Good morning, everyone, and Ramadan Kareem to you all. We hope this second day of the holy month is being good to everyone who is observing — and that either way, you’re spending this weekend catching up on some downtime with your loved ones.
We launched our brand new website this week — take a look here.It’s beautiful (if we don’t say so ourselves), loads fast, and packs lots of new features. If you have a suggestion (or a bug report) hit reply to this email.
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-
Last week was — once again — heavy on privatization news,giving us plenty of updates on the timeline and shape that some of the stake sales will take.
#1- GOING TO MARKET: Egyptian Linear Alkyl Benzene (Elab) will be the first company to go to market via the Sovereign Fund of Egypt’s (SFE) pre-IPO fund, our friend Ayman Soliman was reported as saying. Six of the first eight companies set to debut on the EGX are energy and petchem firms, he reportedly added.
#2- BUT NOT BEFORE EID: The SFE expects it will start taking companies in its pre-IPO fund to market after Ramadan, with the eight companies included in the fund currently being promoted to potential investors ahead of the sales.
#3- NOT LIKELY TO SELL SHARES ANYTIME SOON: Telecom Egypt, where the sale of a stake presently held by the state was indefinitely put on ice, ostensibly due to volatility in markets after turmoil roiled the global banking sector in the wake of SVB’s meltdown in the United States.
#4- OTHER COMPANIES ARE LOOKING TO LURE STRATEGICS: State-owned, EGX-listed Egypt Aluminium (EgyptAlum) is in early-stage talks with Emirates Global Aluminium (EGA) for a capital increase. State-owned real estate companies El Nasr Housing and Development and Maadi for Development and Construction are also reportedly planning to seek capital from strategic investors through capital increases rather than seeing existing shareholders sell stakes.
SMART POLICY- Our friends at the SFE have been championing capital increases over straight-up sales of existing equity. This makes great sense: Fresh money injected by a new shareholder will (with the right management team in place) help the company grow. A payout to a state entity in return for shares does nothing to create new value at the companies in question.
#5- THE BIDDING WAR FOR PACHIN IS HEATING UP AGAIN: The Financial Regulatory Authority (FRA) approvedDubai-based National Paints Holding’s (NPH) takeover bid to paintmaker Pachin, giving shareholders until 3 April to decide whether to sell their shares. On the same day, Eagle Chemicals — a rival bidder — upped its offerto Pachin shareholders by 20%, valuing the EGX-listed company at some EGP 840 mn. At EGP 35.00 per share, Eagle Chemicals is offering EGP 1.00 per share more than the UAE’s NPH.
LOGISTICS-
It was also heavy on logistics news: Abu Dhabi Ports (ADP) will develop and operate a container terminal at Safaga Port under a USD 200 mn, 30-year concession agreement signed with the government. Meanwhile, Mercedes-Benz, local shipping firm Kadmar and two Chinese companies inauguratednew logistics zones and factories in the Suez Canal Economic Zone.
ALSO- Jushi Group inaugurated a new USD 320 mn production line at its factory in the TEDA trade zone. That brings Jushi’s total investment in the plant to USD 920 mn.
INFLATION-
The Sisi administration pushed ahead with new measures to lessen the impact of inflation on low income earners, including through an announcement of plans to raise the personal income tax exemption threshold to EGP 36k from EGP 24k currently. MPs also approveda new round of wage and pension hikes. Government employees and public-sector workers will see raises starting 1 April, while pension payouts will rise 15%. The government also announced new earmarks for social protection programs.
DIPLOMACY-
We reached a diplomatic breakthrough with Turkey. Egypt and Turkey’s top diplomats pledged to put aside their differences and normalize relations for the first time in over a decade during talks in Cairo.
Is that enough to pave the way for a summit between President Abdel Fattah El Sisi and his Turkish counterpart? That’s the suggestion in this unconfirmed report from Al Arabiya.
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WHAT’S HAPPENING NEXT WEEK-

It’s decision time for the CBE: Economists are expecting the Central Bank of Egypt (CBE) to raise interest rates by 200-300 bps when it meets on Thursday, 30 March, Bloomberg reports. The central bank has already raised rates by 800 bps in the past year, but will need to go further to curb soaring inflation and contain downward pressure on the currency, pundits suggest.
The Fed went on Wednesday for a smaller-than-expected rate hike amid the still-brewing banking crisis, raising rates by 25 bps. It also pulled a united front, saying that the US “banking system is sound and resilient,” and signalling that it isn’t too worried about industry following the fallout from the Silicon Valley Bank collapse.
Here at home, we’ll also be keeping an eye out for news from the Senate,whichwill reconvene on Sunday.
Check out our full business calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.
YOUR MOST CLICKED LINKS-
- We were absolutely delighted to find that thousands of you visited our new website, which offers you an easier, faster and more pleasant navigation experience. (Enterprise 3.0)
- The UN’s World Happiness Report — which put Egypt in the bottom 50 — really captured your attention — nearly 100 of you clicked to view the report within just an hour of the issue’s dispatch. (Report, pdf)
- The Wall Street Journal’s report on the state privatization program got plenty of interest.
- Our friends at Infinity Power’s acquisition of Africa-focused Lekela Power got a lot of clicks. (Press release, pdf)
- Downtown’s Fasahet Somayaalso got some love after we reviewed it in EnterprisePM. (Instagram)
AROUND THE WORLD IN SEVEN DAYS-

The banking crisis triggered by the crash of Silicon Valley Bank dominated front pages last week: While UBS’ decision to acquireCredit Suisse with an assist from Swiss regulators helped calm the ongoing global banking crisis, the race to save faltering US lender First Republic Bank continues.
China’s attempts to mediate the Russia-Ukraine war got plenty of ink: Chinese President Xi Jinping’s visit to Moscow failed to reach any decisions regarding Russia's war in Ukraine, with China continuing to hold on to its “objective and impartial position.” The meeting served to signify strengthening economic ties between the two powers, with Putin announcing plans for a new natural gas pipeline to China.
Also getting attention: The delayed indictment of former US President Donald Trump (who was charged with paying a performer some USD 130k in hush money), and Google’s answer to ChatGPT.
☀️ THE WEATHER THIS WEEKEND- We don’t know what’s going on, but it’s indoors for us this weekend:
- Friday: Cloudy and a high of 31°C with the chance of blowing dust. The mercury will fall to 16°C overnight
- Saturday: Chilly and rainy, with a daytime high of 22°C.


