PM — Linking social injustice and health

Good afternoon, ladies and gentlemen. It’s so far the kind of hump day where there isn’t a massive volume of news coming in on the home front, but what news there is, is significant.

THE BIG STORY TODAY

FRA eases regs on listing + IPO procedures: Companies will be able to temporarily list their shares on the EGX before seeking regulatory approval from the Financial Regulatory Authority (FRA), as part of new amendments to listing rules (pdf) announced by the regulator today. Under the amendments, companies will get a six-month grace period to meet regulatory requirements — including the minimum number of shares being listed and shareholders in the company — to complete the IPO of their shares. Listing regulations previously required companies to seek pre-approval from the FRA before listing their shares on the bourse and gave them a one-month window to begin trading after getting the FRA’s blessing.

THE BIG STORY ABROAD

It’s all about Ukraine in the international press this afternoon, after Ukrainian President Volodymyr Zelenskiy said last night that its forces have recaptured over 6k square kilometers of eastern and southern territory this month. Ukrainian forces have continued to push back Russian troops along the front line, but top US officials say it is too early to tell whether the successful counteroffensive can sway the near-term outlook on the battlefield. The story is on the front pages of the Financial Times, the Wall Street Journal, Reuters, and Bloomberg.

HAPPENING NOW-

President Abdel Fattah El Sisi is in Doha for his two-day visit to Qatar, where he is set to meet with Emir Sheikh Tamim bin Hamad Al Thani, according to an Ittihadiya statement. Expect investment to be the major item on the agenda, if a string of reports in the local media that Qatar's sovereign fund may buy shares in prominent Egyptian companies is anything to go by. The reports suggest the Qatar Investment Authority is looking to follow in the footsteps of Saudi Arabia and Abu Dhabi’s sovereign wealth funds, which have been snapping up shares in high-profile Egyptian companies. El Sisi’s trip to Doha comes after Thani’s visit to Cairo in June, which was his first visit since the two countries normalized relations in early 2021.

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

• The Madbouly government will within four weeks announce the names of the state-owned companies it will offer to foreign sovereign funds in the first of a series of strategic stake sales that it expects will bring in as much as USD 6 bn.
• MIR is coming: The Central Bank of Egypt is working to link Russia’s MIR payments system with Egypt’s homegrown Meeza card network.
• The year in agriculture so far has been mixed: A longer winter and milder spring caused difficulties for growers of olives and corn but brought unexpected upsides for wheat, cotton, and especially mangoes, which staged a recovery after a dire 2021 season

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FOR TOMORROW-

Shareholders have until tomorrow to sell their shares to the consortium of investors led by Expedition Investments, which is bidding to take a 34% stake in the EGX-listed cheesemaker. Expedition sweetened the deal by upping its offer price by 10% last week.

Expedition has more than half of its targeted shares in Domty: Shareholders have reportedly agreed to sell almost 53 mn shares to the consortium, according to Al Borsa. This is roughly 55% of the 96.2 mn shares it is targeting.

???? CIRCLE YOUR CALENDAR-

B Investments is going to have to make up its mind over TotalEnergies Egypt by Thursday: The private equity player has the right to preempt a bid by Abu Dhabi energy giant Adnoc to acquire a 50% stake in the company, which expires on Thursday.

AlDau Developments art subsidiary ADD Art is hosting its first Aldau International Art Festival in Hurghada from 22 September until 7 October, according to a statement (pdf). The festival will begin with a weeklong workshop with nearly 40 artists from several countries, including the US, UK, France, Jordan, Tunisia, Uzbekistan, and Congo “to engage in cross-cultural dialogue.” The workshop will be followed by an exhibition from 2-7 October to showcase the artworks from these artists at the AlDau Art Promenade in Hurghada, following a theme of “trade and cross-cultural exchange.”

PSA- Tech startups have just a little over two weeks to apply for Universities of Canada in Egypt-based incubator DMZ Cairo’s second eight-month incubation program, which begins in November. The incubator — which is backed by the Academy of Scientific Research and Technology and the National Technological Incubators Program — is accepting applications for the cycle until 29 September, according to a statement (pdf).

☀️ TOMORROW’S WEATHER- Expect a daytime high of 35°C tomorrow before the temperature slides to 21°C at night, our favorite weather app tells us.

As shortages loom, energy traders are stockpiling LNG supplies at sea: Energy utilities and traders are hoarding extra liquefied natural gas (LNG) supplies on ships at sea to replace Russian pipeline gas this winter, according to Bloomberg. Many energy giants have not released their ships at the end of the summer like they usually do, instead electing to pay more to park LNG shipments off the coast. This is an unusual step because liquid fuel gradually evaporates in ships, making storing supplies for an extended period of time difficult. These difficulties showcase just how far gas importers are ready to go to ensure they have enough fuel for the winter.

The amount of LNG in so-called floating storage reached 1.4 mn tonnes at the beginning of the month, the highest level in the past two years, according to figures from energy intelligence firm Kpler cited by Bloomberg. To put that sum into perspective, it is nearly equal to Spain’s import total for August. As Russia curbs supply, competition for LNG exports is at an all-time high, driving up prices in Europe and Asia, with further price rises predicted this winter.

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Google could have to pay as much as EUR 25 bn in damages for alleged “anticompetitive behavior” in digital advertising, after a law firm representing publishers announced it would launch two lawsuits against Alphabet subsidiary Google in British and Dutch courts in the coming weeks, Reuters reports. The search engine giant is accused of exploiting its dominance in the ad tech business by controlling the sale of online advertising space between publishers and advertisers. “It is time that Google owns up to its responsibilities and pays back the damages it has caused to this important industry. That is why today we are announcing these actions across two jurisdictions to obtain compensation for EU and UK publishers,” a representative from law firm Geradin Partners said in a statement. Google criticized the impending legal actions, maintaining that it collaborates positively with all European publishers.

This is not the first time Google has faced antitrust allegations: The US Justice Department has also been looking into claims that “Google abuses its status as both a broker and auctioneer of digital advertisements to steer itself business at the expense of rivals.” The company has reportedly offered the US government to split its ad-tech division into a separate firm under the Alphabet umbrella, to avoid an antitrust lawsuit, according to a recent Wall Street Journal report.

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

The Clinton ladies make Gutsy moves: In their new Apple TV+ docuseries, Hillary and Chelsea Clinton embark on a cross-country road trip to have candid conversations with influential women. The mother-daughter duo continues the female-lauding theme of their 2019 best-selling book, The Book of Gutsy Women. With an awareness that they need fistfuls of stardust to shed light on worthwhile issues impacting women all over the world — including refugees, workers’ rights, climate change activists, and survivors of child marriage — they include interviews with celebrities such as Goldie Hawn, Amy Schumer, Kim Kardashian, Gloria Steinham, and Megan Thee Stallion. While the show occasionally feels like an endless Ted Talk, it’s still fascinating and worth checking out (watch trailer, runtime 2:14)

⚽ An epic showdown in the Champions League: Bayern Munich hosts Barcelona in the second round of the Champions League group stage matches at 9pm tonight.

Also at 9pm: Liverpool v Ajax, Bayer Leverkusen v Atletico Madrid, Porto v Club Brugge, and Marseille v Eintracht Frankfurt.

Earlier at 6:45pm: Sporting Lisbon v Tottenham, and Viktoria Plzen v Inter Milan.

????EAT THIS TONIGHT-

From Zamalek to Zayed: Granita lands in West Cairo: One of our favorite Zamalek spots has finally opened up a second branch, and we’re happy to report it lives up to the quality reputation it built over the years in the courtyard of All Saints Cathedral on the island. The refreshing decor, with equal parts elegance and quirkiness, is immediately inviting at the new location in Arkan’s extension, which includes indoor lounges and an outdoor terrace area. An updated menu includes all our old favorites along with new dishes we’re looking forward to exploring. We recommend their roast beef sandwich, their chicken liver mousse, and wrapping up the meal with a sweet lemon tart.

???? OUT AND ABOUT-
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It’s a throwback-themed Tuesday, starting with movie night at Cairo Jazz Club 610: Round up the gang and head to the CJC’s terrace for two of the best 90s glow-up movies: She’s All That and Clueless will screen one after the other starting at 8pm.

A tribute to the great Edith Piaf at Rawabet Art Space: As part of the Cairo Days International Monodrama Festival, actress Denise Ababei is performing a one-woman tribute to the French idol in English at 8pm — starting with her first appearances in public and going through her years of fame and artistic decline.

Classic rock anthems at Room Art Space New Cairo: Egyptian rock bands 404 and Hardcase will take the stage tonight for two live music sessions starting at 9pm. They will be performing songs by rock icons including Queen, The Beatles, Pink Floyd, Aerosmith, Bon Jovi and Guns & Roses.

???? UNDER THE LAMPLIGHT-

Why social injustice poses the greatest risk to global health: In The Health Gap, former president of the World Medical Association Michael Marmot breaks down how inequality, not poverty, causes health issues. Socially disadvantaged people generally have poorer health, shorter lifespans, and are more likely to suffer from several diseases, including diabetes, obesity, and heart and lung diseases. Marmot outlines how empowerment is the secret to combating health inequalities and enhancing everyone’s health. Through surprising facts and data, Marmot makes a compelling case for the need for a radical shift in how we think about health and society. This matters because a society’s overall disease rate affects how well it runs — the more health imbalance there is, the more dysfunction there is, he says.

The EGX30 fell 0.4% at today’s close on turnover of EGP 1.44 bn (35.5% above the 90-day average). Foreign investors were net sellers. The index is down 13.0% YTD.

In the green: Cleopatra Hospitals (+4.0%), Fawry (+1.4%) and Oriental Weavers (+0.7%).

In the red: Qalaa Holding (-2.7%), Egypt Kuwait Holding-EGP (-2.1%) and e-Finance (-1.9%).

OUR FOUNDER OF THE WEEK- Ezz Tarek, co-founder and managing partner of In Your Shoe (LinkedIn).

My name is Ezz Tarek and I’m the co-founder and managing partner of In Your Shoe. I studied marketing and advertising — I’ve always been passionate about advertising. After graduating from university, I worked for international advertising firm BBDO, where I had interned during my undergrad. It was the first step in my professional career and it was during my time at BBDO that I started In Your Shoe.

In Your Shoe originally started as a socks brand. I noticed my colleagues coming into work sporting socks with interesting designs, like the Mona Lisa or Vincent van Gogh, which were trendy at the time. I really liked them but they weren’t available in Egypt — I had to buy them from abroad. So I thought, why aren’t there any local brands that manufacture these socks in Egypt? I contacted an old classmate whose dad is in the sock-making business. Then, together we created a sample which I then shared on Instagram and that’s how co-founder Amr Kawashti (LinkedIn) got onboard with the idea and we started from there.

Then covid hit and people were no longer as interested in fun socks — considering they weren’t leaving their houses much. So we thought, why not take those same designs and put them on pajama pants? The idea was very well received and our revenues saw a significant increase. We slowly rolled out bucket hats and fanny packs, which also landed well with our customers. That’s when we decided to turn the company into a full fashion brand.

There is a big risk that comes with starting your own business. You let go of working for a stable, established company that ensures your salary every month, regardless of how the company is doing. And mistakes come at a much higher price when you’re running your own business. I don’t work from 9-5 — I work 24 hours a day. But these are some sacrifices I had to make to reach a certain goal. My partner and I set certain targets for In Your Shoe and once we hit those targets it was our sign to quit our full time jobs and solely focus on the brand.

I always wanted to have my own startup or run my own business. As an undergrad I started my own ice cream shop called “Crave a Flave” but it didn’t go as planned seeing as it was hard working on it after I started working full time. So I shut it down and In Your Shoe came next.

In Your Shoe allows the new generations to express themselves through fashion. Fashion now serves a different purpose than it did in the past; people now wear items that reflect how they feel. In Your Shoe understands that and it understands how Gen Z thinks.

There is so much hassle that goes on behind the scenes to bring a new collection to life, between working with suppliers and factories and navigating government regulations. It takes away from the enjoyment of what we do.

We’ve been bootstrapping from day one and the company is cashpositive. We broke even in a very short period. The only funding we received was a pre-seed round from 500 Startups. My partner and I each put down EGP 15k to manufacture our first set of socks. We had eight designs and the factory had a minimum order quantity of 300 pairs of socks per design. We didn’t wait or search for investors or the aid of family and friends.

Today, In Your Shoe is focusing on offline expansion. We have two shops and are in talks to create more. We aim to be the main cool streetwear fashion destination in the MENA region. We are also looking to introduce more products. We are launching In Your Shoe kids very soon.

Looking ahead, we want to expand outside Egypt, with a specific focus on other markets in the MENA region.

My family and friends were all questioning my choices when I first started — leaving a stable full time job to sell colorful socks. At first they didn’t really get what I was doing but now they have become very supportive.

My upcoming read is Rich Dad, Poor Dad. I read an excerpt online and felt drawn to it. I am a huge fan of biopics — Walk The Line, Ray and The Founder are among those I would recommend.

When I have down time, I like to work on pottery. I have a pottery wheel at home and I play music, so whenever I have the time I pick up my guitar.