Houston, we’ve had a problem

Happy hump day, wonderful people. We have another relatively big news day here at home, courtesy of the government throwing out a lifeline to importers. We have our customary afternoon brief on the story below, but first:

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Take our Fall Reader Survey today and we’ll have the results for you in a couple of weeks — just in time to give you a sense of what everyone else is thinking heading into budget season.

How has 2022 been for your business? And how do you feel about what’s left of the year? Are you investing? Do you plan to hire new staff (or make cuts to your existing staff) now or in 2023? What’s the USD / EGP rate you expect to use for your 2023 budget? Where do you see your industry as a whole heading?

Let us know in our Fall Reader Survey. It won’t take more than a few minutes to complete — and we’ll be sharing the results with the entire community.

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THE BIG STORIES TODAY-

#1- The Madbouly government just announced measures to clear the logjam in Egypt’s ports: A package of emergency measures to release goods amassing at Egypt’s ports will be introduced in the “coming days”, Finance Minister Mohamed Maait said this morning.

Among the changes: Goods awaiting the Form 4 customs document will be released and customs fines for late filing have been suspended.

Fighting fire: The measures are aimed at mitigating problems caused by the new requirement for importers to use letters of credit (L/C) which have made it almost impossible for them to get most goods into the country. Speculation has risen in recent days that the Central Bank of Egypt and the government are preparing to ease the restrictions and allow importers to use documentary collection for some types of goods.

#2- Is the chase for Alex Medical entering the end game? The Financial Regulation Authority has approved (pdf) a mandatory tender offer submitted by Tawasol Holdings and LimeVest to purchase 74% of Alexandria Medical Services. The consortium yesterday offered to pay EGP 47.67 a share for the stake, a bid that values Alex Medical at EGP 742.4 mn.

^^ We’ll have more on both of these stories in tomorrow’s EnterpriseAM.

MAKING HEADLINES IN THE REGION-

Iraq, where the death toll from yesterday’s clashes has grown to at least 23. Shia cleric Moqtada Al Sadr has called on his supporters to stand down after they stormed the presidential palace on Monday, sparking clashes with security forces that left at least 23 dead and 380 injured. In response to the violence, the UAE has suspended flights to and from Baghdad today, Iran closed its land borders and Kuwait advised its citizens to evacuate the country. Protests were sparked yesterday after Al Sadr unexpectedly resigned from politics following months of deadlocked negotiations to form a government with rival Iran-backed parties. (BBC | AP | Sky News | Reuters | Khaleej Times)

THE BIG STORIES ABROAD-

#1- The Musk-Twitter soap opera continues to get clicks: Tech b’naire Elon Musk has added fresh accusations by a whistleblower on Twitter’s failure to protect user data and security problems as a new reason to terminate a USD 44 bn bid to take over the company. The latest efforts by Musk to call out Twitter saw his legal team filing another notice that includes Twitter’s former chief of security, Peiter Zatko, allegations of “egregious deficiencies” by Twitter on privacy and security issues. (Bloomberg | CNBC | Wall Street Journal).

#2- The latest from Ukraine: The conflict is back on the global front pages as Ukrainian forces mount a counteroffensive to retake the country’s southern Kherson region seized by Russian forces. (NYT | Washington Post | Financial Times)

#3- Good news / bad news on Europe’s energy crisis:

The good news: Europe is nearing its gas storage goal two months ahead of its target, despite limited Russian gas supplies and surging gas prices, Bloomberg reported, citing inventory data. Gas reserves were up to 79.94% as of 27 August, compared with a 80% target by 1 November .

The bad news: Gazprom is tightening the screws on France’s gas supplies, announcing today that it will immediately reduce deliveries to French supplier Engie due to contractual disagreements, prompting a French minister to accuse Moscow of using energy as a “weapon of war.” The Russian gas giant will tomorrow cut flows through the vital Nordstream pipeline that supplies to Germany to zero for three days for what it said was unscheduled maintenance. (Reuters | Bloomberg)

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HAPPENING NOW-

The Madbouly government is holding consultations on its privatization strategy with representatives from the food and hospitality sector. The government is holding workshops and consultations with stakeholders from different industries every Sunday, Tuesday, and Thursday on its privatization plans. You can find more details on the schedule of the meetings here.

PSA- It’s deadline day for:

• Listed companies to file their 2Q financials;
• Student applications for government non-profit universities.

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

• Maait looks to shift the economic narrative with media blitz: Egypt plans to issue CNY-denominated bonds worth more than USD 500 mn and has updated some fiscal targets for FY 2022-2023, Finance Minister Mohamed Maait said at a presser yesterday.
• Chinese firms could be looking to build a massive solar panel parts factory: There’s talk of Chinese players coming on board to build a major industrial complex for manufacturing solar-panel components.
• Solar energy company KarmSolar will sell a minority stake to investors via a capital increase as it looks to expand its presence in Egypt and across the region.

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???? CIRCLE YOUR CALENDAR-

The Africa Women Innovation and Entrepreneurship Forum (AWEIF) is taking place in Cairo for the first time on 26-27 September, according to a press release (pdf). The hybrid event will bring together more than 60 African and global policy and business experts to discuss how gender integration can boost SME growth.

The Arab Pensions and Social Ins. Conference takes place on 28-29 September in Sharm El Sheikh. The conference will bring together state-run social ins. organizations and public and private pension providers to discuss widening coverage through region-wide pension reform.

PSA #2- Exporters have until 15 September to apply to join the fifth phase of FinMin’s export subsidy program, according to a statement. Cabinet has given its approval to pay a total EGP 10 bn out to exporters, with payments to be made on 1 October and 1 December. The program allows exporters to receive overdue subsidies in a single payment rather than in installments over four to five years, in return for a haircut.

Ration card holders now have until 30 September to register their mobile numbers to their cards, in a move meant to make it easier for the Supply Ministry to contact them, the ministry said in a statement yesterday.

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 a daytime high of 39°C tomorrow and a nighttime low of 24°C, according to our favorite weather app.

Why is NASA going to the moon again? NASA’s Artemis I rocket launch, which was scheduled for yesterday, as we noted this morning, was canceled due to a technical issue in one of the rocket’s four engines, the Wall Street Journal writes. A second launch will be attempted on Friday. But what would prompt the space agency to spend close to USD 100 bn for another moon landing? Certainly not a mere bout of nostalgia. Renewed interest in the moon is primarily due to the discovery of frozen water in several impact craters on its surface. But that is not all as the New York Times previously reported.

There are several reasons for a second moon landing: “The moon is in some sense a Rosetta Stone,” David A. Kring of the Lunar and Planetary Institute said. Its desolate conditions preserve rocks perfectly and allow us to peer through hundreds of mns of years and deepen our knowledge of our solar system. On another level, Artemis I could be perfect practice to expand human spaceflight ambitions: Through space to further planets like Mars, but also towards a greater inclusion of women and people of color on these missions. Political motivations are also key as China hopes to install a lunar base in the 2030s, the pressure to compete rises in the US. Ultimately, however, this all points in one direction as NASA administrator Bill Nelson put it: “We explore because that’s part of our nature.”

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Eleven unpublished letters penned by Charles Dickens will be displayed for the first time in his museum. The letters were acquired in 2020 by the Charles Dickens Museum and are part of a larger collection of 300 items including books, sketches and personal items, the BBC writes. The letters are particularly fascinating because they offer us a glimpse into Dickens’ mind from his 30s to his 50s.

Museum curator Emily Dunbar argues that some of the author’s personal writing demonstrates his awareness of his great fame and self-importance. Dunbar specifically refers to a letter Dickens wrote in February of 1866. In this missive, the Oliver Twist author objects to the interruption of his epistolary endeavors due to a Sunday postal service cancellation and feels “so hampered by the proposed restriction that I think it would force me to sell my property here.”

???? ON THE TUBE TONIGHT-
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Netflix’s new South African title Ludik is highly entertaining: The Afrikaan series centers on Daan Ludik, a businessman from humble beginnings who has built a furniture empire. We quickly learn that the CEO and family man also leads a secret business smuggling diamonds. Daan’s life soon starts to spiral out of control when a member of his family gets kidnapped — and that’s when the action kicks off. With just six episodes, you can expect an intense, fast-paced story with plenty of thrills. There are distant echoes of David Chase’s masterpiece The Sopranos — though Ludix isn’t quite as complex. But what it may be lacking in intricacy and depth, it more than makes up for in terms of entertainment. The characters are relatable, the actors are excellent, and the cinematography is fantastic (watch trailer, runtime: 2:14).

⚽ We’ve reached the end of a long Egyptian Premier League season: It has been quite a stressful season for the players, the coaching teams, and for us as local football fans. Alas, the season is finally coming to an end tonight.

We already know who made it to the top, and who’s at the very bottom of the league: Zamalek (77 points), Pyramids (71 points) and Al Ahly (67 points) have taken the first three spots, relegation has been confirmed for Eastern Company (30 points) and Misr Lel Makasa (15 points). However, the fight against relegation is still going strong between three teams: El Mokawloon (35 points), Ghazl El Mahalla (35 points) and El Gouna (33 points).

Today’s matches: At 4:30pm: Al-Ahly v Ceramica Cleopatra, Ahli Bank v Enppi, Smouha v Farco. At 6:30pm: Ismaily v Tala’ei El-Geish. At 9:30 pm: Zamalek v Eastern Company, Pyramids v El Gouna, Ghazl El Mahalla v Al Ittihad, El Mokawloon v El Masry.

Over in the UK, Gameweek 5 of the English Premier League kicks off today. At 8:30pm, Crystal Palace will play against Brentford, and Fulham will play against Brighton.

At 8:45pm, Southampton v Chelsea kicks off, and at 9pm, Leeds will face Everton.

Meanwhile in Italy, the top teams have important games in Serie A today: Milan will face Sassuolo at 6:30pm, while two matches will start at 8:45pm: Inter v Cremonese, and Roma v Monza.

???? EAT THIS TONIGHT-

Treat yourself to a scrumptious experience at Bocca’s new venue: The social house and eatery has been on our list of go-to spots for years, and its newest branch in Sheikh Zayed’s Park Street did not disappoint. The chic ambiance in both its indoor and outdoor areas added to an already pleasant experience. Their diverse menu boasts a mix of oriental and international cuisine, including some of our long-standing favorites, such as their delectable Steak and Fries and the excellent Bocca Burger. Their portions are quite generous as well, so make sure you’re adequately hungry (or have someone to share your food with) before you order. And you must leave room for dessert — you don’t want to miss their Pizzokie. Along with its newest spot in Zayed, Bocca has branches in Mohandeseen and Waterway 2.

???? OUT AND ABOUT-
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Tuesdays are the new Fridays at Cairo Jazz Club’s TMP: Dance like it’s the weekend at CJC’s Tuesday Midweek party, with DJunkie spinning the tracks on deck.

The last days of the Cairo Opera House’s annual Citadel Music Festival are upon us, with performances by singer Norhan Abou Taleb and Mohamed Mohsen scheduled for tonight. The festival will close with a bang tomorrow with iconic musician Omar Khairat taking the stage along with the Cairo Opera Orchestra.

???? UNDER THE LAMPLIGHT-

The Riviera House is a captivating true story of one woman’s efforts to prevent the Nazis from stealing precious artwork during World War II. There are two main characters in this intriguing tale: Éliane Dufort, a young woman who uses her resilience and knowledge of art to survive the war, and Remy Lang, a vintage fashion entrepreneur who — while seeking solace to grieve the unexpected death of her husband and daughter — discovers the truth about her bloodline. The Riviera House is a well-written, vivid story with likable characters. This poignant epic by author Natasha Lester is about life, loss, secrets, surprises, heartache, and survival. If you enjoy thoroughly researched WWII time-travel tales (with a dash of romance), we highly recommend you pick this up.

The EGX30 rose 0.1% at today’s close on turnover of EGP 1.39 bn (38.6% above the 90-day average). Foreign investors were net sellers. The index is down 15.2% YTD.

In the green: GB Auto (+6.2%), Palm Hills Development (+3.7%) and Abou Kir Fertilizers (+2.7%).

In the red: Oriental Weavers (-3.2%), E-Finance (-2.5%) and Elswedy Electric (-1.8%).

OUR FOUNDER OF THE WEEK- Every Tuesday, Founder of the Week looks at how a successful member of Egypt’s startup community got their big break, asks about their experiences running a business, and gets their advice for budding entrepreneurs. Speaking to us this week is Sherif Aziz (LinkedIn), co-founder and chief business officer of SubsBase.

My name is Sherif Aziz, and I’m the co-founder and chief business officer of SubsBase.

Prior to founding SubsBase I worked in sales roles for around five years at Microsoft during the early days of the cloud’s launch in Africa. I then took a job for a year in Backbase, a fintech company based in Amsterdam that works with some of the largest banks in the world to digitize their user experience. When I moved back to Egypt I rejoined Microsoft and worked on launching their startups initiative for a while before joining RiseUp as chief commercial innovation officer.

Witnessing the development of the entrepreneurship ecosystem in Egypt during my time at RiseUp drove me to start my own business. My co-founder reached out looking for a co-founder. It was a SaaS business, something I was very familiar with, so I jumped at the opportunity. We found that no subscription management platform existed in the region and we began working on SubsBase together.

I had to give up steady income to build my own business. Like most entrepreneurs, I spent a year without any salary, but that's the price you pay. I don't think I will be able to go back to working in a corporation even though it's more financially stable. At the end of the day I see value in what I’m doing and that’s what matters.

SubsBase works with any recurring revenue company. Those include SaaS companies, lenders, ins. companies and real estate companies, because installments, ins. payments, and mortgages are all types of recurring payments. We have quite a few startups as clients but our focus at the moment is more on enterprises. We’re talking to e-commerce players that are building subscription boxes or building meal-planning services or that are shifting their advertising plans from single payment to subscriptions and bundles.

There are huge overheads involved in subscription-based models. Companies have to develop the tech, create the right pricing plans, and then from there they have to automate the payments, collect these payments and then make sure all of that's reflected in their accounting system and do all of the invoicing. We jump in and automate the whole process for them and ensure that they’ll be able to scale the model if they expand to different markets or add new lines of business.

We’re developing an advisory part of the business that aims to help businesses transition to subscription based business models. We're seeing a lot of companies making that transition because it’s being viewed as a more sustainable model. We view ourselves as catalysts for that change. Through the knowledge that we have we can become a thought leader in the market and can speed up these companies’ growth. We're working on educational podcasts that teach people in the market about subscriptions. We’re also working on building a content library on all things related to subscriptions on our website.

We recently set our objective and key results and we are very keen on building our KPIs. We have two main objectives as a company, one is impacting innovation and second is resilient growth. These are two very important things for us. We need to be constantly innovating whether on the product level or on how we sell, how we onboard our customers, and things like that but we also need to do it in a resilient, maintaining profitability and growth.

SubsBase recently raised USD 2.4 mn in a seed round led by Global Ventures. HALA Ventures, P1 Ventures, Plus Venture Capital (+VC), Plug and Play, Ingressive Capital, Camel Ventures, and existing investors Falak Startups and Arzan Venture Capital also participated in the round.

If I had only enough money to do one thing, I would spend it on customer acquisition. We already have a very stable product, and now we're just working on adding more features. So if I had to focus on only one thing it would be on acquiring more customers, whether that would entail growing the sales team or investing more on the branding and marketing side to recruit more customers. The additional profit made from the new influx of customers could then go towards innovating the product.

Experienced founding teams are the local startup scene’s biggest strength. Earlier on when the ecosystem was first developing in Egypt it was predominantly made up of young entrepreneurs, straight out of school trying to build businesses. But now I'm seeing more and more experienced people with very strong backgrounds and track records building amazing companies as well as entrepreneurs who made exits and are now working on something new.

Brantu is one startup that I think is killing it. I like how they pivoted into the production as a service (PaaS) model. They’re building great technologist fashion. I also admire KERB, a global parking app based in Jordan that allows you to rent your parking space to other people looking to park their vehicles or bikes. I think they're doing a great job and they’re building something massive there.

I play a lot of tennis in my spare time: I usually play every morning. I also enjoy watching shows, definitely prefer it to listening to podcasts, since I’m more visual. I watch two types of shows. I watch comedy shows like Brooklyn Nine-Nine, when I want to lay back and not think about work at all and those are great because they do not require me to focus at all. I also watch more intense shows like Suits that can be very interesting and entertaining. I recently watched WeCrashed on Apple TV+ and found it very interesting.