PM — El Whats back up after a global outage

Happy hump day, wonderful people, and what a news dump day it is. There’s a little bit of everything happening this afternoon on the local and international front, making for an altogether interesting news cycle.

BUT FIRST- WhatsApp is back up after a global outage that lasted more than an hour, preventing many of us from sending or receiving messages, and forcing us to make phone calls and speak to humans.“We’ve fixed the issue and apologize for any inconvenience,” a spokeswoman for the messaging service told the Wall Street Journal, without saying what caused the outage.

THE BIG STORIES TODAY

#1- Upmarket real estate developer SODIC submitted a preliminary EGP 2.46 bn non-binding offer to acquire 100% of Orascom for Real Estate (ORE) — a subsidiary of Orascom Development Egypt (ODE), according to a disclosure to the bourse (pdf). ODE granted SODIC exclusivity to kick off the due diligence process. ODE is currently considering the offer, sources in the know told Enterprise, but declined to comment further. Our friends at EFG Hermes are the sole sell-side financial advisor on the transaction.

#2- The state ownership policy document will be finalized within weeks, before heading to the cabinet to be reviewed for final approval, Prime Minister Moustafa Madbouly said during the final day of the Egypt Economic Conference 2022. The document, which was being discussed yesterday, was expected to be unveiled during the conference.

THE BIG STORY ABROAD

Rishi Sunak’s appointment as the UK’s new prime minister is leading the conversation in the international business press this afternoon. The former hedge fund manager and UK chancellor takes over the position from Liz Truss, whose economic policy “mistakes” he vowed to fix in a speech today. The GBP rallied on Sunak’s appointment, rising 0.4% against the USD, while gilt yields continued to fall. The story is on the front pages of the Financial Times, the Wall Street Journal, Reuters, and CNBC.

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

• Day two of the Egypt Economic Conference 2022 saw discussions on all things privatization and industry, from the state ownership policy document, to financing avenues for the private sector, and the Sovereign Fund of Egypt’s role in boosting private sector involvement.
• PIF now owns a slice of EIPICO: Saudi Arabia’s sovereign wealth fund is strengthening its position in Egypt’s pharma sector, acquiring a 4.7% stake in EGX-listed Egyptian Pharma Company.
• We could see more private sector players taking to the nation’s rivers after the House gave preliminary approval to amendments modernizing a 1956 law regulating river transport.

FOR TOMORROW-

Egypt and the UAE will host a three-day gathering starting tomorrow to mark 50 years of bilateral ties. Day one is an economic forum featuring ministers, senior officials and business leaders from the two countries.

Enroot Development is hosting a conference titled Empowering the South: Green Economies and Climate Resilience tomorrow at the Greek Campus. Speakers at the conference include former deputy prime minister Ziad Bahaa El Din, UN High-level Climate Champion for Egypt Mahmoud Mohieldin, and International Cooperation Minister Rania Al Mashat. You can register for the event here.

???? CIRCLE YOUR CALENDAR-

An IMF delegation will land in Cairo in the first week of November to continue loan talks, Jihad Azour, the IMF’s director for the Middle East and Central Asia, said earlier this week.

Cairo ICT kicks off on Sunday 27 November at the Egypt International Exhibition Center. The expo wraps up Wednesday, 30 November. You can register 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- Today’s rains will give way to a sunnier day — albeit with intermittent cloudiness — tomorrow in the capital city. The daytime high will be 27°C and the nighttime low will be 19°C, our favorite weather app says.

Want to boost your happiness? Strike up a conversation with a stranger: Casual acquaintances — or “weak ties” — can have a big impact on our happiness, according to a recent study from Harvard University. Coined by US sociologist Mark Granovetter almost 50 years ago, the term “weak ties” refers to people you are loosely affiliated with like high school buddies, people you exchange small talk with, or maybe just quick nods. The study assessing the social networks of 50k people from eight different countries found that people who had more diversity in their social interactions, including “weak ties,” were happier and more satisfied with their lives.

Debunking the “quality, not quantity” adage: The research shows different types of social relationships — family, significant others, work colleagues, friends — serve different kinds of social support, so this diversity in social networks may give individuals greater access to different types of social support and enhance overall well-being. Researchers suggest it's actually the variety of people in your social network that matters more to your well being than how long you spend with them, so the next time you're feeling low, start chatting with that vaguely familiar-looking person you once shared an eye-roll with for a pick-me-up.

Adidas take a EUR 250 mn loss by canceling Ye: The German sportswear brand has severed ties with Kanye West over a barrage of antisemitic remarks made by the popular rapper in recent weeks, according to a company statement. The termination of the partnership will bring an end to West’s Yeezy branded products and all payments to the rapper-turned-fashion mogul and his companies. Yeezy branded sneakers generated some USD 1.47 bn in annual sales for Adidas, accounting for a little over 7% of the company’s overall revenue, Reuters reports, citing estimates from Telsey Advisory Group. The move is expected to deliver a EUR 250 mn hit to the sportswear giant’s net income in 2022, the statement says.

A slew of splits: Adidas joins a host of companies breaking up with Ye, after US retailer the Gap and fashion house Balenciaga dumped the controversial artist. CAA, one of Hollywood’s largest agencies, said it severed ties with West earlier this month, LA Times reports citing a person familiar with the matter.

Playing video games may be beneficial for neurocognitive performance: Recent study shows that video games might have a positive impact on the brain in terms of cognitive performance. Using data from over 2k children aged 9-10 involved in the Adolescent Brain Cognitive Development study, scientists found that video gamers who played at least 21 hours per week showed higher neurocognitive performance compared to non-gamers. They also exhibited “better cognitive performance in response inhibition, working memory, and an altered bold signal in key regions of the cortex responsible for visual, attention, and memory processing.” While scientists still encourage parents to prevent their kids from spending too much time playing video games, they also suggest more investigation is needed to confirm the cognitive benefits, Bloomberg reports.

???? ON THE TUBE TONIGHT-
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Acapulco is the feel-good binge series needed: The bilingual Apple TV+ series takes viewers on a vacation to 1980s Mexico with all its vibrant energy. The narrative opens on Malibu b’naire Maximo in present-day reminiscing as he hosts nephew Hugo for his birthday. While he now lives the good life, he was not always so lucky. Instead of lavish gifts this year, he’s decided to pass on his life lessons onto Hugo through flashbacks and anecdotes. Even though the show doesn't offer anything particularly innovative, it delivers on cheerful, optimistic vibes. Our verdict: This is a lighthearted series offering some escapism after a long exhausting workday (watch trailer, runtime 2:03).

⚽ In the Champions League tonight: Real Madrid is out for a victory or a draw in their away match against Leipzig to clinch an easy qualification before the penultimate round. The match kicks off at 9pm, the same time as Borussia Dortmund’s match against Manchester City. Pep Guardiola’s lads have officially qualified, while the German team needs three points to qualify.

The remaining Champions League matches are as follows:

Paris Saint-Germain v Maccabi Haifa (9pm)

Benfica v Juventus (9pm)

Dinamo Zagreb v Milan (9pm)

Salzburg v Chelsea (6:45pm)

Sevilla v FC Copenhagen (6:45pm)

Celtic v Shakhtar Donetsk (9pm)

In the Egyptian Premier League, Smouha will kick off against Al Ahly Bank at 5pm, while Talaea El Gaish will face Enppi at 7pm.

???? EAT THIS TONIGHT-

If you're seeking a handcrafted sandwich, look no further than Leaven: The artisan bakery, located in the heart of Maadi, specializes in sourdough bread created with high-quality smoked cold cuts, sauces — and attention to detail. The smoked turkey sandwich is our favorite, and the special cheese toastie’s crunchy bread and gooey cheese is also a hit. The cinnamon swirl is a must-try if you're craving something sweet, and you can’t go wrong with their brownies. An assorted and varied bakery selection makes it a go-to spot for all your bread, pastries and sweets. Another big plus: Leaven's service is courteous and helpful, and the outdoor seating is a fantastic spot for a leisurely snack and catching up with friends.

???? OUT AND ABOUT-
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Laugh your worries away with Squadra at CJC 610’s stage tonight: Head there at 9pm to enjoy seven Egyptian stand-up comedians and a variety of comedic deliveries.

It’s a Halloween swing dancing night at Consoleya at 8pm: Whether you're a seasoned dancer or just getting started, this special Halloween edition promises to be loads of fun with plenty of spooky costumes to admire — don’t forget to wear yourself.

???? UNDER THE LAMPLIGHT-

Poetical escapism in Field of No Justice: Egyptian poet Sara El Kamel’s debut collection of poems is a masterful engagement of myth and metaphor. Published as part of a limited-edition box set called Nane: New-Generation African Poets, El Kamel’s poetry brings to mind an inviting world of timeless fantasy that offers solace in its beauty, comfort, and honesty. The poems are musical in their delivery, and a character-driven narrative makes each poem an emotional experience offering insights into the human experience. While each poem can be read and savored individually, we recommend going through them in order. Presented in an arc form, the poems begin with themes about origins and self-discovery of gender then move onto themes of political resistance, ending with poems that examine how the personal and political are connected.

The EGX30 rose 1.49% at today’s close on turnover of EGP 992.5 mn (2.8% below the 90-day average). Local investors were net sellers. The index is down 12.34% YTD.

In the green: Orascom Construction (+5.6%), CIB (+5.1%) and Madinet Nasr for Housing and Development (+4.2%).

In the red: e-Finance (-2.1%), Alexandria Containers and Cargo Handling (-1.3%) and Eastern Company (-1.3%).

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 Omar Ebeid (LinkedIn), founder and CEO of e-payments, loyalty and data analytics startup ZealPay.

My name is Omar Ebeid and I am the founder of ZealPay. I studied mechanical engineering at the University of Surrey, and have been coached by some of the world’s top businessmen and life coaches from a young age. I am especially grateful for my experience with Alex Hall, one of the UK’s top entrepreneurs. I’ve been highly influenced by him, learning entrepreneurship first-hand as his PA and business development executive.

My first take at entrepreneurship was a real estate company to attract investors to Hull, the UK’s city of culture at the time, while promising capital growth and higher-than-usual ROIs. Alex and I turned the project into student housing, attracting international investment and contributing to the growth of Hull’s economy.

I launched Zeal in 2019 to bring mobile payments with integrated loyalty to the Egyptian market.

I first came up with the idea when I was in London buying juice, and the cashier asked me for a loyalty card. I told her I hate loyalty cards because I always lose them. Then she showed me the Yoyo Wallet, which is basically a loyalty card on an app. I was intrigued to look more into the company to evaluate if the business model could work in Egypt. I met the founder, who suggested I bring Yoyo Wallet to Egypt, but I was more interested in starting my own business. We parted ways but it was only the beginning of our journey together: He is now one of Zeal’s investors.

The biggest challenge I faced when starting out was my inexperience. I had no idea what it takes to start your own business and I lacked the necessary resources. But I persevered, studied extensively to educate myself, and learned from others who had been in similar situations.

The best part about my job is the opportunity to meet interesting and innovative people. When you meet these successful figures and realize that they are humans just like you and me, you begin to believe in yourself and your ability to achieve more. Also, once you believe that you are developing something not to generate money, but to have an impact on the world, no one will be able to persuade you out of it. That is when I realized that work no longer felt like work. I enjoy it so much that I don’t mind sitting and working on weekends.

The worst part about my job is the impact on mental health. When you treat your investors’ money as if it were your own, I believe it takes a significant toll on your mental health. Investors believed in me enough to put money into my startup when they could have put it somewhere else with ROI. Knowing they opted to invest in Zeal is a huge responsibility.

If I were to give one piece of advice to emerging entrepreneurs, it would be to find two to three mentors that you can really trust. The reason I say two to three is to ensure that you always have access to skilled people who can help you validate your decisions and fill in the gaps. One could be your financial counselor, while the others can assist you with tech issues or even your mental health. I've benefited greatly from being coached by Alex in the past, and now being mentored by Yoyo Wallet helps a great deal.

Zeal just had a major pivot. We’ve created a new software that integrates with card machines worldwide. When you pay with a credit card, we provide merchants with data analytics, allowing them to follow and retain customers with specialized bundles and offers. Every transaction you make with your card is automatically mirrored on Zeal. You download the app to track your spending, while merchants gain a better understanding of their customers to offer more personalized solutions. In a nutshell, we are providing physical retailers with access to the benefits of e-commerce.

Zeal recently signed with the leading payment acquirer in the Middle East, and the largest US terminal manufacturer in the world. We will be announcing this partnership very soon. The startup has also raised USD 1.5 mn so far. My family and I invested, as did Saudi Arabian angel investors.

Zeal’s goals include partnering with as many payment acquirers and banks as possible in order to give retailers the power of e-commerce, and to expand in Europe, Latin America, Africa, and Southeast Asia. We recently got accepted into Barclays Eagle Labs, and London Funding House, which will facilitate our entry into the London market.

The three most important KPIs I look at on a daily basis are the number of transactions processed; the total processed volume; and tracking customers’ purchases.

If I had to exit Zeal I would do it through a large acquisition or an IPO, and I would definitely want to stay on as an employee or an advisor. I would still have pursued entrepreneurship if I hadn’t had Zeal. I have a notebook of other ideas.

The last thing I read is Crossing the Chasm by Geoffrey Moore and I recently started watching Friends for the first time ever.

US entrepreneur Jim Rohn inspired me a lot. I enjoy how he approached life and business, and I regularly listen to his audiobooks. The podcast How I Built This with Guy Raz also inspires me. He interviews top entrepreneurs, game-changers, and innovators. I start picturing myself there and it inspires me to keep working so that one day I can be a guest on the show.

I believe startups that are killing it are UniPal, founded by Ali Alalawi in Bahrain, and Merky founded by Ahmad Nabih in Egypt.

If I had money to improve one thing it would be to hire more people. With our goals and strategy, I believe the most important thing we need to do at the moment is to expand our team and onboard people of the right caliber in order to handle the influx of work.