PM — Surprise: Our air quality is not great

Happy hump days, ladies and gentlemen. The news cycle here at home calmed down somewhat from where it was yesterday, but is still pleasantly brisk.

THE BIG STORIES TODAY

EGX continues rising: The EGX climbed again today thanks to the raft of decisions and announcements yesterday, including the Madbouly government’s EGP 130 bn stimulus package in tax incentives and legislative amendments to spur activity on the bourse. The EGX30 closed up 1.3% today, after seeing its best trading day in nearly two years yesterday, rising 4.9%. Today’s rise came as Fawry shares rose 5.4% and CIB shares rose 3.1%, following news reports that Abu Dhabi wealth fund ADQ is looking to purchase an unspecified stake in the fintech darling and snap up as much as 18% of the leading private sector bank.

Meanwhile, the EGP settled at 18.55 against the USD by the end of the trading day, down from EGP 18.27 per USD yesterday.

With fresh funding needs, our first Samurai bond issuance is back in play: The Finance Ministry plans to issue Egypt’s first Samurai bonds, with plans to sell USD 500 mn in JPY-denominated bonds in Japan on Thursday, Mohamed Hegazy, head of the ministry’s debt unit, told Enterprise, confirming a story in Bloomberg Asharq. The ministry had announced it was planning the bond sale for sometime in 1H2022 in January, but then said it would likely be delayed due to deteriorating market conditions because of the Russia-Ukraine war.

Elsewhere on the macro front: The Planning Ministry has revised downwards its expected GDP growth rate for FY2022-2023 to 5.5%, from 5.7% before the impacts of the Russia-Ukraine war began to hit public finances, cabinet said in a statement today. This came as Prime Minister Moustafa Madbouly directed the Finance Ministry to restructure the FY2022-2023 budget in order to “reassess priorities” amid rising commodity and oil prices. The priority for the revised budget will go towards social protection programs to help support the populations most affected by the repercussions of the war in Ukraine, Madbouly said, as he called on each ministry to revise its spending in light of the current events.

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

• More than a spoonful sugar to help the medicine go down: Fresh off the heels of the Central Bank of Egypt’s decision yesterday to raise interest rates and allow the EGP to devalue against the USD, the Madbouly government announced a package of incentives that would see EGP 130 bn in tax relief being doled out while moving up the timeline of already-planned social safety measures.
• Gov’t agrees USD 2 bn asset sale with Abu Dhabi wealth fund: Abu Dhabi wealth fund ADQ is reportedly buying government holdings in five EGX-listed companies, including up to 18% of CIB and an unspecified stake in Fawry, for around USD 2 bn.
• Price controls on unsubsidized bread are here: The Madbouly cabinet announced yesterday it is imposing price caps on unsubsidized baladi and fino bread for three months.

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THE BIG STORY ABROAD

We interrupt your regularly-scheduled Russia-Ukraine programming, as yesterday’s deadly Boeing 737 plane crash in China dominates global headlines. No survivors have been found so far from the aircraft, which was carrying 132 people, making it China’s worst air catastrophe in over two decades, the Financial Times reported. The cause of the crash remains unknown, as investigators facing poor weather conditions and logistical difficulties have been unable to locate the plane’s black box, China Youth Daily reported, according to CNN.

Over in Russia and Ukraine, US President Joe Biden is sounding the alarm that Moscow could turn to chemical and biological weapons “indiscriminate bombing” as it grows more desperate in its attack on Ukraine, the Financial Times writes. Biden also flagged potential cyber attacks from Russia.

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???? CIRCLE YOUR CALENDAR-

There’s no MPC meeting this Thursday: The Central Bank of Egypt has canceled (pdf) Thursday’s regularly scheduled Monetary Policy Committee meeting after enacting a surprise 100 bps rate hike at a special meeting early yesterday morning.

Do you need to dive deeper into e-invoicing? Lynx Strategic Business Advisors are hosting a webinar on Wednesday, 23 March to discuss the system. The Arabic-language gathering will take place 12:00-1:30pm with speakers from the Finance Ministry and the Tax Authority and a panel discussion including the CFOs of PepsiCo, Talabat and Unilever. You can register for the event here.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☀️ TOMORROW’S WEATHER- Expect the mercury to rise 18°C during the day and 8°C at night tomorrow, our favorite weather app tells us.

Egypt was the 27th most-polluted country in the world last year out of 117 countries surveyed, with an annual reading of small and hazardous airborne particles known as PM2.5 standing at 29.1, according to data (pdf) compiled by IQAir, a Swiss pollution technology company that monitors air quality. The survey was meant to find how many cities met World Health Organization (WHO) air quality standards last year, mitigating both climate change and health risks to residents. The WHO recommends that average annual PM2.5 readings should not exceed 5 micrograms per cubic meter (µg/m³). New Cairo’s PM2.5 was found to be at 29.1 µg/m³ in 2021, exceeding WHO’s recommendation by 5-7 times and putting the Egyptian city in the higher range of pollution, ranking #502 out of the 6,475 cities in the report. This is also up more than 67% compared to just two years ago, with 2019’s PM2.5 reading at 18 µg/m³.

We’re not alone in falling short of WHO standards: The vast majority of cities exceeded the recommended levels, with only 3.4% of all cities surveyed meeting the WHO’s standard during the year, reports Reuters. For the air quality rankings for capital cities, India’s New Delhi took the first spot with 85 µg/m³, followed by Bangladesh’s Dhaka (78.1 µg/m³) and Chad’s N'Djamena (77.6 µg/m³). The Arab world follows not too far behind, with Oman’s Muscat coming in at #5, Bahrain’s Manama at #7, Iraq’s Baghdad at #8, Qatar’s Doha at #13, and UAE’s Abu Dhabi at #18.

Investors are amping up the pressure on green startups: After raising a record USD 45 bn last year, privately-held green startups are facing pressure from their investors to deliver on their promises, between better batteries, EVs and sustainable materials, the Wall Street Journal writes, citing investors. The funding acquired could finance the start of the transition from fossil fuels to greener alternatives — even if the startups don’t fully meet their promises to investors. Companies need to prove that their technology works, as they start to face criticism for being overvalued. But even some progress “on longstanding challenges” in energy storage or sustainable products, supported by the current influx of green investments, could prevent a repeat of the 2010 wave of bankruptcies among green startups, which then led to an investment drought.

???? ON THE TUBE TONIGHT-
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We can’t get enough of Shahid’s Menawara B Ahlaha (Welcome Home) — so much so that we might as well crown it as our favorite Arab series this year. The psychological thriller starring Laila Elwi, Ghada Adel, Bassem Samra, Ahmed El Sa'dany, Nahed Elsebai, Mohamed Hatem, and Abbas Abul Hassan, follows the investigation into a revengeful murder of a man in his apartment. With no sufficient evidence and lack of information over the identity of the man, the case is closed and filed against an unknown person. But prosecutor Adam decides to reopen the case, as he is sent photo scraps believed to be shot by the victim. The photo scraps eventually begin to tell a story, helping Adam piece information together and discover the truth, uncovering in the process a strange world with dark secrets. The series is directed by the iconic Yousry Nasrallah, and is set to be renewed for a second season, according to screenwriter Mohamed Amin Rady (the mastermind behind El Sabaa Wasaya).

⚽ We’re still on a break from football for a few days until Thursday, which will see the World Cup qualifiers in Europe and Asia. But the most exciting event for us is on Friday, when Egypt is scheduled to play against Senegal in the first leg of the decisive final stage of the African qualifiers for the World Cup held in Doha this year.

????EAT THIS TONIGHT-

It’s that time of the year when we try to change up our eating habits and opt for somewhat healthier, nutrient-rich options. That’s why we’re sticking to Maadi’s Lyfe, an eatery and juice bar, for some wholesome and freshly made food. Our favorite choice to get us through the workday: Their feta basil wrap, paired with an avo-kiwi smoothie, giving us an all-green meal. But there are plenty more options, including poke bowls (which are all the rage nowadays), including the Classic Poke and Oahu Poke, and the option of making your own. They also have pancakes, overnight oats, Greek yogurt mixes, and some vegan options to cater to everyone. It’s a 10/10 for us.

???? OUT AND ABOUT-

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Catch a rendez-vous with French culinary arts at Downtown’s French Institute in Egypt at 6:30pm, which brings together culinary art professionals to give you a full spectrum of training to potential jobs in France, one of the most prestigious markets for the field.

Are you in the mood for a unique exhibition? Pop by The Real Toys Story' exhibition by Ahmed Elfayed at Garden City’s Falak at 6pm. The exhibition is for “all the lovers of Egypt and lovers of the art of miniature models.”

Calling all lovers of The Godfather trilogy: You can still catch its theatrical re-release in 4K to mark its 50th anniversary at Zamalek Cinema’s special screening today at 7 pm. The re-release only includes the first film in the trilogy on the Corleone family (which is, in any true cinephile’s opinion, the best of the three).

???? UNDER THE LAMPLIGHT-

In keeping with the overarching news theme of war and civilians being collateral damage, we’re reading The Night Draws Near by late war correspondent and Pulitzer Prize laureate Anthony Shadid, a painful human collage on the suffering of ordinary Iraqi citizens that began with the US invasion of Iraq in 2003. Shadid uses his literary genius to illustrate how Saddam’s fall not shifted politics in Iraq and paved the way for a jihadist insurgency.

EARNINGS WATCH-

Maridive Oil and Services narrowed its losses to USD 78.07 mn in FY2021, down from USD 143.26 mn the year before, according to the company’s financials (pdf). This came as the company’s revenues fell 36% to USD 115.83 mn, compared to USD 180.53 mn in FY2020.

Arab Dairy saw its net losses widen to EGP 53.05 mn in FY2021, compared to EGP 46.74 mn during the same period last year, according to the company’s quarterly financials (pdf). The company’s revenues fell 3.5% y-o-y to EGP 1.23 bn.

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MARKET ROUNDUP-

The EGX30 rose 1.3% at today’s close on turnover of EGP 2.0 bn (52.5% above the 90-day average). Foreign investors were net sellers. The index is down 2.4% YTD.

In the green: Fawry (+5.4%), ADIB Egypt (+4.5%) and CIB (+3.1%).

In the red: Orascom Development Egypt (-7.5%), CIRA (-4.2%) and GB Auto (-3.1%).

OUR FOUNDER OF THE WEEK- Nadia Gamal El Din, founder and CEO of Rahet Bally and Mumerz (LinkedIn).

My name is Nadia Gamal El Din, and I’m the founder and CEO of Mumerz and Rahet Bally. I studied finance at the American University in Cairo, after which I started my professional career as an assistant brand manager at Procter & Gamble.

When I became a mother at the age of 24, I realized there was a huge market gap when it comes to supporting new moms. I used to be a workaholic who thought that motherhood was going to be easy [laughs]. The day I gave birth I found out how wrong I was; becoming a new mom can be really scary.

Rahet Bally was born in 2015, not long after my son. I discovered that there wasn’t a single tailored support system for new moms in Egypt. This was when I realized that this gap needs to be addressed, and that’s when Rahet Bally came to life. I started off by creating a Facebook page and asked all the doctors that came to mind to help Egyptian moms by answering their questions at no charge. Surprisingly, these busy doctors were all on board and were as enthused as I was.

As of 2022, approximately 4 mn Egyptian moms are connected to Rahet Bally’s services, which now encompass financial, physical, intellectual, and social support for Egyptian moms. We launched the Rahet Bally price reduction card to help offset the costs of essential baby items, as well as pre- and post-partum fitness and nutrition programs at several facilities in Cairo.

One of our focuses at Rahet Bally is community-building: We launched Rahet Bally’s “The Cloud” to connect mothers with one another. It’s like a hotel for moms, where mothers can rest in napping pods, conduct business in work pods, attend workshops, socialize, and join book clubs while vetted babysitters care for their children. I see moms start crying when they come in because they genuinely feel supported. To provide credible content for women, we also launched Moms Mag, the first comprehensive content platform delving into all things related to motherhood in Egypt.

We were already super diversified at Rahet Bally, so I co-founded Mumerz as an independent startup to address a different problem: To give moms an all-inclusive online shopping platform. Along with my co-founder Amir Demian, we created an e-commerce platform that has a wide range of products, the best prices in the market, swift delivery services, and a qualified advisory team made up of moms to advise our customers on the products that best fit their needs.

Rahet Bally started as a bootstrapped business with a single angel investor, and given our success and exponential growth rate, I would prefer to remain self-sufficient for the time being and will not be raising capital right now. For Mumerz, we recently raised USD 1.2 mn in a pre-seed round led by Disruptech and a mix of angel investors, and we will be raising funds in another financing round this year.

As an impact-driven entrepreneur, I was initially against taking the VC route for Rahet Bally. I was always wary about the possibility of investors affecting my decisions. I couldn’t imagine how they would commercialize what my business is doing. However, with our plans to expand into Saudi Arabia and North Africa next year, I will definitely have to consider that route.

Focusing on my entrepreneurial journey meant I had to give up my social life. I love my friends, but I never have the time to go out with them. I give half of my time to my work and the other half to my son and my family.

The best part of my job is seeing the impact of our work and hearing how we’ve changed the lives of moms for the better. The amount of prayers, hugs and love we receive is honestly overwhelming, and it means the world to me.

The worst part of the job is the stress of having to work with hundreds of people on a daily basis, which can be hectic to say the least. I have to handle tens of brands, multinationals, and agencies everyday because the workload for our B2B arm is very intensive. I also get a lot of calls from moms. If anyone reaches out to me, I always feel compelled to help them. I know I should be delegating cases, but I don’t [laughs].

The last great thing I read was The Practice by Seth Godin. The book brilliantly describes how focusing on the process, instead of the outcome, can increase your chances of changing the world. This is exactly what I do at Rahet Bally. When you focus entirely on outcomes, you will inevitably become frustrated, because things never go as planned. The book spoke to me because it validates what I am doing; it’s all about practicing the same thing every day and being confident that results will follow.

A startup that I think is inspirational is Breadfast. I love the team behind the company, their value proposition, and their customer experience. I love everything about them.

My advice for any would-be founder is to never stop believing in your vision. Whenever things get tough, remember why you started in the first place. The journey of a startup founder is not an easy one. Remembering your goal is what will help you overcome the many challenges that come with the job. Don’t worry though, would-be entrepreneurs. The founder journey is not a lonely one, if you truly believe in the problem your business is solving. My businesses are truly fulfilling, and without them I would definitely be lonely.