Good morning, friends. We hope you’re having yet another wonderful long weekend — make the most of it: it’s the last one we’ll get until the end of June.

We’re also only one weekend away from…

The Enterprise Exports & FDI Forum, our latest industry-specific conference, is taking place on Monday, 15 May. The Enterprise Exports & FDI Forum will give insiders and newcomers alike the chance to talk about how to develop an export-centered business and how their companies can help Egypt build an export-led economy that makes us a magnet for foreign direct investment (FDI). The event will take place atthe Four Seasons, Nile Plaza.

Why exports & FDI? In the wake of successive floats of EGP, exports and FDI have never been more important to our economy — or our businesses. We’re gathering some of the CEOs, top execs from local companies and multinationals, investors, bankers and finance folks to speak on how businesses can adapt their strategies to be export-oriented and what Egypt as a country can do to draw foreign investment and much-needed FX. Expect it to be heavy on lessons learned in Egypt and other global growth markets — and lots of success stories.You can learn more on our conference website here.

ON THE AGENDA- We have seven panels where we discuss the steps these leaders and companies are taking to pull in FDI and to make their business export-driven. There will be several “lessons-learned” panels that include an Egyptian product focused one that looks at white goods, consumer electronics, fertilizers and garments. Another intends to extend the steps taken to create an export and FDI strategy through listening to the advice of other c-suite executives who have successfully made their business move in that direction. More panels include how to identify and pull in the right foreign partner, how to become part of a multinational’s supply chain, how industrial clusters can offer a way for SMEs to be part of our export economy and what industries of tomorrow we can leapfrog into. You can check out the full agenda here.

Some of the biggest names in business and finance are on board: The Enterprise Exports and FDI Forum is taking place with the generous support of our friends, including:

Banking partners: Banque Misr | Al Baraka Bank | Emirates NBD | HSBC

Lead partners: DB Schenker | DP World | East Port Said Development | IDG | IFC | Madinat Masr

Event partners: Beyti | Concrete | Global Corp | Grant Thornton | Hassan Allam Utilities | Royal Ceramica

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

HAVEN’T REQUESTED AN INVITE YET? If you’re a C-suite exec, business owner, DFI staff, export executive, investor or banker, please fill out the form here to signal your interest, letting us know your name, title and where you work.

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 newsflow has been steadily picking up following the eid lull, with news on everything from development finance and legislation to updates on the state privatization program.

ECONOMY-

#1- Our balance of payments turned a surplus for the first time in years in 1H FY 2022-2023, rising 77.2% y-o-y to reach USD 1.8 bn, according to Central Bank of Egypt figures (pdf).

#2- S&P Global Ratings lowered its credit outlook on NBE, Banque Misr and CIB to negative. The ratings agency held the three banks’ credit ratings at B, the same as its rating of Egypt’s sovereign credit, which it had also downgraded late last month.

#3- Prime Minister Moustafa Madbouly acted to reassure foreign investors that our debt is under control, after a sell-offof Egypt’s USD bonds, triggered by S&P Global’s downgrade of Egypt’s sovereign credit, accelerated.

#4- PMI inches up, but remains in contraction: Activity in Egypt’s non-oil private sector remained in contraction territory in April as the depreciation of the EGP, high inflation, and import restrictions continued to weigh on inventories, according to S&P Global’s purchasing managers' index (pdf). April’s PMI score inched up to 47.3, rising from 46.7 in March. The reading means activity is still shrinking, but is the highest level the PMI has hit since last October.

#5-Our net foreign reserves also inched up to USD 34.56 bn in April fromUSD 34.45 bn in March, according to central bank data. Reserves have been on a gentle upward slope the past seven months, after falling 20%last year on the back of the war on Ukraine and tougher financial conditions.

^^ We’ll have more on the above in Sunday’s EnterpriseAM.

PLUS- Reuters has a gloomier forecast for GDP growth: Egypt’s economy is expected to grow 4.0% this year, according to a Reuters poll conducted in April. The forecast marks a downward revision of the newswire’s January forecast — which predicted 4.8% growth this year — and falls in line with expectations from the government, the World Bank and S&P Global Ratings.

PRIVATIZATION WATCH-

#1- Pachin finally has new owners: Dubai-based National Paints Holding (NPH) has acquired over 80% of EGX-listed Paint and Chemical Industries (Pachin) for around EGP 770.5 mn in its mandatory tender offer that wrapped, following a heated bidding war between NPH and Eagle Chemicals that saw back-and-forth of bids and counter-bids saw Pachin’s value more than double to EGP 955.2 mn. The government offloaded its 19.36 mn shares to the Emirati company, which had offered to purchase up to 100% of the firm at EGP 39.80 apiece.

#2- Secondary stake sales in Abu Qir Fertilizers, Sidpec next? State-owned and EGX-listed companies Abu Qir Fertilizers and Sidi Kerir Petrochemicals (Sidpec) could be next in line for a sale in the Madbouly government’s privatization drive.

Prime Minister Moustafa Madbouly said we can expect more asset sales before the end of June, as he moved to reassure foreign investors about Egypt’s economic reforms.

DEVELOPMENT FINANCE-

We’re getting some USD 733 mn from Japan for Cairo Metro Line 4: The Japanese International Corporation Agency (JICA) agreed to lend Egypt USD 733 mn to finance the construction of Cairo Metro Line 4 during Japanese PM Fumio Kishida's visit to Cairo last week.

INFRASTRUCTURE-

SFE shortlists firms to bid for desalination plants: The Sovereign Fund of Egypt (SFE) has shortlisted some 17 consortiums that have pre-qualified to bid for upcoming renewables-powered desalination projects up for tender in 3Q2023. Among the many consortiums shortlisted by the SFE were heavy hitters like Hassan Allam Holding and Engie; Orascom Construction, Scatec, Toyota Tsusho Corp, Acciona Agua, and Metito Utilities; ACWA Power; and Infinity Energy, GS Inima, and China Energy Engineering Corporation.

LEGISLATION-

Acontroversial labor legislation withdrawn from the House of Representatives last year is making its way back from the dead, with the government planning to restudy it. The bill had gotten backlash from the business community, which argued that new labor rights it would introduce — including legislating mandatory annual raises, caps on working hours, and longer maternity leave and notice periods, among other things — were lopsided to workers.

Meanwhile, some five bills got their final approval and have been forwarded to Ittihadiya, including amendments to the Citizenship Act will make it easier for some foreigners to become Egyptian citizens and new, stricter rules on dog ownership.

WHAT’S HAPPENING NEXT WEEK-

Keep your eyes peeled for PM Madbouly’s international presser: Prime Minister Moustafa Madbouly said he plans to hold an international press conference with both local and foreign news outlets in the coming days to address questions around the current economic situation, according to a cabinet statement.

April’s inflation figures should be coming out next week. Inflation jumped 32.7% y-o-y inMarch, up from 31.9% the month before, as prices continued to accelerate on the back of the series of currency devaluations, the foreign-currency crunch, and higher fuel prices. Inflation figures from March were at its highest levels since July 2017, when we hit a record high of almost 33%.

The Senate will be back in session on Tuesday 9 May after a three-week break. In its final session before the break in April, the upper legislative chamber discussed the government’swater management strategy, changing the state’s fiscal year, which runs from July-June, to begin at the start of January and the impact of the real estate tax on industry and investments.

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-

• The Central Bank of Egypt’s (CBE) expected consultations with IMF staff under our latest agreementwith the lender, which says that the CBE will discuss NFAs if they fall by USD 2 bn or more in a three-month period. (Agreement, pdf)
• The list of consortiums shortlisted by the SFE for desalination plants. (Statement, pdf)
• Our successful t-bill auction, which saw the central bank sell more than USD 1 bn of USD-denominated one-year treasury bills to investors at an average yield of 4.9%. (CBE figures, pdf)
• Toyota’s Africa-focused trading arm Toyota Tsusho’s plans to build a car factory here. (Cabinet statement)
• A lot of you wanted to check out Brunch and Cake’s page, after the Spanish franchise entered Egypt’s New Cairo.

AROUND THE WORLD IN SEVEN DAYS-

THIS JUST IN: The US Federal Reserve has hiked interest rates by 25 bps for the tenth time in a little over a year, according to a statement.

Fighting continued in Sudan, before warring factions entered a weeklong truce: Ceasefires have ostensibly been in place since 25 April, but the fighting hasn’t stopped for a single day since the conflict started almost three weeks ago, with at least 550 people killed and over 100k people driven out of the country.

Could peace talks actually be happening? The two sides have agreed to name representatives to take part in peace talks “to be held at an agreed venue of their choice,” the statement said.

Some 16k people have crossed into Egypt since the conflict in Sudan has broken out:

As of last weekmore than 16k people had crossed the border, most of whom were Sudanese refugees. Egypt has relaxed its visa restrictions in response to the fighting, allowing women, children and men over 50 into the country without a visa.

Banking crisis, cont’d: JPMorgan agreed to acquire most of the troubled lender on Monday while the rest will be taken over by the Federal Deposit Ins. Corporation — an arrangement that makes the bank the fourth victim of the recent banking crisis.

☀️ THE WEATHER THIS WEEKEND- Is it officially summer now?The mercury will rise today to a warm 36°C and 34°C on Friday, before cooling down a little to 30°C on Saturday. Expect nighttime lows starting at 23°C tomorrow that fall further to 17°C and 16°C the rest of the weekend.