Good morning, friends, and happy FRIDAY to all of you, whether you’re in Sahel or in Cairo. We wish you a fun weekend before the start of the academic school year, or to those of you who started, a calm and restful one before the chaos of the school week.
Sahel season may be coming to an end, but that’s no reason to ditch your health goals just yet — and intermittent fasting could be the right fit for you to keep your health in check as we begin the slide into the post-summer / almost-fall season. Our Enterprise Guide this week breaks down what intermittent fasting is, exactly, as well as the pitfalls to watch out for that make this lifestyle incompatible with some of us.
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- The news cycle last week was largely shaped by privatization news, along with a smattering of macro and investment updates.
ECONOMY-
#1- S&P Global anticipates tighter macroeconomic conditions in Egypt in the months to come: The ratings agency expects inflation to peak at close to 39% in October and the value of the EGP to fall to 37.00 against the USD by the end of the year if the government moves forward with another currency devaluation.
#2- Unemployment inched down to 7.0% in 2Q 2023, down 0.1 percentage points from 1Q 2023. Unemployment was down 0.2 percentage points compared with the same period last year.
PRIVATIZATION WATCH-
#1- Eastern Company confirmed reports of a potential stake sale: The government could sell up to 15.3% of state-owned tobacco manufacturer Eastern Company after receiving offers from several foreign investors. The firm has not yet singled out a preferred offer nor has the company disclosed the interested parties. The confirmation came after reports earlier in the week that Philip Morris’ United Tobacco entered talks with the government to acquire a minority stake in the company.
WHAT WE KNOW SO FAR- Japan Tobacco International (JTI) and an Emirati state institution are potentially among the players in talks with the government to snap up the stake. We also know that the government is looking to maintain at least a blocking minority once a sale has been finalized.
#2- BdC could IPO this year: The government is planning to offer a 49% stake in state-owned lender Banque du Caire (BdC) in a long-awaited IPO on the EGX in 4Q 2023. The state has been planning to sell a stake in BdC since 2016 but has delayed the IPO multiple times due to unfavorable market conditions.
#3- No due diligence on United Bank just yet: Investors interested in acquiring stakes in United Bank will begin due diligence by the end of September, contrary to a press report earlier this week that claimed three banks had already begun the process. A number of international financial institutions are currently interested in acquiring shares in the lender, but no further information was provided.
AT THE NEXUS BETWEEN PRIVATIZATION + INVESTMENT- The redevelopment of the former NDP HQ is moving forward: Prime Minister Moustafa Madbouly last week transferred the land of the dissolved National Democratic Party’s headquarters to two developers who, according to the chairman of the Sovereign Fund of Egypt’s tourism sub-fund, will embark on a USD 5 bn project backed by Gulf capital.
AND ON THE INVESTMENT FRONT-
GV Investments gets GAFI green light on EGP 500 bn industrial project: The General Authority for Investment and Freezones (GAFI) approved GV Investments ’ ambitious Tarboul industrial project in Giza. The 26k-feddan city, which will require EGP 500 bn (USD 16.2 bn) is expected to include industrial zones, a dry port and other logistical facilities, financial and business centers, and residential areas, according to its website.
ENERGY-
Household electricity prices are staying put for another 4.5 months: The cabinet approved a decision to leave household electricity prices frozen until 1 January, 2024. The decision is aimed at easing financial pressures on the public amid rising inflation.
We could soon be importing more Israeli gas: Israel will increase gas exports to Egypt from its offshore Tamar field, Israeli Energy Minister Israel Katz said. Israel will raise gas exports by an additional 38.7 bn cubic meters (bcm) over 11 years, according to the ministry, which translates to 3.5 bcm per year if you average it out. This could later be increased to 44 bcm. Egypt imported 4.62 bcm of gas from Israel last year.
WE ALSO HAD A FEW M&A TIDBITS-
#1- Rameda Pharma is zeroing in on two potential acquisitions in the medical sector, the company said earlier this week. The targets are a pharma company and a cosmeceuticals player, with Rameda looking at stakes of over 50% in each firm.
#2- Dragon Oil wants in on Egypt’s Nargis gas block: Emirates National Oil Company (ENOC) subsidiary Dragon Oil wants to purchase a stake of at least 20% in the Nargis offshore concession in the Eastern Mediterranean from Chevron.
AND SOME DEBT NEWS-
#1- We have another USD 125 mn EBRD loan for Damietta Port on the horizon: The European Bank for Reconstruction and Development (EBRD) is expected to approve a USD 125 mn loan on 4 October to finance the “superstructure and purchase of equipment” for Damietta Port’s second container terminal.
#2- The Egyptian German Industrial Corporation ( EGIC) could be getting a USD 50 mn credit facility from the European Bank for Reconstruction and Development (EBRD) to finance its operations.
BANKING-
#1- Hassan Abdalla was reappointed as the governor of the Central Bank of Egypt (CBE) for another one-year term starting 18 August.
#2- Looser regs on sukuk issuances: Companies will now be able to sell sukuk without first acquiring a credit rating after the Financial Regulatory Authority (FRA) waived the requirement.
MEANWHILE IN THE NATIONAL DIALOGUE-
The National Dialogue signed off on its first set of recommendations for political, economic, and social reforms, three months after it kicked off discussions. The recommendations, which were last week presented to President Abdel Fattah El Sisi for consideration, include:
- Bringing back the Economy Ministry to supervise national economic policy.
- Making it easier for businesses to access credit.
- Introducing commodity futures trading.
- Increasing the number of MPs and senators in the House of Representatives and the Senate.
- Passing legislation to reform electoral rules for local councils.
WHAT’S HAPPENING NEXT WEEK-
Flat6Labs’ 12-week construction tech accelerator program begins on Monday, 28 August. The program, dubbed Makers, is designed to provide support to construction technology startups in Egypt in partnership with SIAC and Dar Al-Handasah. Selected start-ups from the program will receive up to USD 100k per venture in addition to mentorship, business training, and access to networking events.
Submissions for the second phase of the Smart Green Projects initiative will be due on Friday, 1 September . The second iteration of the government-led initiative is accepting applications for projects working on addressing issues like energy, emissions reduction, sustainable agriculture and green buildings. Shortlisted projects will get the chance to present their vision during COP28. The top three contenders in six categories are also awarded prizes between EGP 250k and EGP 750k.
ACROSS THE POND- We’ll be keeping our eyes on Jackson Hole, where an annual meeting of central bank officials continues today and tomorrow. Investors typically look to the meeting in Wyoming for indications of where interest rates are heading in the coming months.
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-
- Jawaid Ahmed Mirza’s appointment as a non-executive member on CIB’s board got plenty of readers checking out his LinkedIn. (Linkedin)
- The government’s potential move to sell down its stake in Eastern Company was a close second, as many of you look to keep track of privatization updates. (Regulatory filing — pdf)
- Valu’s rebranding announcement, complete with a new look and a new focus for the business, got a lot of love. (Press release)
- Lots of you were also interested in the National Dialogue’s recommendations and wanted to dive deeper. (Youm7)
- The cabinet giving FinMin the green light to begin talks with the IFC over a local currency bond issuance pulled readers in. (Cabinet statement)
AROUND THE WORLD IN SEVEN DAYS-

The Brics annual summit has been getting more attention — and there’s a compelling local angle: The expansion of Brics membership has been a key point of interest in the international press as the leaders of the bloc, along with guest countries, discuss trade, investment, and geopolitics in Johannesburg. Brics Chairman and South African President Cyril Ramaphosa announced yesterday that Egypt, along with Saudi Arabia, the UAE, Ethiopia, Argentina, and Iran, will join Brics in 2024. Discussions over the bloc’s global influence have also highlighted divisions among some members — namely South Africa and China — over Brics’ future.
Wagner mercenary leader Yevgeny Prigozhin’s presumed death in a plane crash also made some buzz in the international press. His private jet hit the ground late Wednesday as it flew near the village of Kuzhenkino in the Tver region north of Moscow on its way to the capital from St Petersburg. Although authorities have yet to determine the identities of the 10 bodies recovered from the wreckage, President Vladimir Putin sent his condolences to Prigozhin’s family late last night.
Wildfires in Greece, which claimed the lives of 18 people earlier this week, have also been getting coverage: Some 18 bodies that were found in the charred northern Evros region of Greece are suspected to have been migrants looking to enter Europe through a known crossing point near the Turkish border. Near Athens, fires continue to burn uncontrollably despite firefighters’ efforts to contain them.
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☀️ THE WEATHER THIS WEEKEND- Brace yourselves for a scorcher. It will be a hotter weekend with the mercury peaking at 41°C in the daytime today and dropping to 24°C in the evening. Tomorrow will be a notch hotter, with the temperature reaching 42°C by midday and cooling to 25°C at night, according to our favorite weather app.
HAPPENING THIS WEEKEND-
The Citadel Festival for Music and Singing kicks off today and will end Thursday, 7 September. The festival will be held at the Salah El Din Citadel with several acts lined up:
- Swedish-Syrian singer Faya Younan and Medhat Saleh will be performing at the opening concert today.
- Cairo Symphonic Orchestra and Wust El Balad band will be performing tomorrow.
- Hany Shaker will perform on Sunday, 27 August.
- Hisham Abbas and Simone will perform on Monday, 28 August.
- Mostafa Haggag will perform on Tuesday, 29 August.
- Ali El Haggar will be performing on Thursday, 31 August.
- Musician Hisham Kharma and the Tunsian singer Ghalia Benali will be performing on Sunday, 3 September.
Russ is coming to New Alamein. American pop star Russ will be performing as part of the New Alamein Festival today. Tickets are available on Tazkarti.
Get some more laughs over the weekend with The Elite Standup today at Paragon Beach Hub, New Alamein. The show will start at 7pm. Tickets are available on Tazkarti.
Cairokee at the New Alamein Festival : Catch Cairokee in the few weekends left in Sahel as they perform tomorrow in New Alamein as a part of the Alamein Music Festival. Tickets are available on Tazkarti.
HAPPENING NEXT WEEKEND-
El Morabba3 is coming to Egypt. The Jordanian rockband El Morabba3 will be performing in two concerts, the first one will be at the closing ceremony of the International Summer Festival that will be held at Bibliotheca Alexandrina on Friday, 1 September. The second one will be at El Sawy Culturewheel on Sunday, 3 September. Tickets are available here for Bibliotheca Alexandrina and here for El Sawy CultureWheel.


