{"id":550931,"date":"2022-05-15T13:21:45","date_gmt":"2022-05-15T13:21:45","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/15\/this-evening-govt-announces-strategy-to-spur-private-sector-activity-in-the-economy-unemployment-fell-in-jan-march-europe-considers-cap-on-natural-gas-prices\/"},"modified":"2022-05-15T13:21:45","modified_gmt":"2022-05-15T13:21:45","slug":"this-evening-govt-announces-strategy-to-spur-private-sector-activity-in-the-economy-unemployment-fell-in-jan-march-europe-considers-cap-on-natural-gas-prices","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/15\/this-evening-govt-announces-strategy-to-spur-private-sector-activity-in-the-economy-unemployment-fell-in-jan-march-europe-considers-cap-on-natural-gas-prices\/","title":{"rendered":"THIS EVENING: Gov\u2019t announces strategy to spur private sector activity in the economy + Unemployment fell in Jan-March + Europe considers cap on natural gas prices"},"content":{"rendered":"

Good afternoon, friends, and welcome to a busy start to the week.<\/strong> We have some big news for you to catch up on as you wrap up the workday, and plenty of tidbits to get you thinking, so let\u2019s get right to it.<\/p>\n

BUT FIRST, A CORRECTION-<\/strong> In this morning\u2019s EnterpriseAM, we mistakenly reported that Amazon purchased a stake in EFG Hermes\u2019 London-listed global depositary receipts (GDRs) that is equivalent to 10% of EFG\u2019s market cap. Amazon\u2019s purchase represents 1% of EFG Hermes\u2019 GDRs. The story<\/a> has been updated on our website.<\/p>\n

THE BIG STORIES TODAY<\/strong><\/p>\n

<\/a> #1- Gov\u2019t announces some of its strategy to spur private sector activity in the economy:<\/strong> The government plans to more than double the private sector\u2019s contribution to the country\u2019s economy to 65%, from 30% currently, within the next three years, Prime Minister Moustafa Madbouly said at a highly-anticipated press conference today (watch, runtime: 47:57<\/a>). This target rests on the government\u2019s long-term strategy<\/a> to reduce the state\u2019s involvement in the economy, which will be announced \u201cwithin days\u201d and will provide a roadmap for reducing the state\u2019s economic activities, charting which industries it will withdraw from and when, as well as ring fencing strategic sectors where it wants to retain a presence \u2014 all within three years. The government also expects to reach its targets with unspecified incentives geared towards improving the business climate, as well as opening lines of communication with the private sector to help cater to their needs.<\/p>\n

ALSO IN THE STRATEGY:<\/strong> The government\u2019s plan to attract a total of USD 40 bn of local and foreign private sector investment in state-owned assets, at a pace of USD 10 bn annually over the course of the next four years. The assets include new and renewable energy projects, real estate assets in new cities, desalination projects, as well as ICT and education projects. President Abdel Fattah El Sisi had announced this goal last month<\/a>. The government has already selected USD 9.1 bn-worth of assets out of this year\u2019s allotted USD 10 bn, and is currently working on appraising assets worth another USD 15 bn as part of a \u201cfast-tracked\u201d component of the strategy, which should be completed this year, Madbouly said.<\/p>\n

#2- Unemployment fell in 1Q2022:<\/strong> Egypt\u2019s unemployment rate eased to 7.2% during the first quarter of the year, from 7.4% in 4Q2021<\/a>, according to the latest data by statistics agency CAPMAS (pdf)<\/a>. This is the second consecutive quarter during which the jobless rate eased, after remaining somewhat steady over the past year.<\/p>\n

^^We\u2019ll have more<\/strong> on these stories and others in tomorrow\u2019s edition of EnterpriseAM<\/strong>.<\/p>\n

\n

THE BIG STORY ABROAD-<\/strong><\/p>\n

<\/a> It\u2019s all about energy<\/strong>, with the European Commission considering setting a cap on natural gas prices if Russia cuts off supply to avoid \u201cunbearably high\u201d costs, Bloomberg<\/a> reports. European energy markets are grappling with uncertainty over gas supplies after Moscow demanded \u201cunfriendly countries\u201d pay for Russian gas in RUB, which would breach EU sanctions.<\/p>\n

Separately, but also related: Iran says it has the capacity to double its oil exports<\/strong> if there\u2019s sufficient demand, said Mohsen Khojastehmehr, managing director of the National Iranian Oil Company yesterday, Bloomberg<\/a> reported. His comments come as Iran is engaged in faltering negotiations to revive the 2015 nuclear pact \u2014 an agreement would restore Iranian oil exports and grant the country much-needed sanctions relief (in return for curbs on its nuclear program). Analysts estimate that Iran sells as much as 1 mn barrels per day, though the country does not publish official production figures.<\/p>\n

UKRAINE UPDATE- <\/strong><\/p>\n