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Monday, 12 September 2022

THIS EVENING: Details on state privatization program’s revival coming soon + IMF could top up lending quotas

Happy Monday, wonderful people. We have another brisk news day here in Omm El Donia — and we’re not even halfway through the week.


We’ll get more details on the state’s plans for the resumption of the state privatization program in four weeks: The Sovereign Fund of Egypt’s (SFE) newly established pre-IPO fund is currently working on an initial batch of strategic stake sales worth USD 2.5-3 bn, Planning Minister Hala El Said told Bloomberg Asharq (watch, runtime: 2:50), adding that the government will announce the companies that are up for grabs and other details within four weeks. A second phase of stake sales also worth USD 2.5-3 bn will follow later, El Said added, without disclosing an exact timeline.


The international press is broadly focused this afternoon on Ukraine pushing back Russian forces in Ukraine’s southeast as Kyiv works to retake Kharkiv. The story is on the front pages of the Financial Times, the Wall Street Journal, Reuters, Bloomberg, and CNBC.

Also getting ink: Britain’s economy grew at a slower pace than expected in July, increasing the possibility that the country could already be in a recession, according to fresh data from the Office for National Statistics. GDP increased by 0.2% from June, which was less than the median estimate of 0.4%, Reuters reported. The slower-than-anticipated expansion was caused by a combination of factors, including labor shortage and rising costs: UK inflation is currently at a 40-year high.


IMF member countries (including Egypt) could have access to an additional 50% top-up of their quotas from the lender if the institution approves a proposal it is reportedly discussing at an informal board session today, Reuters reports, citing sources with knowledge of the matter. The potential extra funding, which would be unconditional and would not permanently change countries’ borrowing quotas, is designed to weather the impact of spiraling global food prices. Global food shortages and supply chain disturbances on the back of Russia’s war in Ukraine, drove the food price index to rise by 10 points y-o-y in August, according to recent data from the UN Food and Agriculture Organization (FAO).

The proposal comes as we’re in talks for additional funding from the IMF, but aren’t expecting a super-sized package. Finance Minister Mohamed Maait and other officials dialed back expectations since Egypt has exhausted its funding quota.

Our friend Dr. Mahmoud Mohieldin is with the good folks at AmCham for a luncheon from 1-4pm CLT. Dr. Mahmoud is speaking in his capacity as UN climate change high-level champion for Egypt. The special luncheon meeting at the Nile Ritz Carlton is open to AmCham members and their guests. Non-members can register to watch here.

Consoleya and Cairo Angels are hosting a business meet-up focusing on Nigeria’s tech ecosystem and how it compares with Egypt’s startup scene. Tarek Shahin (CI Capital’s chief investment officer), Biola Alabi Media CEO Biola Alabi, and Ibrahim Sagna (Afreximbank’s global head of advisory and capital markets) and take part in a panel discussion moderated by Aly El Shalakany, CEO of the Cairo Angels Syndicate Fund.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • The European Bank for Reconstruction and Development will provide USD 300 mn in funding to Egypt to help it decommission 5 GW of gas-fired power plants from 2023.
  • EGX-listed fintech operator e-Finance will buy back 5% of its shares over the next nine months in a bid to support its share price and boost investor confidence.
  • AMOC responds to PIF rumors: Alexandria Mineral Oil Company (AMOC) has not received any information on the Saudi sovereign wealth fund’s reported intention to acquire a minority stake in the company.


Domty deadline day: Shareholders in cheesemaker Domty have until Wednesday to sell their shares to Expedition Investments, as part of its mandatory tender offer for 34% of the company. Expedition sweetened the deal by upping its offer price by 10% last week, which we cover in more detail in this morning’s news well, below.

B Investments is going to have to make up its mind over TotalEnergies Egypt by Thursday: The private equity player has the right to preempt a bid by Abu Dhabi energy giant Adnoc to acquire a 50% stake in the company, which expires on Thursday.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☀️ TOMORROW’S WEATHER- Expect temperatures to rise to 37°C during the day tomorrow before falling to 22°C in the evening, our favorite weather app tells us.

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