{"id":654424,"date":"2024-11-03T00:00:00","date_gmt":"2024-11-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/03\/imf-boss-is-in-town-for-talks-with-el-sisi-madbouly-abdalla\/"},"modified":"2024-11-03T00:00:00","modified_gmt":"2024-11-03T00:00:00","slug":"imf-boss-is-in-town-for-talks-with-el-sisi-madbouly-abdalla","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/03\/imf-boss-is-in-town-for-talks-with-el-sisi-madbouly-abdalla\/","title":{"rendered":"IMF boss is in town for talks with El Sisi, Madbouly, Abdalla"},"content":{"rendered":"

Good<\/strong> morning, fri<\/strong>ends. <\/strong>We are kicking off the week with an issue packed with good news: our budget deficit has narrowed, the net foreign asset surplus is rising again, Fitch Ratings upgrades our credit rating, and the IMF is optimistic about our medium-term growth. <\/p>\n

More good news coming our way? <\/strong>We could be in line for more good news this week with the IMF boss in town for meetings with key stakeholders. <\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> #1- IMF managing director is in Cairo: <\/strong>The IMF\u2019s Managing Director Kristalina Georgieva kicked off talks with Egyptian officials, including Prime Minister Moustafa Madbouly and CBE governor Hassan Abdalla yesterday after landing in Egypt<\/a>. Georgieva\u2019s visit comes as the state seeks to renegotiate the terms<\/a> of our USD 8 bn loan agreement and precedes a visit from a delegation from the Fund in preparation for the program\u2019s fourth review<\/a>.<\/p>\n

Watch out for: <\/strong>Georgieva will join Madbouly and Abdalla for a presser at the new capital later today.<\/p>\n

On the agenda: <\/strong>Georgieva will be meeting with President Abdel Fattah El Sisi and key stakeholders \u201cabout maintaining Egypt's economic stability and fostering inclusive growth that will create opportunities for all Egyptians.\u201d <\/p>\n

Remember: <\/strong>President Abdel Fattah El Sisi last month stated that the country might need to revisit the IMF agreement<\/a> in light of the economic pressures the country is facing as it undergoes agreed-upon reforms. Prime Minister Moustafa Madbouly last week noted that the state is focused on extending the timeline for implementing measures, in light of local and regional developments since the agreement\u2019s drafting. The IMF has expressed willingness<\/a> to revisit the terms of the agreement, with Georgieva saying that the Fund has \u201cbeen very open to adjust the Egyptian program or any other program to what is best to serve people.\u201d<\/p>\n

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<\/a> #2- The EGP dips against the greenback: <\/strong>The USD rose more than 0.4% against the EGP on Thursday to reach EGP 48.94 to the greenback, marking its highest level since August\u2019s global market meltdown<\/a>, Asharq Business<\/a> reports.<\/p>\n

Questions are being asked about the EGP\u2019s recent stability: <\/strong>The news coincides with investors reportedly pressing the IMF for an explanation regarding the EGP\u2019s stability amid regional shocks and in light of Egypt\u2019s pledges to maintain a flexible exchange rate, Bloomberg<\/a> writes citing sources familiar with the matter. Maintaining exchange rate flexibility has been a key focus area<\/a> of our IMF agreement. <\/p>\n

Expect the topic to be brought up during upcoming meetings: <\/strong>Fund officials will discuss the flexibility of the EGP with authorities, Bloomberg writes without providing further details. <\/p>\n

SIGN OF THE TIMES-<\/p>\n

Coca-Cola continued to feel the heat of local boycotts in 3Q 2024<\/strong>, as Egyptian consumers continued to reject the soda giant amid key US ally Israel\u2019s continuing war on Gaza, Reuters<\/a> reports. \u201cLike many other international brands, we have seen an impact from the boycott in Q3 in Egypt. Volumes of Coca-Cola are most affected, however, many of our other brands are less affected or not at all,\u201d the company told the newswire.<\/p>\n

Remember:<\/strong> Volumes of Coke sold in Egypt reportedly declined<\/a> by double-digit percentage points in the first six months of 2024.<\/p>\n

HAPPENING TODAY- <\/p>\n

#1- The House is back in session: <\/strong>MPs will reconvene today through Tuesday to discuss and vote on three draft bills regulating criminal procedures<\/a>, the Police Authority\u2019s performance, and extending tax dispute settlements.<\/p>\n

Taxpayers could have a looser deadline:<\/strong> The House will discuss and vote on amendments to the law regulating the tax dispute settlement on Tuesday, which will see the deadline for settlements pushed to 30 June 2025. The House's Budget Committee and the Senate approved the amendment last week.<\/p>\n

Remember:<\/strong> The cabinet last week<\/a> approved a draft law to settle the status of taxpayers and end existing tax disputes \u2014 part of its wider drive to ease the burden on taxpayers and unify and improve tax services. Cabinet spokesperson Mohamed El Homsani previously said<\/a> that all tax disputes predating the announcement will be settled as part of wider efforts to build trust with taxpayers.<\/p>\n

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#2- The <\/strong>Iraq Investment Forum 2024<\/a><\/strong> wraps up: <\/strong>A delegation from the Contractors Union is in Baghdad today for the second and final day of the Iraq Investment Forum, where the Iraqi government is showcasing available project offerings across various sectors, including infrastructure, education, healthcare, and water waste. The union is expected to land agreements between local contracting companies and Iraqi entities to carry out construction projects there in the upcoming period.<\/p>\n

Local construction firms have been loving the Iraqi market<\/strong>, which has become one of a number of key markets local firms have been expanding to as domestic opportunities shrink. The Iraqi construction market is expected to grow significantly over the coming ten years, our sources said, adding that they expect demand to exceed the USD 500 bn market over the next decade. We dove into the full story in a HardHat<\/a> published last in September.<\/p>\n

HAPPENING THIS WEEK- <\/p>\n

<\/a> #1- The <\/strong>World Urban Forum<\/a><\/strong> to kick off Monday:<\/strong> The UN\u2019s World Urban Forum will run from Monday to Friday in Cairo, and will bring together a global array of policymakers, urban planners, academics, business leaders, and community representatives to address today\u2019s critical urban challenges. Co-organized by the Egyptian government, the forum will feature discussions and workshops aimed at reshaping urban policies and fostering sustainable, inclusive cities for the future. Check out the agenda<\/a> or register to attend<\/a> via the links available on the event\u2019s official website. <\/p>\n

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#2- The three-day <\/strong>FinExpo Conference and Exhibition<\/a><\/strong> will begin on Thursday, 7 <\/strong>November<\/strong> at the Cairo International Convention Centre. The conference will bring together top banks, tech firms, and financial service providers for in-depth discussions on economic forecasts, stock market trends, and digital trading platforms. The event will feature over 50 speakers, and 25 talks and panel discussions. Register to attend on the event\u2019s website.<\/p>\n

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#3- The annual Carerha Summit is set to begin on Friday:<\/strong> Female-focused edtech platform Carerha will kick off its annual two-day summit on 8 November in Sheikh Zayed\u2019s Capital Business Park. The USAID- and DAI-backed event is expected to host 5k attendees and feature \u201cengaging panels, talks, and fireside chats on topics such as empowering women in fintech, success stories of Egyptian brands, leveraging various platforms for business growth, and building businesses at a young age.\u201d Find the link to register<\/a> on the platform\u2019s Facebook page<\/a>.<\/p>\n

NEWS TRIGGERS-<\/p>\n

It\u2019s the first week of November \u2014 here are the key news triggers to keep your eyes on this month:<\/strong><\/p>\n