Back to the complete issue
Monday, 2 July 2018

What we’re tracking on 02 July 2018

Welcome to FY2018-19: We are now officially in the state’s FY2018-19 fiscal year, and the Finance Ministry has welcomed the start of the new year with its customary statement. This year’s budget projects GDP growing at 5.8%, with spending reaching a record EGP 1.4 tn. It also targets a deficit of 8.4% of GDP and a primary deficit surplus of 2%. Finance Minister Mohamed Maait played up the social spending aspect of the new budget, noting that outlays for education and healthcare will reach EGP 257.7 bn, up almost 16% from EGP 222 bn in FY2017-18. Spending on commodity subsidies will ring in at about EGP 86.2 bn. The government has already cut fuel, electricity, water and metro ticket subsidies over the past few months — and has telegraphed that another wave of subsidy cuts is coming later this budget year. President Abdel Fattah El Sisi has yet to ratify the FY2018-19 budget, which passed the House of Representatives nearly a month ago. You can read our refresher here.

LEGISLATION WATCH- The House Budget Committee will begin debate of amendments to the Customs Act today, Al Mal reports. The draft law, which received Cabinet sign-off in February, is expected to slash custom duties on capital goods to 2% from a current 5% and expand temporary exemptions for production inputs and packaging equipment. The law also includes provisions designed to curb customs evasion. The latest draft also includes measures designed to facilitate the flow of goods through Egypt’s ports, including establishing a “white list” of importers eligible to benefit from expedited clearance of goods, sources had told us previously.

The Madbouly Cabinet will present its policy program to the House of Representatives tomorrow, Al Mal reports. Among its priorities: the war against terror, pressing ahead with its economic reform agenda, expanding social programs and shoring up the social safety net, improving the quality of education and healthcare, and maintaining “balanced” foreign relations, Ahram Gate reports. The program will then be the subject of debate at a plenary session of the House on 9 July, sources tell the newspaper.

Shuffle of governors expected this week? Prime Minister Mostafa Madbouly sent his list of candidates to the president for review last week. Government sources said at the time the shuffle would be announced last week, suggesting that as many as 15 of 27 governorates could be run by new faces.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.