Good morning, friends, and happy FRIDAY. We hope the blackout gods spare you this weekend, so you can enjoy some relaxing downtime in the comfort of your AC.
AND IF YOU’RE JOINING THE WEEKLY SAHEL EXODUS- Before you run to the beach for your tan, may we suggest you try out some of our favorite local skincare products for the summer?Our Enterprise Guide for the week lists some of our favorite boutique local skincare brands, many of which use natural ingredients to help protect and take care of your skin before and after you oil yourself up under the sun.
☀️ THE WEATHER THIS WEEKEND- You’re going to need the SPF: Today’s temperatures will stay stable at 38°C and drop to 25°C in the evening, while the mercury is set to climb tomorrow to a daytime high of 39°C, before falling to 27°C, as per our favorite weather app.
Enterprise Weekend comes out each Friday at 9:00am CLT. We’ll be back on Sunday at 6am with EnterpriseAM. Until then: Enjoy the weekend.
LAST WEEK IN 3 MINS- It was a relatively quiet week on the privatization front, but we had a flurry of macro updates and plenty of news on the energy front to keep us busy.
ON THE MACRO FRONT-
#1- The CBE raises interest rates: The Central Bank of Egypt (CBE) decided to raise interest rates by 100 bps at yesterday’s meeting, defying expectations of a third consecutive hold. The overnight deposit rate was raised to 19.25%, while the overnight lending rate increased 20.25%. The CBE’s main operation rate grew to 19.75% and the discount rate was also raised to 19.75%, according to a statement from the CBE (pdf). The Monetary Policy Committee’s decision came “in order to contain the inflationary pressures and anchor inflation expectations around the CBE’s targets.”, the statement reads.
#2-Private sector contraction softens again in July: The contraction in Egypt’s non-oil private sector slowed to its softest pace in almost two years on the back of uptick in market demand, according to S&P Global’s purchasing managers’ index (pdf). The country’s PMI rose for the fourth consecutive month, reaching 49.2 in July, up from 49.1 in June.
#3- Morgan Stanley lowered its growth outlook for Egypt in FY 2023-2023, and now expects the economy to grow 4.2% during the year, down from its previous forecast of 5.0%. Analysts at the investment bank also anticipate another EGP devaluation in September or October and another 200 bps interest rate hike alongside the devaluation.
#4- Net foreign liabilities reached record highs in June amid the country’s continuing FX shortage. The deficit in net foreign assets widened to negative USD 27.1 bn in June from negative USD 24.4 bn in May, by our count.
#5- External debt reached another record high: External debt rose 1.5% to USD 165.4 bn in 3Q FY 2022-2023, up from USD 162.9 bn in the previous quarter. The figures also mark a 5% y-o-y increase from when external borrowing was at USD 157.8 bn.
ONE SINGLE PRIVATIZATION STORY MADE THE ROUNDS-
Maersk could acquire half of the 545-MW Zafarana wind farm after the government approved the shipping giant’s ownership in principle. The company contacted the New and Renewable Energy Authority (NREA) to express interest in acquiring the asset but hasn’t yet submitted an official bid.
BUT THERE WAS A LOT ON THE ENERGY FRONT-
#1- The government started operating its national electricity grid according to its rolling blackout schedule announced earlier this week. Blackouts will continue until at least the end of August as the summer heatwave continues to put pressure on the country’s electricity network. You can view the full Cairo timetables here and here, and the Giza schedule here.
There were some hiccups with the rollout: Only a few areas have reportedly experienced blackouts according to the pre-announced schedules. Some people have reported that blackouts failed to follow schedules while others said they lasted longer than the one hour maximum previously suggested by ministers.
#2- Oil + gas exploration updates: Ministers greenlit three oil and gas concession agreements worth USD 319.5 mn that will see three multinational energy companies digging at least 13 wells in the Mediterranean and Gulf of Suez. Meanwhile, Shell is set to begin drilling new gas exploration wells at its concession areas in the Mediterranean in September.
#3- We’re seeing Swiss interest in a USD 1 bn green hydrogen plant: Switzerland-based energy investment firm Smartenergy is close to reaching an agreement with authorities to establish a USD 1 bn green hydrogen facility in Egypt.
WE ALSO HAD A FLURRY OFDEBT NEWS, including:
#1- Potential loans from the IFC: The International Finance Corporation (IFC) is considering extending a USD 55 mn loan to Al Baraka Bank for on-lending to to local and woman-owned micro, small and medium sized enterprises, and a USD 30 mn loan for Edita to support its working capital and fund fresh capex.
#2- And securitization transactions: MNT-Halan’s microfinance subsidiary Tasaheel closeda EGP 3.34 bn securitized bond issuance, while Raya Holding’s non-banking financial services outfit Aman Financial Services and its consumer finance arm Aman Microfinance issued EGP 859 mn in securitized bonds. Meanwhile, Talaat Moustafa Group (TMG) subsidiary the Arab Company for Projects and Urban Developmentsold EGP 411 mn of bonds backed by securitized future cash flows.
AND NEWS OF A POTENTIAL M&A- Beltone has reportedly signed an MoU to acquire Minya-based micro finance provider Cash, and is waiting for regulators to give its go-ahead before it starts due diligence.
WHAT’S HAPPENING NEXT WEEK-
Capmas and the CBE will publish inflation figures for July on 10 August. Inflation accelerated at a record pace in June as the impact of multiple currency devaluations combined with higher seasonal demand sent food prices soaring. Annual urban rate of inflation rose to 35.7% y-o-y during the month.
The central bank will publish July’s foreign reserves figures early next week. FX reserves continued to inch up in June, reaching USD 34.81 bn.
Shalateen Mineral Resources gold mining tender deadline on Thursday: Shalateen is inviting bids for concessions in five areas of the Eastern Desert by 10 August, but could still apply to the Oil Ministry to extend the deadline.
A second round of Ukraine talks in Jeddah: Senior officials from as many as 30 countries — including Egypt — are set to attend a second round of talks over the Russia-Ukraine conflict in Jeddah on Saturday and Sunday.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.
YOUR MOST CLICKED LINKS-
- Cabinet’s blackout schedule on Facebook had us all clicking. (Statement)
- Cabinet’s new English-language app to showcase the government’s efforts to attract foreign investment also caught your attention. (Website)
- The new steps for settling military service for Egyptian men living abroad also pulled in our readers. (Statement)
- News of a potential USD 30 mn IFC loan for Edita to support its working capital also grabbed attention. (IFC)
- Egypt’s receipt of the first emergency shipment of mazut during our ongoing power crisis also got plenty of clicks. (Enterprise)
AROUND THE WORLD IN SEVEN DAYS-
The drama around Donald Trump’s indictment has occupied most headlines in the foreign press last week. A US judge rejected Trump’s plea to end the investigation into his interference with Georgia’s election results in 2020 earlier in the week, before he was handed an indictment on Wednesday both for the elections and the events leading up to the attacks on the US Capitol in 2021. in court in the state capitol yesterday.
Fitch ratings downgrading the US’ sovereign credit rating from AAA to AA+ on Tuesday, which sparked a sell-off in financial markets, has also kept the international business press busy. The ratings agency cited expectations for fiscal pressure over the coming three years and repeated high-stakes congressional battles over raising the debt ceiling as reasons for the downgrade.
Get Enterprise daily
The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.

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.
LISTEN TO OUR PODCAST-
DID YOU MISS THE ENTERPRISE EXPORTS AND FDI FORUM? Tune in to the EnterprisePodcast and listen for yourself: The Enterprise Podcast is back with another installment of our forum series, where we bring you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum,which took place in May.
IN THIS WEEK’S EPISODE- We look at whether industrial clusters — which have been used to great effect elsewhere — can be a way for SMEs to be part of a potential export-oriented economy. Our speakers shed light on where industrial zones are working for us already, how Egypt can leverage clusters to get a bigger slice of that cross-border trade, and how industrial clusters can bring together SMEs to work with larger firms. We were joined on that panel by Shady Williams, managing director of IDG, Mohamed ElGebely, team leader at USAID Trade, and Nada El Ahwal, CSO of Transmar.
WANT TO LISTEN? Head to: Apple Podcast | Spotify | Google Podcast . We’re releasing a new episode every Sunday morning.
HAPPENING THIS WEEKEND-
Attend an exceptional night with Mohamed Mounir and Hamid El Shaeri. El King, Mohamed Mounir, will share the stage with Hamid El Shaeri as part of the New Alamein Festival performances today. You can buy your tickets from Tazkarti.
Elissa and Tamer Ashour x New Alamein Festival 2023. Lebanese singer Elissa will be performing with singer Tamer Ashour tomorrow at New Alamein. Reserve your tickets from Tazkarti.
HAPPENING NEXT WEEKEND-
Amr Diab x Porto Golf Marina. Amr Diab is hitting Sahel one more time to perform on Friday, 11 August at Porto Golf Marina, North Coast. Tickets are available on Tazkarti.


