PM — Your colleagues are probably using ChatGPT

Happy Tuesday — or almost-THURSDAY-equivalent. We’re officially within arm’s reach of the long weekend, as the nation takes a holiday this Thursday, 26 January in observance of Police Day and the 25 January Revolution.

As is our custom, EnterprisePM will also not be publishing on Thursday and will be back in your inboxes at the usual time on Sunday, 29 January.

THE BIG STORY TODAY

New minority shareholders for Nerhadou: A consortium of private equity firms Affirma Capital and StonePine have acquired a “significant minority stake” in local pharma and nutraceutical player Nerhadou International in a USD 20 mn transaction, according to a press release (pdf).

THE BIG STORY ABROAD

The international business press is broadly focused on two stories this afternoon: California is facing yet another mass shooting, with at least seven people killed in San Francisco today, two days after a gunman killed 11 people earlier this week in Los Angeles (Reuters | the Wall Street Journal). Elsewhere, Ukraine is pushing through a massive corruption scandal, with President Volodymyr Zelensky firing multiple top government officials (The Financial Times | Reuters | CNBC).

HAPPENING NOW-

President Abdel Fattah El Sisi has arrived in New Delhi for a three-day visit, according to an Ittihadiya statement. El Sisi is being honored as “chief guest” at celebrations to mark the country’s 74th Republic Day. During his time in India El Sisi will meet with a number of company representatives to discuss potential investments in Egypt.

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

• Who’s teaching the kids — schools, private tutors, or TikTok? Education Minister Reda Hegazy yesterday told the Senate teachers may need to apply for licenses as part of reforms meant to improve public schools and curb private tutoring, a day after the country’s media regulator told the chamber it’s looking into new legislation meant to protect children in particular from harm caused by social media platforms.
• Fresh tax incentives for local mobile phone assemblers? The Finance Ministry is considering cutting a 5% development fee on imported mobile phone parts as the Madbouly government pushes to localize electronics assembly.
• Misr Ins. wants all of Misr Healthcare: Misr Ins. Holding is in talks to acquire a 20% stake in third-party claims management outfit Misr Healthcare Network held by the UAE’s Global Capital Investments.

COME TO OUR NEXT ENTERPRISE FORUM-

We’re excited to unveil our next C-level event: The Enterprise FDI + Exports Forum, where we will take a deep dive into two of the most critical topics affecting our community.

Exports and foreign direct investment (FDI) have never been more important to our economy — or our businesses — than in the wake of the float of the EGP. We think we have a once-in-a-lifetime chance to build an export-led economy that makes us a magnet for FDI and all the benefits that will come with it for our nation.

The Enterprise FDI + Exports Forum asks a simple question: Where do we go from here?

The Enterprise FDI + Exports Forum is the latest in our series of must-attend, invitation-only gatherings for C-suite-level business leaders, where they can talk openly and honestly about important issues in key parts of the economy. The gathering, which will take place in May 2023, will focus on how to start making moves across continents, including:

• What do we have to sell to global markets, including products and services? What should our priority industries be?
• How can you break into an export market? How can you make your business a component of the global supply chain? Hear directly from potential partners and buyers about what they’re looking for.
• How to leverage big domestic trends — and turn them into massive windows for export.
• How to climb the value-add ladder in a way that matches up with trends in key export markets.
• How do you choose an export market? What countries should Egyptian businesses be looking at as export targets — and why?
• What are foreign investors looking for? How can you pitch them on a JV — or on investing in your business?

Think of the Enterprise FDI + Exports Forum as a hands-on lab for how to turn the float of the EGP into something that will turbocharge your company.

COMING IN MAY — stay tuned for updates.

Want to partner with us on the conference? Ping a note to Moustafa Taalab, our head of commercial, here.

???? CIRCLE YOUR CALENDAR-

EBRD + EU + GCF green finance event next week: The European Bank for Reconstruction and Development, the EU, the Green Economic Financing Facility, and the Green Climate Fund will hold a green finance event on Tuesday, 31 January at the Nile Ritz Carlton Hotel.

The Senate is set to reconvene on Sunday, 5 February, having yesterday completed two days of plenary sessions that saw members discuss tourism promotion and education reform.

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

☀️ TOMORROW’S WEATHER- Expect temperatures to reach a daytime high of 22°C during the day tomorrow before falling to 11°C at night, our favorite weather app tells us.

At the heart of the Big Tech meltdown: The end of the ultra-low interest era: Tech companies are currently grappling with the abrupt end of years of cheap money, which has dragged down their valuations as the financial realities of an aggressive monetary tightening cycle from the US Federal Reserve shifts the calculus on their operations and growth plans, the New York Times reports. “The whole tech industry of the last 15 years was built by cheap money,” Sam Abuelsamid, principal analyst at Guidehouse Insights explains. Investors looking for strong returns began pushing their capital to Silicon Valley in the past 10 years, leading to unprecedentedly high valuations that made it easier for startups to raise funding, attract new customers, grow quickly, and boost their market shares. All of this, analysts tell the Gray Lady, essentially acted as replacements for organic growth — making the return to reality all the more painful. As interest rates began to increase as the Fed looks to tamp down inflation, the tech sector has “fallen into a kind of recession,” according to The Atlantic.

Even the biggest names in tech have not gotten by unscathed: The tech downturn has been marked by a bear market for tech stocks (in spite of their recent recovery), widespread hiring freezes, layoffs, underwhelming initial public offerings, and a steep decline in venture capital financing, the Atlantic reports. Tech giants are slashing jobs: 18k people were laid off at Amazon, 12k at Google, 11k at Facebook, 10k at Microsoft, 8k at Salesforce, 4k at Cisco and over 3k at Twitter. Tech valuations have also taken a hit. In 2019, Zillow’s valuation stood at USD 45 bn it has now plunged to USD 10 bn, according to the NY Times. Amazon’s stock market valuation has shed nearly USD 1 tn. Used car retailer Carvana’s valuation plummeted 98% from USD 80 bn to less than USD 1.5 bn.

Will burnout being spotlighted by state leaders be enough to push policy action on the phenomenon? Last week, Jacinda Ardern made a surprise announcement that she would step down as New Zealand’s Prime Minister at the end of her current term, according to the BBC. During her time in office over the course of more than five years, Arden has guided her country through the wake of the nation's worst mass shooting, a volcanic eruption, and the covid-19 pandemic — and welcomed a new baby. While the 42-year-old never outright cited burnout as the reason for her resignation, she alluded to it in her speech announcing her resignation: “I know what this job takes, and I know that I no longer have enough in the tank to do it justice,” according to the Independent.

Ardern’s openness on the topic is seen by many as a decisive moment that could break the stigma around mental health and work, according to the BBC. Many hope that it will help redefine burnout as a serious disease, rather than a phenomenon that mostly affects millennials and overachievers. The American Psychological Association (APA) defines burnout as “physical, emotional, or mental exhaustion accompanied by decreased motivation, lowered performance, and negative attitudes toward oneself and others” and the World Health Organization has declared burnout an occupational phenomenon.

But then again, this isn’t the first time a high-profile personality has spoken out about burnout: Businesswoman Arianna Huffington and athletes Simone Biles and Naomi Osaka, among others, have all publicly discussed the phenomenon. ­Experts, however, think that Arden will be able to bring about change given that she is both well-respected and regarded as relatable. On the flipside, some are concerned that Arden sharing her experience could pave the way for gender biases that women are not suited for leadership roles. “While I want to believe that Prime Minister Ardern’s honesty might further normalize conversations around mental health, I worry that this will in fact do the opposite and simply fuel bias against working mothers and their ascent to leadership roles,” an organizational behavior professor at Babson College told the BBC.

The results are in: ChatGPT is charging its way into the corporate world: Nearly a third of white-collar employees in different industries — including banking, tech, and marketing — have tried using ChatGPT and other AI-based platforms and tools at work, according to a survey conducted by social media platform Fishbowl. While the rates of adoption vary across industries and generations, the general trend remains that there is “strong early adoption by professionals,” the survey notes.

Who’s using it the most, and for what? The spread in adoption rates across generations is rather small, with Gen Z respondents showing the “highest rate of adoption” at 29%, although they outpace Gen X by just one percentage point. Across industries, marketing and advertising professionals reported the highest adoption rate at 37%, followed by tech (35%), and consulting (30%). At the other end of the spectrum, only 15% of healthcare professionals and 16% of accounting employees reported using ChatGPT. “Many are using the technology to draft emails, generate ideas, write and troubleshoot bits of code and summarize research or meeting notes,” according to Bloomberg.

This data further proves that the AI tool has the potential to revolutionize several areas of work: The versatility of ChatGPT is revolutionizing the workplace as companies streamline their daily operations and enhance customer service by using the tool’s natural language processing, to rapidly draft emails, draft presentations, and fulfill other time-intensive functions. With that massive potential, the AI tool has drawn significant investor interest, including from Microsoft, which confirmed yesterday it made a “multiyear, multi-bn USD investment” in OpenAI, the company that created ChatGPT.

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

Women at War explores the reality of a war-torn zone: The Netflix French period drama series follows four women who partake in World War I, refusing to surrender to German forces. The show is set in 1914, capturing the low downs of war in society, as men are obliged to fight at the frontlines, and women and children are left behind, devastated by the emotional trauma of seeing their homelands being destroyed and the loss of their loved ones. In the series, Marguerite, Caroline, Agnes, and Suzanne — through their different experiences — shed light on various feminist issues and offer new perspectives on ways to continue living during a war.

⚽ Today in the Egyptian League: Future and Al Masry hit the field at 2:45pm today, with the score still at 0-0 as we dispatch. Later today:

Ghazl El Mahalla v Zamalek (5pm)

AlAhli v The National Bank of Egypt (7pm)

Smouha v Pyramids (7pm)

The most important matches in Bundesliga and Serie A tonight: Bayern and Cologne are scheduled to meet at 9:30pm, while Lazio v Milan kicks off 15 minutes later at 9:45pm.

Happening in the semi finals of the Carabao Cup: Southampton faces Newcastle tonight at 10pm.

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

Cairo-based rock bands Foxxy and 404 will be performing tonight at Room Art Space New Cairo, at 9pm.

Cairo Jazz Club in Agouza is hosting a 200 Shams x Cocoon Showcase, giving emerging artists the platform to share their talents, following six music production workshops.

???? UNDER THE LAMPLIGHT-

1k Years of Joys and Sorrows: A Memoir by Ai Weiwei. Politically exiled from China with his family, Ai Weiwei was raised in Little Siberia, while his father, a recognized poet, was punished for being a rightist during the Cultural Revolution — sentenced to hard labor for the rest of his life. Ai Weiwei delves into a stream of events from his childhood that eventually led him to become an internationally established artist, and an international human rights activist. Now, he creates art exhibited around the world, and contributes to various iconic architecture, such as the Bird’s Nest Olympic Stadium in Beijing. The memoir tackles various concepts that have shaped modern China as we know it today.

MARKET WATCH-

Orascom Construction will pay out dividends of EGP 5.535 (USD 0.185) per share for 2022, redeemable on 9 February, it said in an EGX disclosure (pdf) earlier today. The company will pay out a total of EGP 646 mn (USD 21.6 mn) worth of dividends. Shareholders whose shares are listed on the Nasdaq Dubai will receive their dividends in USD, while those with shares in the EGX will receive them in EGP, it said (pdf).

MARKET ROUNDUP-

The EGX30 rose 1.6% at today’s close on turnover of EGP 2.3 bn (33.9% above the 90-day average). Regional investors were net buyers. The index is up 12.6% YTD.

In the green: CIB (+4.9%), EFG Hermes (+4.7%) and Orascom Construction (+4.0%).

In the red: Cleopatra Hospitals (-2.7%), Alexandria Containers and Cargo Handling (-2.2%) and Heliopolis Housing and Development (-1.7%).

OUR FOUNDER OF THE WEEK– Every Tuesday, Founder of the Week looks at how a successful member of Egypt’s startup community got their big break, asks about their experiences running a business, and gets their advice for budding entrepreneurs. Speaking to us this week is Ewelina Trzpis, founder of Alkemia Boutique, which showcases the work of local artists and craftsmen.

My name is Ewelina, and I am the founder of Alkemia Boutique. I was born in Poland, where I spent a quarter of my life, before moving to the US — and now I’m living in Egypt.

I traveled to Egypt to get my master’s degree in anthropology, which was based in the US but focused on Cairo’s independent music scene. After completing my degree, I realized that I would prefer to apply my experience and knowledge of anthropology in a practical setting rather than pursue a career in academia. I did an extensive study on the Egyptian creative and local markets and later founded Alkemia Boutique.

I moved to Egypt in 2008, and after taking a while to adjust to life here, I wanted to create a business that could genuinely benefit the community — monetarily and in a variety of other ways. Alkemia was created solely to support Egyptian artisans rather than to make a return. As I was exposed to Egypt’s popular crafts, I began to realize that although the local creative market is using beautiful materials, they are not utilizing them to their full extent — they keep making the same patterns and pieces over again. Another factor that promoted me to start the business was witnessing a surge in interest in local craftsmanship after 2011. Young and emerging artists began to incorporate innovative ideas, using Egypt’s exquisite materials to create unmatched pieces that were tailored to the needs of modern lifestyles.

Alkemia blends with Egypt’s developing art scene. It is a versatile business model that offers designers and artisans the chance to showcase their talents to the public and to customers who value beauty in art. Alkemia is situated in Maadi’s CSA. It’s particularly loved by expats and tourists because it’s a great place to buy gifts for loved ones back home — everything is made in Egypt, in contrast to other local marketplaces that sell items pertaining to Egyptian culture, yet made in China.

Although starting a business as a foreigner can be challenging, the years I spent living here before founding Alkemia taught me a lot about how things are done here and how to effectively communicate with business people. To be completely honest, I no longer feel like a foreigner. I also believe that growing up across two different countries shaped me to be quick to adapt to new environments and situations.

The best part of my job is seeing clients walk in and being blown away by the different pieces we have at the boutique. This makes me very happy because it is our goal to generate that kind of exposure and interest in local artisans. Also, because I've given the creatives a space where they can actually show their work and get feedback from clients on how to improve.

To be honest, the worst part of my job is the commute. It's extremely exhausting. I also find it difficult to work with certain people at times. So, basically, patience and understanding that sometimes things take a little longer and that you need to be more flexible and less rigid with your deadlines.

I had a far more tranquil life before Alkemia. I had another business, but it didn’t require as much of my time as Alkemia does. So, whenever I have free time, I like to relax, read, and FaceTime with my family and friends. I also enjoy nature, particularly the mountains, so you can find me in Sinai a lot.

I find inspiration in traveling. I get to learn about different cultures, meet new people, and see beautiful architecture and art.

I usually seek advice from my husband whenever I need to fix a difficult problem. His business is in the creative field, and he has introduced me to many artisans with whom I am currently working, as well as the wider arts and crafts industry.

Alkemia’s plan for expansion in the short term includes hosting workshops and other activities that will benefit both the artists and our clients. Educational workshops are definitely on our list, where artists could come and give lectures about different materials and how to use them. The goal is to foster a sense of community in which both artists and clients feel connected.

In terms of the long-term plan, Alkemia was originally intended to open in the US, and I still want to expand and open there. This time around, I will feature not only Egyptian designers but international talents from all over the world — particularly those from my birth country, Poland.