Monday, 28 March 2022

PM — It’s shaping up to be a diplomacy-heavy week

TL;DR

???? WHAT WE’RE TRACKING TONIGHT

Good afternoon, wonderful people. Picking up where we left off this morning, the news cycle is still giving us a bit of a breather, suggesting that the fabled Ramadan slowdown could indeed be in the cards.

THE BIG STORY TODAY

Digital healthcare platform Altibbi has landed a USD 44 mn series B investment in a round led by Foundation Holdings, Hikma Ventures and others, according to a press release (pdf). The funding marks the largest single funding round for a digital health company in the Middle East. Altibbi will use the investments to grow its presence in Saudi Arabia and Egypt, “and expand into online pharmacy and diagnostics to enhance AI-based health services.”

HAPPENING NOW-

Greek Foreign Minister Nikos Dendias is in Cairo to meet with Foreign Minister Sameh Shoukry, according to a Greek Foreign Ministry statement. The talks will cover deepening bilateral cooperation, matters pertaining to international law and maritime law, as well as developments in Ukraine, the Eastern Mediterranean, the Middle East, Libya, and sub-Saharan Africa.

The two sides are expected to have a joint press conference at around 6:30pm.

Shoukry’s meeting with Dendias comes as he heads home from the landmark Middle East Summit in Israel, where Shoukry met with US Secretary of State Antony Blinken and the top diplomats from the UAE, Morocco, and Bahrain.

At the top of the agenda was the Iran nuclear agreement, which the Arab countries are concerned could leave Iran “with the means to build a bomb and bolster Tehran-backed guerrillas,” reports Reuters. The US is pushing to renew a previous 2015 agreement with Iran, but in the case of that failing, US Secretary of State Antony Blinken offered reassurances to the Arab countries.

Also on the agenda: The Israel-Palestine conflict: The summit renewed long-stalled peacemaking talks about the issue, with all sides backing the two-state solution.

^^We’ll have more on these stories and others in tomorrow’s EnterpriseAM.

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

  • EIB supports 4G expansion with EUR 150 mn loan to TE: Telecom Egypt has secured a EUR 150 mn medium-term loan from the European Investment Bank to expand its 4G broadband network.
  • Covid restrictions are being eased during Ramadan: Shops, restaurants and cafes will be allowed to stay open until 2 am, mawa’id rahman (charity table) gatherings are back, and event halls at major mosques will reopen.
  • High-speed rail: Coming June 2024. The first phase of the high-speed electric railway — connecting Ain Sokhna to Matrouh — will start operating in June 2024, Transport Ministry Kamel El Wazir said.

THE BIG STORY ABROAD

Ukrainian and Russian delegations are arriving in Istanbul for yet another round of talks, which the Kremlin says could start tomorrow and are expected to span three days, the Financial Times reports. NATO member Turkey will act as an intermediary during the talks, the Washington Post writes, days after President Recep Tayyip Erdogan stressed the need for a cease-fire in a phone call with Russian President Vladimir Putin. The talks come after Ukrainian President Volodymyr Zelensky yesterday signaled his willingness to declare neutrality and potentially give up sovereignty over some parts of the country.

???? CIRCLE YOUR CALENDAR-

PSA #1: Companies have a little less than two weeks to file their first quarterly ESG compliance report: Listed firms and non-bank financial services companies need to submit their first quarterly ESG report by 10 April, the FRA has said (pdf). The regulator is making it mandatory for corporates to publicly disclose their performance on key environmental, social and governance (ESG) metrics each year when they submit their annual financial statements, starting 2023.

Then why does the FRA need ESG reports this April? Companies are required to make quarterly updates throughout 2022 to get feedback from the FRA on the steps they’re taking, before making the official submission at the end of the current financial year.

Check out our Going Green series, where we outlined the new rules around ESG reporting: Part I | Part II.

(** NEED HELP GETTING READY? ** Our parent company can help. Inktank is Egypt’s leading investor relations, ESG and corporate reporting firm. Reach out to Moustafa Taalab on mtaalab@inktankir.com if you’d like to get the conversation started.)

PSA #2– All individual taxpayers have until this Thursday, 31 March, to submit their 2021 tax returns to the Tax Authority. The deadline for companies with January-December fiscal years is 30 April.

PSA #3- Banks are moving to customary shortened Ramadan hours as of next week: The nation’s banks will open at 9:30am and close at 1:30pm during Ramadan, which begins next Saturday, the Central Bank of Egypt announced (pdf). Employees will begin their workdays 30 minutes before doors open to the public and wrap up 30 minutes after branches close.


Afreximbank and the Angolan Embassy in Egypt are hosting (pdf) an Angola-Egypt investment roundtable on Wednesday at the Hilton Cairo Heliopolis Hotel. Click here to RSVP and join the discussion.

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

☀️ TOMORROW’S WEATHER- Sunny days ahead: Spend some time on a balcony these coming afternoons to catch some much-needed sunlight. Expect daytime highs of 28°C while the mercury will fall to lows of 11°C tomorrow and 14°C on Wednesday, our favorite weather app tells us.

???? FOR YOUR COMMUTE

Soaring global inflation on the back of the Russia-Ukraine war is weighing down on renewable energy projects. More expensive raw materials (particularly aluminum and steel), coupled with rising transport costs (thanks to the jump in oil prices), have forced renewables players to grapple with more delays and hike the prices of their long-term contracts, the Wall Street Journal writes. Some companies, such as French utility and renewables developer Engie SA, are signing customer contracts closer to projects’ start dates so they align better with cost inflation. These soaring costs for renewables — dubbed “greenflation” — were already weighing on the sector before the war broke out, as the pandemic roiled supply chains and had begun pushing up raw material costs.

The war has also hindered studies of climate change in the Arctic, as many Western scientists and scientific organizations jumped on the sanctions bandwagon and cut ties with Russian institutions, calling off expeditions in the country or in its waters, the Wall Street Journal wrote. “The Russian territorial waters and Russian coastline comprise a huge part of the region. We really need to know the full Arctic,” atmospheric scientist Matthew Shupe said.

What’s hindering the EU’s search for alternative oil? Logistics. Europe landing an alternative to Russian oil largely depends on its ability to secure specialized ships for LNG imports, the Financial Times reports. The continent is working to secure floating storage and regasification units (FSRUs) — a crucial component for the transfer of LNG through bodies of water — in efforts to amp up its imports of LNG to cut its Russian oil imports by two-thirds. While Europe aims to boost its LNG imports by 50 bn cubic meters (bcm) a year, analysts are wary of the continent’s infrastructure, which can convert up to 170 bcm into gas, with most spare capacity located on the Iberian peninsula, which doesn't have the pipelines required to move supplies north. Europe is already facing a “systemic” shortage of diesel due to sanctions on Russia that could force governments to ration fuel.


Microplastics have been detected in human blood for the first time, with scientists finding that the particles can travel around the body and get lodged in organs, reports the Guardian. The study analyzed blood samples from 22 healthy adults and found microplastics in nearly 80% of the donors, which are predicted to come from food and water. The impact on overall health has not yet been studied, but microplastics are known to cause damage to human cells in lab settings. More research still needs to be done with a larger sample size to answer questions that remain, including whether microplastics typically end up in specific organs, “such as getting past the blood-brain barrier?” the study’s leader and ecotoxicologist at Vrije Universiteit Amsterdam, Dick Vethaak, told The Guardian. A widened study would also look to determine the threshold of microplastic presence in the body that would trigger disease.

???? ENTERPRISE RECOMMENDS

???? ON THE TUBE TONIGHT

(all times CLT)

What was going on at the Oscars yesterday?

The Best Picture award was handed to CODA. The film follows a 17-year-old girl who is the only hearing member of her family, working mornings before school to help her parents and brother keep their fishing business afloat. However, when she joins the school choir, she realizes that she has a penchant for singing. The lead actress, Emilia Jones, learned sign language for nine months to be able to communicate with her fellow actors on set.

Other prizes for CODA: Director Sian Heder was given the trophy for Best Adapted Screenplay. Best Actor in a Supporting Role also went to Troy Kotsur for his role in the film, making him the first hard of hearing male actor to snag this award.

This is the first time that a film by a streamer took home the prestigious award. CODA is an original Apple TV+ movie and beat Netflix’s Power of the Dog for the prize.

Unsurprisingly, Dune was handed a plethora of awards: The film was celebrated for having the Best Visual Effects, Best Cinematography, Best Production Design, Best Film Editing, Best Sound, and Best Original Score (thank you Hans Zimmer). Zimmer actually skipped the Oscars and instead celebrated at a hotel bar with his daughter at 2am — the accompanying picture features Zimmer in his robe while an award is delicately placed in the pocket.

Meanwhile, Will Smith was named best actor for his performance in King Richard but the feat was overshadowed by a slap he delivered to presenter Chris Rock. Smith made his way on stage and slapped Rock after he joked about Jada Pinkett Smith’s hair, which she keeps short due to having alopecia. Rock has decided against pressing charges. You can watch both King Richard and Dune on HBO Max or OSN.

  • Best Actress in a Leading Role went to Jessica Chastain for The Eyes of Tammy Faye. The film also received the award for Best Makeup and Hairstyling.
  • Jane Campion was named Best Director for her work on The Power of the Dog.
  • Best Original Song went to No Time to Die by Billie Eilish and Finneas O'Connell.
  • Summer of Soul was awarded the Best Documentary prize.
  • Best Original Screenplay was given to Belfast (Kenneth Branagh).
  • Best Costume Design was handed to Jenny Beavan for her (stellar) work in Cruella.
  • Japan’s Drive My Car was named Best International Feature Film.
  • Encanto was given the title of Best Animated Feature Film.
  • The title of Best Actress in a Supporting Role went to Ariana DeBose for her role in West Side Story.

Tomorrow is the big day: The return match between Egypt and Senegal will start at 7pm as part of the final stage of the African qualifiers for the World Cup. The Pharaohs came out on top with a solo goal in the first leg at Cairo Stadium on Friday, giving us a one-goal advantage in the road to Qatar.

???? OUT AND ABOUT-

(all times CLT)

Captains of Zaatari — named Best Arab Documentary Film at El Gouna Festival and second-best film in Sundance — is currently being screened at three Egyptian cinemas until 30 March. Created by Egyptian director Ali El Arabi, the film follows the two young boys living in the Zaatari Refugee Camp in Jordan over the span of eight years. Best friends Mahmoud and Fawzi are committed to making it big as professional soccer players despite the background from which they come. They train everyday without fail, even though the camp has no equipment or training facilities. One day, a world-renowned sports academy visits the camp and the two boys have the chance of finally making it to their dream. You can watch Captains of Zaatari at Cairo Festival City Cinema at 6pm, Zamalek Cinema at 6pm, or Vox Mall of Egypt Cinema which has screenings throughout the day.

Searching for Zerzura group exhibition is ongoing at Bibliothek Egypt, featuring works of art created in the 2022 winter academy workshops organized by the Fayoum Art Center.

The Cairo Opera Company is performing Opera La Bohème starting today until 31 March at the Cairo Opera House in collaboration with the Italian Cultural Institute in Cairo. You can get tickets here.

Consoleya is hosting a creative meet-up titled Women of Art in collaboration with Jidar, featuring talks from a number of women in the local art space. The meet-up will see solo talks given by Dina Amin (motion artist and founder of Tinker Studio) as well as Deena Mohamed (designer, illustrator, and writer). A panel will also be held featuring Menna Hamdy, Basma Hosam, Yara Hesham, and Farahzada while being moderated by fellow female artist Gehan Mounir.

???? UNDER THE LAMPLIGHT-

How leaders can mitigate employees’ feelings of isolation and instead spur their productivity: The shift to WFH during the pandemic led many employees to feel lonely and isolated from their colleagues — but even teams who do see each every day have also reported feeling lonely. Ryan Jenkins and Steven Van Cohen, who penned Connectable, have spent a decade helping companies reduce employee isolation, which leads to real and growing mental health problems for the workers as well as the organization. They provide tips such as building psychological safety within a team, creating environments of belonging and inclusion, and cultivating meaningful connections across team members while also outlining their four-step Less Loneliness Framework. The book provides the perfect balance of science, statistics, stories, and strategies to teach business leaders how to create a healthier and more productive workspace.

???? GO WITH THE FLOW

MARKET NEWS-

CIB will distribute next Thursday dividends to its shareholders on 1.98 bn shares at EGP 1.35 per share, the bank said in a disclosure (pdf) to the EGX today.


MARKET ROUNDUP-

The EGX30 fell 2.6% at today’s close on turnover of EGP 1.1 bn (11.7% above the 90-day average). Local investors were net sellers. The index is down 5.9% YTD.

In the green: Orascom Construction (+1.0%).

In the red: Ezz Steel (-10.9%), MM Group (-7.4%) and Elsewedy Electric (-6.8%).

???? CALENDAR

1Q2022: Launch of the Egyptian Commodities Exchange.

1Q2022: Swvl acquisition of Viapool expected to close.

1Q2022: Waste collection startup Bekia plans to expand to the UAE and Saudi Arabia.

1Q2022: Rameda Pharma will begin selling its generic version of Merck’s oral antiviral covid-19 med.

1Q2022: Pharos Energy’s sale of a 55% stake in El Fayum, Beni Suef concessions to IPR Energy Group subsidiary IPR Lake Qarun expected to close.

Early 2022: Results to be announced for the second round of the state’s gold and precious metals auction.

1H2022: Target date for IDH to close its acquisition of 50% of Islamabad Diagnostic Center.

1H2022: e-Finance’s digital healthcare service platform, eHealth, will launch its services.

1H2022: The government will respond to private companies’ bids to build desalination plants.

1H2022: Egypt’s second corporate green bond issuance expected to be announced.

1H2022: Transport Ministry to sign a memorandum of understanding with Abu Dhabi Ports to set up a transport route across the Nile to transport products from Al Canal’s Minya sugar factory.

15 February-15 June (Tuesday-Wednesday): ITIDA’s Technology Innovation and Entrepreneurship Center is organizing the first Metaverse Hackathon.

March: Rollout of the government financial management information system (GFMIS), a suite of electronic tools to automate the government’s financial management processes (pdf) that will replace the existing “closed” financial management system.

March: Contracts for last two phases of Egypt’s USD 4.5 bn high-speed rail line to be signed.

March: 4Q2021 earnings season.

March: Deadline for the World Health Organization’s intergovernmental negotiating body to meet to discuss binding treaty on future pandemic cooperation.

March: World Cup playoffs.

March: The government hopes to sign a final contract between El Nasr Automotive and a new partner for the local production of electric cars.

March: Target date for Saudi tech firm Brmaja to IPO on the EGX.

March: Egypt to host World Tourism Organization Middle East committee meeting.

March: The Salam – new administrative capital – 10th of Ramadan Light Rail Train (LRT) line will start operating.

March: The new multi-purpose station at Dekheila Port and the revamped Ain Sokhna Port will start operating.

March: General Authority for Land and Dry Ports to issue the condition booklets for the operations of the Tenth of Ramadan dry port.

Mid-March: Bidding for the construction of Anchorage Investments’ petrochemical complex in the Suez Canal Economic Zone starts.

14 March-30 June: The “Escape to Egypt” exhibition at the Coptic Museum, in celebration of its 112th anniversary.

24 March (Thursday): GB Auto Extraordinary General Assembly (pdf).

24 March-1 April: Ahlan Ramadan Supermarket Expo, Cairo International Convention Center.

25 March (Friday): Egypt will host Senegal in the first leg of their 2022 FIFA World Cup qualifiers' playoff (TBC).

26 March (Saturday): Egypt-EU World Trade Organization dispute settlement consultations end.

28-29 March (Monday-Tuesday): The Egypt International Mining Show (EIMS 2022) will take place virtually.

28 March (Monday): The second leg of the 2022 FIFA World Cup qualifiers' playoff between Egypt and Senegal (TBC).

28 March (Monday): The court hearing for a case brought by Arabia Investments Holding (AIH) against Peugeot has been postponed until 28 March.

30 March (Wednesday): The Angola-Egypt Investment Roundtable discussion (pdf), the Hilton Cairo Heliopolis Hotel.

31 March (Thursday): Deadline for submitting tax returns for individual taxpayers.

31 March (Thursday): Vodacom purchase of Vodafone Group’s stake in Vodafone Egypt expected to be completed by this date.

31 March (Thursday): Supply Ministry expected to take final decision on bread subsidies by this date.

31 March (Thursday): OPEC+ meets to review a modest oil supply rise.

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

April: Ghazl El Mahalla shares will begin trading on the EGX.

2 April (Saturday): First day of Ramadan (TBC).

3 April (Sunday): Bidding begins on the Industrial Development Authority’s license to manufacture tobacco products.

4 April (Monday): CDC Group will formally change its name to British International Investment.

10 April (Sunday): Deadline for listed companies and NBFIs to submit quarterly ESG report.

11 April (Monday): The deadline to submit bids for Chelsea FC.

14 April (Thursday): European Central Bank monetary policy meeting.

Mid-April: Trading on the Egyptian Commodity Exchange to start.

21 April (Thursday): EGX-listed Taaleem will hold an extraordinary general assembly to discuss the mechanism to build and own nonprofit and private universities.

22-24 April (Friday-Sunday): World Bank-IMF Spring Meetings, Washington D.C.

24 April (Sunday): Coptic Easter Sunday (holiday for Coptic Christians).

25 April (Monday): Sham El Nessim.

25 April (Monday): Sinai Liberation Day.

28 April (Thursday): National Holiday in observance of Sham El Nessim.

30 April (Saturday): Deadline for submitting corporate tax returns for companies whose financial year ends 31 December.

Late April – 15 May: 1Q2022 earnings season

May: Investment in Logistics Conference, Cairo, Egypt.

1 May (Sunday): Labor Day.

1 May (Sunday): Suez Canal Authority raises tolls for different vessels.

3-4 May (Tuesday-Wednesday): Federal Reserve interest rate meeting.

4 May (Wednesday): 3 February (Thursday): Deadline to send in applications for Cultural Property Agreement Implementation projects to the US Embassy in Cairo.

5 May (Thursday): National Holiday in observance of Labor Day.

2 May (Monday): Eid El Fitr (TBC).

19 May (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

5-7 June (Sunday-Tuesday): Africa Health ExCon, Al Manara International Conference Center, Egypt International Exhibitions Center, and the St. Regis Almasa Hotel, New Administrative Capital.

9 June (Thursday): European Central Bank monetary policy meeting.

14-15 June (Tuesday-Wednesday): Federal Reserve interest rate meeting.

15-18 June (Wednesday-Saturday): St. Petersburg International Economic Forum (SPIEF), St. Petersburg.

16 June (Thursday): End of 2021-2022 academic year for public schools.

23 June (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

27 June-3 July (Monday-Sunday): World University Squash Championships, New Giza.

30 June (Thursday): June 30 Revolution Day, national holiday.

End of 2Q2022: The Financial Regulatory Authority’s new Ins. Act should be approved.

End of 1H2022: Emirati industrial company M Glory Holding and the Military Production Ministry will begin the mass production of dual fuel pickup trucks that can run on natural gas.

2H2022: The inauguration of the Grand Egyptian Museum.

2H2022: IEF-IGU Ministerial Gas Forum, Egypt. Date + location TBA.

2H2022: The government will have vaccinated 70% of the population.

3Q2022: Ayady’s consumer financing arm, The Egyptian Company for Consumer Finance Services, to release first financing product.

July: A law governing ins. for seasonal contractors will come into effect.

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

Early July: Polish President to visit Egypt.

1 July (Friday): FY 2022-2023 begins.

8 July (Friday): Arafat Day.

9-13 July (Saturday-Wednesday): Eid Al Adha, national holiday.

21 July (Thursday): European Central Bank monetary policy meeting.

26-27 July (Tuesday-Wednesday): Federal Reserve interest rate meeting.

30 July (Saturday): Islamic New Year.

Late July – 14 August: 2Q2022 earnings season.

August: Work to extend the capacity of the Egypt-Sudan electricity interconnection to 300 MW to be completed.

18 August (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

September: Egypt will display its first naval exhibition with the title Naval Power.

September: Central Bank of Egypt’s Innovation and Financial Technology Center to launch incubator for 25 fintech startups.

8 September (Thursday): European Central Bank monetary policy meeting.

20-21 September (Tuesday-Wednesday): Federal Reserve Finterest rate meeting.

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

October: World Bank and IMF annual meetings in Washington, DC

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

6 October (Thursday): Armed Forces Day, national holiday.

8 October (Saturday): Prophet Muhammad’s birthday, national holiday.

18-20 October(Tuesday-Thursday): Mediterranean Offshore Conference, Alexandria, Egypt.

27 October (Thursday): European Central Bank monetary policy meeting.

Late October – 14 November: 3Q2022 earnings season.

November: Cairo Water Week 2022.

1-2 November (Tuesday-Wednesday): Federal Reserve interest rate meeting.

3 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

4-6 November: The Autotech auto exhibition kicks off at the Cairo International Exhibition and Convention Center.

7-18 November (Monday-Friday): Egypt will host COP27 in Sharm El Sheikh.

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

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

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

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

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

January 2023: 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.

**Note to readers: Some national holidays may appear twice above. Since 2020, Egypt has observed most mid-week holidays on Thursdays regardless of the day on which they fall and may also move those days to Sundays. We distinguish above between the actual holiday and its observance.

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