PM — Financial inclusion for >50% of Egyptians

Good afternoon, wonderful people. The very busy week we anticipated this morning has yet to materialize — but it’s only Sunday.

THE BIG STORY TODAY

The CBE’s financial inclusion drive, in numbers: Egypt’s financial inclusion rate — the percentage of citizens above the age of 16 with “transactional” bank accounts — has grown 131% between 2016 and 2022, according to a Central Bank of Egypt report (pdf) published today. There are now nearly 40 mn adults in Egypt who are banked, the report says.

THE BIG STORY ABROAD

Leading the conversation in the international business press this afternoon: Protests in Shanghai against China’s strict covid-19 rules. Demonstrations broke out in the country’s financial hub overnight after hundreds of people attended vigils for 10 people who died in a high-rise building fire on Thursday. Social media users have suggested that the people were unable to flee from the building in time because it was partially locked down — a claim authorities have denied. The story is on the front pages of Reuters, the Wall Street Journal, and the Financial Times.

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

• Why GSK’s Mohamed El Dababy thinks exports and FDI are the way forward: After reading our five-step recipe for turning Egypt into a global export hub and FDI magnet, participating CEOs — including GSK General Manager Mohamed El Dababy — agreed to answer two questions on the record.
• Qatar’s sovereign fund wants the port of Safaga: The Qatar Investment Authority (QIA) is reportedly in talks with the Madbouly government to develop and manage the port of Safaga under a 25-year contract.
• Israel’s NewMed plans floating LNG expansion: Israel’s NewMed will likely build a floating liquefied natural gas (LNG) terminal to boost energy exports to Europe from its Leviathan gas field in Israel, instead of a pipeline that links Israeli fields to Egypt’s LNG terminals.

We’re in the countdown stage for the Enterprise Climate X Forum with just nine days to go before we meet with some of you in Cairo at the Grand Egyptian Museum on Tuesday, 6 December 2022. Invitations are out, and judging by the emails we’ve gotten, it sounds like some of you’re as excited as we are.

*** YOU MUST REGISTER TO ATTEND by clicking the link on your registration email. Attendance is by invitation only and your invite is personalized. You will require a special QR code to gain access to the GEM on event day — we’ll be sending them out at the end of the week.

Have you not received an invitation? If you’re a C-suite exec, business owner, climate professional, DFI staff, investor, or senior banker, please email us at climatexrsvp@enterprisemea.com to signal your interest, letting us know your name, title, and where you work. You can learn more on our conference website here.

The agenda: We get underway with a networking breakfast at 8am CLT. Then we jump right in with live interviews and panels made up of CEOs, execs, bankers, and development finance folks, who will mull over a variety of topics, including:

• Is there truly a business case for green hydrogen in Egypt?
• What policies, regulation and legislation should the government be looking at to drive investment in the green economy?
• Practical advice from industry insiders on how to get your climate-focused business started.
• How do we finance our green transition?
• How startups and VCs are embracing the green economy.

*** It’s Inside Industry day — your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

In today’s issue: We look at Green Star, the recently-announced government program laying out guidelines for companies that will favor low-carbon products for government purchases. The program will be offering a number of incentives to businesses compliant with the new environmental standards.

???? CIRCLE YOUR CALENDAR-

Payment and fintech conference Pafix will be held as part of Cairo ICT 2022 from today until Wednesday at the Egypt International Exhibition Centre in New Cairo.

The US and Russia will hold nuclear talks in Cairo this week: Washington and Moscow will discuss resuming mutual nuclear inspections during week-long talks from Tuesday, 29 November through to 6 December, Russian Deputy Foreign Minister Sergei Ryabkov said, according to CNN.

PSA- The deadline to apply for the Chicago Booth Executive Program in El Gouna has been pushed one week to next Sunday, 4 December. The two-week program, which kicks off in March 2023, offers executives from Egyptian public and private sector the skills to help them “become a better leader for your organization and support Egypt’s growth in the years ahead.” You can find more information here.

☀️TOMORROW’S WEATHER- Expect a partially cloudy day tomorrow with temperatures expected to hit 23°C during the day before falling to 13°C at night, our favorite weather app tells us.

Why the collapse of crypto hasn’t really tainted the world’s economy: Crypto, which was once valued at around USD 3 tn, has lost 72% of its value y-o-y, with little to no impact on the traditional financial sector, according to Wall Street Journal’s chief economics commentator Greg Ip. Because the asset class isn’t linked to the rest of the financial world, its issues haven’t spilled over. Things could have turned out differently if the crash were to take place in a couple of years, given the increasing pressure on regulators and banks to accept crypto into the traditional financial world.

The crypto space is “largely circular,” meaning when crypto platforms get money from their investors, they use the funds to trade and finance themselves. They barely interact with businesses that benefit the real economy, according to economists. Unlike government bonds, mortgages, commercial loans, and even derivatives, cryptocurrency had no practical application and thus provided little incentive for traditional finance to connect to it. Because of its lack of regulation and overall volatile nature, regulators and institutional investors were already wary of crypto, while mainstream investors such as Warren Buffett avoided it entirely. This would have changed over time, but not because crypto became useful, writes Ip. It would have changed due to the amount of money it generated for speculators and the ecosystem that supported them.

From Face ID to drug-administering mini robots: The US’ Bionaut Labs has employed the team behind Apple’s Face ID to develop remote-controlled small robots to deliver meds into the brain to target difficult-to-treat diseases, the Financial Times reports. The company secured USD 43.2 mn in a second funding round, led by Khosla Ventures, to finance the first clinical trials to prove the robots' safety and effectiveness. Israel’s Deep Insight and Canada’s Sixty Degree Capital, were among the seven new investors that joined the round. Bionaut Labs is beginning trials to administer drugs to treat a form of brain tumor and Dandy-Walker Syndrome, a rare pediatric neurological illness, in which the robot will poke a hole in a cyst. Biopsies taken by the robots could also be used to diagnose diseases. The company ultimately wants to tackle more difficult and common diseases including Parkinson’s, Huntington's, Alzheimer's, and strokes.

???? ON THE TUBE TONIGHT-
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Hope floats in The Swimmers: The Syrian Mardini sisters’ true-life story is so extraordinary that it should come as no surprise that director Sally El Hosaini made a film about them. Sara and Yusra Mardini fled their war-torn hometown of Damascus by boat in 2015 in search of a better life in Germany (along with their aspiring DJ cousin — played by Egypt’s talented Ahmed Malek). The sisters have a strong relationship, and they both love swimming, with Yusra being especially gifted and competitive, hoping to qualify for the then-upcoming Olympic Games in Rio. After a perilous journey, they arrive in Germany, where they meet coach Sven (Matthias Schweighöfer), who thinks Yusra’s dream just might come true. With a running time of nearly 2.5 hours, this is a long film that may require two sittings to get through, but it’s hard not to be inspired by this true story, especially as Sia’s pop-powered ballads rage on in the background. The movie is available to watch on Netflix (watch trailer, runtime 2:25).

⚽We’re halfway through day eight of the World Cup, and the matches keep getting more interesting. Costa Rica — which lost to Spain 7-0 last week — beat Japan today 1-0.

Currently on the pitch: Belgium and Morocco kicked off their match a few minutes before we hit “send” on this afternoon’s edition.

Later tonight: Croatia meets Canada at 6pm, and Spain v Germany is scheduled for 9pm.

JOIN US FOR OUR ENTERPRISE FANTASY WORLD CUP LEAGUE. Sign up with the code SZJ507VP to compete against other members of the Enterprise community. The top finisher will take home something special from us.

GROUP E-

GROUP F-

☕EAT / DRINK THIS TONIGHT-

Start your day on the right note with a freshly brewed cup of coffee and a yummy sandwich from Toasted. The Sheikh Zayed eatery kept its concept basic, giving you a taste of the good ol’ days and proving that less is more when it comes to choosing sandwich ingredients. We enjoyed the delicious basics, from grilled cheese to roast beef and spicy tuna — all of which appeal to picky eaters. Toasted also offers a variety of salad options for folks who don’t eat bread, and a selection of dessert toasts for those with a sweet tooth. We’re especially fond of the lotus delight toast, hugged between special buttered toast slices, and topped with a scoop of vanilla ice cream, salted caramel goodness, and walnuts.

???? OUT AND ABOUT-
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Don’t miss Irtigalia, a live improv and interactive comedy theater performance, tonight at 9pm at Room Art Space New Cairo.

Head to ZED Park’s Winter Festival for rides, activities and live performances. You can get your tickets online beforehand to skip the queues.

???? UNDER THE LAMPLIGHT-

Are you a parent trying to raise your child to be a confident decision-maker? Sincerely, Me is the journal to give to your kids. Amina Diab, an Egyptian psychologist specializing in therapy for kids, teens, and parents, began experiencing power struggles with her child, who reached an age of stubbornness and “refuses to listen” to her advice. Given Diab’s professional experience with teens and understanding their mental health, she quickly realized the importance of giving him his space. Her search for a tool to help him make decisions on his own was fruitless, leading her to publish a book for youngsters to read themselves in a bid to help parents going through the all-too-common struggle. It serves as a guide — with everything a parent wishes to teach their children, just without the parent’s lecturing — to gain confidence, learn positive self-talk, and grasp the fundamental tools to overcome challenges.

The EGX30 rose 1.8% at today’s close on turnover of EGP 1.93 bn (36.2% above the 90-day average). Regional investors were net sellers. The index is up 8.9% YTD.

In the green: AMOC (+9.3%), Ibnsina Pharma (+7.8%) and Alexandria Containers and Cargo Handling (+7.4%).

In the red: Credit Agricole (-1.1%), GB Auto (-0.8%) and Fawry (-0.8%).