PM — All things automotive

Happy hump day, ladies and gentlemen. It’s shaping up to be a legislation-heavy news day, as the House of Representatives pushes through a handful of closely-watched bills.

THE BIG STORY TODAY

House greenlights all things automotive: The House of Representatives’ general assembly gave final approval today to two separate bills: One that will see the establishment of the Supreme Council for Vehicle Manufacturing and a new EV finance fund in a bid to localize the automotive industry and another that will allow expat Egyptians to import cars and get customs and fees drawbacks. The Finance Ministry is expected to publish a detailed list of the customs and required FX deposit sizes for different car models within two weeks of the law being published in the Official Gazette.

^^We’ll have more details on this and other stories in tomorrow’s edition of EnterpriseAM.

The THE BIG STORY ABROAD

It’s a relatively mixed bag in the international business press this afternoon. Among the stories getting front-page ink: Goldman Sachs is revamping the structure of its business units, consolidating its trading and investment banking divisions as the bank reported a 43% y-o-y drop in its bottomline, the Financial Times reports. Elsewhere, UK Prime Minister Liz Truss’ ill-timed economic policy plans are officially dead and are now being replaced by “eye-watering” spending cuts, Reuters and CNBC report.

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

• We have a once-a-century chance to build an export-led economy that makes us a magnet for FDI. We’ve spoken with some of the smartest people we know in the private sector, and they all agree that it’s not only possible — the recipe is simple.
• Maait hits the airwaves: The announcement on our assistance loan from the IMF will come “quickly,” Finance Minister Mohamed Maait said yesterday, stressing that the most important outcome is the message the agreement will send to the world — that Egypt is working on economic reforms supported by the IMF.
• Investors see 14% deval ahead of IMF agreement: Three-month non-deliverable forwards on the EGP — i.e., where investors think the currency could end up in three months’ time — slipped to EGP 22.90 against the greenback on Monday

???? CIRCLE YOUR CALENDAR-

The Suez Canal Economic Zone (SCZone) will launch a promotional campaign ahead of COP27 on potential investments in the zone next week, SCZone head Walid Gamal El Din said, according to a statement. The campaign will be launched domestically next Sunday, 23 October, before the international campaign kicks off on Monday, 24 October.

The Madbouly government’s economic conference takes place Sunday-Tuesday next week. You can find the agenda for the conference here.

Egypt and the UAE will host a two-day conference marking 50 years of bilateral ties. The gathering will take place next Wednesday-Friday, 26-28 October and is being produced in association with the two governments.

☀️ TOMORROW’S WEATHER- Expect temperatures to rise slightly to 29°C during the day tomorrow before falling to 19°C at night, our favorite weather app tells us.

Generation Mute: Millennials are more phone anxious than most other age brackets, with over 80% needing to summon the courage to place a call, The Financial Times reports, citing data from bankmycell. The phenomenon has led some consultancy firms to charge up to USD 3k a day to intervene and train employees on basic phone skills and overcoming fear of phone calls. “I would say 40% of my business is now focused on phone anxiety, whereas when I started the company 16 years ago it might have been 10%,” one phone use consultancy founder says.

This phone call aversion is not dissimilar to real-life avoidance around the office: Desk-bombing, a new office life buzzword, refers to people who would prefer to stop by desks and chat informally instead of emailing their coworker who is sitting right in their line of sight. Whereas phone anxiety appears to be most prevalent among millennials, avoiding desk-bombing (and instead opting to, say, emailing a coworker who sits closeby enough to warrant a verbal conversation) doesn’t seem to be an age-specific phenomenon, the salmon-colored paper says.

One strange byproduct of global warming? Mountain goats and bighorn sheep in Montana’s Glacier National Park are fighting over who gets to lick up exposed salt deposits, according to a study by ecologists and conservationists picked up by the Washington Post. Melting mountain glaciers in the park have revealed long buried salt licks, coveted for mineral supply animals don’t get from the rest of their diet.

There’s bullying in the animal kingdom, too: The goats are generally coming out on top in the fight over salt deposits, driving sheep away using their saber-like horns and aggressive attitudes, according to the researchers. More important than their characteristic aggression, however, is the fact that climate change and its impacts on resource availability means that these types of conflicts are more likely to happen more frequently, the researchers say, noting that there remains little knowledge about what the long-term effects could be.

???? ON THE TUBE TONIGHT-
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One man’s search for redemption on the bustling streets of Bombay: Fans of Gregory David Roberts' best-selling novel-slash-travelog, rejoice — Shantaram has finally premiered on Apple TV+. Set in the 1980s, the plot revolves around a former addict who breaks out of prison and poses as a doctor in India's slums. His ties to the local criminal underworld lead him to Afghanistan, where he links up with a mob leader fighting Russian thugs. While not quite Eat Pray Love, this is essentially a man's quest of self-discovery and repentance and the novel was loosely based on real events that happened in Roberts’ life — he really did break out of prison. Once the ball gets rolling, the story is immensely engaging thanks to the show's lead, Charlie Hunnam, famous for his multi-year run on Sons of Anarchy (watch trailer, runtime 2:24).

⚽ The Egyptian Premier League kicks off today: The new season of our Premier League starts strong with three matches: Aswan v Al-Ittihad, which kicked off at 3pm, followed by Al-Ahly Bank v Pharco at 5pm. And finally, Al-Masry v Ceramica Cleopatra at 7pm

And a new gameweek in the English Premier League: Brighton faces Nottingham Forest at 8:30pm, and Crystal Palace will play against Wolverhampton at 9:15pm.

Don't forget to finalize your fantasy team for the new week, and remember that Arsenal and ManCity players will be out this week because their match has been postponed.

And if you haven’t already, sign up for the Enterprise Fantasy League via this link, or by using the code 8o4sut.

In Spain’s La Liga:

Sevilla v Valencia (7pm)

Getafe v Athletic Bilbao (8pm)

Atletico Madrid v Rayo Vallecano (9pm)

French striker Karim Benzema took home yesterday the prestigious Ballon d'Or trophy, an annual football award presented by France Football since 1956. At 34, Benzema is now the oldest player to snap up the award. Former Liverpool attacker Sadio Mane came in second place, ManCity’s Kevin de Bruyne finished in third place, and Poland’s Robert Lewandowski placed fourth. Egyptian national treasure Mo Salah came in fifth.

???? EAT THIS TONIGHT-

Fresh and natural meals at Salt of Earth: This New Cairo eatery has something for everyone, and a delicious meal option for every hour of the day. Offering an appealing dining space nestled in greenery and trees, the wholesome ingredients of its dishes are what set this restaurant apart. Their cuisine boasts the finest flavors from across the world. Try the shrimp spaghettini with dried mint, sun-dried tomatoes, fresh arugula, and additional grated pecorino or the Salmon Catalana salad. Their soups are equally delicious, and we were quite pleased with the woodfire pizza. Pro tip: Make room for their trademark baked brown loaf basket whenever you visit.

???? OUT AND ABOUT-
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Catch some throwback slasher films at Cairo Jazz Club 610 with a double-feature of late 90s classics Scream and I Know What You Did Last Summer at 8pm on the terrace.

Or take a break from the gore with a Bollywood musical at the Cairo Opera House. The Music and the Magic, a romantic and enchanting tale of love is told through flashbacks, starts at 8pm.

???? UNDER THE LAMPLIGHT-

Get your mind in tip-top shape: Crossword puzzles and Sudoku aren’t the only options to stay mentally agile. The Age-Proof Brain, written by scientist and renowned public speaker Marc Milstein, is loaded with the most recent scientific information on brain health and practical guidance on how to keep your brain in peak condition. Explained with easy examples and hilarious anecdotes, some of the actionable advice in the book includes eating more Omega 3-rich food and sleeping early. Did you know staying up past midnight increases the chance of depression, but going to bed an hour earlier reduces the risk by 23%? Read the book for more handy stats like this one.

EARNINGS WATCH-

Obour Land’s bottomline rose 31% y-o-y in 3Q 2022 to EGP 145.8 mn, according to the company’s earnings release (pdf). Obour Land reported EGP 1.34 bn in revenues during the quarter, rising 64% y-o-y.

MARKET ROUNDUP-

The EGX30 rose 0.2% at today’s close on turnover of EGP 1.25 bn (20.9% above the 90-day average). Foreign investors were net sellers. The index is down 14.9% YTD.

In the green: Eastern Company (+3.6%), Housing and Development Bank (+2.9%) and e-Finance (+2.9%).

In the red: AMOC (-11.0%), Abu Qir Fertilizers (-7.2%) and Alexandria Container and Cargo Handling (-2.1%).

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 Samy Swellam (LinkedIn), founder and CEO of online car marketplace Hatla2ee.

My name is Samy Swellam and I’m a French-Egyptian entrepreneur. I studied programming and graduated from the Epitech IT school in Paris. I began my career in Paris and was able to land the position of CTO at Juritravail, a legal firm that focuses on labor laws and impacts over a million lives in France. I worked there for four years before deciding to make a change and launch Swellam Solutions, delivering services for programs in Paris. I had to close Swellam at some point and got rehired in my position at Juritravail.

Despite the fact that I had to close down Swellam Solutions, I never gave up on my dream of being an entrepreneur. By 2011, I was able to launch Hatla2ee. It began as a side project but by 2015, I realized that I had over a million visitors per month, which was a turning point for me — it was time to give Hatla2ee my all and delve deep into it.

Hatla2ee was up and running by 2016 and acquired USD 200k in its initial seed funding round in 2017 by Numu Capital. We managed to persevere and develop into what we are now regardless of the fact that the company was founded during a period of crisis after crisis, which delayed me in many aspects of the business and created struggles to stay afloat.

Starting Hatla2ee was my dream, but I had to make significant sacrifices in both my professional and personal life to get to where I am now. When it was still a side project, I would work a 10pm-3am night shift on Hatla2ee every second day. I also had to give up my position as CTO in a reputable company in Paris. It was incredibly difficult for about five years, but it was well worth it in the end.

The best aspect of my job right now is engaging with inspiring individuals. My team members come in every day eager to create and expand on the company’s offering. This motivates me to achieve more and to never stop looking for ways to develop.

The worst part of my job has been managing our income and cash flow through crisis after crisis, including the devaluation of the pound, the coronavirus pandemic, the “Let It Rust” campaign, and, most recently, the restrictions on imports and lack of cars in the market. Despite the difficulties, Hatla2ee has always maintained a low employee turnover rate and a smooth and positive work environment.

Hatla2ee’s competitive edge is the ease and visibility it offers to people looking to buy or sell their cars. We’re currently the largest platform in the market, with the most listings.

The daily KPIs I concentrate on are the number of new cars registered into the system, the volume of traffic to the website, and the number of potential buyers contacting sellers.

Hatla2ee just received a six-figure investment from Jungo, and Afrimobility. We are also in the midst of finalizing a USD 2 mn round, which we will use to continue our growth in Egypt, and prepare for our expansion into other countries.

I’ve always been a keen observer of my surroundings. I get inspired by everything around me and everything I do, whether it's attending a conference, reading an article, or simply keeping up with other businesses.

A local startup I’m particularly fond of is Rabbit. They are doing an excellent job advertising their products and services, and their user-friendly app has me using it on a regular basis.

In my spare time, I enjoy playing rugby. I’m a huge sports fan and rugby has always been my go-to sport. I dedicate the rest of my free time to my family.

I enjoy what I do so much that I can't imagine doing anything else. However, if I were to make an exit, I would look for a new startup idea — and there are many gaps in the market right now.

One piece of advice to someone who is starting their own business is to hire the right team — one that complements rather than competes with one another. I think that’s the most important factor in a company's success.