Tuesday, 15 November 2022

PM — Boomers can’t put their phones down

TL;DR

WHAT WE’RE TRACKING TONIGHT

Good afternoon, wonderful people. It’s a slowish start to the news day — but we expect things to pick up later, with some exciting updates already making their way out of Energy Day at COP27.

THE BIG STORY TODAY

Is the SFE getting on board ACWA’s 1.1 GW wind farm in Suez? The Sovereign Fund of Egypt (SFE) has agreed to acquire a 10% stake in Saudi renewables player ACWA Power’s USD 1.5 bn, 1.1 GW wind farm in the Gulf of Suez, Bloomberg Asharq reports, citing three sources it says are close to the transaction. That would see the fund invest as much as USD 150 mn in the project, according to our math. A final agreement will be announced “soon,” the sources reportedly said. News of the SFE’s potential buy-in comes a week after the Omani Investment Authority (OIA) inked an MoU with ACWA to acquire a 10% stake in the wind farm.

THE BIG STORY ABROAD

The Republican Party is poised to retake control of the House of Representatives: The GOP is just one seat shy of the 218 it needs to secure a majority in the lower legislative chamber, after notching late-night victories on Monday in races in Arizona, New York, and California. Elsewhere in US politics, stay tuned for the expected announcement from Donald Trump today that he will be launching a bid to retake the presidency in 2024 elections. (NYT | AP | WSJ | Washington Post).

The international press is also keeping tabs on the unfolding G20 summit in Indonesia, where US President Joe Biden and his Turkish counterpart Recep Tayip Erdogan held an unscheduled meeting on the down-low, according to Bloomberg. Meanwhile, a draft communique out of the summit lays bare divisions over the Group’s stance vis-a-vis the Russia-Ukraine war, according to Reuters and the Financial Times.

enterprise

From Sharm to the Grand Egyptian Museum — the business community will move the talk about a green transition ahead at the Enterprise Climate X Forum, which takes place at the Grand Egyptian Museum on Tuesday, 6 December 2022. We can think of no better place to discuss the world’s most important industry than in a world-class museum that stands as a testament to our nation’s ability to persevere (and innovate) for seven millennia. And it seems you can’t either, judging by the responses and statements of support we’ve been getting.

What’s the Enterprise Climate X Forum? It’s our first industry-specific conference, where CEOs, top execs, investors, bankers and development finance folks have the chance to talk about how to build a climate-centered business — and how to make sure your business continues to have access to the funds it needs to grow. You can learn more on our conference website here.

Some of the biggest names in business and finance are on board — are you? If you’re a C-suite exec, business owner, climate professional, DFI staff, investor or banker, please email us at climatexrsvp@enterprisemea.com to signal your interest, letting us know your name, title and where you work.


HAPPENING NOW-

It’s Energy Day at COP27, featuring sessions on renewable energy, energy efficiency, and energy transformation focusing on a just transition in the energy sector. Green hydrogen is expected to step into the spotlight as a potential energy source for the future. High-level officials and energy transition champions will kick off the day with a series of opening remarks setting the stage for the “energy trilemma” the world is facing.

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

  • Shoukry calls on countries to come to a “meaningful” agreement at COP27: COP27 President Sameh Shoukry reiterated yesterday his plea for a “meaningful” climate agreement that will cut emissions and mobilize tons of capital for climate finance.
  • Cabinet is out with the rules and regulations for the expat car import scheme: The Madbouly government launches incentives to get Egyptian expats to import cars with foreign-currency today, and yesterday released details of the rules and regulations for the scheme.
  • Vodacom is already making plans for Egypt: Vodafone’s South African subsidiary plans to launch financial services products in Egypt through its Vodapay superapp that it is developing with Chinese tech giant Alibaba Group.

🗓 CIRCLE YOUR CALENDAR-

PSA #1- If you’re self-employed, you have to register in the Tax Authority’s e-invoice system by 15 December. This includes self-employed doctors, engineers, lawyers, and artists, the Egyptian Tax Authority said in a statement. Only e-invoices will be considered for VAT deduction or refunds as of 1 April, 2023.

What e-invoicing system? In late 2020, the Tax Authority launched a pilot program for B2B e-invoicing with 134 companies, before expanding the system to all large taxpayers in July 2021. All B2B and B2C invoices across the country should be fully automated by December. We have a primer on the system, its purpose, the timeline of implementation along with a list of phase one companies here.

PSA #2- Good news for Upper Egypt startups: Applications for a Uplift4UpperEgypt — startup program run by Orascom’s Gemini Enterprises Africa, in partnership with the Sawiris Foundation, aimed at businesses in Upper Egypt, will open on 17 November, according to Al Mal.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☀️ TOMORROW’S WEATHER- It’ll be mainly sunny in Cairo tomorrow with temperatures hitting 24°C tomorrow during the day before falling to 13°C at night, our favorite weather app tells us.

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FOR YOUR COMMUTE

Baby Boomers can’t seem to put down their phones. Excessive screen time is typically associated with children watching cartoons, teenagers playing video games, or young adults scrolling through social media and using messaging apps. However, one particular age group is struggling to put their devices down: Baby Boomers, according to the results of a Pew Research Center study. Although baby boomers were introduced to smartphones later in their lives, their adoption of technology — including smartphones and tablets — has been steadily rising over the past decade. The share of Baby Boomers who use social media has also jumped some 19 percentage points, the study shows.

Tech adoption is all well and good, but families say Boomers’ smartphone use gets in the way of day-to-day life: In a survey of 100 millennials and Gen Xers in the US, the Washington Post found that half reported their parents spent “excessive” amounts of time on their phones, playing games or checking El Face, even while being in a social setting or with their families. Older adults may spend more time on their phones because they simply take longer to process what they’re seeing, or find what they’re looking for, said one tech-support company CEO. Boomers have also grown reliant on their phones and social media networks to maintain social connections, including with family members they don’t see on a regular basis.


AI is now being used to keep people “around” after their passing: Tech platforms are investing in new services designed to preserve people’s bonds with loved ones after they pass away, including developing virtual representations of the deceased, the Washington Post reports. Amazon has already introduced its newest works for Alexa, which can “read aloud stories in a deceased person’s voice after only hearing a minute of their speech.” Similarly, many AI entrepreneurs are concentrating their efforts on creating visual representations of individuals — with avatars and chat bots linking the dead with their family members.

How helpful is this? A study from Sweden’s Stockholm University found that maintaining a relationship with a loved one after they have died can provide temporary solace, but it can also intensify grief and lead to someone wishing to remain in this virtual world of their loved ones. Although grief therapists sometimes encourage imaginary conversation with the deceased as a form of therapy, “with digital recreations of the dead, particularly in virtual reality, the experience would be more immersive,” the WaPo says.

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ENTERPRISE RECOMMENDS

📺 ON THE TUBE TONIGHT-
(all times CLT)

Netflix’s Fifa Uncovered dives into the football’s governing body’s decades of shady transactions. Qatar was awarded hosting rights for the upcoming 2022 World Cup — despite needing to move the competition to the winter to accommodate the country’s intense summer heat and humidity — raising questions about whether bribery played a hand. Netflix’s new documentary takes us on a trip down memory lane to unpack how we got here, starting in 1974, when Fifa merely set up football tournaments — that is, until João Havelange became president of the football organization. Havelange vowed to expand the game globally, and began signing sponsorship agreements to fund his expansion, effectively ushering in an era when the sport was brought to fans in association with massive companies such as Coca Cola and Adidas. The documentary goes on to detail the corruption that transpired for years — including how the organization’s structural faults enabled a small group of men to have disproportionate influence in presidential elections and World Cup selection committees — culminating in the FBI indicting 14 Fifa executives for corruption and racketeering conspiracy in 2015.

No football today, folks.

🎾 Egyptian tennis star Mayar Sherif won the Copa LP Chile, her fourth career WTA 125 title and third of the season, WTA Tennis. Sherif beat Ukrainian player Kateryna Baindl in three sets, two of which went to a tiebreak, on Sunday.

🍕EAT THIS TONIGHT-

Feteer dates back to Ancient Egyptian times — and Dina Farms has some of the best feteer we’ve tried. Back in Ancient Egypt, what was then known as Feteer Maltout was mostly used for offerings to the gods in their temples. Fast forward a few centuries, and Feterit Dina Farms is one of the best places to get your hands on a delicious feteer with a wide range of toppings. We have a soft spot in our hearts for the meat slices with mixed cheese and caramelized onions feteer, but also occasionally indulge in its feteer meshaltet with molasses and feta cheese as side dips.

🎤 OUT AND ABOUT-
(all times CLT)

All-women stand-up comedy troupe Comedy Sett is performing tonight at CJC 610 at 8pm, with Sarrah Abdelrahman and Ola Roshdy hosting and this lineup of comedians: Esraa, Azza, Reem, Bernadette and Noha.

It’s indie Arabic music night at Room Art Space New Cairo: Mahmoud Hazem will cover alternative indie songs and perform some of his own originals at 9pm.

Try out your hand (or voice) at singing tonight at Room Garden City’s karaoke night at 8pm.

💡 UNDER THE LAMPLIGHT-

The Power of Meaning: Crafting a Life That Matters by Emily Esfahani Smith speaks to those looking for a fuller, more satisfying life. Esfahani argues in her book that having purpose in your life is significantly more gratifying than seeking personal happiness — but doesn’t necessarily require you to journey to a distant monastery. Instead, her book is a primer on how to derive meaning from our environment and tap into untapped sources of fulfillment. The book contains ideas and draws on the most recent research in positive psychology. Esfahani has frequently quoted great minds such as George Eliot, Viktor Frankl, Aristotle and Buddha.

GO WITH THE FLOW

Ibnsina Pharma’s net income after minority interest fell 50.6% y-o-y to EGP 119.60 mn in 9M 2022, according to the company’s earnings release (pdf). Net revenue during the period inched up 0.4% y-o-y to EGP 15.81 bn.

Export Development Bank of Egypt’s net income rose 125.6% y-o-y to EGP 993.5 mn in 9M2022, according to its earnings release (pdf). The bank’s net interest income rose 48.6% y-o-y to EGP 2.15 bn during the period.


MARKET ROUNDUP-

The EGX30 rose 0.01% at today’s close on turnover of EGP 593.89 mn (48.2% below the 90-day average). Local investors were net buyers. The index is up 1.6% YTD.

In the green: Rameda (+3.2%), Ibnsina Pharma (+2.5%) and Orascom Construction (+2.2%).

In the red: Fawry (-2.6%), Ezz Steel (-1.8%) and EFG Hermes (-1.6%).

FOUNDER OF THE WEEK

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, finds out about their experiences running a business, and asks for their advice for budding entrepreneurs. Speaking to us this week is Nadim Samy (LinkedIn), co-founder of commercial cloud kitchens, Kitchinco.

My name is Nadim Samy and I am a co-founder at Kitchinco — a cloud kitchen now based in Maadi. We first came up with the idea for Kitchinco when one of our founders, who owns and operates eatery and juice bar Lyfe, was telling us about how his restaurant was more focused on delivery than dining in, and that he was paying a very high rent that didn’t reflect in the majority of his bottom line. His physical outlet was primarily focused on preparing delivery orders. We joined forces with two other partners — one working in kitchen equipment and the other in hotels and hospitality. The four of us already had the expertise to make this work as a cloud kitchen, and we started right away.

I have always been passionate about F&B concepts. In fact, I have another brand called Meat Party Barbecue. Ever since I started my career, everything I have done has revolved around food — whether introducing new ideas to Egyptian consumers, or making it easier for new food outlets to enter the market through Kitchinco cloud kitchens.

When we saw the gap in the market, we made the decision to go headfirst into Kitchinco. We recognized Kitchinco cloud kitchen as a solution that many restaurants desperately needed. It was intended to alleviate the burden of paying for expensive rent, recruiting people and purchasing equipment off of F&B startups, so they could concentrate on making returns from their main source of income, which is delivery.

At first, attracting clients was difficult. Egypt is not a difficult country to do business, particularly in the food and beverage industry. When we first pitched our concept to established businesses, they were reluctant to give it a go, believing that they could rent any apartment and do it themselves. However, they gradually came around to the idea as they learned about our other services.

Our goals in the short term are to open two new facilities over the coming year — one in New Cairo and the other in the Zamalek / Downtown area. We also intend to launch five facilities all over Cairo the following year. Over the longer term, we want to cover all of Cairo and expand into other provinces in Egypt like Alexandria, Mansoura, and Damietta. Basically, we want to have a presence in Egypt’s burgeoning cities, where there is a huge demand but little access to the market. We are also aiming to expand into the Middle East and North Africa as part of our 10-year plan.

Starting a business from the ground up takes a lot of time, and I had to sacrifice much of my personal life for it to succeed. I also gave up the stability of working in a family business. Despite the stress, I persisted because of the belief that it would be worth it in the end.

The best part about my job is realizing the positive impact I’m having on the F&B sector, mostly through helping out startups and young entrepreneurs enter the market, and becoming a part of their success through Kitchinco.

The worst part about my job is witnessing a startup we work with fail. The F&B business is quite easy to enter with Kitchinco. We lower the entry barriers and increase accessibility to the market, which has a great amount of untapped potential. However, some startups start too soon and fail to last.

Being a founder of a startup is not a lonely journey. We are four founders who went to high school together. In fact, I believe it has brought us even closer together, as we constantly discuss decisions. We are a team; we are not doing it alone.

I believe that MaxAB is a startup that’s killing it. They’ve done a great job introducing a new concept to the market, and they are working really hard.

I am genuinely convinced that the last thing I read made me stop smoking. It’s a book called Easy Way to Stop Smoking by Allen Carr. It is truly magic. I finished reading it in a few days and never thought of smoking again. It was also the last thing I listened to as I read the first half of the book and listened to the rest. Whenever I have the weekend off, I go camping and cook. You will always find me in the desert, diving, or doing some kind of outdoor activity.

My family is my biggest inspiration — specifically my father and uncle. They have accomplished so much from nothing. They experienced ups and downs and failed a few times. They are the ones that taught me to always look forward and to persist even when things don’t go as planned, as well as to always seek improvement, help others and be a good person.

One piece of advice I would give to someone starting their own business is to not let the negative encounters bring you down and to look for the best in everything that happens. Try to take something positive away from every situation and use it to learn and grow.

CALENDAR

NOVEMBER

6-18 November (Sunday-Friday): Egypt will host COP27 in Sharm El Sheikh.

13-22 November (Sunday-Tuesday): Cairo International Film Festival (CIFF).

15-16 November (Tuesday-Wednesday): G20 summit, Bali, Indonesia.

20 November (Sunday): House of Representatives is back in session.

21 November-18 December (Monday-Sunday): 2022 Fifa World Cup, Qatar.

22 November- 23 November (Tuesday-Wednesday): The Fingerprint Summit will be held at the Nile Ritz Carlton Hotel.

27 November (Sunday): Senate in session.

27-28 November (Sunday-Monday): The first edition of the Egypt Media Forum.

27-30 November (Sunday-Wednesday): Cairo ICT, Egypt International Exhibition Center, New Cairo.

Late November or early December: US and Russia to hold talks on resuming mutual nuclear inspections in Cairo.

DECEMBER

1 December (Thursday): Sphinx International Airport will begin operating international flights.

1 December (Thursday): Contractors to break ground on Egypt-Saudi interconnection project.

3 December (Saturday): Dior Men’s pre-fall collection show in Giza.

5-8 December (Monday-Thursday): QS Reimagine Education Awards and Conference, multiple locations.

10 December (Saturday): The TriFactory’s Pyramids Half Marathon.

10-12 December (Saturday-Monday): The 2nd edition of the Nebu Expo for Gold and Jewelry kicks off.

13-14 December (Tuesday-Wednesday): Federal Reserve interest rate meeting.

13-15 December (Tuesday-Thursday): US-Africa Leaders Summit.

15 December (Thursday): European Central Bank monetary policy meeting.

22 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

December: The Sixth of October dry port will begin operations.

December: Egyptian Automotive Summit.

December: Egypt to expand Sudan electricity link capacity to 300 MW.

December: Chinese President Xi Jinping visit to Saudi Arabia

JANUARY 2023

January: EGX-listed companies and non-bank lenders will submit ESG reports for the first time.

January: Fuel pricing committee meets to decide quarterly fuel prices.

1 January (Sunday): Use of Nafeza becomes compulsory for air freight.

1 January (Sunday): Residential electricity bills are set to rise as per the government’s six-year roadmap (pdf) to restructure electricity prices by 2025.

7 January (Saturday): Coptic Christmas.

24 January-6 February: The 54th Cairo International Book Fair, Egypt International Exhibition Center

25 January (Wednesday): 25 January revolution anniversary / Police Day.

26 January (Thursday): National holiday in observance of 25 January revolution anniversary / Police Day.

30 January-1 February (Monday-Wednesday): CI Capital’s Annual MENA Investor Conference 2023, Cairo, Egypt.

FEBRUARY 2023

11 February (Saturday): Second semester of 2022-2023 academic year begins for public universities.

13-15 February (Monday-Wednesday): The Egypt Petroleum Show (Egyps), Egypt International Exhibition Center, Cairo.

23-27 February (Thursday-Monday): Annual Business Women of Egypt’s Women for Success conference.

MARCH 2023

March: 4Q2022 earnings season.

23 March (Wednesday): First day of Ramadan (TBC). Maghreb will be at 6:08pm CLT.

APRIL 2023

1 April (Saturday): Deadline for banks to establish sustainability unit.

17 April (Monday): Sham El Nessim.

22 April (Saturday): Eid El Fitr (TBC).

25 April (Tuesday): Sinai Liberation Day.

27 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC).

Late April – 15 May: 1Q2023 earnings season.

MAY 2023

1 May (Monday): Labor Day.

4 May (Thursday) National holiday in observance of Labor Day (TBC).

22-26 May (Monday-Friday): Egypt will host the African Development Bank (AfDB) annual meetings in Sharm El Sheikh.

JUNE 2023

19-21 June (Monday-Wednesday) Egypt Infrastructure and Water Expo debuts at the Egypt International Exhibition Center.

28 June-2 July (Wednesday-Sunday): Eid El Adha (TBC).

30 June (Friday): June 30 Revolution Day.

JULY 2023

18 July (Tuesday): Islamic New Year.

20 July (Thursday): National holiday in observance of Islamic New Year (TBC).

23 July (Sunday): Revolution Day.

27 July (Thursday): National holiday in observance of Revolution Day.

Late July-14 August: 2Q2023 earnings season.

SEPTEMBER 2023

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

28 September (Thursday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

OCTOBER 2023

6 October (Friday): Armed Forces Day.

Late October-14 November: 3Q2023 earnings season.

EVENTS WITH NO SET DATE

2H 2022: The inauguration of the Grand Egyptian Museum.

2H 2022: IEF-IGU Ministerial Gas Forum, Egypt. Date + location TBA.

2H 2022: The government will have vaccinated 70% of the population.

3Q 2022: Ayady’s consumer financing arm, The Egyptian Company for Consumer Finance Services, to release its first financing product.

3Q 2022: Swvl to close acquisition of Urbvan Mobility.

4Q 2022: Infinity + Africa Finance Corporation to close acquisition of Lekela Power.

End of November: SFE’s pre-IPO fund to kick off roadshow.

4Q 2022: Electricity Ministry to tender six solar projects in Aswan Governorate.

4Q2022: Raya Holding subsidiary Aman and Qalaa Holdings’ Taqa Arabia to launch their fintech company.

4Q 2022: Saudi Arabia’s Jamjoom Pharma to inaugurate its EGP 1 bn pharma factory in El Obour.

End of 2022: Decent Life first phase scheduled for completion.

End of 2022: e-Aswaaq’s tourism platform will complete the roll out of its ticketing and online booking portal across Egypt.

2023: Egypt will host the Asian Infrastructure Investment Bank’s Annual Meeting of the Board of Governors in 2023.

1Q 2023: Adnoc Distribution’s acquisition of 50% of TotalEnergies Egypt to close.

1Q2023: Internal trade database to launch.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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