{"id":605554,"date":"2023-09-03T00:00:00","date_gmt":"2023-09-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/03\/the-official-privatization-program-progress-report-is-out\/"},"modified":"2023-09-03T00:00:00","modified_gmt":"2023-09-03T00:00:00","slug":"the-official-privatization-program-progress-report-is-out","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/03\/the-official-privatization-program-progress-report-is-out\/","title":{"rendered":"The official privatization program progress report is out"},"content":{"rendered":"

Good morning, wonderful people, and welcome to the (unofficial) first week of fall <\/strong>for most of us. September means the start of budget season across corporate Egypt \u2014 may the force be with you all. <\/p>\n

To ensure you\u2019re mentally prepared to build your 2024 budget, <\/strong>Our Hot Tub Time Machine brings you this preview of how negotiations will likely unfold<\/a><\/strong>with your boss \/ clients \/ CFO \/ CEO \/ board in this time of inflation and devaluation (runtime: 0:08 \u2014 and don\u2019t play it aloud if the kids are at the breakfast table or in the car with you).<\/p>\n

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Official progress reports on state asset sale program released: <\/strong>The cabinet\u2019sInformation and Decision Support Center (IDSC) has published progress reports on the state ownership policy and IPO program (here<\/a> and here<\/a> \u2014 pdfs), early versions of which were leaked to the press last week. The key information in the documents is essentially unchanged from the information we reported last<\/a> Wednesday<\/a>, though they include additional background on the state\u2019s strategy and what\u2019s been achieved so far. <\/p>\n

Tl;DR: <\/strong>The government plans to draw USD 5 bn in investment from the sale of state-owned assets by next June, pushed back from an earlier March target. The original list of 32 state-owned companies has been expanded to include Telecom Egypt, Eastern Company, and Al Ezz Dekheila.<\/p>\n

In context: <\/strong>The official reports are among a number of signs that suggest there is more momentum in the asset-sale program. The Madbouly government has also been pushing through fresh investment incentives and lately attracted new interest from foreign manufacturers<\/a>. We\u2019ve also seen a spate of investment-related news in payments<\/a>, green energy<\/a>, and fertilizers<\/a>.<\/p>\n

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MARKET WATCH- <\/strong> EGX bucks black August for EM stocks: <\/strong>The EGX was among the biggest gainers among emerging-market stocks last month, which fell 6% to record their worst August since 2015, according to Bloomberg<\/a>. The benchmark EGX 30 index has risen 29% this year to reach a new record high<\/a> as investors pile into the market to hedge against record levels of inflation. In USD terms, though, it has only eked out a 3% gain due to the devaluation of the EGP in January. Egypt and Turkey are \u201cback on the radar of investors,\u201d Bloomberg quotes one analyst says, \u201cexpectations are so that any sign of serious improvement merits attention.\u201d Fingers crossed, folks.<\/p>\n

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FACT CHECK- Air traffic at Capital International Airport is operating normally<\/strong>, according to cabinet, which yesterday denied rumors<\/a> that service had been suspended due to the airport not having meeting international safety standards.<\/p>\n

HAPPENING TODAY- <\/strong><\/p>\n

<\/a> Africa pharma expo: <\/strong> It\u2019s the first day of the Pharmaconex<\/a> exhibition at the Egypt International Exhibition Centre. The event runs through to Tuesday.<\/p>\n

AND- It\u2019s that time again: <\/strong> There will be more people sitting in rooms talking about things when the National Dialogue reopens its doors<\/a> today. Expect more dialogue of a national kind on Tuesday and Thursday, too, with political parties, freedom of expression, public debt and cultural industries all on the agenda.<\/p>\n

HAPPENING THIS WEEK- <\/strong><\/p>\n

<\/a> PMI figures out on Tuesday: <\/strong> S&P Global will publish August purchasing managers index figures for Egypt on 5 September. Private-sector activity has finally been showing signs of life<\/a> in recent months, with the perma-contraction easing gradually over the past four months. Could August be the first month of expansion since November 2020? Or did the dog days of summer sap momentum?<\/p>\n

AND- Foreign reserves figures will be out any day now. <\/strong> Expect the central bank to release figures for August before the week is out.<\/p>\n

<\/a> ALSO- <\/strong> Climate talks in Kenya: <\/strong> Climate leaders from across the continent will gather in the Kenyan capital from tomorrow for the Africa Climate Summit<\/a>. Egypt\u2019s UN high-level climate champion, Mahmoud Mohieldin, will be among those in attendance.<\/p>\n

<\/a> G20: <\/strong> Two weeks ago it was Brics. This week we have the G20. But don\u2019t expect any of the feel-good atmosphere to carry over from Johannesburg to New Delhi, where Russia\u2019s war in Ukraine and the West\u2019s face-off with China are expected to again dominate proceedings. India has wanted its presidency of the group to focus on wider issues relevant to the global south<\/a>, but disagreements over the Ukraine war meant it wasn\u2019t able to issue a communique<\/a> following the meeting of finance ministers in July.<\/p>\n

Egypt is involved: <\/strong>Egypt is among the nations invited to attend the summit by India, though it\u2019s unclear which ministers will be in attendance. The summit will take place on Saturday and Sunday (9-10 September).<\/p>\n

Erdogan to discuss grain pact with Putin: <\/strong> Turkish president Recep Tayyip Erdogan will attempt to persuade Russian leader Vladimir Putin to re-enter the Black Sea grain pact with Ukraine during talks in Sochi this week, according to Reuters<\/a>. Moscow pulled out of the agreement in July and reimposed a partial blockade on Ukraine\u2019s ports, threatening to provoke a fresh global food crisis.<\/p>\n

FURTHER AFIELD- <\/strong>Other local news triggers to keep your eyes on as we move through September:<\/p>\n