Key View

• The Egyptian Drug Authority (EDA) will increase medicine prices, as a response to ongoing macroeconomic headwinds weighing on domestic drugmakers.
• High Out-Of-Pocket payments and reduced household spending power will erode Egypt’s pharmaceutical market value in real terms. 
• In 2024, the generic drug market share will reduce

Key View

• Egypt’s financial sector remains in a deep negative net foreign liability position which will continue to be the main risk to the banking sector over the course of the year. 
• We expect that deposit growth will accelerate from 17.0% in 2023 to 27.0% in 2024. Nominal deposit growth, however, does distort the picture given that

Key View: Egypt's expanding middle class will drive growth in the household goods sector across the forecast period, particularly within the household appliances sub-sector. There is considerable long-term potential within the sector, which remains relatively unsaturated and is attracting foreign investment. 

In North Africa, Algeria (4.4% of

Key View 

• We expect that lower Suez Canal receipts will cause Egypt’s current account deficit to widen from 1.4% of GDP (USD4.7bn) in FY2022/23 (July 2022-June 2023) to 2.9% of GDP (USD8.5bn) in FY2023/24. 
• Things will improve in late FY2023/24 with the conclusion of the Israel-Hamas war and the resolution of the Red Sea crisis, a new and

Key View

• Trade disruptions in the Red Sea will negatively impact the chemical and pharmaceutical raw material sector.
• Dwindling pharmaceutical raw material supplies will force Egypt-based drugmakers to operate at lower capacity.
• In the near term, Egypt’s pharmaceutical market size will contract in USD terms, before restabilising in the

Latest Developments: Telecom Egypt is reportedly making efforts to sell close to 90% of its tower portfolio. The front-runners in the race to acquire the operator’s assets are three tower companies: Helios Towers, IHS Towers, and Mobi Tower. We believe that this development may strengthen Telecom Egypt’s market positioning as cash generated

Key View

• The conclusion of the presidential election will allow the Egyptian authorities to successfully negotiate a new IMF programme, likely in Q124.
• We reiterate our belief that the negative implications of the Israel-Hamas war on the Egyptian economy and Cairo’s role as a mediator in the conflict will catalyse increased foreign financial

Key View

• Declining gas production in Egypt and the country's desire to maximise LNG exports poses considerable risk to the country's gas dependent power market.
• Increased pipelined gas imports from Israel hold potential to alleviate pressure on the country's domestic grid over the medium term.
• In the short term, the scheduled power cuts are

Key View

• We forecast high-single digit growth for Egypt’s medical device market over our forecast period.
• Medical device imports will face headwinds due to high inflation and a weak Egyptian pound.
• Egypt’s government will continue to prioritise healthcare as demand for services from the ageing population increases. 

We forecast high-single

Key View

• We anticipate that the Egyptian banking sector’s large net foreign asset liabilities will likely start improving by the end of 2023 or in Q124 if the authorities address the imbalances in the currency market as we expect.
• While we forecast credit growth of 19.6% y-o-y in 2023, this strong growth masks significant weakness in private