PM — Robots can build Greek sculptures now

Good afternoon, friends. Today is hump day — not yesterday, as we (however wishfully) declared it. It’s not a particularly busy news day here at home, but we’ve learned that these tides can change swiftly.

THE BIG STORY TODAY

Remittances hit a record high in FY2021-2022 for the second year in a row, growing 1.6% y-o-y to USD 31.90 bn, according to central bank figures (pdf). The World Bank previously attributed the rise in remittances to factors such as rising oil prices and Egyptians who work in oil-rich Gulf countries remitting a significant portion of their earnings back to their families in Egypt.

THE BIG STORY ABROAD

Business activity across the eurozone was down for a second consecutive month in August, data (pdf).by S&P Global’s flash eurozone Composite Purchasing Managers' Index (PMI) showed, as a manufacturing contraction and a falling demand in service sector on the back of surging inflation weigh on business activity. PMI fell to 49.2 in August, down from 49.9, signaling a second month of contraction across the eurozone after a 16-month period of growth.

The contraction raises concerns that the eurozone is sliding towards recession, pressuring the European Central Bank as it looks to hike interest rates. “The euro-area composite PMI suggests the economy of the monetary union is sliding toward recession under the weight of soaring energy costs, and the worst still probably lies ahead,” David Powell, senior euro-area economist said, according to Bloomberg. The PMI data and its effect on the EUR are leading the front pages of Financial Times, CNBC, and Reuters.

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

• Egypt and the IMF are in the “final stages” of talks for a fresh facility to help shore up the economy, Prime Minister Moustafa Madbouly said.
• valU snaps up Paynas: EFG Hermes’ consumer finance arm valU has acquired 100% of digital HR and payroll platform Paynas.
• We’re adding 500k tons to our silo capacity: The Supply Ministry is building wheat silos in Toshka with the capacity to hold 500k tons of grain.

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FOR TOMORROW-

CBE Governor Hassan Abdalla will reportedly meet with senior bankers, his first such meeting since being appointed last week. Abdalla was tapped to run the bank last Thursday after Tarek Amer stepped down unexpectedly the day before.

???? CIRCLE YOUR CALENDAR-

B Investments has just under a week to respond to Adnoc’s bid for TotalEnergies Egypt: Private equity outfit B Investments has until next Monday, 29 August, to decide whether or not it wants to preempt Adnoc Distribution’s bid to acquire 50% of TotalEnergies Egypt. Adnoc agreed last month to buy the stake in a USD 203 mn transaction, which would see it acquire the entirety of B Investments’ c.15.4% stake in the fuel distributor and a 34.6% stake from Total Energies Marketing Afrique.

PSA- Your deadline to catch a 65% break off late payment fines for your taxes is coming up on 31 August. The waiver applies to late payment fees for customs tariffs, income, real estate, and sales taxes, VAT, and stamp duties among others. The remaining 35% of your due payments will need to be paid before next March.

Next week’s National Dialogue board meeting has been postponed to the first week of September after several members fell ill, Cairo24 reports. Board member Negad El Borai confirmed the postponement on social media, but did not say what triggered it. Cairo24’s source claims the meeting could now be held on 3 September. The meeting was set to see the board’s members choose the rapporteurs for all of the committees and subcommittees of the social, political and economic tracks, and prepare the agenda and topics of discussion for the dialogue.

The Union of Arab Banks is organizing a forum on money laundering and terrorism financing in Sharm El Sheikh from 1-3 September. Participating institutions include the Central Bank of Egypt and the Federation of Egyptian Banks, among others.

☀️ TOMORROW’S WEATHER- Expect temperatures to rise to a scorching 42°C during the day tomorrow before falling to 26°C at night, our favorite weather app tells us.

Bringing Ancient Egypt to San Francisco: Some 200 ancient Egyptian artifacts — including pieces that have never before left Egypt — are going on display at the Ramses the Great and the Gold of the Pharaohs exhibition in San Francisco’s de Young Museum. The exhibition, which archaeologist and former antiquities minister / Egyptian Indiana Jones Zahi Hawass curated, includes a variety of sarcophagi, royal masks, sculptures, statues and even features a VR component, during which visitors can walk through the Abu Simbel and Nefertari’s tombs, he told the San Francisco Chronicle.

The centerpiece: An 8-foot-tall statue of Ramses II’s head, dating back to the 13th century B.C. The exhibition runs until February 2023.

Speaking of artifacts displayed in foreign museums: A robot sculptor could be the solution for mounting pressure on the British Museum to return the Elgin Marbles — sculptures from Greece’s Parthenon Temple whose ownership has disputed for over 200 years — to Greece, the New York Times reports. Thomas Bruce, the seventh earl of Elgin, took the statues from the Acropolis in Athens in the early 1800s, when he served as ambassador to the occupying Ottoman Empire. The Institute of Digital Archaeology has developed a robot sculptor that uses 3D machining and has so far been able to create an uncanny replica of the Horse of Selene (the most famous of the 2500-year-old Parthenon Marbles sculptures).

If the British Museum accepts these replicas, the originals can be sent back to Greece, argues the institute’s executive director, Robert Michel. The only problem: The museum has not been open to the idea, refusing Michel’s request to scan the marbles. Earlier this month, Jonathan Williams, deputy director of the museum, in an interview with the Sunday Times said, “People come to the British Museum to see the real thing, don’t they?” While many museums across North America and Europe have been returning artifacts to their home countries, the UK has largely been holding out.

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How to keep up with the Gen Z world of dating apps: Hop into the Metaverse. The dating app has bold plans to set up virtual environments for singles to mingle by hiring heads from popular game companies to achieve their vision for the future of dating, as it loses Gen Z singles to rival apps like Bumble or new startup Thursday, Financial Times reports. Downloads of Tinder dropped 5% in 2021, while Bumble increased signups by 20%, the salmon-colored paper reports, citing figures from market research firm data.ai. “If you’re looking for somebody who is a teenager and you’re thinking what are they going to use in a year or two when they are dating app eligible? That’s the audience we have to be looking at,” Gary Swidler, CEO of Tinder parent company Match Group, told the FT.

???? ON THE TUBE TONIGHT-
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Look Both Ways is the Gen-Z version of 1998’s Sliding Doors: Netflix’s new romantic comedy is basically two movies in one, showing us a young woman’s life split into two parallel timelines, in the same vein as Gwyneth Paltrow’s Sliding Doors, where a Londoner’s life diverges over missing/making a train. The key scene in Look Both Ways is when Natalie (Lili Reinhart) takes a pregnancy test on the night of her college graduation. This is where the two pathways divide, with one leading to her being pregnant and the other resulting in a negative pregnancy test, after which Natalie moves to Los Angeles to follow her dream of being a Hollywood animator. The transitions between the two timelines are smooth and well-done. While the plot seems like it could be predictable, it manages to pleasantly bring a few surprises. The film’s assurances that, ultimately, everything will be okay makes for excellent comfort viewing.

⚽ It’s a second consecutive league crown for Zamalek: Zamalek is officially the Egyptian Premier League title holder. The White Knights don’t need any more points from three remaining games left in the league, including tonight’s game against Alexandria’s Al-Ittihad at 8pm. Zamalek secured the league title yesterday, thanks to rival Pyramids FC dropping points against Future FC after losing 1-0 and Al Ahly’s tie against Ismaily on Sunday, as we noted this morning.

Zamalek is set to receive the league’s shield after the referee blows the final whistle at Ittihad’s game, Ahmed Diab, head of the Egyptian Professional Football Clubs Association, told FilGoal. Zamalek earned the title for the second consecutive time, the first since 19 years where it grabbed the title during 2002-2003 and 2003-2004 seasons. This is also Zamalek’s fifth league title in the past 20 years.

Other local games tonight: Al Masry v Pharco and Al Bank Al Ahly v Gouna at 5:30pm. Al Moqawloon v Smouha at 8pm rounds out tonight’s games.

???? EAT THIS TONIGHT-

Dining at Mo Bistro is always a good idea: The restaurant is a reliable choice if you’re looking for a solid dining experience with great service. The elegantly casual spot offers breakfast, lunch, dinner, and dessert, and we’ve been enjoying their quality dishes for years. We have a long list of recommendations for every taste: Meat lovers will love their slow-cooked, juicy, Australian lamb shank, and vegetarians will enjoy their vibrant Chinese vegetable noodles. For a light and filling dish, go for their sushi garden salad, or their healthy tuna wrap. If you’re looking for comfort food, try their grilled cheese sandwich or their hearty pasta dishes. And if you’re looking to satisfy your sweet tooth, their signature sweet yams dish is out of this world. Mo Bistro has branches in Mohandeseen, Sheikh Zayed’s Capital Promenade, and New Cairo’s Garden 8.

???? OUT AND ABOUT-
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It’s swing dancing night tonight at Consoleya: The downtown venue is hosting a swing dancing night starting at 8pm, with an introductory class to the dance followed by social dancing. Consoleya is encouraging people to get dressed in their “20s or 50s outfits” to really get into the spirit.

Attend a drum circle at Zamalek’s Gusour Cultural Center at 6.30pm which promises to rid you of your negative energy. The drum circle will be led by Mariam Ayad (also known as MiMi).

Singer/songwriter Shahira Kamal is taking the stage at Room Art Space New Cairo to perform original indie pop Arabic tunes. You may recognize Kamal as the female voice from Cairokee’s song Kol Haga Beta’ady.

???? UNDER THE LAMPLIGHT-

A Waiter in Paris is a vivid portrayal of the City of Love’s underbelly through the eyes of a young server trying to make ends meet. In this intriguing memoir, Edward Chisholm takes us into a world with grueling hours and stolen sleep, where he survives on coffee, bread, and cigarettes while earning a wage so low that he has to compete with coworkers for tips. The author paints a vivid, almost tangible picture of his experience in the Paris restaurant scene and brings depth to each of the characters featured. When you’re a waiter in Paris, your coworkers — whether they are criminals, narcissists, ex-soldiers, immigrants, would-be actors, or drugdealers — become like extended family. It's tough on the body, occasionally humiliating, and fiercely competitive. But that is all irrelevant, because you're in Paris, the epicenter of the universe, and you wouldn't want to be anywhere else.

EARNINGS WATCH-

Abu Qir Fertilizers reported EGP 2.09 bn in net income in 4Q 2021-2022, up 95% y-o-y, while its revenues for the quarter came in at EGP 4.29 bn, rising 69% y-o-y, according to its earning release (pdf). The company’s net income in FY 2021-2022 came in at EGP 9.05 bn in net income, rising 158% y-o-y, with revenues for the fiscal year rising 58% to EGP 16.33 bn.

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MARKET ROUNDUP-

The EGX30 fell 1.1% at today’s close on turnover of EGP 1.72 bn (52.9% above the 90-day average). Local investors were net buyers. The index is down 15.2% YTD.

In the green: Cleopatra Hospital (+3.2%), EFG-Hermes (+0.8%) and Housing & Development Bank (+0.5%).

In the red: TMG Holding (-4.6%), GB Auto (-4.1%) and Fawry (-3.4%).

OUR FOUNDER OF THE WEEK- Fadi Antaki, co-founder and CEO of The Fashion Kingdom (LinkedIn).

My name is Fadi Antaki and I am the co-founder and CEO of The Fashion Kingdom (TFK) and general partner at A15. I graduated from AUC in the late ‘90s with a degree in business administration and for the first couple of years I worked in the family business which is retail and manufacturing ready-made garments. I was responsible for quality control at the factories and also worked to begin incorporating technology. That was back in 1997, so everyone in Egypt was just beginning to use Microsoft Excel. I realized that I was more inclined toward tech, so I left the family business and began working at LINKdotNET in 2000, an internet service provider that was relatively new at the time. The company was later acquired by Global Telecom Holding (formerly Orascom Telecom Holding).

I’ve had various roles in companies under the Orascom umbrella. After I left LINKdotNET I began working at ARPU+, which was founded in 2003 and is now an A15 subsidiary; I eventually became CEO of that company. I then served as CEO of OTVentures, a subsidiary of Orascom Investment Holding that later became A15, an Egyptian VC.

I wanted to get my hands dirty and work on operation and execution. Working at a VC means you’re supporting people who are building something and even though you’re involved, you’re just monitoring. In 2019, my co-founders and I founded TFK and I took on a more silent role at A15.

I decided to start TFK because I had the urge to build something and I thought it was time to get out of my comfort zone. I brought to the table a bit of fashion industry knowledge that I learned through the family business, my tech know-how, and the experience that I've gained running companies.

TFK is an e-commerce platform that combines tech and fashion to offer customers a more pleasant shopping experience. It enables customers to buy products from multiple brands and makes the experience more enjoyable through features styling advice and outfit recommendations and enabling in-store returns for items purchased online.

We’re also very focused on our partners on the supply side. We sell both local and international brands. We do not just act as a reseller for those brands, but rather as more of a digital partner. New up-and-coming brands often want to place their focus on the products themselves but get sidetracked by the operational and logistical concerns like storing inventory, warehousing or things like digital photography and so that’s where we come in and offer support. We help brands with their marketing and other operational aspects to allow them to focus on their core business and create better products.

The best part of my job is making TFK a fun place to work. The passion that comes with creating something new is the best part of the process of building a company. Being able to employ and create jobs is very rewarding. Involving everyone at the company, from the office boy to top management, in meeting the company’s targets creates a sense of inclusion.

The stress and overthinking that comes with the territory of doing something new are the worst part of my job. The fear of failure builds on the stress and makes me unable to think clearly at times. I’ve never worked in e-commerce before so my self-doubt was very high and it took a while for me to get over this, it’s tough especially when you’re raising money for the company and are getting a lot of no’s.

There are several financial and operational KPIs that I look at regularly. From a financial perspective, I look at our gross income margins, the top line, and customers’ cart size. You have to have a plan that enables you to eventually become a profitable company. From an operational perspective, I look at our delivery time and fulfillment time so how long it takes to ship out an order, and how many days it takes to deliver an order. In terms of customer service, I also look at how many tickets we resolve every hour.

TFK recently closed a USD 2.6 mn seed round co-led by CVentures (CIB’s VC arm) and A15. Lotus Capital, Raba Capital, Sunny Side Venture Partners, Foundation Ventures, and Cairo Angels also invested.

Some of our future plans include expanding to other markets and offering our partner brands a wider range of services. We want to provide brands with more data, such as the price range to stick to in order to appeal to a certain target for a specific product, especially since TFK is more focused on the mass market and fast fashion. Other examples include what products or colors perform better seasonally, any type of data that could help them optimize their product offerings, expand their target market, or whatever their goal may be.

When choosing my current founding and management team I looked at consistency and resilience. I looked for people who were eager to learn. None of TFK’s co-founders had any prior experience with e-commerce. We all had to learn together. I can’t work with people with a big ego. Both my co-founders are humble and team players.

In my spare time, I enjoy playing padel tennis, which I’ve been passionate about for the last five years. I’ve also done yoga and meditation for stress relief and it's really an efficient way to manage stress. When I have the time I love to travel with my family and discover new places.

Robin Sharma’s book, The 5 AM Club, gave me the resilience I needed to not collapse under pressure when I was building TFK. I’m currently reading another one of Sharma’s books, The Everyday Hero Manifesto. His books are all about personal development and have helped me improve my life on a professional and personal level.