ICYMI- We reported in June that a consortium led by Italy’s Mediterranean Shipping Company (MSC) snagged the bid to establish and operate the 250-feddan Tenth of Ramadan dry port, according to an Egyptian Transport Ministry statement. The dry dock aims to serve the industrial area in Badr, Ain Sokhna, East Port Said, the new capital and the Tenth of Ramadan.

^^ Read the full story in Enterprise Logistics.

#2- Three new freezones incoming? The General Authority for Freezones and Investment (GAFI) is looking to set up three freezones in Alexandria, Tenth of Ramadan, and the Sixth of October, GAFI head Hossam Heiba saidyesterday.

ENERGY-

Green methanol bunkering: Coming to the Suez Canal in four years. The Suez Canal Economic Zone (SCZone) is looking to roll out green methanol bunkering services before 2027, Al Mal quotes SCZone chief Walid Gamal El Din as saying. The SCZone is looking to expand the scope of its bunkering services in the near future, he added, indicating that the authority has received hurried requests for services to supply ships with green methanol and gas.

Reminder: Egypt is getting the first green methanol plant in the region soon. Norway’s Scatec and Alexandria National Refining & Petrochemicals Company (ANRPC) inked a USD 450 mn agreement in May to establish a green methanol plant in Damietta. The facility is slated to start off producing 40k tons of green methanol a year, before being scaled up to 200k tons.

^^ Read the full story in Enterprise Logistics.

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9

PLANET FINANCE

Rate hikes fuel profit surge among big US banks

US banking earnings soar on the back of interest hikes: Profits among the biggest US banks soared in 2Q 2023 on the back of rapidly climbing interest rates. JPMorgan’s profit jumped by 67% y-o-y in 2Q, Wells Fargo's climbed 57%, and Citigroup’s interest income rose, though profits declined by 36%. The three major banks collectively made USD 49 bn in net interest income in 2Q 2023, up 30% from the same period last year. The Wall Street Journal and the Financial Times have more.

Have oil prices reached their floor? Betting on a tighter oil market has been coming up short for most of this year, but there are signs that it is finally paying off, Bloomberg reports. Brent futures rose above USD 80 a barrel in London last week for the first time since the beginning of May as rising demand in China and output cuts agreed by the Saudi and Russia-led OPEC+ group tightens supply.

EGX30

17,343

0.0% (YTD: +18.8%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

18.25% deposit

19.25% lending

Tadawul

11,716

+0.1% (YTD: +11.8%)

ADX

9,672

+0.5% (YTD: -5.3%)

DFM

4,010

+0.1% (YTD: +20.2%)

S&P 500

4,505

-0.1% (YTD: +17.3%)

FTSE 100

7,435

-0.1% (YTD: -0.2%)

Euro Stoxx 50

4,400

+0.2% (YTD: +16.0%)

Brent crude

USD 79.87

-1.8%

Natural gas (Nymex)

USD 2.54

-0.2%

Gold

USD 1,964

0.0%

BTC

USD 30,283

-0.1% (YTD: +83.3%)

THE CLOSING BELL-

The EGX30 closed flat yesterday on turnover of EGP 1.0 bn (48.3% below the trailing 90-day average). Regional investors were net sellers. The index is up 18.8% YTD.

In the green: Heliopolis Housing (+4.6%), Taaleem Management Services (+4.0%) and Ibnsina Pharma (+3.2%).

In the red: Alexandria Mineral Oils (-2.4%), ElSewedy Electric (-1.2%) and Fawry (-1.0%).

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10

Diplomacy

Egypt, Kenya discuss Sudan conflict, bilateral ties

Egypt x Kenya: President Abdel Fattah El Sisi discussed bilateral ties, the ongoing civil war in Sudan and other issues in East Africa with his Kenyan counterpart William Ruto yesterday, Ittihadiya said in a statement. El Sisi was in Kenya yesterday to participate in the fifth AU midyear coordination meeting.

Reminder: Egypt hosted a regional summit last week aimed at resolving the three-month-long civil war in Sudan.

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11

AROUND THE WORLD

Pakistan gets first tranche of long-awaited IMF bailout

Pakistan's central bank has received USD 1.2 bn from the IMF as the first installment of a USD 3 bn program that seeks to haul the economy from the brink of a debt default, Reuters reports, citing a televised statement made by Finance Minister Ishaq Dar on Thursday. The installment arrived a day after the global multilateral lender board greenlit the package.

Another USD 5.6 bn worth of funding unlocked: The loan is set to help the country unlock USD 5.6 bn in additional financing, the IMF’s mission chief for Pakistan Nathan Porter said in an emailed response to Bloomberg. Some USD 3 bn was paid out by the UAE and Saudi Arabia last week, and another USD 700 mn has been committed by bilateral partners including the two countries. Meanwhile, multilateral banks — including the World Bank, Asian Infrastructure Investment Bank (AIIB), and the Inter-American Development Bank (IDB) — are expected to provide more financing in the coming weeks and months, Bilal Kayani, an economic adviser to the prime minister, said in a tweet.

Gulf countries are increasingly looking east: Oil-rich Gulf countries are looking to China to shore up their economies as they grow increasingly anxious about the future of their longstanding partnership with the US, Bloomberg reports.

In numbers: Gulf companies’ acquisitions and investments in China have surged more than 1000% y-o-y to reach USD 5.3 bn, according to data compiled by the news information service.

A case in point: Gulf sovereign wealth funds, including the Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund could become cornerstone investors in an upcoming USD 9 bn Shanghai IPO of Syngenta Group, a Chinese-owned seed company. Another Abu DHabi wealth fund, Mubadala, is also deepening investment ties with China while the number of Chinese companies setting up in Dubai has increased 24%.

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

Published every Monday in EnterpriseAM.

Read Blackboard
12

BLACKBOARD

Meet the startups bringing cashless fintech products to Egyptian students + parents

Fintech startups are driving the adoption of digital payment systems in public + private schools in Egypt: Schools in Egypt — both private and public — are increasingly moving towards adopting fintech solutions and integrating tech into their payment systems, particularly after covid-19 encouraged higher adoption rates of online payments. A handful of startups — including Spare and Klickit — have been cropping up to create specialized digital systems for parents to pay for various school-related expenses such as tuition fees, canteen services, transport costs, and school supplies through online platforms or mobile applications.

Who they are at a glance: Klickit, which was founded in 2017, is a digital payment platform that facilitates education-related payments and offers a fee management tool for educational institutions. Spare, meanwhile, was founded in 2018 and is a digital platform that helps schools go cashless and automates internal processes using contactless technology. Whereas Spare is geared more towards students by providing a contactless wristband or card to pay for food and activities, Klickit is specialized in fee collection and management.

How big are these startups? Klickit’s services are available at 55k schools around the country and have served more than 1.5 mn students, according the company’s website. Spare, meanwhile, has 50 international schools across five countries in its portfolio, CEO and co-founder Mohamed Tawakol told us.

And they’re growing fast both here and abroad: In addition to their presence in the Egyptian market, Spare has tripled its presence in the UAE and is launching in Bahrain in September, the platform is also looking to expand in the African market soon, Tawakol said. “We are in the process of onboarding 125 schools in the UAE and are also expanding in Africa,” Klickit founder and CEO Saeed Talaat told Enterprise.

Klickit has services for parents and schools alike: The company offers different payment methods for tuition fees, including paying in installments through valU, as well as financing services for schools. “Our newest service is a revenue guarantee, where any school that has been a client with me for six months, can now take their money up front for cashflow, and I can collect the money from the parents, through a partnership with EFG Hermes Corp Solutions,” Talaat said.

This technology isn’t just for private schools — public schools are also getting on the digitization bandwagon: The majority of schools in Klickit’s portfolio are public schools in Egypt, Talaat told us, with private schools accounting for just 200 out of its 55k clients. “We’re the official fee management system provider for the Education Ministry,” Talaat said. In addition to schools operating here in Egypt, the platform also manages fees for Egyptian expats sitting for national curriculum exams abroad in 150 countries, he told us.

Taking public schools digital was far from a simple process: Traditionally, parents would pay school fees through banks or in person at schools, with accounting staff members logging all the information manually and wading through mountains of data that was prone to human error. Klickit helps schools log all this information digitally on one unified platform, allowing them to create a database of all completed and outstanding payments, Talaat explained. Still, the uptake of the technology has been an uphill battle, as many parents shy away from digital payments. “Around 60% of school-related transactions are still made with paper banknotes, which is why Klickit still has many cash options and partnerships with providers like Fawry and Paymob. But wherever the parents go to pay their fees — whether it’s an ATM, online, at the bank, or in person at school — we can still monetize the transaction,” Talaat said.

For the more tech-savvy parents and students: With Spare, students use contactless wristbands or cards to make purchases at school canteens or for other selected activities, essentially acting as a debit card that only works within the bounds of their school. Parents are able to charge their kids’ payment accessory either with direct in-person payments at school or online using a credit or debit card, Tawakol said.

Beyond the payment functionality, these accessories also create a wealth of useful data: Parents are able to get insights into their child’s spending and nutritional habits through Spare’s app, with access to “tools such a spending limits and product restrictions to help guide their kids to make better decisions in terms of spending and nutrition at school,” Spare co-founder Mohamed Zohair told us. Data collected through Spare’s platform indicates a trend of increasingly unhealthy eating habits among students, Zohair said. “We have enough data now to rely on these sorts of analytics to help make a difference,” he said.

Your top education stories for the week:

  • Investment Watch: EFG Hermes plans to invest EGP 2 bn in the education and healthcare sectors this year.
  • The deadline for two USAID scholarships is approaching: The application deadline for the USAID Scholars Activity and USAID Egyptian Pioneers scholarship programs is this Thursday, 20 July.
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CALENDAR

JULY

17-18 July (Monday-Tuesday): Seamless North Africa, Egypt International Exhibition Center, Cairo.

18 July (Tuesday): Islamic New Year.

18-19 July (Tuesday-Wednesday): Egypt Mining Forum, Nile Ritz-Carlton, Cairo.

19-20 July (Wednesday-Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

20 July (Thursday): National holiday in observance of Islamic New Year.

22 - 24 July (Saturday - Monday): US Assistant Secretary of State for International Organization Affairs Michele Sison in Egypt.

23 July (Sunday): Revolution Day.

23 July (Sunday): National holiday in observance of Revolution Day.

25 July (Tuesday): National Dialogue.

25-26 July (Tuesday-Wednesday): Federal Reserve interest rate meeting.

27 July (Thursday): National Dialogue.

31 July (Monday): Application deadline for the Smart Green Projects initiative.

31 July (Monday): Emigration Ministry’s Egyptians Abroad conference.

Late July: Egypt’s first Environment and Climate Investment Forum.

Late July-14 August: 2Q2023 earnings season.

AUGUST

August: Hassan Allam Utilities + Agility to open Yanmu East logistics park.

2 - 3 August (Wednesday - Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

3 August (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

10 August (Thursday): Shalateen Mineral Resources gold mining tender closes.

22-24 August (Tuesday-Thursday): BRICS summit, Johannesburg, South Africa.

SEPTEMBER

September: Sustainable Debt Coalition Initiative agreed at COP27 to launch.

September: IDH to open first branch in Saudi Arabia.

September: The Egypt-Germany trade and investment joint conference in Cairo.

September: JETRO’s second delegation arrives in Cairo.

9-10 September (Saturday-Sunday): G20 summit, New Delhi, India.

10-12 September (Sunday-Tuesday): The International Agricultural Exhibition for Africa and the Middle East, Sahara.

13-14 September (Wednesday-Thursday): Hydrogen Egypt Summit, Nile Ritz Carlton, Cairo.

15 September (Friday): IMF to review USD 3 bn program.

15 September (Friday): Deadline for FX bureaus to comply with new capital requirements.

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

17-19 September (Sunday-Tuesday): Sharm Rendezvous, Rixos Premium Seagate, Sharm ElSheikh.

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

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

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

21-23 September (Thursday-Saturday): Narrative PR Summit, Somabay.

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.

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

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

28-29 September (Thursday-Friday) Medical Tourism Conference, Sharm ElSheikh.

OCTOBER

October: Deadline for ins. providers to link their databases with the FRA.

2-4 October (Monday-Wednesday): Sharm Rendezvous - Ins. Market, Rixos Premium Seagate, Sharm ElSheikh.

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

6 October (Friday): Armed Forces Day.

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

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

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.

NOVEMBER

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

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.

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

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

DECEMBER

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.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

Summer 2023: EGX to launch a shariah-compliant index.

1H 2023: GAFI roadshow set to launch to drum up foreign investment for golden licenses

1H 2023: Abu Dhabi Islamic Bank intends to launch a digital consumer finance company

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.

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

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

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

2Q 2025: Safaga Terminal 2 to initiate operations.

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