PM — Babies don’t appreciate kale

Good afternoon, wonderful people. The final week of September promises to be both eventful and interesting, if today is any indication.

THE BIG STORY TODAY

SFE plans to close USD 6 bn stake sales by mid-2023: The Sovereign Fund of Egypt’s (SFE) expects to close its USD 6 bn program to sell strategic stake sales to foreign sovereign funds by mid-2023, Planning Minister and SFE head Hala El Said told Bloomberg. One of the three Siemens / Orascom Construction / Elsewedy combined-cycle power plants — which the SFE had been planning to sell a stake in since 2019 — will also be among USD 3 bn-worth of assets that will be transferred to the SFE’s newly-established pre-IPO fund in the next few weeks, El Said said.

THE BIG STORY ABROAD

The Philippines is bracing for Noru, a category 3 typhoon, by evacuating coasts, canceling trips by sea and air, and suspending schools and work. The storm was branded a super typhoon and is now en route to the country’s main and most populous island, Luzon, where the capital Manila is located.

The story is everywhere in the international press: Associated Press | Reuters | Bloomberg | The Washington Post

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

• CBE reaches for another tool in the toolbox: Against expectations, the Central Bank of Egypt left interest rates unchanged on Thursday, opting instead to tighten financial conditions by bumping up its reserve requirement for all banks to 18% from 14% currently.
• Talks for an IMF facility could wrap in another month or two, with the size of the loan set to be agreed during the final stage of negotiations, Finance Minister Mohamed Maait said.
• Egypt wants to double natgas receipts: Egypt wants to increase revenues from natural gas exports to USD 1 bn per month from USD 500 mn currently “in the coming period,” Maait also said.

*** 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 how Egypt’s strategy to localize electronics manufacturing is panning out since it was launched back in 2015, following a string of commitments from international companies to invest in local assembly and production.

???? CIRCLE YOUR CALENDAR-

Is the Madbouly government holding an economic conference this week? After two weeks of chatter about a three-day economic conference at the end of the month, we’re still none the wiser about what the plan is — or whether it’s even taking place. A number of government officials (here, here, here) have appeared on the airwaves in recent days to talk about the agenda — from what we know, the government’s privatization strategy and import substitution industrialization would be two of the main topics of discussion — but key details such as date and location are TBD.

Our friends at HSBC are hosting an energy transition webinar series this Tuesday through Thursday (27-29 September). The series will look at the “latest climate analysis in relation to the global energy market and transition to net zero” in six different sessions covering energy security, what is required to ensure the success of COP27, financing and investment needs for the energy transition, and the scaling up of renewables in the region, among other topics. You can register for the series here.

A Spanish business delegation will be in town this Tuesday and Wednesday (27-28 September) for the Egypt-Spain Multilateral Partnership Forum, organized by the Spanish Institute for Export and Investment, according to a press release (pdf). The two-day conference will include seminars and panel discussions on trade and investment in transport, energy, and water with Egyptian ministers and representatives from government bodies, alongside officials from international financing institutions and Spanish Secretary of State for Trade Xiana Méndez Bértolo. The agenda for the conference is available here (pdf).

The 14th edition of Creative Industry Summit will take place this Tuesday through Thursday (27-29 September) at Cairo Business Park, New Cairo. The summit serves as a platform to celebrate and foster creativity in Egypt and the MENA Region. This year the theme is “Creative Economy.” celebrating “the role of innovation and creativity in various industries” across the region, according to Mai Salama, founding partner of the summit.

The Africa Women Innovation and Entrepreneurship Forum will take place at the Cairo Marriott Hotel on 26–27 September.

NEXT MONTH-

Our elected representatives will return from Sahel to start the new legislative session in the House on Saturday, 1 October, according to a presidential decree in the Official Gazette. Senators will return for the opening session on Tuesday, 4 October next week.

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 37°C tomorrow before the mercury dips to a nighttime low of 23°C, according to our favorite weather app.

Fetuses have a sense of taste in the womb — and don’t really appreciate the taste of kale: The bitter leafy green causes fetuses to grimace with a “crying face,” whereas carrots cause a smile, according to a team of researchers from Durham University in England. Unborn infants were twice as likely to make a grossed-out expression after their mothers swallowed powdered kale capsules, and were more likely to make a “laughing face” when the pregnant mothers ate the carrots, the study found. “[It means] the mother has not yet finished her meal [when] the fetus is already aware, or capable of sensing, what the mother has eaten,” Benoist Schaal, one of the study’s authors, told the Guardian. The researchers took ultrasound images of some 70 fetuses between 32 and 36 weeks about 20 minutes after the mothers had eaten the vegetables to determine whether or not the fetuses could detect the flavors. Aromas from the mothers’ diets were detected in the amniotic fluid, the team reported. They found that the ability to detect chemicals related to taste begins at 14 weeks, and detecting odor molecules begins at 24 weeks of gestation. Despite grimacing at their taste, prenatal exposure to the once-trendy leafy green and other vegetables can result in the child becoming a less picky eater, according to the study’s lead author, Beyza Ustun.

The competition for talent keeps heating up: The labor market has been tightening up across the world despite rising inflation and growing fears of recession, with businesses often having to fight to fill up their vacancies, the Financial Times writes. In the UK alone, a recent poll of over 1k managers found that almost 90% of companies were recruiting in July, while some 40% said they planned to increase hiring in the following six months. Globally, numbers of unemployed people are falling to record lows in the eurozone, while countries like Australia are allowing more immigrants into the country to plug the labor shortage. Business owners are having to bump up their pay and make their offers more attractive to lure in more talent, especially as more and more companies shift to a more flexible, hybrid or work-from-home model since the pandemic.

Nowhere is this more evident than industries in need of “deskless workers”: As other industries offer easier and more attractive working conditions, companies in construction, manufacturing and retail are struggling to fill gaps at their companies. Employers are having to increase wages, hire ahead of time to avoid missing out on the limited talent in the market and, ultimately, charge more for their products to cope with the rising costs. “For every one individual there seem to be 10 roles available,” a managing director of a leading construction firm says. “They have a pick of jobs and we’re all trying to get the same people.”

???? ON THE TUBE TONIGHT-
(all times CLT)

A cross-cultural marriage brings an American family to Om El Donia in Masrycany: Let the culture shock begin. Two families who couldn’t be more different come together in Cairo for the wedding of Kristy (Alexandra Grossi, who some may recognize from her appearances in Lucifer) and Ahmad (Sammy Sheik), and the hilarity ensues. From the get-go, the movie dives deep into the topic of culture shock rather than using it merely as a backdrop. “So no kissing in public, no super-tight or revealing clothing, no drinking in front of the family,” Kristy recaps the rules to Ahmad when they land in Cairo’s airport. The movie is directed by Noor Arnaoout, a Syrian-Slovenian writer and director based in Kuwait, who knows a thing or two about cultural differences herself. Bringing together an ensemble of familiar faces, including Egyptian stars Hala Fakher, Nahed El Sebai, and Mohamed Sallam, along with seasoned US actors Brett Cullen and Beth Broderick, the film is a fun, light flick to tune into on Shahid while you eat dinner (watch trailer, runtime 2:17).

⚽ Zamalek will host Chad’s Elect-Sport in the second leg of the preliminary round of the African Champions League at 8pm, after acing the first leg with two clean goals.

The UEFA Nations League is still going strong, with four games worth keeping an eye on tonight at 8:45pm: Netherlands v Belgium, Denmark v France, Austria v Croatia, and Wales v Poland.

​​???? EAT THIS TONIGHT-

Head to Ladurée for a magnifique Parisian afternoon tea: The French luxury bakery Ladurée is widely recognized as the source of the finest macarons in the world. With its chic but understated debut in two locations in Cairo (New Cairo's Waterway and Sheikh Zayed’s Arkan Plaza) earlier this year, the Parisian patisserie has elevated our breakfast, brunch and afternoon tea experiences. We recommend the Benedectine soft-boiled eggs with spinach and salmon for a grand start to the day, and make some room for their chocolate French toast, which is served with Ladurée’s signature hot chocolate and vanilla ice cream. You can’t go wrong with any of their sweets, but if you’re looking for a yummy savory option, try their hummus avocado brioche toast. A word of warning: Their prices may be easy on your stomach, but not on your wallet.

???? OUT AND ABOUT-
(all times CLT)

Dance performance Ambararo breaks the mold at Rawabet Art Space: Through a unique artistic performance, a group of dancers break the constraints and limitations imposed on society and the pressure to adhere to social norms. Ambararo is showing at Rawabet today and tomorrow at 8pm.

Or opt for a Cuban-inspired musical night with Cocoon band at Cairo Jazz Club: Led by jazz guru Hesham Galal, Cocoon plans to transport us to Havana through their meticulous Cuban and Latin jazz compositions tonight at 9pm.

???? UNDER THE LAMPLIGHT-

Historical fiction comes to life in The Marriage Portrait: Author Maggie O’Farrell is back with a stunning historical fiction book set in Renaissance Italy. Lucrezia de Medici unexpectedly weds her late sister’s fiancé, a man desperate for an heir, after her sister passes away. As Lucrezia gets to know her new husband, she begins to wonder whether he is the witty sophisticate he presented himself as before the wedding, the aesthete who finds solace in the company of artists and creative types, or the ruthless politician who inspires fear in even his mighty sisters. It’s not long before Lucrezia has to face another suspicion: That her new spouse is planning to kill her. O'Farrell is a stunning author, and her depiction of the 1500s life is truly compelling. While the plot was a little slow to build, the vivid descriptions of Medieval women's lives will keep you hooked. For fans of literary historical fiction, this is a must-read.

The EGX30 fell 0.4% at today’s close on turnover of EGP 725.14 mn (24% below the 90-day average). Local investors were net buyers. The index is down 17.2% YTD.

In the green: Abu Qir Fertilizers (+3.4%), Egypt Kuwait Holding-EGP (+3.0%) and Eastern Company (+2.0%).

In the red: GB Auto (-3.2%), Credit Agricole Egypt (-3.1%) and Madinet Nasr Housing and Development (-2.6%).