Thursday, 16 February 2023

PM — Climate change is scaring people away from having kids

TL;DR

WHAT WE’RE TRACKING TONIGHT

Happy THURSDAY, wonderful people. It’s a relatively calm end to the week — we hope that carries through the weekend for all of you.

THE BIG STORY TODAY

Palm Hills Developments has closed a EGP 638 mn securitized bond issuance, according to a joint statement (pdf) from Palm Hills and EFG Hermes, which acted as sole financial advisor, lead arranger, bookrunner, and underwriter on the sale. The three-tranche issuance carries tenors of 13, 36, and 84 months, rated AA+ through A by Middle East Rating & Investors Service.

THE BIG STORY ABROAD

It’s one of those Thursday afternoons where there isn’t a unifying story leading the conversation in the international business press. Among the front page stories:

  • Banks are breaking up with crypto during regulatory crackdown (WSJ)
  • China sanctions Lockheed Martin, Raytheon over Taiwan arms sales (Reuters)
  • Standard Chartered “absolutely not” for sale, bank CEO says (CNBC)
  • Ukraine war pushes US to review arms stockpile (Financial Times)

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

  • Is our first ever sovereign sukuk issuance coming next week? The issuance could be worth up to USD 1.5 bn and the government could begin roadshows for the sale this week, according to a Bloomberg report,
  • Gulf investors are eyeing a piece of Sidpec-Ethydco: The unidentified investors are reportedly looking to acquire between 16-20% of the planned merger between EGX-listed Sidi Kerir Petrochemicals (Sidpec) and Egyptian Ethylene and Derivatives Company (Ethydco).
  • El Gouna is about to get a lot bigger: Orascom Development Egypt has inked an agreement with Egyptian authorities to expand El Gouna. The company will develop its remaining 17.4 mn sqm land bank, adding 1.2 mn sqm of connected lagoons and 1k hotel rooms every 10 years.

???? CIRCLE YOUR CALENDAR-

Cairo Photo Week is still running through this Saturday, 18 February.

Want to become a private equity expert in three days? The Egyptian Private Equity Association (EPEA) and the African Private Equity and Venture Capital Association (AVCA) are hosting a three-day intensive private capital funds masterclass at the Ernst & Young office at Cairo Festival City. The masterclass kicks off next Friday 24 February.

Interested? You can attend the masterclass for EGP 18k or EGP 12k for EPEA and AVCA members. Register to attend here and take a look at the agenda here (pdf).

Find our regular business calendar, which includes a comprehensive listing of upcoming news events and news triggers, in EnterpriseAM and on the web.

☀️ TOMORROW’S WEATHER- Make outdoor plans this weekend: We’re in for a wonderfully sunny couple of days, with the mercury hitting a daytime high of 19°C tomorrow and 20°C on Saturday, before dipping to 8°C tomorrow evening and 9°C on Saturday evening.

enterprise

FOR YOUR COMMUTE

Egyptian businesswomen top Forbes Middle East’s most powerful list: Coming in with 13 entries, nearly double the number in 2022, Egyptian women have worked their way up to become some of the most powerful businesswomen in the Middle East, on Forbes’ 2023 list of 100 powerful MENA businesswomen. The banking and financial services sector was the most represented on the list, with 23 leaders, followed by 11 diversified business leaders, eight investment professionals, six retail executives, and five healthcare professionals. UAE businesswomen had the most representation, followed by Egypt, then Saudi Arabia.

All of the Egyptian businesswomen recognized in the list:

  • Dalia El Baz, vice chair of National Bank of Egypt (#13)
  • Pakinam Kafafi, CEO of TAQA Arabia (#21)
  • Rawya Mansour, founder of RAMSCO (#27)
  • Reem Asaad, Middle East and Africa vice president of Cisco (#39)
  • Hend El-Sherbini, CEO of LSE-listed IDH (#42)
  • Yasmine and Farida Khamis, chair and vice-chair of Oriental Weavers Group (#43)
  • Mona Zulficar, founder of Zulficar & Partners and chair of EFG Hermes Holding and Egyptian Microfinance Federation (#48)
  • Hoda Mansour, SVP & Southern Europe, Middle East and Africa Regional Head of Business Process Transformation (#53)
  • Elham Mahfouz, CEO of Commercial Bank of Kuwait (#56)
  • Hilda Louca, founder of Mitcha (#62)
  • Omnia Kelig, deputy CEO of Naeem Holding (#84)
  • Abir Leheta, CEO of EgyTrans (#87)
  • Abeer Helmy Saleh, managing director of Misr Life Ins., Takaful (#99)

Turkish TV channels raise USD 6 bn for earthquake victims: A seven-hour live show broadcast jointly on hundreds of TV and radio channels in Turkey has raised USD 6 bn (TRY 115.1 bn) for survivors of the devastating earthquakes that hit Turkey and Syria earlier this month, killing more than 40k people in the two countries, Bloomberg reports. The fundraising campaign, named “Türkiye One Heart,” is being led by the country’s central bank — which itself is donating TRY 30 bn. Other donors include several state-run banks, Turkish Airlines, mobile companies, and the Turkish bourse.

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ENTERPRISE RECOMMENDS

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

Lindsay Lohan's Just My Luck is the perfect way to celebrate the month of love. The film has all the makings of a 2000s classic: Lindsay Lohan in her prime, heartthrob Chris Pine, magic, and an enemies-to-lovers trope. The film follows Ashley, who begins as the luckiest person on the planet, receiving everything she desires simply because she is lucky, but this quickly changes when she meets unlucky Jake, played by Pine, and their luck reverses after they kiss. The two form an unlikely friendship, helping each other adjust to their new lives, one deprived of luck, and the other unbelievably lucky and that friendship quickly evolves into something more. It’s not an Oscar contender by any means, but it’s the perfect cozy movie for a cold February night. The film is available to watch on Apple TV+.

Europa League brings an exciting Barcelona v Manchester United clash today at 7:45pm, in the first leg of the play-off stage. The teams that finished second in their Europa League groups and third in their Champions League groups will compete in the play-off stage for a place in the round of sixteen.

Today's Europa League matches include:

Salzburg v Roma (7:45pm)

Shakhtar v Rennes (7:45pm)

Ajax v Union Berlin (7:45pm)

Juventus v Nantes (10pm)

Bayer Leverkusen v Monaco (10pm)

Sevilla v Eindhoven (10pm)

Sporting Lisbon a Midtjylland (10pm)

Today in the Egyptian Premier League: Future FC — currently in third place in the league — will host Haras El Hodood at 5pm, while Pyramids FC — currently in second place — will face Enppi at 7pm.

Zamalek and Al-Ahly are both in Sudan this weekend: Zamalek will play its second match in the group stage of the African Champions League on Friday at 3pm against Sudan’s Al-Merrikh SC, in Omdurman. The white clad-team is currently at the bottom of the last group without points, after being defeated at home by the Algerian youth Belouizdad in the first round. Meanwhile, Al-Ahly faces Al-Hilal in Sudan on Saturday at 3pml, but this will be its first match in the group stage, after the first-round match was postponed due to the Reds’ involvement in the FIFA Club World Cup.

The most important matches in the major European leagues this weekend:

Sassuolo v Napoli (9:45pm on Friday)

Monchengladbach v Bayern (4:30pm on Saturday)

Monza v Milan (7pm on Saturday)

Inter v Udinese (9:45pm on Saturday)

Osasuna v Real Madrid (10pm on Saturday)

And in the English Premier League on Saturday:

Aston Villa v Arsenal (2:30pm)

Nottingham Forest v Man City (5pm)

Chelsea v Southampton (5pm)

Brentford v Crystal Palace (5pm)

Wolverhampton v Bournemouth (5pm)

Brighton v Fulham (5pm)

Everton v Leeds (5pm)

Newcastle v Liverpool (7:30pm)

Competition is heating up in the Enterprise fantasy league: Join nearly 200 Enterprise readers as they battle for the top spot in our Fantasy Premier League, with a chance to win a special prize. Shoutout to readers Ahmed Eid and Mohamed Rateb who are currently ranked first and second, respectively. To join them, click here or enter the code 8o4sut.

????EAT THIS TONIGHT-

Bibliothek Egypt is a unique café, bookstore, and art gallery all rolled into one. Nothing beats reading a book while sipping a cup of coffee in a warm, brightly-lit space — the huge venue boasts both an indoor and outdoor seating area. Located in Sheikh Zayed’s Arkan Plaza, the self-service cafe at Bibliothek provided delicious food, drinks, and gelato. They serve delectable coffees, teas, desserts, sandwiches, and pastries. The deliciously fluffy croissant was our favorite. The impressive selection of books and artwork immediately draws you in and puts you at ease. From classic literature to contemporary poetry and international bestsellers, there's something for everyone there. Aside from books, Bibliothek also has an art gallery space with a carefully-curated collection of paintings, showcasing different artists and themes. .

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

Dust off your dancing shoes for an Afro Jazz Beginners Course tonight with Mako Ruan at the ‎Cairo Contemporary Dance Center from 7-8pm.

Race through history at TriFactory’s Saqqara Pyramid Race this Friday next to the ancient Step Pyramid of Saqqara. You can choose between two distances: 5 km and 10 km (both are one-lap race courses timed using the MyLaps timing system).

Fun Nation is taking over standup comedy night at Room Art Space New Cairo this Saturday, 18 February at 9pm, with this lineup of local comedians, Waleed Al Tourky, Shehab Al Ashry, Ahmed Hossam, Waleed Mostafa and Waleed Abo Almagd.

Don’t miss Omar Khairat's concerts at 8pm next Monday and Tuesday, 20 and 21 February in the Main Hall of the Cairo Opera House.

We’re less than a week away from Kevin Hart’s standup comedy show in Cairo next Tuesday, 21 February. Some ticket categories are still available here.

Bringing the master of silent film to life on stage: Charlie is a musical play about the legendary Charlie Chaplin's human side, his hopes and hardships, and his impact on the film industry. The performance will take place at Theatro Arkan on Friday, 24 February, and tickets can be purchased here.

Head to the She Crafts bazaar on 24 and 25 February at the Grand Nile Tower Hotel in Garden City anytime between 12-8 pm. The bazaar aims to help women market their products and become more financially independent.

Rock fans, rejoice: 1984, Galab and Dabbet Namla are taking the stage at El Sawy Culturewheel’s Castle of Rock Festival on Tuesday 28 February at 7 pm.

Catch Cirque du Soleil’s OVO next month: The event features 100 performers taking the stage with their acrobatic acts. OVO will host 16 shows between 8-18 March at Cairo international Stadium Hall, courtesy of real estate developer Madinet Nasr for Housing and Development (pdf).

???? EARS TO THE GROUND-

Behind the scenes of success: Noah Kagan Presents is a must-listen podcast for anyone interested in business, entrepreneurship, or success in general. The show, hosted by tech entrepreneur Noah Kagan, takes us on a journey to discover the successes and struggles of extraordinary people who also happen to be entrepreneurs. It delves into their minds and reveals the strategies they used to get to where they are now. Each episode is jam-packed with actionable insights that listeners can easily implement, ranging in length from 20 minutes to two hours. The episode with author and entrepreneur Tim Ferriss was particularly good, with the interview diving deep into his work-life balance strategies, time management, and the many ways he pushes himself outside of his comfort zone. Ferriss shares his candid thoughts on failure and success, offers advice on how to approach career decisions, and offers valuable insights into what motivates him every day (listen, runtime 40:14).

???? UNDER THE LAMPLIGHT-

An African disillusionment with the American dream: Jacob Nti and Belinda Thomas are two siblings separated by oceans and dreams. While Jacob is divorced in Ghana after several failed attempts to join his wife in the US, Belinda has accomplished What Napoleon Could Not Do. The title of the novel encapsulates the American dream of a college education and a marriage to a wealthy businessman. But even the most spell-binding fairytale is not always what it appears to be. Belinda’s husband, Wilder, has a very different perspective of a country that consistently treats him as less-than because of the color of his skin. This debut novel by DK Nnuro is an engrossing investigation into what it means to immigrate, and what defines home and family as space and time separate them.

GO WITH THE FLOW

EARNINGS WATCH-

Talaat Moustafa Group reported EGP 2.23 bn in 2022 net income, rising 25% y-o-y, according to the company’s financials (pdf). Revenues for the year increased 29% y-o-y to EGP 19.87 bn.


MARKET ROUNDUP-

The EGX30 fell 0.2% at today’s close on turnover of EGP 2.5 bn (29.8% above the 90-day average). Foreign investors were net sellers. The index is up 19.8% YTD.

In the green: Alexandria Mineral Oils Company (+7.3%), Elsewedy Electric (+5.9%) and Qalaa Holdings (+3.8%).

In the red: Rameda Pharma (-2.7%), Juhayna (-1.8%) and Telecom Egypt (-1.7%).

CLIMATE

Climate change is spooking people out of having kids: For some people, major life milestones like starting a family have been put on hold as anxiety about climate change and the state of the world in the not-so-distant future is coming into question. As scientists and international bodies continue to sound the alarm on the threats a changing climate presents to life on Earth, and those dangers become more widely understood, a trend of abstaining from childbirth is slowly gaining ground.

About a third of people are putting off having kids due to eco-anxiety: Some 30% of people are delaying major life events like having kids due to anxiety about climate change, according to a survey of some 25k people across 25 countries by waste and energy management company Veolia and research firm Elabe cited by Euronews. A separate online survey by Business Insider in 2019 found that 38% of 18-29-year-olds in the US think couples should take climate change into account in family planning.

That figure is even higher in places at greater risk: In countries like Indonesia, Japan, Mexico, and Colombia some 33% of people are reluctant to have children due to climate concerns, the Veolia-Elabe survey found. In India, that concern is significantly higher, with 58% reporting that they are putting off giving birth.

Wildfires, floods, and drought are not the most pristine backdrops for childhood: The IPCC projects that “children aged ten or younger in the year 2020 are projected to experience a nearly four-fold increase in extreme events under 1.5°C of global warming by 2100, and a fivefold increase under 3°C warming.” These issues are compounded by the fact that threats to water quality and quantity, food production and ecosystem loss are all likely to be experienced by children and potential children due to unmitigated climate change, the international climate body says. For many prospective parents, it is precisely this idea of having children in an increasingly hostile environment that is a significant source of stress and anxiety.

And the effect on children can start before they’re born: Children who are in the womb during a natural disaster are at a heightened risk of developing psychological disorders later in life than those whose mothers were not exposed to the disaster, according to a 2022 study. The findings of this paper suggest that the kinds of elevated levels of stress pregnant mothers endure during natural disasters can have significant consequences on children long after they’re born. As extreme weather events become more frequent due to climate change, the impact on children could be more widespread.

There’s also a conservationist case that children can be quite taxing on the environment: In rich countries, having one less child can equal an average of 58.6 tons of CO2 emission reductions per year, according to a 2017 study published in IOPScience. “Having a child is 7-times worse for the climate in CO2 emissions annually than the next 10 most discussed mitigants that individuals can do,” analysts at Morgan Stanley told CNBC.

But some argue that more heads on this planet won’t necessarily be more destructive. One of the main assumptions in measuring the carbon footprint of new children is that the global energy status quo remains unchanged — which is a more grim outlook on our global potential. “It not only assumes that we don’t decarbonize during the life of the child, but also that we don’t decarbonize during the life of their children, or their children’s children,” US payments company Stripe’s climate research lead tells the Washington Post. It is still entirely possible that more extreme levels of warming (anything above 1.5°C above pre-industrial levels) can be avoided, it just requires that more serious global efforts be made to decarbonize sooner rather than later.

Still, many have hope that things will get better: Some 75% of people around the world acknowledge that climate change is a man-made problem and some 60% think that future outcomes are still within our control, according to the Veolia survey. Crucially, most people seem to understand that investments today will cost us less than the damage sustained if unaddressed. Some 55% say that collective action and lifestyle changes are necessary to combat climate change.

THE ENTERPRISE ENTERTAINMENT CALENDAR

FEBRUARY

7 February-1 March (Tuesday-Wednesday): Zāt exhibition, Safarkhan Art Gallery, Zamalek.

8-18 February (Wednesday-Saturday): Cairo Photo Week, Downtown Cairo.

15 February-2 March (Wednesday-Thursday): Naguib Mahfouz Festival, Zawya Cinema, Downtown Cairo.

16 February (Thursday): Afro Jazz Beginners Course with Mako Ruan from 7-8 pm, ‎Cairo Contemporary Dance Center.

17 February (Friday): TriFactory’s Saqqara Pyramid Race, Giza.

18 February (Saturday): Fun Nation’s standup comedy night at 9pm, Room Art Space New Cairo on Saturday 18 February at 9pm.

20-21 February (Monday-Tuesday): Omar Khairat performs live at 8pm on 20 and 21 February in the Main Hall of the Cairo Opera House.

24 February (Friday): Hamza Namira performs at The Marquee in Cairo Festival City, New Cairo.

24-25 February (Friday-Saturday): She Crafts bazaar from 12-8 pm, the Grand Nile Tower Hotel, Garden City.

MARCH

8-18 March: Cirque du Soleil’s OVO, Cairo international Stadium Hall.

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

APRIL

16 April (Sunday): Coptic Easter

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).

MAY

1 May (Monday): Labor Day.

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

JUNE

10 June (Saturday): Thanaweya Amma examinations begin.

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

30 June (Friday): June 30 Revolution Day.

JULY

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.

SEPTEMBER

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

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

OCTOBER

6 October (Friday): Armed Forces Day.

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.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.