PM — A thriving art scene this week

The race to the weekend is in full swing, ladies and gentlemen. It’s a busy Wednesday afternoon, with a very healthy pipeline of news to keep you busy.

THE BIG STORIES TODAY

#1- THIS JUST IN- Egypt’s economy grew at a 9% clip in 1H2021-2022, with 8.3% growth during the second quarter of the current fiscal year, Prime Minister Moustafa Madbouly said at a presser, according to Youm7. The 2Q2021-2022 figure is higher than was previously expected, as Planning Minister Hala El Said had signaled in December that GDP growth was forecast at 6-7% during the quarter. The government now expects GDP growth to come in at or above 6% in the third and fourth quarters, Madbouly said. You can view the full press conference, which ended moments ago, here (watch, runtime: 1:09:38).

#2- USD 1.5 bn renewables-powered desalination plant coming? A consortium made up of UAE-based Metito Holdings, Scatec Solar, and Orascom Construction is in talks with Egyptian authorities to build a USD 1.5 bn water desalination plant that would be powered entirely using renewables, Metito Africa Managing Director Karim Madwar tells Bloomberg. The consortium is looking to get the Sovereign Wealth of Egypt onboard the project as a partner, according to Madwar.

#3- Egypt signed a USD 1.5 bn funding agreement with a syndicate of six international banks to finance a diesel production complex in Assiut at Egyps today, the Oil Ministry said in a statement. The complex will produce Euro V-grade diesel and gasoline, among other products, according to the ministry. The funding, provided by Crédit Agricole, UniCredit Italia, HSBC, BNP Paribas, and Société Generale France, will be backed by the Italian Export Credit Agency Sace.

^^ We’ll have these stories and more in tomorrow’s edition of EnterpriseAM.

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

• CBE holding the line on new import rules: The Central Bank of Egypt (CBE) is not going to reverse its decision requiring importers to get letters of credit (L/Cs) for their purchases, CBE Governor Tarek Amer said, urging businesses to comply with the new requirements.
• The Suez Canal Authority is considering selling 20% stakes in two or three of its companies on the EGX, authority boss Osama Rabie said. Rabie named Canal Rope alongside Canal Harbor and Great Projects as two of the companies the SCA is considering for the float, without disclosing an expected timeline.
• New green, Islamic microfinance products on the menu for 2022: The Financial Regulatory Authority (FRA) could soon issue licenses for green and Islamic microfinance products, FRA’s Deputy Chairman Islam Azzam said.

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Former Supreme Constitutional Court (SCC) President Said Maree Gad has passed away at age 68, Akhbar Al Youm reported. His death comes a few days after President Abdel Fattah El Sisi appointed Judge Boulos Fahmy to head the SCC, succeeding Gad, who retired for health reasons as the president of the court.

THE BIG STORY ABROAD- We interrupt your regularly scheduled Ukraine Watch programming: Making the rounds in the global business press this afternoon is news that Sweden’s Ericsson may have inadvertently been making payments to Daesh in Iraq. The company announced earlier today that an internal probe found evidence of payments to use transport routes that circumvent customs authorities. The probe was inconclusive in determining the beneficiaries of these payments, but noted that they occurred when Daesh, among other militant groups, were controlling transport routes. Reuters and the Financial Times have the story.

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FOR TOMORROW- The two-day EU-AU summit kicks off in Brussels tomorrow, where President Abdel Fattah El Sisi is set to meet with Prime Minister Alexander De Croo to talk diplomatic relations and regional issues. The president is also scheduled to meet Belgium’s King Phillipe and a group of Belgian business leaders.

Also on the agenda for the summit: Look for El Sisi to speak about the integration of African countries into the global economy, ramping up foreign investment across the continent, and supporting developing countries in their green transition — all of which are key action points for COP27 in Sharm El Sheikh this November.

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A call for tech startups: The Information Technology Industry Development Agency (ITIDA) and US-based VC firm Plug and Play have launched an incubator and accelerator program for digital transformation-focused startups in partnership with our friends at USAID. The newly launched “Smart Cities” innovation hub will select 20-30 Egypt-based companies for its inaugural three-month program, which starts in March. Startups can apply here before applications close on 28 February.

PSA- Your commute is going to get worse this weekend. Public universities begin the second term of their 2021-2022 academic year this Saturday, 19 February.

The Nebu Expo for Gold and Jewelry 2022 kicks off this Saturday, 19 February and wraps on Monday, 21 February.

⛅ TOMORROW’S WEATHER- It’s going to be cloudy: Don’t expect too much sun tomorrow, our favorite weather app forecasts. As for the temperature, we’re in for a daytime high of 21°C and a nighttime low of 10°C.

Scientists are getting closer to finding a cure for HIV: A team of American researchers have cured a woman of HIV through a stem cell transplant, making her the first woman and the third person to be successfully treated, Reuters reports. Prior to the woman — who was diagnosed with HIV in 2013 and leukemia four years later — two male HIV patients were successfully cured by receiving adult stem cells, which are usually used in bone marrow transplants. “Taken together, these three cases of a cure post stem cell transplant all help in teasing out the various components of the transplant that were absolutely key to a cure,” said the head of the International AIDS Society.

A “dirty dozen” banks and investors are propping up the global coal industry, channeling USD 1.5 tn into the fossil fuel over the past two years through lending and underwriting mandates, finds a study by Urgewald and Reclaim Finance. Institutional investors were found to have upward of USD 1.2 tn in global coal industry stocks and bonds. The research, which is based on the Global Coal Exit List (GCEL), found that 1,032 companies account for 90% of the world’s thermal coal production and coal-fired capacity, with 12 banks accounting for 48% of lending on the GCEL. Ten of those 12 lenders are members of the UN’s Net Zero Banking Alliance, an initiative to align the industry’s portfolios with net-zero emissions by 2050. BlackRock was found to be the strongest supporter of the global coal industry among investors.

A benchmark for phasing out coal use: One of the goals of last year’s COP26 summit in Glasgow was to phase out coal usage, which, although not met, did secure pledges to “phase down” coal usage from coal-dependent countries. Campaigners have said Urgewald’s study should be a benchmark to assess the promises made at COP26. Egypt and at least 22 other countries signed on to several landmark agreements to phase out the use of coal power and end financing for new coal plants at the COP26 summit, including pledges from banks and financial institutions to end financing for new plants.

Players strike down Fifa’s proposal for a World Cup every two years instead of the current four: A survey of more than 1k male players of 70 nationalities showed opposition against the idea of a more frequent championship, reports The Independent. The survey found that 77% of players in both Europe and Asia favored the four-year system, while the majority of respondents from the Americas (63%) also said they don’t want to change the current system. Players in Africa were leaning more towards the new proposed tournament, with 49% of athletes saying they want to continue with four-yearly World Cups.

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If you can stand to lose a few brain cells after a long day of work, we have season two of reality show Love Is Blind. The show brings together 20 singles in a social experiment that allows them to talk to each other in “pods” but not see each other until someone proposes. Once that happens, they finally get to see their now-fiancé(e) face-to-face for the first time. The series follows them as they go through meeting the parents, moving in together — all on an expedited timeline. And in another low, even for reality television, there’s a wedding with a possibility of a jilting at the altar. It’s really one of those dime a dozen dating reality shows that are derivatives of the Bachelor but in this situation or that. But guilty pleasures are a thing, and we won’t shame you for it. Afterall, we did write this.

⚽ Blue versus red: Inter Milan hosts Liverpool in the first leg of the 16th round of the Champions League at 10pm. At the same time, Austria’s Red Bull Salzburg will meet Bayern Munich. The victors of the two matches will meet in the quarter-finals.

Yesterday's Champions League results: Manchester City beat Sporting Lisbon 5-0, ensuring a spot in the quarter finals. Meanwhile, Paris Saint-Germain needed to wait until the 94th minute for Kylian Mbappe to snatch a deadly goal against rivals Real Madrid.

La Liga: Atletico Madrid will host Levante in the Spanish League at 8pm.

In the Egyptian Premier League: Pyramids will face El Ismaily in a match that starts at 5:30pm, while Future plays with the National Bank at 8pm.

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The art scene is thriving this week:

Ubuntu Art Gallery has opened two new exhibitions: Banana Universe by Mohamed Khaled Omran features works by the visual artist who produces various styles of pieces such as paintings, stained glass, mosaic, sculptures, and installation art. Meanwhile, The Girls Windows III features art by Rana Samir, Fatma Mostafa, Mariam Soliman who explore what it means to be a woman.

TAM Gallery is hosting the exhibition Trifecta dedicated to the work of three artists: Amir Abdel Ghani, Mostafa Khedr, and Pancé Ahmed. Through their collections, the artists discuss important and impactful societal, existential and environmental topics.

The International Surrealist Photography Exhibition is on display at Lamasatt Gallery with artists from around the world showcasing their photographs.

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How to identify your business’ purpose to set an effective management ethos: Deep Purpose by Harvard Business School Professor Ranjay Gulati explores the notion of corporate purpose, which is often conflated with strategy and other concepts like mission, vision, and values. However, Gulati argues that companies should interact with purpose on more than just a superficial, marketing level. Instead, he shows how companies can embed purpose to deliver impressive performance benefits that reward customers, suppliers, employees, shareholders, and communities. Using 200 interviews with selected companies such as PepsiCo and Microsoft, Gulati lays out the challenges of embedding purpose. They include how to create a purpose-led culture that allows for staff members’ individuality and diversity, and how to cope with “the personification paradox” — when the leader who embodies a company’s purpose moves on. The book stands out as a new way to set a direction for your business and identify the factors that will help it grow sustainably.

EARNINGS WATCH- Speed Medical’s net income rose 71.4% y-o-y in 2021, to record EGP 136.10 mn, according to the company's financial statement (pdf). The company’s revenues rose 110% y-o-y to EGP 365.2 mn.

MARKET NEWS- Egytrans is planning on spinning off several of its key business units as part of its restructuring plan following an approval of the plan by the company’s board, according to a bourse filing (pdf) today. The move would allow these units, who will remain subsidiaries of Egytrans, more flexibility when it comes to things like expanding abroad, acquisition and potentially listing these subsidiaries, the filing reads.

MARKET ROUNDUP-

The EGX30 rose less than 0.1% at today’s close on turnover of EGP 705 mn (32% below the 90-day average). Foreign investors were net sellers. The index is down 3.2% YTD.

In the green: Credit Agricole Egypt (+4.0%), Oriental Weavers (+1.7%) and Heliopolis Housing (+1.5%).

In the red: Rameda (-3.6%), Ibnsina Pharma (-1.9%) and Elsewedy Electric (-1.9%).