Monday, 17 October 2022

THIS EVENING: Gov’t reintroduces unsubsidized bread price caps + We’re missing out on another USD 75 mn in military aid from Washington

Good afternoon, ladies and gentlemen. It’s another reasonably brisk news afternoon here in Omm El Donia, with a little bit of everything from subsidy policy to diplomacy to keep us busy.


#1- Renewed price cap for unsubsidized bread from bakeries that use GASC flour: The government reintroduced a price cap for unsubsidized bread for a month in a ministerial decree issued yesterday, for those bakeries that will take state grain buyer GASC up on its offer of flour amid reports that the private sector is struggling to get its wheat shipments through ports. The decision sets a higher price ceiling than the one first introduced in March. A 75-gram loaf of baladi bread will now sell at EGP 1. Prices for fino bread are now set between EGP 0.75 and EGP 1.00 for loaves weighing 40-60 grams, according to the decision. Egypt first set a price cap for unsubsidized bread in March for three months in a bid to hold down local prices amid surging global inflation on the back of the crisis in Ukraine. The decision will come into effect once it’s published in the Official Gazette.

#2- Washington blocks another USD 75 mn in military aid: We won’t be receiving another USD 75 mn of military aid from the US after Democratic Senator Patrick Leahy blocked the aid’s disbursal, citing human rights concerns, Reuters reports. Leahy, who heads the Senate Appropriations Committee, rejected an assessment by the State Department that the aid should be sent to Egypt in exchange for progress on releasing political detainees. Washington typically earmarks some USD 1.3 bn in annual military aid for Egypt. The State Department withheld USD 130 mn of military aid in September over human rights concerns.


UK hits CTRL-Z on tax plans to restore investor confidence + calm the markets: Newly-appointed UK Chancellor Jeremy Hunt is reversing the vast majority of his predecessor’s proposed tax cuts and cutting energy subsidies, as the country looks to stymie a meltdown in its markets and currency. The announcement led to a market rally and a jump in the GBP against the USD. The story is on the front pages of the Financial Times, Reuters, CNBC, and the Wall Street Journal.


EGX boss Rami El Dokany is currently heading to the UAE to kick off a roadshow in Dubai and Abu Dhabi aimed at drumming up interest in EGX-listed companies, an EGX source told Enterprise. The bourse has tapped Al Ahly Pharos to help manage the roadshow, which is set to see El Dokany meet with as many as 100 regional and international financial institutions, the source said.

Supreme Council for Vehicle Manufacturing gets preliminary House nod: The House of Representatives’ general assembly gave preliminary approval to a draft bill that would establish the Supreme Council for Vehicle Manufacturing, which would act as a regulatory body setting policies for EV assembly in Egypt, Al Mal reports. The draft bill would, if passed, also set up a new EV finance fund in a bid to localize the industry.

House speaker invites CBE, AgriMin to discuss poultry feed crisis: House Speaker Hanafi Gebali invited representatives from the Central Bank of Egypt, Agriculture Ministry, and other relevant ministries to attend a House Agriculture Committee meeting tomorrow on the poultry feed shortage, according to Al Mal.

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

  • Student lifeline Selah El Telmeez is going to have a new majority owner: EFG Hermes and the Sovereign Fund of Egypt’s education management firm Egypt Education Platform has inked an agreement to acquire an undisclosed majority stake in education platform Selah El Telmeez.
  • Expats could send some EGP 50 bn (c. USD 2.5 bn) into Egypt under a cabinet program that will allow Egyptians living abroad to buy new cars in exchange for hard currency, Finance Minister Mohamed Maait said.
  • The House yesterday approved in principle amendments to the Agriculture Act that would introduce harsher penalties for illegally building on agricultural land.


Take our EV survey: Are you an ex-petrolhead shopping around for your first electric vehicle? EV-curious and wondering what all the fuss is about? Or are you not ready to say goodbye to that sweet smell of benzene as you wait at the gas station?

We want to hear from you: We’re taking the pulse on how the nation feels about Egypt’s nascent EV transition. Take a few minutes to fill out our short survey. We’ll be back soon with the results.



The Suez Canal Economic Zone (SCZone) will launch a promotional campaign ahead of COP27 on potential investments in the zone next week, SCZone head Walid Gamal El Din said, according to a statement. The campaign will be launched domestically next Sunday, 23 October, before the international campaign kicks off on Monday, 24 October.

The Madbouly government’s economic conference takes place Sunday-Tuesday next week. We’re hoping for more details in the coming days.

Egypt and the UAE will host a two-day conference marking 50 years of bilateral ties. The gathering will take place next Wednesday-Friday, 26-28 October and is being produced in association with the two governments.

Fuel prices to rise this month? We’re expecting the government to hike fuel prices for the seventh consecutive quarter when the fuel pricing committee meets this month. Fuel prices have risen by as much as 28% over the past 18 months in response to heightened international oil prices, which surged earlier this year on the back of Russia’s invasion of Ukraine.

Part of our monorail will be launched during COP27, the cabinet said in a statement. Once completed, the project will span 22 stations over 56.5 km with 40 trains transporting people across Cairo. The Madbouly government plans to inaugurate the eastern segment of the monorail from the New Administrative Capital to Nasr City in time for COP27. The USD 4.5 bn project is designed, built, supplied and operated by a consortium of Alstom, Orascom Construction and Arab Contractors.

☀️ TOMORROW’S WEATHER- We’re in for another pleasantly sunny day here in the capital city. Our favorite weather app tells us to expect a daytime high of 29°C before the mercury drops to 19°C in the evening.

EDITOR’S NOTE: This story was amended  on 18 October, 2022, to reflect that price caps on unsubsidized bread are only applicable to private bakeries that purchase flour from state grain buyer GASC. 

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.