Egypt and Ethiopia start expelling diplomats 🇪🇹

What’s inside: a fifteen-year dam row turns into expulsions, Africa comes to New Alamein, Egypt wins 5-0 without Salah, and the pound goes through EGP 52.

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September 27 - October 3 | 2026

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Egypt and Ethiopia spent this week throwing each other’s diplomats out of the country. It took a general’s accusation to get there, but the argument underneath it is the one about the dam, and that one is fifteen years old.

While that was happening, much of the African Union turned up on the north coast for Egypt’s first continental business forum. Egypt also put five past South Sudan without its captain, and the pound slid through EGP 52.

Let’s get into it.

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ETHIOPIA | THE NILE | THE HORN
EGYPT AND ETHIOPIA TENSIONS RISE

Egypt declared a counsellor at the Ethiopian embassy in Cairo persona non grata on Thursday, 1 October, giving him 48 hours to leave, after Ethiopia had done the same to an Egyptian diplomat in Addis Ababa. By Friday the African Union was publicly asking both to calm down. Fifteen years of argument about a dam have arrived somewhere new.

What set it off: Ethiopia’s army chief, Field Marshal Berhanu Jula, said the Tigray People’s Liberation Front and its allies could not sustain their campaign in the north without outside supplies, and named Egypt and Sudan among the suppliers. He offered no evidence. Egyptian foreign ministry spokesman Nader Zaki rejected the accusation without naming Ethiopia back, saying Egyptian policy rests on “respect for the sovereignty, unity and territorial integrity of other states, along with a commitment to staying out of their internal affairs,” and that claims otherwise “had no basis in fact.” Sudan’s military dismissed the allegation too.

Then the expulsions: Ethiopia moved first, giving its Egyptian target 48 hours and publishing no reason. Egypt matched it within a day, invoking the Vienna Convention on Diplomatic Relations and also declining to give a reason; an Egyptian source called Addis Ababa’s move unfortunate and unjustified. Neither government has named the diplomats involved.

Eritrea left the building entirely: Ethiopia closed its embassy in Asmara and expelled ten Eritrean diplomats, calling them a direct threat to its national security. Eritrea responded by severing relations with Ethiopia altogether. Cairo, meanwhile, spent Wednesday offering Eritrea technical support and training, with Abdelatty encouraging Egyptian firms into Eritrean energy, industry, fisheries and pharmaceuticals.

The dam is still the subject: At an expanded meeting at Strategic Command headquarters on Tuesday, El-Sisi said Egypt would stay with diplomacy, but not at the expense of “Egypt’s existence and its people.” Abdelatty went further than Cairo usually does, calling water security “a matter of life or death” and ruling out any further dams or unilateral measures affecting Egypt’s share. He also said Egypt is in water poverty and needs to double its allocation rather than hold it steady, which is a bigger ask than Egypt normally makes in public.

And the AU stepped in: The Commission asked Egypt, Ethiopia and Eritrea to “exercise maximum restraint and refrain from actions or statements that could further escalate tensions,” and said it stood ready “to support de-escalation, dialogue, and the peaceful resolution of differences.” Note where that request landed: the AU Chairperson and the AU Commission Chairperson were both in Egypt this week, for the forum in the next section.

🌍️ MORE FOREIGN AFFAIRS:

🇺🇸 MILITARY AID: US Secretary of State Marco Rubio waived human rights restrictions on USD 320 million of military aid to Egypt on Thursday, part of the annual USD 1.3 billion package and earmarked for buying American weaponry. The State Department said the waiver was signed “in the interest of US national security” and recognised “the importance of maintaining security cooperation with Egypt at a time of significant regional security challenges.” Rubio cited Egypt’s help on Iran specifically – Know more

⚓ THE SAILORS ARE HOME: The eight Egyptian sailors we mentioned last week are free, after five months aboard the M/T Eureka. The tanker was seized in Yemeni waters on 2 May and taken to Puntland in Somalia. Their release followed contacts with Somali and Yemeni officials overseen by El-Sisi and Abdelatty, and the embassy in Mogadishu was told to receive the men and arrange their journey home – Know more

⚓ DETAINED SAILORS: Egypt pressed Somalia on Thursday over the Egyptian sailors being held off the Somali coast, with Abdelatty telling his counterpart Abdulsalam Abdi Ali that efforts to secure their release and safety needed to be stepped up – Know more

✈️ FLYDUBAI: A flydubai flight from Dubai to Tel Aviv made an emergency landing at Tabuk in Saudi Arabia on Wednesday after its co-pilot attacked the captain in the cockpit. By Saturday the UAE’s attorney general, Hamad Saif Al Shamsi, was calling it an attempted terrorist act, saying the co-pilot used a crash axe, part of the cockpit’s own emergency kit, and “attempted to take control of the aircraft.” The Boeing 737 MAX 8 lost around 14,000 feet and transmitted a hijack code before turning back. Captain Smit Machchhar, badly hurt, got the cockpit door open, which let passengers and an off-duty pilot overpower the man, and two deadheading flydubai pilots landed the jet. Everyone on board survived. flydubai has suspended its Tel Aviv flights, and the UAE has claimed jurisdiction because the aircraft carries its flag - Know more

🇸🇦 MEDINA: Egypt condemned an attack on a power station in Medina, calling it “a dangerous escalation that increases tensions across the region” and repeating that Saudi security “is an integral part of Arab national security.” Nobody has been named as responsible, by Cairo or by Riyadh – Know more

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NEW ALAMEIN | AFRICA | TRADE
AFRICA COMES TO NEW ALAMEIN

Egypt opened its first Alamein Africa Business Forum on Friday, with roughly 1,500 delegates on the north coast and the closing session due today. It is run with the African Union Commission, AUDA-NEPAD and Afreximbank, and the AU agreed back in February that New Alamein would host it every two years.

Who turned up: El-Sisi opened Saturday’s session alongside Burundi’s President Évariste Ndayishimiye, who currently chairs the African Union, AU Commission Chairperson Mahmoud Ali Youssouf, Afreximbank President George Elombi and AUDA-NEPAD chief executive Nardos Bekele-Thomas. The Nigerian industrialist Aliko Dangote gave a keynote. Afterwards the group toured an exhibition of African companies, startups and institutional pavilions.

The case Egypt is making: Planning Minister Ahmed Rostom put the continent’s economy at USD 3.6 trillion and its share of global trade at 1.5 percent, for roughly a fifth of the world’s population. He named three priorities: implementing the African free trade area properly, letting capital move freely between African countries, and spending on human capital. He cited a World Bank estimate that a working AfCFTA could lift real incomes by 7 to 9 percent by 2035. El-Sisi’s version of the problem was blunter: the African private sector generates more than 70 percent of the continent’s GDP, yet around 85 percent of its transactions happen outside Africa, and more than half of small and medium firms do not know what opportunities exist next door.

What actually got signed: Egypt’s El Araby Group and South Africa’s Malben Engineering agreed to build a joint automotive components platform, signed at the African Automotive Investment Forum alongside Industry Minister Khaled Hashem, Afreximbank and the AfCFTA Secretariat. A protocol establishing an Egyptian-South African Business Council went with it. No investment figures or production targets were disclosed for either.

The part to watch: Abdelatty is due to present an “Alamein Africa Forum Commitments Tracker” at the closing segment, meant to follow what was promised here. Forums of this kind generate communiqués easily and follow-through rarely, so the tracker is the one deliverable worth checking back on in six months. If it publishes, Egypt has something few African summits produce. If it does not, that will be its own answer.

And a stability argument: El-Sisi told the room that stability “is not a luxury but a fundamental pillar sought by investors, manufacturers and farmers.” Delivered in a week when Egypt was expelling Ethiopian diplomats and the AU was asking three of its members to stand down, the line carried more than the usual freight.

🏦 MORE BUSINESS & ECONOMY:

🚄 HIGH-SPEED RAIL: Transport Minister Kamel El-Wazir now says passenger service on the Ain Sokhna to Marsa Matrouh line should start in July 2027. The route runs 660 kilometres with 21 stations, high-speed trains at up to 250 km/h and regional trains at 160, putting Cairo to Marsa Matrouh at two to two and a half hours. The fleet is 15 high-speed trains, 34 regional trains and 14 freight locomotives – Know more

💱 THE POUND: The pound closed Thursday at 52.25 to buy a dollar and 52.39 to sell, 1.2 percent weaker across the week and through the EGP 52 line for the first time. The euro ended at 59.00 and sterling at 69.09. Gold moved with it: 24-karat reached EGP 7,022.75 a gram – Know more

📊 THE NUMBERS: Planning Minister Ahmed Rostom briefed Fitch on Wednesday: GDP growth of 5.1 percent in the last fiscal year, up from 4.4; August inflation at 12.7 percent, down from 13 in July; unemployment at 5.8 percent; and net international reserves of USD 57.2 billion at the end of August. Separately, the banking system’s net foreign assets hit USD 31.2 billion in August, a six-year high, with July remittances up 20 percent year on year – Know more

🇦🇪 GULF MONEY: Egypt and the UAE renewed a currency swap worth AED 5 billion (EGP 69 billion) for another five years, signed by the two central bank governors. Days later the Egyptian Exchange and the Abu Dhabi Securities Exchange signed an agreement on linking the two markets, covering dual listing, mutual recognition of brokers and direct investor access – Know more

NATIONAL DIALOGUE | EGYPT | PARTICIPATION
EGYPT FORUM 2026 ANNOUNCED

El-Sisi announced Egypt Forum 2026 on Thursday, a national dialogue running from 19 to 24 October with preparatory sessions beforehand, and an official platform at egyptforum.gov.eg where people register, submit views and file proposals.

Who is being asked: The call went out to “all state institutions, experts, and Egyptian citizens across different backgrounds and orientations.” El-Sisi described the aim as bringing together a wide range of voices through academic and societal dialogue, and said participation and dialogue are central to building Egypt’s future.

What a registration page changes: Putting the entry point online lowers the cost of taking part for anyone outside Cairo or outside the usual invitation lists, which is the most concrete thing announced so far. It also means the proposals arrive in writing and in volume, and someone has to sort them.

What has not been said: The agenda. Who selects which proposals reach the sessions, and on what basis. Whether anything agreed in the room binds any ministry afterwards, or feeds into legislation, or is published in full. Those are the details that separate a dialogue from a consultation, and none of them were in Thursday’s announcement. With three weeks until it opens, there is time for them to be.

🏛️ MORE POLITICS & SOCIETY:

⚖️ A YEAR’S DELAY: Parliament voted to postpone the new Criminal Procedure Law by a full year, from 1 October 2026 to 1 October 2027, amending Article 6 of Law 174 of 2025 in an emergency plenary session. The extra year is for electronic notification and remote litigation systems, databases, digital links between agencies and staff training. The explanatory note said the new systems need “practical testing” and monitoring for obstacles before they go live – Know more

📰 MATSADA2SH: The Interior Ministry said on Thursday that it had taken into custody six people connected to the fact-checking platform Matsada2sh, and that legal procedures had been initiated. The ministry described the page as unlicensed and operated from abroad by an Egyptian it called a fugitive, accused it of publishing “misleading reports and distorted facts”, and said those detained worked within media committees of the Muslim Brotherhood and were paid from abroad. One of the six is a registered member of the Journalists Syndicate; the ministry said the other five are not. Matsada2sh, which has around 1.3 million followers on Facebook, denied the accusations, and its founder said “the claims are false.” The Journalists Syndicate has asked the authorities to disclose where the six are being held and the grounds for their arrest, and has called for their release. No formal charges have been announced – Know more

⚽ PHARAOHS: Egypt beat South Sudan 5-0 in Juba on Tuesday, with Salah rested over concerns about the artificial pitch, through Mustafa Ziko on 36 minutes, Omar Marmoush on 49 and 82, Ibrahim Adel on 75 and Hamza Abdelkarim in stoppage time. Marmoush ended a scoring drought and Egypt go top of Group B on four points – Know more

🩺 PHARMACY ADS: The Egyptian Drug Authority warned against unapproved pharmaceutical advertising on Facebook, Instagram and TikTok, publishing notices on products including Tadanerfi, Nerhasilda, Biolegam and Doumega, several of them marketed for male sexual health. It asked people not to rely on unverified drug ads on social media, to check registration through official channels, and to report violations on 15301 – Know more