{"id":618203,"date":"2024-04-04T00:00:00","date_gmt":"2024-04-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/04\/blackouts-to-return-after-eid\/"},"modified":"2024-04-04T00:00:00","modified_gmt":"2024-04-04T00:00:00","slug":"blackouts-to-return-after-eid","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/04\/blackouts-to-return-after-eid\/","title":{"rendered":"Blackouts to return after Eid"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>The news flow has picked up this morning as we wrap up the last full workweek of Ramadan and begin our countdown for the Eid break. <\/p>\n

<\/a> PSA-<\/strong>The public sector is getting six days off for Eid: <\/strong>Public sector employees will be off from Tuesday, 9 April until Sunday, 14 April in observance of Eid Al Fitr, according to a cabinet statement<\/a>. We\u2019re now waiting for the <\/strong>Labor Ministry<\/strong>, the Central Bank of Egypt, and the EGX to follow suit<\/strong> with their own announcements.<\/p>\n

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WATCH THIS SPACE-<\/p>\n

<\/a> #1-<\/strong>Blackouts to return after Eid:<\/strong> The power outages will return after Eid Al Fitr break and lights will once again go out for two hours a day, a source at the electricity sector told Enterprise. The source attributed the decision to continue the rolling blackouts to cost increases following the float of the EGP and as a means of avoiding depleting our natural gas reserves ahead of the more energy-intensive summer months.<\/p>\n

The plan to bring back 24\/7 power: <\/strong>There\u2019s no specific date penciled in for when the country will finally say goodbye to blackouts, our source tells us, adding that \u201cwe hope to proceed with a plan to reduce the duration of the electricity cuts, then gradually end blackouts alongside an increase in natural gas supplies.\u201d<\/p>\n

Mazut imports may be in the cards <\/strong>in the event of severe heat waves and an increase in demand, the source told us.<\/p>\n

#2- A floating EGP means a pricier renewables bill: <\/strong>After last month\u2019s float of the EGP, the Electricity Ministry\u2019s monthly bill for wind and solar energy purchased through USD-priced power purchase agreements increased by EGP 700 mn to EGP 2 bn, Asharq Business<\/a> reports, citing an unnamed government official.<\/p>\n

<\/a> #3- The Planning Ministry has updated how it calculates private investments:<\/strong> The Planning Ministry announced it has overhauled its method used to calculate private investments to provide more accurate data and a more detailed sector-by-sector breakdown, according to a statement<\/a> from the ministry. <\/p>\n

By the numbers:<\/strong> Under the new methodology, private sector investment in the last fiscal year is now estimated to represent 36.4% of total investment with EGP 499 bn, up from a previous estimation of 25.5% or EGP 299 bn. The new methodology also places private sector investment for the first quarter of the current fiscal year at EGP 154 bn, up from EGP 114 bn, and increases forecasts for private investment for the entire fiscal year to EGP 600 bn.<\/p>\n

Remember:<\/strong> The state ownership policy<\/a> aims to more than double the private sector\u2019s role in the economy to 65%<\/a> by 2026.<\/p>\n

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FX WATCH- <\/p>\n

<\/a> Foreign appet<\/strong>ite for Egyptian debt is on the rise: <\/strong>Foreign investors have poured USD 17.8 bn into Egyptian government debt in the first quarter of 2024, Egyptian Central Securities Depository CEO Yasser Zaazaa told Al Arabiya (watch,<\/a>runtime<\/a>; 5:07<\/a>). When taking into account the USD 5.6 bn of debt that foreign investors sold during the period, net purchases of Egyptian debt came in at USD 12.2 bn for the period. <\/p>\n

Thank the float: <\/strong>After having only made up 10% of the market in January and 9% in February, foreign investments now make up 25% of the total market capitalization following the float of the EGP, Zaazaa said.<\/p>\n

Remember: <\/strong>Short-term local debt has been extremely attractive<\/a> to both local and foreign investors since the central bank floated the EGP, with the central bank\u2019s many t-bills auctions post float being met with high demand.<\/p>\n

DATA POINT- <\/p>\n

<\/a> MENA startup investments fell 62% y-o-y in 1Q 2024<\/strong>, clocking in at USD 429 mn for the period, according to Wamda\u2019s monthly startup report<\/a>. Egypt startups raised only USD 34.6 mn or just over 8% of the region\u2019s startup investments during the quarter.<\/p>\n

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WEATHER- <\/strong>It\u2019s going to be another sunny day in Cairo, with a high of 31\u00b0C and a low of 17\u00b0C, according to our favorite weather app.<\/p>\n

It\u2019s going to be slightly cooler in Alexandria<\/strong>, with a high of 27\u00b0C and a low of 16\u00b0C.<\/p>\n

And over the weekend<\/strong>, <\/strong>expect to see highs between 28-30\u00b0C in the capital and 23\u00b0C for our friends on the Mediterranean.<\/p>\n

** So, wh<\/strong>en do we eat?<\/strong> Maghrib prayers are at 6:16 pm in the capital city, and you\u2019ll have until 4:10 am tomorrow to hydrate and caffeinate ahead of fajr.<\/p>\n

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

The scramble to make sense of (and money with) generative AI dominates headlines <\/strong>on an otherwise quiet morning in the global business press. Here\u2019s what you need to know: <\/p>\n