馃嚜馃嚞EgyptNorth Africa
Egypt's non-oil private sector contracts for third consecutive month in April
via Egypt Today1 min read
Egypt's non-oil private sector experienced a continued contraction in economic activity in April, marking the third consecutive month of decline. The S&P Global Purchasing Managers' Index PMI dropped to 46.6 in April from 48.0 in March, indicating the sharpest contraction since January 2023. A PMI reading below 50 signifies a downturn in activity. This decline was primarily attributed to rising operating costs, persistent global supply chain disruptions, and reduced demand both domestically and internationally. David Owen, Senior Economist at S&P Global, noted a significant slowdown in domestic economic activity and intensified price pressures on Egyptian businesses. Output fell for the third month in a row, recording its fastest decline since January 2023, driven by weaker new orders, input shortages, and increasing costs. New export orders also saw their steepest drop since the first half of 2020. Input costs rose at their fastest pace since January 2023, leading firms to increase selling prices at the quickest rate since August 2024 to counteract higher expenses for fuel, imports, and raw materials.
Free daily or weekly digest of the most important stories from across 18 African countries. No spam, unsubscribe any time.
This summary was AI-generated from a story originally published by Egypt Today.
Must ReadThe Central Bank of Egypt CBE has issued a directive prohibiting banks from extending credit facilities to finance the capital of new companies or to cover increases in share capital. The circular, approved by the CBE Board of Directors on June 17, 2026, also bans the use of bank financing for cash dividend distributions and employee bonus shares. This measure is intended to strengthen controls over credit use within the banking sector and ensure that credit is directed towards productive economic activities, aligning with sound banking standards. The CBE noted that this decision reinforces earlier instructions from March 2003 and September 2021, which similarly restricted credit for company incorporation capital, capital contributions, and the financing of cash dividends to employees or shareholders. Banks are required to fully comply with these restrictions to ensure lending is focused on operational and investment purposes.
Prime Minister Mostafa Madbouly stated that real estate development projects are crucial for Egypt鈥檚 economic growth, industrial activity, and job creation. His remarks were made during a signing ceremony for a strategic partnership between Egyptian company Midar Investment and Urban Development and UAE-based Majid Al Futtaim. This partnership aims to develop an integrated urban project in Mada City, New Cairo, spanning 553 feddans with investments exceeding $3.1 billion. Madbouly emphasized that such projects demonstrate investor confidence in the Egyptian economy and position Egypt as a key destination for regional and international investment. He also referenced the State Ownership Policy Document, which promotes increased private sector participation, especially in real estate. The Prime Minister clarified that the real estate sector encompasses more than just housing, including retail, hospitality, tourism, and entertainment, all contributing to broader economic activity. He addressed criticisms regarding the state's focus on real estate, explaining that these developments are linked to numerous industries, including construction, manufacturing, food production, and retail, supporting thousands of factories. Madbouly added that the economic benefits extend beyond project completion, with ongoing commercial and service activities generating employment and supporting additional sectors. He reiterated the government's support for partnerships between Egyptian and foreign pr
Badr El-Din Petroleum Company has announced a new natural gas discovery in Egypt鈥檚 Western Desert, projected to add approximately 15 billion cubic feet to the country鈥檚 gas reserves. The Ministry of Petroleum and Mineral Resources stated that the new well is expected to commence production by the end of the current month, with an initial output of around 15 million cubic feet per day, alongside 500 barrels per day of condensates. Khaled Abdelsalam, Chairman of Badr El-Din Petroleum, noted that 40 successful hydraulic fracturing operations in the current fiscal year contributed to adding over 10,000 barrels per day of oil and more than 15 million cubic feet per day of gas to production. Minister of Petroleum and Mineral Resources Karim Badawi emphasized the ministry's efforts to expand the use of advanced drilling technologies to increase well productivity and crude oil output, highlighting that achieving Egypt鈥檚 five-year plan to double crude oil production requires adopting advanced technologies and non-traditional solutions. Badawi also mentioned that improvements in the investment climate, including settling arrears to foreign partners and providing investment incentives, have supported production expansion and attracted further investment. He stressed that boosting domestic production helps reduce reliance on imported petroleum products and liquefied natural gas, positively impacting the national economy.