Expanding Nafeza’s scope: The Finance Ministry is set to begin implementing the Advance Cargo Information (ACI) system for air freight in January 2026, government sources told EnterpriseAM yesterday.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)This move comes after a nearly five-year delay, despite the system's mandatory application for sea freight in October 2021.The rollout of the new system will include introducing an electronic bill of lading system, replacing the traditional paper documents, sources noted.About the ACI system: The system is a World Customs Organization (WCO) protocol that provides real-time information on shipments of incoming goods to shipping lines, port operators and governments. It requires shippers to submit cargo data and documents — such as pro-forma invoices and draft bills of lading — at least 48 hours before shipment leaves the export country. It’s a key part of the Finance Ministry’s digital customs system known as Nafeza, which went live in 2021.What’s next: The Egyptian Customs Authority (ECA) will begin trials of the ACI customs system for local and foreign air freight companies and airlines starting September and until the end of December, our sources noted. Joining the system will be mandatory starting 1 January 2026.Coordination in motion: The ECA recently met with representatives from local and foreign air freight firms to finalize the implementation mechanisms for both the pilot and mandatory phases of the ACI system for air freight.The rationale behind this move: The primary objective of the ACI system is to reduce both the time and cost of customs clearance, our sources said. By ensuring that all required procedures are completed before shipping, the system will allow for the immediate release of cargo upon arrival. The completion of the ACI system is also expected to strengthen the country’s standing in the global trade system while helping eliminate unidentified or untraceable goods, our sources noted.Any exceptions? Shipping companies have requested a reduction in the cargo registration time for food and other perishable goods to just two hours before shipping, instead of 48 hours, sources indicated. Additionally, they submitted a list of other exemptions for consideration, including one for the transport of human remains.Transit trade unaffected: The new system will have no impact on transit trade, sources said. The process will be streamlined by using a single Advance Cargo Information Declaration (ACID) number for each shipment, its source, and invoice.What importers need to do: Local importers will be required to enter advance shipment data and obtain an ACID number before beginning import procedures. They must also provide key documents such as a pro forma invoice or purchase order and the initial bill of lading before the cargo is shipped.Guidelines for exporters: Foreign exporters will register on the CargoX platform and adhere to Egypt’s approved e-invoicing specifications. All shipment documents will be sent to the Nafeza platform via blockchain-enabled supply chain networks. This must be done well in advance of the cargo being loaded onto an aircraft, given the differences in speed between air freight and sea freight.Procedures will be eased for airlines serving Arab countries, seeing their short duration, according to our sources. The Finance Ministry aims to significantly cut customs clearance time from eight days to just 48 hours, and eventually to only a few hours. This should be achieved through introducing an updated risk management system and implementing AI technologies in customs inspections.

Good morning, wonderful people, and happy hump day. COP is now in our rearview, and our reward is a massive bolus of business news, only some of which is linked to climate. Still need some climate news? Head over to Enterprise Climate, which this morning has a look at the next steps for the Madbouly government’s massive hydrogen program as well as the prospects (or lack thereof) for a green World Cup. The Madbouly government is cautiously observing markets ahead of a decision on the privatization program: Prime Minister Moustafa Madbouly and key ministers along with leaders of Egypt’s sovereign wealth fund met yesterday to discuss the state privatization program, according to a cabinet statement yesterday following a meeting between. Cabinet spokesperson Nader Saad emphasized the ministers were closely monitoring economic and market conditions globally and locally. REFRESHER- The government is looking at how and when to reboot its privatization program with recent listing changes and a new pre-IPO fund set up by the Sovereign Fund of Egypt in September. The fund will offer stakes in state-owned companies to strategic investors and sovereign funds ahead of listing them on the bourse. Banque du Caire doesn’t appear to be in a rush to restart its plans, last week gaining approval from the FRA to push the deadline for finishing IPO procedures to the end of 1Q 2023. Conditions in the Egyptian financial markets have improved in recent weeks with the return of foreign investors following the central bank’s decision to float the currency and the announcement of a staff-level agreement with the IMF for a new loan program at the end of last month. The benchmark EGX30 index has gained almost 18% since the end of October, putting it up 4.2% year-to-date. This is a stark reversal of fortunes from just four months ago when shares had fallen to their lowest level since November 2016. GO DEEPER- EFG Hermes investment banking boss Mostafa Gad thinks there are two(ish) ways for the state to kickstart the IPO program by taking a page from the playbook that the UAE has very successfully used to build one of the hottest IPO markets in the world right now. Nafeza rollout to air freight pushed “until economic conditions stabilize”: The rollout of the Advance Customs Information (ACI) customs system to air freight has been pushed for a second time to give importers, customs brokers, shipping agents and overseas companies more time to get used to the system amid volatility in the global economy, the Finance Ministry said in a statement. Use of the ACI for air freight was due to become compulsory on 1 January, having already been pushed back from an original October start date. The ministry will now extend the trial period until local and global conditions are stable, the ministry said. ALSO- One of the world’s oldest still-used Jewish cemeteries reopened in Cairo on Sunday after three years of restoration work supported by our friends at the US embassy. The Bassatine cemetery was restored with funding from the State Department, and US Charge d’affaires David Rubinstein was on hand for the event. There’s plenty more detail in this statement from the folks at the embassy. More of this, please. HAPPENING TODAY- It’s day 3 of the World Cup: Teams in groups C and D play their first games of the tournament today, with two of the favorites in action (all times CLT): Argentina v Saudi Arabia (12pm) Denmark v Tunisia (3pm) Mexico v Poland (6pm) France v Australia (9pm) The tournament came to life yesterday after a tedious opener on Sunday, with a flurry of goals ⁠— and plenty of controversies ⁠— as teams in groups A and B played their opening games. Iran’s 6-2 thrashing by England made the day’s headlines (as much for the number of goals as for the political undercurrents), while a closely fought game between Wales and the US ended 1-1. Senegal and the Netherlands closed out Group A in a game that saw the “Iron Tulip’s” Dutchmen grab two late goals against the west African side that struggled without their injured talisman, Sadio Mane. After only four games played, there are already plenty of talking points, many of them not football-related: Armbanned: Fifa’s decision to ban team captains wearing the OneLove anti-discrimination armbands is not being received warmly by European teams. Amid a wave of Western criticism of the tournament’s hosts, football’s governing body moved to prevent political messaging from making it onto the pitch, threatening to book players who wore the rainbow armband. (ESPN) To sing or not to sing: Much is being made in the media by the decision by the Iranian players not to sing the national anthem, which is being interpreted as a show of support for anti-government protests. (BBC) Fifa’s concussion rules are in the spotlight after Iranian goalkeeper Ali Beiranvand was allowed to continue playing despite suffering a head injury. Clearly unable to continue, the 30-year-old was eventually stretchered off the field. (The Athletic) VAR: Where a football game is played, there will be complaints about VAR. Ecuador’s disallowed goal against Qatar and a couple of odd penalty decisions in yesterday’s England-Iran game stirred controversy. AND- Egypt may not be in Qatar, but our balls are: A chunk of the official match balls being kicked around in Qatar are proudly made at home by Forward Egypt, according to a statement by the cabinet. MEANWHILE- In the House today: Tourism Minister Ahmed Eissa will answer questions from MPs on the ministry’s tourism promotion program and its plans to restore antiquities. The two-day Fingerprint Summit starts today at the Nile Ritz Carlton Hotel. Speakers include Finance Minister Mohamed Maait and Planning Minister Hala El Said. THE BIG STORY ABROAD- The crypto world is continuing to reel from the demise of FTX: Shares in Coinbase are tanking: Coinbase saw its share price fall more than 8% yesterday, continuing a sell-off that has seen the crypto exchange hit its lowest level since it IPOed in April 2021. The company’s shares have tumbled more than 25% during the past four trading sessions as fears of contagion from the FTX collapse continue to stalk the markets. (CNBC) Genesis is warning of bankruptcy: Crypto investment bank Genesis has said it could file for bankruptcy if it doesn’t secure fresh funds for its lending unit. The company needs to raise at least USD 1 bn to prevent it from going under, but several days of talks have yet to bear fruit. (Bloomberg) Never run promotion for shady crypto bros: The Golden State Warriors are the latest to learn this lesson the hard way after they were hit by a class-action lawsuit from an FTX customer alleging they had fraudulently promoted the now-bankrupt crypto exchange, according to Reuters. The NBA champions follow NFL quarterback Tom Brady and tennis star Naomi Osaka to face legal issues for their ties to FTX founder Sam Bankman-Fried, who ‘earned’ his USD bns and gained mainstream legitimacy by big-time speculation in the crypto markets. SBF and others at the company now face a wave of lawsuits for allegedly misusing customer funds. Are you a C-suite executive or investor and want to attend our Enterprise Climate X Forum? Drop us a note on climatexrsvp@enterprisemea.com to signal your interest, letting us know your name, title and where you work. The event takes place on Tuesday, 6 December 2022 at the Grand Egyptian Museum. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here CIRCLE YOUR CALENDAR- The US and Russia will hold nuclear talks in Cairo next week: Washington and Moscow will discuss resuming mutual nuclear inspections during week-long talks from Tuesday, 29 November through to 6 December, Russian Deputy Foreign Minister Sergei Ryabkov said, according to CNN. Ryabkov last week downplayed expectations of reaching an agreement in the Cairo talks, which will look into re-implementing the New START Treaty that allows Washington and Moscow to inspect each other’s weapons stocks. Inspections came to a pause in 2020 thanks to the pandemic. The deadline to apply for the Chicago Booth Executive Program in El Gouna is Sunday, 27 November. The two-week program, which kicks off in March 2023, offers executives from Egyptian public and private sector the skills to help them “become a better leader for your organization and support Egypt’s growth in the years ahead.” Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers. *** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector. In today’s issue: We take a closer look at the Sharm El Sheikh Guidebook for Just Financing, the landmark climate finance roadmap for developing countries launched by the International Cooperation Ministry during COP27. CORRECTED ON 28 NOVEMBER A previous version of the story had incorrectly concluded that the cabinet would likely delay the state privatization program. The statement from Cabinet Spokesperson Nader Saad had said only that ministers were closely monitoring economic and market conditions globally and locally. The statement did not mention a delay in the program.

Happy Monday, wonderful people. We’ve got a slow but steady stream of news trickling in this afternoon as we ease back into post-COP normality.THE BIG STORY TODAY- Nafeza rollout to air freight pushed “until economic conditions stabilize:” The rollout of the Advance Customs Information (ACI) customs system to air freight has been pushed for a second time to give importers, customs brokers, shipping agents and overseas companies more time to get used to the system amid volatility in the global economy, the Finance Ministry said in a statement. Use of the ACI for air freight was due to become compulsory on 1 January, having already been pushed back from an original October start date. The ministry will now extend the trial period until local and global conditions are stable, the ministry said.There’s no single BIG STORY ABROAD leading the conversation in the international press this afternoon: The return of Bob Iger as CEO of Walt Disney less than a year after his retirement is making waves in the business press. (Wall Street Journal | Reuters)An earthquake in Indonesia has killed more than 50 people and wounded hundreds more. (Reuters | BBC) ** CATCH UP QUICK on the top stories from today’s EnterpriseAM: Renewable power company Lekela Power is looking to invest USD 2 bn in Egypt over the next four years as part of a USD 6 bn plan to quadruple its energy production capacity to 4 GW from a current 1.1 GW.The Central Bank of Egypt is going to stop providing funding for subsidized loans and pass the responsibility to the housing, finance and tourism ministriesA planned roadshow for the Sovereign Fund of Egypt’s pre-IPO fund has been pushed to late December or the beginning of January from November, thanks to COP27. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here FOR TOMORROW-The Fingerprint Summit is taking place tomorrow and Wednesday (22-23 November) at the Nile Ritz Carlton Hotel. Speakers include Finance Minister Mohamed Maait and Planning Minister Hala El Said.🗓 CIRCLE YOUR CALENDAR-Are you a C-suite executive or investor and want to attend our Enterprise Climate X Forum? Drop us a note on climatexrsvp@enterprisemea.com to signal your interest, letting us know your name, title and where you work.The event takes place on Tuesday, 6 December 2022 at the Grand Egyptian Museum.The deadline to apply for the Chicago Booth Executive Program in El Gouna is Sunday, 27 November. The two-week program, which kicks off in March 2023, offers executives from Egyptian public and private sector the skills to help them “become a better leader for your organization and support Egypt’s growth in the years ahead.”Payment and fintech conference Pafix will be held as part of Cairo ICT 2022 from 27-30 November at the Egypt International Exhibition Centre in New Cairo.☀️ TOMORROW’S WEATHER- Expect another sunny day tomorrow with a daytime high of 27°C and a nighttime low of 15°C, according to our favorite weather app.

Importers get more time to learn how to use Nafeza: The government has postponed the rollout of the Advance Customs Information (ACI) customs system to air freight to until 1 January to give importers, customs brokers, shipping agents and overseas companies more time to get used to the system, the Finance Ministry said in a statement. Use of the ACI for air freight was due to become compulsory on 1 October but the ministry will now extend the trial period through the final quarter of the year “in appreciation of global and local conditions,” the ministry said.There are signs that importers are reluctant to join: “We’re holding training sessions to onboard importers to the system, but no one is showing up,” Misr Technology Services’ (MTS) Khaled Nassef told us yesterday. Less than 10% of daily air freight shipments are currently being booked through Nafeza, and “we need at least 70-80% of daily shipments to go through Nafeza before the full rollout,” he said. MTS is a trade and logistics platform provider and has been responsible for the rollout of the Nafeza customs window and the design of the ACI system.This wouldn’t be the first time: Maritime importers also took a while to adjust when the system was launched last year, with talk of technical glitches and complaints about ease of use making the rounds at the time. Last we heard, more than 80% of all importers have since onboarded to ACI. More than 31k maritime and air freight importers had joined the ACI system as of the end of May.Refresher: The ACI is a pre-registration system that provides real-time information about incoming shipments and is a key part of the Finance Ministry’s Nafeza digital customs window, which was launched in maritime ports late last year.** Want more on Nafeza and ACI? We explain everything here.

The government has begun trialing the Advance Customs Information (ACI) customs system on air freight shipments ahead of its official rollout later this year, Misr Technology Services’ (MTS) Khaled Nassef told us yesterday. The ACI is a pre-registration system that provides real-time information about incoming shipments and is a key part of the Finance Ministry’s Nafeza digital customs window which was launched in maritime ports in October. Authorities are calling on businesses that use air freight to import goods to register with the system before the system becomes mandatory in October.What is MTS? Misr Technology Services is a trade and logistics platform provider and has been responsible for the rollout of the Nafeza customs window and the design of the ACI system.>80% are on board: More than 31k maritime and air freight importers have so far joined the ACI system, Nassef said, adding that he estimates this represents more than 80% of all importers.Want more on Nafeza and ACI? We explain everything here.

Authorities will begin trials of the ACI digital customs tracker for air freight in mid-May ahead of a full rollout in October, the Finance Ministry said in a statement Friday.Time to register, importers: FinMin called on all those who import goods via air freight to register on the Nafeza platform before it becomes mandatory, adding that some 800 companies working in air freight had already been trained on how to use the system.What is all this again? ACI is a World Customs Organization (WCO) protocol that provides real-time information on shipments of incoming goods to shipping lines, port operators and governments. It’s a key part of the Finance Ministry’s digital customs system known as Nafeza, which went live in October. All maritime importers must be registered with Nafeza, through which they file shipping paperwork and cargo data.Nafeza update: More than 30k importers have so far joined the ACI system and some 80k foreign exporters have registered with blockchain document platform CargoX since it went live at the nation’s seaports in October, according to the statement.For more on ACI and Nafeza, head to our in-depth explainer here. The Customs Authority had previously planned to start the trial of the Advanced Cargo Information (ACI) system for air freight in January ahead of a full launch in April.

The number of Ukrainian visitors to Egypt has declined about 20-25% since the start of the year, Tourism and Civil Aviation Committee head Nora Ali told El Hekaya (watch, runtime: 3:26). Ali attributed the decline to seasonal lows and the local Omicron wave rather than increasing tensions in Ukraine — though she added that a Russian invasion of Ukraine would inevitably lead to further decreases. Ukrainian visitors account for around 30% of Egypt’s tourism market, Ali said.Nafeza also got some airtime last night: Preparations to extend the Advance Cargo Information (ACI) system to air freight are underway, with trials to begin “soon,” FinMin Advisor Mona Nasser told Al Hayah Al Youm (watch, runtime: 5:55). We have more on the story in this morning’s Trade section, above.And GERD, of course: Ethiopia’s powering up of the Grand Ethiopian Renaissance Dam (GERD) yesterday, and Egypt’s response that the milestone was a “further breach of obligations” under the 2015 Declaration of Principles, featured on Al Hayah Al Youm (watch, runtime: 1:31).

CBE teams up with Credit Guarantee Company to help banks cover risk when issuing letters of credit to importers: The Central Bank of Egypt (CBE) is launching an initiative with the Credit Guarantee Company (CGC) to help “cover the risks associated with issuing letters of credit from banks,” the CBE wrote in a letter seen by Enterprise and circulating widely in the local press. The move comes to encourage banks to issue new letters of credit (L/Cs) for importers who had previously facilitated their purchases through documentary collection.The details: CGC will waive fees to guarantee the L/Cs for banks for six months from the initiative’s launch. The company is set to brief banks on the parameters of the initiative. What new import rules? Starting tomorrow, banks will only accept L/Cs to facilitate the purchase of imports, and will no longer accept documentary collection. The central bank has announced exemptions and other measures to facilitate the move, which has drawn criticism from trade and industry organizations, who said it would drive up the price of goods in the local market and hurt the competitiveness of Egyptian exports. ALSO IN TRADE- A trial to extend the Advance Cargo Information (ACI) system to air freight will begin “soon,” according to a Finance Ministry statement. Once the trial period is complete, only shipments that are registered through the system will be allowed to enter the country through airports, according to the statement. A three-month trial of the system for air cargo had previously been tipped to begin in January for an April launch.What’s ACI? It’s a key part of the Finance Ministry’s digital customs system known as Nafeza, which went live for maritime importers in October. For more on ACI and Nafeza, head to our latest in-depth look at the initiative here.

Egypt’s pharma exports rose 30% y-o-y in 2021 to USD 685 mn in 2021, local media reported citing figures from the Export Council for Medical Industries. Cosmetics exports were up 39% y-o-y to record USD 311 mn in 2021, while medical and veterinary meds exports increased by around 30% to USD 277 mn. December alone saw a 44% y-o-y increase in total pharma exports, recording USD 83 mn.Edita Food Industries is expanding its Freska brand with the launch of Freska Choco Sticks, according to a statement (pdf). The new product will retail at EGP 3 per pack, with each pack containing two sticks. The product launch comes as part of the company’s revenue diversification strategy and its plan to expand its 15% market share in the wafer segment, which is its fastest-growing line of business.Other things we’re keeping an eye on this morning: Egyptian citrus exports to the Netherlands are facing tighter restrictions after Dutch authorities published new rules banning the import of fruits with necks exceeding 2mm. Egypt has appealed to the European Commission and the Dutch government in a bid to reverse the decision.Axa Egypt has signed a five-year bancassurance agreement with the Arab African International Bank that will see Axa offer ins. services to the bank’s customers.The Customs Authority has issued new instructions (pdf) for importers to register the return of goods that had originally been exported through the Advance Cargo Information system. Spanish flag carrier Iberia has begun operating direct charter flights between Madrid and Luxor, which will run until the end of the winter season.Kima is in talks for a USD 250 mn loan to establish an environmentally-friendly factory as an alternative to one of its obsolete factories in Aswan.

ACI for air freight trials start this month ahead of planned April launch: The Customs Authority will in January begin a three-month trial extending its Advance Cargo Information (ACI) system to air freight, ahead of a full launch planned for April, a source familiar with the matter told Enterprise, confirming a report from Al Shorouk.Early take-off? Meetings with customs agents and air freight firms are ongoing to discuss how to implement the digital cargo tracking system — which was originally introduced for maritime shipments — for air freight. The Finance Ministry began looking into adapting ACI for airborne cargo last year, Khaled Nassef, technology advisor for Egyptian Company for E-commerce Technology (MTS) — which set up the ACI system — told Enterprise in December. Those studies were expected to be completed sometime during the first quarter of this year, he said at the time.The challenge: Planes go fast. Turnaround time for planes on runways is significantly shorter than for ships at port, with repercussions for how the airborne ACI system would be run, Nassef told us last month.The move would digitize another big chunk of our logistics industry: Air freight makes up around 30% of Egypt’s cargo movement, according to our source.What’s ACI? It’s a World Customs Organization (WCO) protocol that provides real-time information on shipments of incoming goods to shipping lines, port operators and governments. ACI is a key part of the Finance Ministry’s digital customs system known as Nafeza, which went live in October. All maritime importers must be registered to Nafeza, through which they file shipping paperwork and cargo data. As of December, north of 85% of active importers (around 24k companies) were looped into the system. The plan is to fully digitize all customs-related procedures — including the banking side of things — by June, Nassef previously told us.For more on ACI and Nafeza, head to our in-depth explainer here.

Good afternoon, ladies and gents, and welcome to a relatively calm Sunday afternoon. We may have a full five working days this week, but judging by the volume of out-of-office replies in our inbox, many of you aren’t out of holiday mode just yet.THE BIG STORY TODAY- Nafeza is coming to air freight: The Customs Authority is rolling out a three-month trial period for the Advance Cargo Information (ACI) on air freight, Al Shorouk reports. The trial means that businesses using air freight to import goods will be required to file shipping documents and cargo data digitally via ACI and register on the Finance Ministry’s digital customs system Nafeza. Enterprise reached out to a source familiar with the matter, who confirmed the report.^^ We’ll have more on these stories in tomorrow’s edition of EnterpriseAM.** CATCH UP QUICK on the top stories from today’s EnterpriseAM: Fintech, consider yourself regulated: Legislation to regulate the fintech industry received final approval from the House of Representatives on Wednesday.The Finance Ministry is penciling in 5.7% growth for its FY2022-2023 state budget, along with a 6.1% budget deficit and 2% primary surplus, Finance Minister Mohamed Maait said.Get ready for Sovereign Sukuk Act exec regs: The government is looking to finalize the executive regulations of the Sovereign Sukuk Act by the end of the month, setting the stage for the country’s c.USD 2 bn maiden issuance before the end of the fiscal year in June, said Mohamed Hegazy, head of the Finance Ministry’s debt unit. IN MEMORIAM- Egypt’s first woman judge passes away: Former vice president of the Supreme Constitutional Court and Egypt’s first woman judge Tahani El Gibali passed away at the age of 72 due to complications from covid-19, Youm7 reports. El Gebali took on her history-making judiciary role in 2003, and is remembered as the only woman to have held such a high post in our judiciary. THE BIG STORY ABROAD- It’s covid as far as the eye can see: Bloomberg is looking at the logistical hurdles and public perception issues that are slowing down vaccination rates in developing nations. Meanwhile, the UK wants to cut down on isolation periods in a bid to ease workforce pressure, Reuters reports, as “omicron absenteeism” from employees’ isolation could cost the UK to forego some 8.8% of its GDP in January and February.This comes as we’re now learning two new names: Deltacron and flurona. Cypriot scientists have identified 25 cases of omicron and delta co-infections, the result of a mutation that combines both strains that is being called deltacron, reports Bloomberg. Researchers have sent their findings about the strain to GISAID, an international database for tracking viruses, but it is still not clear if the strain is more contagious or pathological than other strains. Meanwhile, there’s a growing trend of people contracting the common cold and covid-19 at the same time or back to back, a case now dubbed flurona, due to the spread of the infectious omicron variant, according to Bloomberg. People with flurona have a higher threat of mortality and health complications, a study by the University of Wisconsin found. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here FOR TOMORROW-Inflation figures for December are due out tomorrow. Annual urban inflation slowed for the second month running in November and dipped to its lowest since July as pressure on food prices continued to ease, but some analysts have flagged a potential acceleration in inflation figures. Inflation will be a key metric to watch over the next several months, particularly for the Central Bank of Egypt as it makes interest rate decisions. There are also suggestions that global commodity prices could have knock-on effects on domestic inflation. Global food prices soared 28% last year, reaching their highest level in a decade, driven by poor weather, rising commodities prices and supply chain disruption, according to figures from the UN Food and Agriculture Organization.The World Youth Forum kicks off in Sharm El Sheikh tomorrow and runs until Thursday, 13 January.🗓 CIRCLE YOUR CALENDAR-SODIC shareholders will vote on the company’s new board of directors at an extraordinary general meeting on Sunday, 16 January. The formation of the new board comes after an Emirati consortium of real estate giant Aldar Properties and Abu Dhabi sovereign wealth fund ADQ in December acquired 85.5% of SODIC in an allcash, EGP 6.1 bn transaction.Egyptians expats stranded in Morocco following border closures will be able to come home on Wednesday, 19 January on a flight operated by national flag carrier EgyptAir from Casablanca to Cairo, the Egyptian Embassy in Morocco said in a statement. Moroccan authorities have twice extended the suspension of all passenger flights in and out of the country first introduced at the end of November amid the emergence of omicron, with the flight ban now set to last until at least the end of January.First interest day of 2022 next month: The Central Bank of Egypt (CBE)’s monetary policy committee will hold its first policy meeting of 2022 on Thursday, 3 February.Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.☀️ TOMORROW’S WEATHER- It’s getting cold again, with the mercury forecasted to fall to 17°C during the day tomorrow and a brisk 9°C at night, our favorite weather app tells us.

2021 in infrastructure- Part I: A big year for transportation. Egypt was not spared from the horrors of train accidents and derailments in 2021. By our count there were at least six major train accidents taking the lives of over 60 people and injuring hundreds more, besides dozens of more minor incidents. These are just the latest in a string of train accidents in Egypt over the years. It should then come as no shocker that the government doubled down on its plan to overhaul not just our ailing railway networks, but our entire transportation infrastructure.Rethinking transportation: The year saw the government sign new agreements and contracts on a host of major projects that were already either part of its years-long plan to upgrade railway infrastructure or new lines meant to link up the new urban communities being built. But beyond trudging along with planned projects, Egypt appears to be executing a rethink of how we use our infrastructure. From converting our cars to run on natural gas to setting up a new rapid transit system and, perhaps more transformatively, giving greater leeway to the private sector to get a hand in the sector. These moves appear to be working, securing us plenty of DFI funding and having large contractors competing for our projects.Just how important was transportation (fiscally speaking)? The sector received the biggest proportion of investment in the infrastructure public spending plan for FY2021-2022. The budget for the transport sector was penciled in at EGP 245 bn, which covers roads, bridges, and river ports, while the railway budget alone stands at EGP 27 bn.Much of that went towards our ongoing efforts to fix the railway and improve the metro: Rehabilitation projects that were in the pipeline for years began to see notable steps. Among the biggest was the EUR 1.6 bn project to convert Alexandria’s Abu Qir railway into an underground metro, which is being largely financed by European institutions. The Transport Ministry this year received bids from a total of 16 local and international consortiums to implement the project. Meanwhile, agreements were signed with France’s Alstom to provide Cairo Metro Line 1 with 55 new subway trains and rolling stock. Finally, Alexandria’s Raml Tram will be restored by a consortium of France’s Systra and Egis Rail and Egypt’s ACE Moharram Bakhoum and Projacs — after they were awarded an EGP 410 mn tender.This also included local manufacturing of railway parts: The government plans to reach a 25% local component quota for the nation’s railway system over the next two years, which will rise to 75% in six years. In preparation of this, South Korea’s Hyundai Rotem and the National Egyptian Railway Industries Company (NERIC) signed an MoU back in May to locally produce railcars, signaling systems, and control and driving equipment. The country is also establishing a facility that will produce rail cars in the Suez Canal Economic Zone, with four companies currently in the bidding.But a whole lot went towards advanced transportation that connected our new cities: Plans for the high-speed electric rail began to materialize this year as construction kicked off. The high-speed railway will connect the Red Sea to the Mediterranean and the government signed a USD 4.5 bn agreement with several companies to install and maintain the first 660 km line which should take two years to complete. Meanwhile, work is ongoing on the two planned monorail lines that will link 6 October City to Giza and Nasr City to the new administrative capital. A consortium of Bombardier Transportation, Orascom Construction and Arab Contractors were tapped to implement the USD 4.5 bn project in May 2019.Meanwhile, the light rail train (LRT) project seems like it could be the first project to come to life. The 103.3 km network that runs primarily through East Cairo’s new desert cities connecting El Salam, to Al Obour, Al Shorouk, Badr, Rubiki, 10th of Ramadan and Belbeis has begun test runs and is about 95% complete, Transport Minister Kamel El Wazir had said. The trials are set to wrap by the end of March, with an eye to launch in April.But when it comes to urban transportation, the government is rethinking things, starting with the Cairo Ring Road’s new BRT system. The Ring Road is undergoing a major EGP 7.3 bn overhaul which is set to widen the congested 106 km freeway to 16 lanes as well as include an exclusive BRT (bus rapid transit) lane that could soon replace microbuses and other forms of public transit. The project was previously expected to be completed by the end of this year.But nothing seems to be more transformational than the plan to transition our cars to run on natgas: The government launched the multi-year natgas transition plan in March which aims to replace car engines powered by traditional fuels with dual-fuel engines that run on both gasoline and natural gas. The first phase was expected to see 250k outfitted with new engines by the end of 2023 while the entire initiative would affect 1.8 mn cars over the course of a decade. However, the plan soon ran into problems as the global chip shortage derailed the timeline and caused prices to increase. Last we heard, the scheme gave out almost 7.7k natgas-run cars, almost half of the targeted 15k cars for this year.An overhaul brought to you by the private sector: Back in April, plans were announced that would allow private rail companies to be brought on as operators of new trains the government is adding to Egypt’s existing railway network. The government is separately looking to set up a JV with the private sector to own Egyptian National Railways’ cargo transport arm and set up companies to house several railway workshops in a bid to boost the efficiency and quality of rolling stock maintenance. Since then, nine private sector companies have been contracted to manage and operate several of Egypt’s upcoming transportation projects, especially those in the railway sector.…And enabled by the PPP Act: The Public-Private Partnership (PPP) Act was given final approval by The House in mid-November. The piece of legislation aims to streamline partnership contracts between the public and private sector in fields including transport, energy, communications, and healthcare. It would add provisions meant to ensure higher quality standards and simplify the tender process through which government contracts with private businesses. Several big projects are already underway under this partnership model including several housing projects by the Mortgage Finance Fund, the Cairo monorail, as well as the Sixth of October and Tenth of Ramadan dry ports.This pivot towards a private sector-managed infrastructure appears to have lured companies in: International companies have also jumped into the mix to do everything from constructing or operating the projects to upgrading or providing trains and metro cars. Egypt signed 21 new agreements with foreign firms in November at the Transmea Conference.…And foreign funding: Egypt received several loans and credit lines from international finance institutions to cover the costs of implementation. The International Bank for Reconstruction and Development (IBRD), Japanese International Cooperation Agency, European Bank for Reconstruction and Development (EBRD), World Bank, JPMorgan, and European Investment Bank (EIB) were among the most notable financers for our transport-related ambitions this year.But will all this be enough to stave off railway crashes? Following a string of railway accidents earlier this year, we posed this question to industry insiders, who told us that while infrastructure upgrades were key, much of what is hurting us on the railway front was the lack of training afforded to its workers. This assessment was backed by the World Bank, which said about 1k train accidents happen annually in Egypt due to the lack of safety enforcement and human errors. The government has made promises since to double down on training staff and issued regulations that could see public-sector employees be automatically dismissed if they test positive for illegal substances. Your top infrastructure stories for the week: Mitsubishi interested in Egypt green hydrogen projects? Representatives of the Japanese firm discussed working with the Oil Ministry on clean energy projects such as green hydrogen and carbon capture.Al Nowais eyes Egypt desalination, hydro projects: Emirati investment company Al Nowais is looking to get involved in desalination and green hydrogen projects in Egypt.Aswan-Toshka rail: The Transport Ministry is in negotiations with five international financial institutions to help fund the construction of the planned Aswan-Toshka railway line.A commercial and logistical zone is coming to Dakahlia’s Talkha, where investors will be able to purchase units in 1Q2022.Rebates for liquefied natural gas (LNG) carriers will be dialed back from 1 January until 30 June 2022, according to a Suez Canal Authority circular. Rebates for carriers out of Singapore and other Far East ports will now be set at 70%, while Gulf carriers will pay 35% less. Ports located between India and Singapore will get a 55% break.

The signs to watch to determine how successful Nafeza will be as it’s rolled out: Earlier this year, the Finance Ministry issued a decision requiring businesses importing goods at seaports to file shipping documents and cargo data digitally via a new Advance Cargo Information (ACI). To comply with the new system, the importer needs to register on the Finance Ministry’s digital customs system Nafeza (aka National Single Window for Foreign Trade Facilitation). The system made its debut last month, after the ministry pushed back its initial deadline for businesses to join the digital system from July.It’s still early days to make a definitive judgment on the system or how successful it will be down the road. A month after coming into effect, there’s been talk of technical glitches and some grumbles from importers about the transition and its ease of use. But so far, there doesn’t appear to be a mass insurgency among importers forced onto the system, which is still being rolled out piecemeal and is currently missing some elements that make a judgment on the system at this point in time premature. Based on conversations we’ve had with multiple industry insiders, the key factors to keep an eye on down the road are the extent to which importers become accustomed to going digital, resolving glitches, and the ability to integrate banks into the system — the latter of which got a big shot in the arm yesterday with an agreement between the central bank and the Finance Ministry.First thing’s first: A refresher on ACI and Nafeza: ACI is a World Customs Organization (WCO) protocol that provides real-time information on shipments of incoming goods to shipping lines, port operators and governments. Through Nafeza, importers obtain a unique ID known as an ACID at least 48 hours before the goods are shipped. The shipper, who is usually an exporter registered on the other side of the system (through blockchain platform CargoX) must then submit documentation to Nafeza containing information such as the ACID and the bill of lading. The system is meant to speed up customs clearance at ports and make life easier for importers and customs officials alike, with the added benefit of building a nationwide shipping database and tracking goods traffic. Since its launch in October, around 43.5k ACIDs have been issued, Khaled Nassef, technology advisor for the Egyptian Company for E-commerce Technology (MTS), which set up the ACI system, tells Enterprise.Still confused? Head to our in-depth ACI explainer here.Where things currently stand: The vast majority of importers have now registered with the system, with north of 85% of active importers (around 24k companies) looped into Nafeza as of Monday, according to Nassef. Meanwhile, the system appears to be rolled out in phases, with the Finance Ministry and Customs Authority expecting to fully digitalize all customs-related transactions by next June, according to Nassef.#1- Digital illiteracy and reluctance to rely on electronic systems: Some importers, including small companies, are finding it difficult to use Nafeza for digital ACI filing, largely because they are not accustomed to relying on a digital system. This process of understanding the ins and outs of the system could sometimes delay the pre-clearance process, shipping agent GlobeLink Logistics General Manager Hany Samir said. For example, one of the strict requirements on the new system is that each shipment should produce an electronic invoice that has to be uploaded to Nafeza and CargoX as an Excel spreadsheet. In the first month of Nafeza’s implementation, importers hit a wall because they produced and uploaded invoices as PDFs.Crucially, part of the digital illiteracy culture is the existence of and general potential for graft in the original paper-based system. Through the ACI system, “all the documentation is transferred through a highly secure, auditable, transparent, but also confidential manner, with the use of public, neutral blockchain technology,” CargoX CEO Stefan Kukman told Enterprise. ACI’s transparency essentially eliminates middlemen’s ability to pocket financial incentives to push along customs clearance, industry insiders told us. Importers and other individuals involved in the customs space who have grown accustomed to graft will naturally be resistant to moving towards a transparent system.#2- Looping banks in: On the payments side of things, the traditional importing process, which involves mailing original documents to Egypt, is still in place, according to sources familiar with the process. This process usually involves the exporter sending over the original bill of lading, invoice, certificate of origin, packing list, and other documents to the importer’s bank. The importer then needs to collect those documents and hand them over to a clearance agent, who then scrambles over to the destination port and pushes papers the old-school way.This is changing: The CBE, Finance Ministry, and their JV Egyptian Banks Company, signed an agreement with MTS that would see them cooperate on integrating Egypt’s banks with the system and eventually see them do away with the paperwork, the CBE said in a statement (pdf) yesterday. Currently they are testing a new digital system and will be rolled out across the banking system as soon as it is ready, Nassef tells us. The digital system will be implemented on a trial basis for a select pool of importers as of January, Nassef said. For the duration of the trial period, these importers — which will likely be limited to large companies — will be required to submit both digital and paper documents until the process runs smoothly, he said.How would the system work? While details are scant, our understanding is that a digital banking module will be added to the Nafeza platform. This will allow users to upload their required documents to their desired bank, and once it is fully rolled out, would forgo the need for physical cargo documents and the need for customs clearance agents to appear in-person in customs offices at ports.This follows international standards and practices: The International Trade and Forfaiting Association (ITFA) has an initiative, known as Digital Negotiable Instruments, which allows the digitalization of bank guarantees, bills of exchange, and promissory notes, Kukman told Enterprise. Digital document specifications from ITFA “providing a vendor-agnostic technology-based framework to enable digital original documents to act the same way as paper original documents,” according to the CargoX boss.#3- Tech glitches: Last month, the Cairo Chamber of Commerce’s Customs Committee and the Customs Authority sat down to discuss issues importers are facing with the system. The vast majority of these issues are minor technical issues, such as bugs, system outages, and some other glitches with processing requests according to Customs Authority boss El Shahat Ghatwary. Most of these issues have been resolved, Ghatwary told Enterprise.ALSO KEEP YOUR EYE ON- ACI for air freight? The Finance Ministry is mulling expanding the application of the ACI pre-registration system to include air freight, Nassef told us. Authorities are currently studying the mechanisms of the system, taking into account the nature of the system, seeing that air freight moves at a significantly faster pace than any other form of cargo, a process that should be complete sometime during the first quarter of next year. Your top infrastructure stories for the week: Electrical infrastructure for the New Delta: President Abdel Fattah El Sisi directed that electrical infrastructure be beefed up for the 2.2 mn feddan agricultural project, according to an Ittihadiya statement.The long-awaited tender for the Tenth of Ramadan dry port will be launched in January, while six consortiums have already come forward with offers to build and operate the EGP 3.5 bn dry port and logistics hub.A Little Romania in the SCZone? A Romanian delegation met with Suez Canal Economic Zone officials over the weekend to discuss joint investments in the area, including a possible Romanian industrial zone.US-led consortium tapped for Mogamma overhaul: A consortium of US-based Global Ventures and Oxford Capital together with the UAE’s Al Otaiba Investment have signed an EGP 3.5 bn contract to redevelop Tahrir Square’s temple to bureaucracy.Smart parking down the road: The Military Production Ministry’s Helwan For Engineering Industries has produced its first rotating smart parking system in partnership with the private sector.Silo investments: The Trade and Industry Ministry’s Egyptian Holding Company for Silos and Storage is planning to establish five silos with investments of EGP 600 mn over the next two years.

Good morning, wonderful people, and welcome to a really big news day. It’s day two of the first “strategic dialogue” between Egypt and the United States in more than half a decade. The sea change in bilateral ties since the early days of the Biden administration was on clear display yesterday as Foreign Minister Sameh Shoukry and Secretary of State Antony Blinken addressed reporters at the start of talks in DC. How it started: US President Joe Biden talked up human rights on the campaign trail, raising concerns about close ties Egypt enjoyed under Trump and vowing there would be “no more blank checks” for Cairo. Blinken had been critical about Egypt’s human rights record and Biden officials signaled during the transition that the US could cut military aid. Two former State Department officials turned members of Congress then formed an “Egypt Human Rights Committee” on the anniversary of the 25 January Revolution. (Yes, we know, incoming administration ≠ House of Reps, but still…) How it’s going: In warm remarks yesterday, Blinken referred to Shoukry as a “friend” and emphasized that the foreign minister’s visit to DC was a homecoming of sorts — a nod to Shoukry’s time as our ambassador to Washington. Blinken talked up our countries’ “100-year relationship” and suggested we’d be seeing more talks in the future. The first strategic dialogue in six years means the meetings are happening “too far apart given how many common interests and challenges” the two countries have and “we’re going to get it back on a regular cadence,” Blinken promised. What changed? Egypt stepped in to broker a ceasefire between the Israelis and Palestinians (getting a visit from Blinken in return, but no overt backing of our stance on GERD), is working with the US on critical regional security issues including Libya, is playing ball on Iran, and has signalled that it’s taking US human rights concerns seriously after DC withheld a token amount of military aid. We have chapter and verse on day one in the news well, below and expect to wrap up our coverage in tomorrow’s edition of EnterpriseAM once day two wraps today. ALSO TODAY- TransMea 2021 and the 2021 Cairo ICT exhibition both enter their penultimate day today at the Egypt International Exhibition Center. We have more on agreements signed on the second day of the transport conference in this morning’s Speed Round, below, and we’ll take a deep dive into the details in tomorrow’s edition of Hardhat, our weekly publication on infrastructure in Egypt. Nafeza looks like it's having growing pains: The Cairo Chamber of Commerce’s Customs Committee will hold an urgent meeting today with the Customs Authority to discuss issues importers are facing with the Advance Cargo Information (ACI) system, according to Al Mal. The newspaper gives few details about what technical problems importers are encountering, but suggests that businesses bringing goods through Nuweiba port have been unable to access their ACIDs — a unique number needed to file the documentation needed for clearance — leading the authority to exempt them from having to do this for one week. ACI has been up and running since the beginning of October, with more than 24k importers registered on Nafeza, and nearly 53k foreign exporters signing up on CargoX, which allows shippers to Egypt to upload shipping documents, as of two weeks ago. We have an explainer on the new system here. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here THE BIG STORY ABROAD- What’s keeping the Fed awake at night? Chinese real estate and meme stocks — and things are getting even more complicated today in the world’s most populous country as another big real estate developer teeters on the edge of an Evergrande-style meltdown. Struggling developer Kaisa is asking investors for more “time and patience” on the same day that the Fed’s closely watched semi-annual report (pdf) signalled that a real estate meltdown in China could “strain global financial markets through a deterioration of risk sentiment, pose risks to global economic growth, and affect the United States.” CLOSER TO HOME- The US and the African Union think there’s a narrow window in Ethiopia in which to try to broker a negotiated solution. The AU said yesterday on Twitter that it was holding talks on the situation as Tigrayan rebels march on Addis Ababa. The AU’s Olusegun Obasanjo has recently met with Ethiopian PM Abiy Ahmed and Tigray People’s Liberation Front leader Debretsion Gebremichael. Washington reportedly believes there’s a narrow chance of a negotiated settlement — diplomatic-speak for “don’t hold your breath.” SIGN OF THE TIMES- The Fed isn’t wrong to be concerned about the flood of retail investors into meme stocks and other equities. Wall Street stocks “completed their longest run of closing highs since 1997” yesterday — the same day that trading app Robinhood exposed mns of customer names and emails addresses in a massive hack, the company said in a blog post. UPDATE- BP is not among the energy companies bidding to establish hydrogen plants in Egypt. BP has not placed a bid, a company representative told us, denying a report published in the Arabic-language website Attaqa that we took note of yesterday. We have updated the story on our website to reflect this change. CIRCLE YOUR CALENDAR- Inflation: Inflation figures for October will be released tomorrow. The two-day Africa Fintech summit kicks off next Tuesday, 16 November. The summit looks at innovation in the fintech ecosystem, venture capital and other forms of investing, and will also discuss the rise of healthtech. Calling all Egyptian entrepreneurs aged 23-35: You have a little over two weeks to apply for the acceleration exchange program Meet Silicon Valley for a chance to travel to California for a 10-day program to meet with tech executives and investors. The program is being implemented by Injaz Egypt and TechWadi with the support of the US Embassy in Egypt, and the deadline for applications is 23 November. Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers. *** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector. In today’s issue: Last week, Egypt joined 18 other countries and organizations in signing an agreement last week to phase out the use of coal in power generation by 2030. But that is unlikely to significantly change things on the ground. Today, we analyze why that is, and speak to private sector players in the cement industry on what it would take to transition away from coal.

President Abdel Fattah El Sisi made a rare call-in to the small screen last night, ringing up a visibly delighted Sherif Amer on MBC Masr’s Yahduth fi Masr to praise a young kid, Ahmed Tamer, making headlines for his skill at reciting the Qur’an (watch, runtime: 11:38).El Sisi’s speech during a press conference with Romanian President Klaus Iohannis, who was in town yesterday for talks, was aired on both Al Hayah Al Youm and Sada El Balad (watch, runtime: 5:45 and runtime: 2:03). The two leaders discussed pushing for a political settlement in Libya and sharing thoughts on a solution for the Palestinian-Israeli conflict. We have more in Diplomacy, below. El Sisi also phoned in to talk shows for the first time in recent memory, praising the Quran recitation of a child to Yahduth Fi Masr’s Sherif Monir (watch, runtime 11:38).How has Nafeza been going so far? FinMin advisor Mona Nasser tuned in on Al Hayah Al Youm for updates on the new one-stop Advanced Cargo Information (ACI) system, which graduated from pilot phase at the start of the month and is now mandatory for importers to use (watch, runtime: 7:07). So far, some 21.5k importers have registered on Nafeza, the online platform running the ACI, and nearly 52k foreign exporters have already signed up for blockchain platform CargoX, which allows shippers to Egypt to upload shipping documents.Arab League Secretary-General Ahmed Abou El Gheit spoke to Ala Mas’ouleety’s Ahmed Moussa for political bits and pieces. Abou El Gheit discussed El Sisi’s decision to end emergency rule (watch, runtime: 5:19), weighed in on Sudan (watch, runtime: 4:29), as well as Libya (watch, runtime: 4:14), Syria (watch, runtime: 4:49), and Lebanon (watch, runtime: 4:23), among other topics.

Good morning, everyone, and welcome to the final workday of week 41 in this crazy year. We have an exceptionally busy issue for you this morning, so let’s jump right in: IPO WATCH- An unnamed strategic investor is after 10% of the shares e-Finance is offering on the EGX and has formally made an offer to the lead manager, Al Borsa reported, citing sources it says are close to the matter. The state-owned company kicked off the subscription period for the retail offering of its IPO on Sunday and is pricing it EGP 13.98 per share, the top end of the EGP 12.50-13.98 range on which it had guided. The subscription period for the retail offering — which is due to wrap up next Sunday, 17 October — is already 4.5x oversubscribed, the sources said. e-Finance has already bumped up the size of the offering, apparently in response to significant demand from institutional investors.Egypt’s banks will adopt the Tax Authority’s e-invoicing system, the Finance Ministry said in a statement yesterday. The system has been up and running since November 2020, when its first phase started, with 134 companies logging their invoices electronically to the Finance Ministry’s platform as part of the ministry’s efforts to clamp down on tax evasion and compel companies that have not registered with the Tax Authority to do so. We were previously told that all tax-paying companies would be enrolled in the system by April 2023.PSA #1- We’re getting a long weekend next week. The prime minister’s office has confirmed the public sector officially off on Thursday, 21 October off in observance of Prophet Muhammad’s Birthday, which falls on Monday, 18 October. That means you can expect word from the EGX and the Central Bank of Egypt in the coming couple of days declaring that next Thursday is a holiday for Planet Finance, too.PSA #2- Exporters using CargoX to ship goods into Egypt will now pay a flat fee of USD 150 to upload ACI shipping documents after the Egyptian government reached an agreement with the platform, which had been mulling raising the minimum fee to USD 400. CargoX is the sole blockchain document transfer gateway service provider for the newly-implemented Advance Cargo Information (ACI) system, which became mandatory for importers to use at the beginning of the month.CONGRATS to our friends at Dawi Clinics, which has just opened its first branch in Suez. That makes it the fifth governorate and thirteenth branch for the fast-growing primary care company. Dawi’s CEO is Magda Habib (LinkedIn), who gave us our start in business back in the day.HAPPENING TODAY- Shoukry to hold talks with US Senator Menendez, UN Syria envoy: Foreign Minister Sameh Shoukry will sit down with Bob Menendez, the chairman of the powerful US Senate Foreign Relations Committee, and United Nations Special Envoy for Syria Geir Otto Pedersen, who are both in town today. Expect Egypt-US relations and regional political affairs to feature heavily on the agenda.El Gouna Film Festival kicks off later today and will run until 22 October, despite a fire that broke out in a section of the Gouna Film Festival Plaza yesterday in which there were no fatalities. At least eight people were hospitalized to be treated for smoke inhalation. Only one section of the festival plaza was damaged, and that the event should proceed as planned, . festival organizers said. This edition of the event promises to bring together a selection of international narrative, documentary, and avante garde films. You can check out the full program here. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here ** CATCH UP QUICK with the top stories from yesterday’s edition of EnterprisePM: The benchmark EGX30 is back in the green for 2021 YTD after gaining 0.9% yesterday, marking the seventh consecutive session in which the benchmark index posted gains.US inflation accelerated in September to 5.4% as both supply and labour shortages continued to drive up prices.The green energy transition is gaining pace — but not enough to avert catastrophic warming, according to the International Energy Agency. THE BIG STORY ABROAD- It’s a dog’s breakfast in the global business press. CNBC is leading with the US Fed’s latest meeting minutes, released yesterday, which say that the central bank could start tapering its stimulus program as early as next month. The Financial Times explains that China Evergrande’s meltdown is locking other Chinese developers out of the global debt market, and the Wall Street Journal is still leading with yesterday’s September inflation numbers in the US. Reuters, meanwhile, has more on US President Joe Biden’s bid to debottleneck part of the supply chain by having big retailers and logistics companies work 24/7 in ports to clear backlogs.PSA #3- For Trekkies: William Shatner survived becoming the oldest person to ever reach the final frontier after Jeff Bezos shot him to to the edge of space on Blue Origin’s latest tourism flight.MARKET WATCH-US earnings season has kicked off with signs that banks may be immune to the storm: JPMorgan Chase brushed off talk of an earnings squeeze in the banking sector as it posted a bumper USD 11.7 bn bottom line, well exceeding analysts’ forecast of USD 9.4 bn, the FT reports. The strong start to 3Q earnings season in Amreeka suggests banks may have so far escaped the worst of the supply-chain disruption and price rises that have dented other sectors. “Underlying everything, we’re still seeing a strong consumer, strong businesses, a lot of capital, a lot of credit,” JP Morgan chief exec Jamie Dimon told reporters.Expect to learn more today and tomorrow. Bank of America, Citigroup, and Morgan Stanley are up today, while Goldman Sachs is due to release its financials tomorrow.CLOSER TO HOME- Erdogan issued a decree overnight sacking three members of the central bank’s interest rate committee after meeting with captive bank governor Sahap Kavcioglu last night. “The changes rid the committee of members who disagreed with Erdogan’s calls to continue cutting interest rates,” Bloomberg notes, reminding us all that the nutter in Ankara has declared himself an “enemy” of interest rates. The news pushed the TRY to a a new record low overnight against the USD.Also not helping: Currency exchange bureaus in Turkey will now be required to record their clients’ personal information. Erdogan’s Finance Ministry claims the rules, which previously only applied to amounts over USD 3k, are not a sign he’s meddling in the FX market.

It was another quiet night on the airwaves yesterday, with the talk shows focusing on US national security adviser Jake Sullivan’s meeting with President Abdel Fattah El Sisi yesterday.Sullivan’s visit gives a kind of reassurance, especially in light of the recent US decision to partially withhold military aid over Egypt’s human rights record, political analyst and Senate member Abdel-Moneim Said said in a call with Sherif Amer on Yahduth Fi Masr (watch, runtime: 3:56 | 3:03). Said said that political dialogue between Egypt and the US is continually improving, suggesting that ongoing talks help Egypt clarify its efforts on the human rights front. Elsewhere, he said that the two countries shared similar views, particularly on the need for December elections in Libya and to a lesser extent on GERD. Assistant foreign minister Mohamed Hegazy was on Al Hayah Al Youm to discuss the implications of the meeting for the GERD dispute (watch, runtime: 5:24), and Ala Mas’ouleety had coverage of Sullivan’s visit (watch, runtime: 3:56 | 4:28).Cabinet’s approval of amendments to the Traffic Act that would make it legal for 16-year-olds to ride e-bikes on city streets was covered by Rasha Magdy on Sada El Balad’s Salet El Tahrir (watch, runtime: 6:01). All motorbikes will require license plates under the amendment, said Gen. Yahya Kadwani, a member of parliament’s defense and national security committee, adding that the bill will be discussed at the start of the next parliamentary session, which kicks off this coming Saturday.

The Finance Ministry has no plans to respond to calls from some in the business community to postpone the roll out of the ACI system on 1 October — a deadline by which anyone who has not signed up for the Customs Authority’s new one-stop platform, Nafeza, will not be allowed to clear imported goods out of customs at seaports, Minister Mohamed Maait said during a roundtable yesterday, Al Masry Al Youm reports. Authorities have been piloting the new Advanced Cargo Information (ACI) pre-registration system since April and had originally planned to make it compulsory at all seaports in July, before making it mandatory at other ports of entry at a later stage. Calls from business groups had led the Finance Ministry to push the 1 July deadline to October to give businesses more time to adapt. But the business community says it’s still not ready: Importers and exporters are lobbying for a multi-month extension of the 1 October deadline for registering on the new ACI system — a World Customs Organization protocol that runs on blockchain technology — saying they still need time to go through with the “complex” and “lengthy” registration process. A large number of importers said they faced challenges in completing the three-step process to pre-register a shipment through the system. FinMin, however, says traffic on the ACI system is picking up: As many as 2.5k importers and customs agents have registered about 18k customs transactions for shipments via the ACI since its pilot launch in April, Maait said. Nafeza now has nearly 7.7k activated accounts, and CargoX now has about 26k exporters registered, he added. REMEMBER- The four steps to register with Nafeza are: Create an account on the Nafeza digital platform, register your e-signature either through Misr for Central Clearing, Depository and Registry (MCDR) or Egypt Trust, and file a request through Nafeza to obtain a shipment identification number within 48 hours, which will be valid for three months. After receiving the ID, you must then register on the CargoX Platform for Blockchain Document Transfer (BDT) and submit the required documents. Maait has rolled out a series of financial incentives to encourage companies to register during the ACI’s pilot phase, the latest of which is a 50% discount on registration fees for those who sign up this month, in addition to 30% off for anyone registering during the first half, and 20% off during the second half of September. Those that register during the pilot phase, which ends on 1 October, will see their import and export operations fast tracked at every logistical hub, allowing for faster clearing and checking of cargo. The minister has also taken steps to lower risk and financial pressure on participating importers, who will be allowed to defer payment of 70% of taxes and fees to clear cargo at shipping ports until after the cargo arrives at Egyptian ports — and will be entitled to a refund on what they’ve paid in the event that their shipment is banned from entry or disposed of, under new rules approved earlier this month by the ministry. Want a breakdown of all you need to know on how to prepare for the new ACI system? We have this in-depth explainer here.

The business community is once more calling for the postponement of the ACI: Importers and exporters are lobbying for a multi-month extension of the 1 October deadline for registering on the Advanced Cargo Information (ACI) pre-registration system — also known as Nafeza — saying they need more time to get ready for the new customers system, members of the Federation of Egyptian Chambers of Commerce’s exporters and importers divisions told Hapi Journal.The delay would allow importers and their agents to go through with the “complex” registration procedures before the ACI system becomes compulsory at all seaports on 1 October — a deadline by which anyone who has not registered on the digital platform won’t be allowed to release imported goods out of customs at seaports, Hamada Agawany, member of the importers division, said. Another member of the division, Osama Gaafar, shared a similar sentiment, stressing that the new ACI system’s registration formalities need to be reworked, especially that a number of businesses importing goods are struggling to register.The sticking point: The registration process is lengthy. A large number of importers are not tech-savvy, so the idea of businesses importing goods at ports having to file shipping documents and cargo data digitally ahead of arrival via the ACI — a World Customs Organization protocol that runs on blockchain technology — is already arduous, Gaafar said. Not to mention the fact that importers must go through three different steps to complete the pre-registration customs procedures for a shipment, he added.To register with Nafeza, one must first create an account on the digital platform and issue an e-signature either through Misr for Central Clearing, Depository and Registry (MCDR) or Egypt Trust. Importers will then have to file for a request online to obtain a shipment identification number — valid for three months — within 48 hours, according to head of the Customs Authority El Shahat Ghatoury.Where implementation stands: The final draft of the exec regs of the Customs Act, which detail how the ACI system works, is now in the hands of the State Council (Maglis El Dawla) for review and approval after they were redrafted to incorporate proposed amendments and requests from the last round of public consultations in April.Over 4.6k importers and customs agents have so far been trained to use the system, Ghatoury previously said.BACKGROUND- Nafeza is being rolled out by the Finance Ministry to speed up customs procedures and improve border security. Authorities have been piloting the new system since April and had originally set a 1 July deadline for registration, which was then postponed in response to calls from the business community, who said they needed more time to prepare.FinMin has rolled out a series of financial incentives to get companies to register during the ACI’s pilot phase, the latest of which is a 50% discount on registration fees for those who register on the digital platform in August, in addition to 30% off for anyone registering during the first half, and 20% off during the second half of September. Those that have registered during the pilot phase, which ends on 1 October, will see their import and export operations fast tracked at every logistical hub, allowing for faster clearing and checking of cargo. Importers will also be able to defer paying 70% of taxes and fees to clear cargo at shipping ports till after the cargo arrives at Egyptian ports, and will be entitled to a refund in the event that their shipment is banned from entry or disposed of, under new rules approved earlier this month by the ministry.Want a breakdown of all you need to know on how to prepare for the new ACI system? We have this in-depth explainer here.

Importers and their agents will be able to defer paying 70% of taxes and fees to clear cargo at shipping ports till after the cargo arrives, under new amendments (pdf) to the Advanced Cargo Information (ACI) system — also known as Nafeza — set to come into effect in October. Importers will be required to pay 30% of dues in advance before cargo arrives at Egyptian ports and will be entitled to a refund in the event that their shipment is banned from entry or disposed of. The new rules were approved last week by Finance Minister Mohamed Maait.The Nafeza digital customs system is being rolled out by the Finance Ministry to speed up customs procedures and improve border security. Through Nafeza, businesses importing goods at ports will file shipping documents and cargo data digitally and ahead of arrival via the ACI, which is a World Customs Organization (WCO) protocol that runs on blockchain technology. The government had originally set a 1 July deadline for registration on the new system, which was then postponed in response to calls from the business community, who said they needed more time to prepare.Want a breakdown of all you need to know on how to prepare for the new ACI system? We have this in-depth explainer here.The amendments are the latest in a series of government attempts to reduce trade red-tape: The Customs Authority said earlier this year that it would establish a new unit dedicated to investigating complaints from exporters about customs procedures, while the cabinet decided to bring back the long-dormant export council to drive policymaking aimed at increasing exports.

FinMin delays Nafeza deadline till October: Importers, multinationals, and foreign companies selling goods to Egypt through seaports now have until the last day of September to sign up for the Customs Authority’s new one-stop platform, Nafeza. The Finance Ministry pushed next week’s 1 July deadline in response to calls from business groups, according to a ministry statement. The digital platform — which will require shippers to begin using a global best practice system known as the Advance Cargo Information (ACI) pre-registration system — will now officially come online on 1 October.Anyone who isn’t registered when the deadline rolls around won’t be allowed to release imported goods out of customs at seaports, the statement read. Authorities have been piloting the new system since April and had originally planned to make it compulsory at all seaports in July, before making it mandatory at other ports of entry at a later stage.The delay aims to allow stakeholders more time to prepare for the new system, the statement read, after local and foreign players made specific requests to Finance Minister Mohamed Maait to delay its rollout.The business community is okay with Nafeza, but needs more time to adapt: Calls to delay the system boil down to the speed of the transition, the head of the Alexandria Chamber of Shipping, Mohamed Moselhy, told us. Moselhy, who is in favor of the new digital system, said businesses need more time to get used to it. Calls for a delay were nearly unanimous within the business community, with all parties including importers, clearance agents, and foreign companies all requesting a delay, said Khaled Nassif, a technology advisor to the Egyptian Company for E-commerce Technology (MTS), a majority state-owned company that is in charge of getting the new system up and running.Where we are so far: Nafeza now has nearly 7.7k activated accounts and some 2.2k that are yet to complete their registration, Maait said in the statement. Around 1.5k are currently part of the ongoing pilot phase of the system and have already started using the ACI.Nafeza is being rolled out in a bid to speed up customs procedures, improve border security and eliminate room to cheat on customs and taxes: Through Nafeza, businesses importing goods at ports will file shipping documents and cargo data digitally and ahead of arrival via the ACI, which is a World Customs Organization (WCO) protocol that runs on blockchain technology. The collected data sets are used to identify high-risk or dangerous cargo prior to loading.Want a breakdown of all you need to know on how to prepare for the new ACI system? We had an in-depth explainer earlier this month.IN OTHER INFRASTRUCTURE NEWS- Hyundai Rotem will upgrade the 118 km Naga Hammadi-Luxor line’s communication and signalling system, under an agreement with the National Railway Authority worth USD 110 mn, according to a statement.

Enterprise Explains: The ACI — What you need to know and how you can prepare: Starting from 1 July, businesses importing goods at seaports will need to file shipping documents and cargo data digitally via the Advance Cargo Information (ACI) system. Otherwise, the shipment will not be allowed to enter Egypt. Some 4.5k importers and clearing agents have already signed up to Nafeza, and this number is increasing daily, technology advisor to the Egyptian Company for E-commerce Technology (MTS) Khaled Nassif says. We take a deep-dive into what the system is, how much it will cost, and what concerns stakeholders have voiced. What is ACI? The Advance Cargo Information (ACI) pre-registration system is a World Customs Organization (WCO) protocol that provides real-time information on shipments of incoming goods to shipping lines, port operators and governments. To comply with the new system, the importer needs to register on the Finance Ministry’s digital customs system Nafeza (aka National Single Window for Foreign Trade Facilitation), and obtain an e-signature token at least 48 hours before the goods are shipped. The importer is required to file the paperwork in order to be given a unique ID known as an ACID. This then needs to be submitted along with other documentation such as invoices and foreign exporter and shipment data to Nafeza at least 24 hours before the ship leaves port. The process is set up by the Egyptian Company for E-commerce Technology (MTS). What information do you need to register a shipment? The required shipment data includes approved value, customs and submission systems, the cargo delivery site, customs item numbers and data, and statistical customs quantity. If there is an initial lading bill, the bill number, ports of loading and arrival, shipping company, freight number, means of transportation, gross and net weight and number of parcels are requested. As for the invoices, the importer needs to provide the purchase order number, invoice date and value, type of contract, billing currency, and foreign exporter nationality. Additional information includes item description, gross and net weight, item price, unit weight and the statistical customs quantity. Who will be affected? Primary stakeholders are importers and suppliers, clearing agents and companies, and air or sea shipping companies. The system has already been implemented at 90% of Egypt’s sea ports, but will be expanded to land and airports in the future, with no set timeline yet, Deputy Finance Minister for Treasury Affairs Ihab Abou Eish said recently. The system is currently deployed in Alexandria, Ain Sokhna, Port Said, Port Tawfik, Dekheila and Safaga. Adabiya port is also included, Abou Eish stated, adding that Nuweiba and Aswan had not been included yet due to the low volume of goods coming through the ports. Why is Egypt implementing the ACI system? The collected data sets are used to identify high-risk or dangerous cargo prior to loading. The aim is to strengthen supply chain security and mitigate potential security threats, as well to give countries time to scrutinize consignments prior to their arrival and take appropriate steps. This should also shorten the clearing time for incoming goods, head of airfreight at logistics company DB Schenker Dina Soliman tells us. The process also protects suppliers and clearing agents from foul play, she says. How do we know this is secure? The system runs on blockchain technology, provided by CargoX, the sole blockchain document transfer gateway service provider for the ACI process. Since it is running on blockchain, the system ensures that digital data is not forged or counterfeited, by allowing only certain people to have “editing access” to certain data points. The data in its final form has a timestamp and is linked to any previous versions or forms it had taken. This is then shared with peers’ computers. The fact that it is not just shared with one central server, but that several different processors will have a copy of the data in its different forms makes it secure, as it is less likely to be forged. What if I do not have my ACID when the ship arrives at an Egyptian port? The goods will not be cleared and will be returned to their port of origin. How much will it cost stakeholders? The total fees are still unclear. Some fees need to be paid once by the importer upon initial registration on the system, such as e-signature fees. Other costs will primarily depend on the number and type of goods in the shipment. Additional costs from CargoX are expected to include the ACI declaration envelopes and bills of lading. Previously, customs and shipping documents were sent and legalized via couriers running between embassies, chambers of commerce and authorities. Now all of this has shifted online. CargoX charges USD 15 registration fees, then an additional USD 50 per shipment and between USD 2-3 per document transferred, Soliman tells us. Primarily, the supplier will have to pay the registration fees on Nafeza, Nassif says. How are companies being onboarded? The Egyptian Company for E-commerce and Technology has conducted webinars for companies to help them with the registration process, while the Finance Ministry has sent some companies official letters prompting them to register, Nassif tells us. What are stakeholders worried about? The ACI implementation on July 1 is causing some concern among stakeholders, such as who will bear which costs, how familiar the customs authorities are with the system, what the final pricing will look like and which stakeholder needs to register on the platform in some cases. Moreover, the knowledge transfer between MTS and the customs authorities is still not complete, DB Schenker’s Soliman explains. Your top infrastructure stories for the week: Nour City construction begins: The construction of Talaat Moustafa Group’s EGP 500 bn Nour City development has begun. RIZ Mk II: Russia wants to set up a second industrial zone in the Suez Canal Economic Zone, this time in Ain Sokhna. A new seaport on the North Coast: President Abdel Fatah El Sisi has ordered the establishment of a new seaport in the El Max area between the Alexandria and El Dekheila ports. Work begins on mega petchem facility: The foundation stone for a USD 7.5 bn petchem complex in the Ain Sokhna industrial zone was laid on Saturday. New desalination plant: Orascom Construction (OC) and water treatment company Metito have delivered a USD 130 mn seawater desalination plant in East Port Said. Saint Catherine development project: Hassan Allam Construction has begun work on a project to revitalize Saint Catherine city in South Sinai.

Shipping companies will be required to send information about their cargo electronically to the Customs Authority’s new digital platform when the system goes live later this year, according to a recent decision by the Finance Ministry. Cargo data and documents such as the commercial invoice and bill of lading will have to be submitted to the new Advance Cargo Information (ACI) system, part of the National Single Window for Foreign Trade Facilitation (Nafeza), a digital customs system being rolled out by the Finance Ministry to speed up customs procedures and improve border security. The authority began trialling the ACI system at the start of April and plans to make it compulsory at all seaports in July before applying it to air and land ports at a later date.ACI? ACI — otherwise known as a pre-registration system — is a World Customs Organization protocol that provides shipping lines, port operators and governments real-time information on shipments of incoming goods. Egyptian importers are required to file the paperwork at least 48 hours before the goods are shipped, after which they are given a unique ID known as an ACID. The shipping company must then submit documentation to Nafeza containing information such as the ACID and the bill of lading, which the ministry has now decided must be done at least 24 hours before the ship leaves port.

Your top infrastructure stories of the week: Port development: General Authority for Ports and Dry Land Chairman Amr Ismail met with an IMF delegation to discuss progress in public-private partnerships in port development projects.Energy and water conservation: Researchers at Egypt’s Nile University have created a prototype solar canal, covered with photovoltaic cells, that reduces levels of evaporation to conserve water, allowing it to be used for agriculture or to produce energy.Communications & Transportation: Orange Egypt and Mwasalat Misr signed an agreement that will see the mobile network operator outfitting Mwasalat buses and bus stations with WiFi without charge.Automation: The Finance Ministry is looking into using ACI pre-registration systems at Egypt’s ports in a bid to cut red tape and streamline customs procedures, reducing the time needed for customs procedures to a maximum of three days and creating an online shipment tracking portal.Electric grid: Schneider Electric signed an agreement with the Electricity Ministry to build power control centers for Egypt’s electricity grid.

Gov’t mulls automating Egypt’s ports to streamline customs procedures: The Finance Ministry is looking at potentially using ACI pre-registration systems at Egypt’s ports in a bid to cut red tape and streamline customs procedures, according to a cabinet statement. The new system, which would reduce the time needed for customs procedures to a maximum of three days, would create an online portal allowing customers to follow the status of their shipments. The news comes as Chinese goods have been piling up at Egypt’s ports as a result of manual paperwork delays that exporters in China have left unfulfilled in the aftermath of the coronavirus outbreak that has stalled much economic and business activity globally. Other customs updates: The ministry has set up a specialized committee to create a unified set of customs procedures, and has created a customs fast-track for pharma, industrial inputs, and transit ships. The government has also established a one-stop shop system for customs in several airports and seaports, according to the statement. This comes as the Customs Act — which would expedite clearance through a white list of importers, among other things — is currently with the House of Representatives and expected to come into effect in 1H2020.