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Sunday, 10 Dec 2023

What We’re Tracking Tonight
For Your Commute
Enterprise Recommends
Go With The Flow
Inside Industry
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Today at a glance

1

INSIDE INDUSTRY

Meet our manufacturer of the month: El Khanagry for Plastics.
2

FOR YOUR COMMUTE

UPenn president resigns after backlash from a congressional hearing.
3

FOR YOUR COMMUTE

Loyalty programs in Egypt are picking up as holiday shopping is in full swing.
4

ON THE TUBE TONIGHT

Slow-burning suspense in The Curse of Audrey Earnshaw.
5

Sports

Tottenham vs Newcastle tonight.
6

Ears to the Ground

The Retrievals uncovers the painful truth behind an infertility clinic in the US.

Sunday, 10 Dec 2023

What We’re Tracking Tonight
For Your Commute
Enterprise Recommends
Go With The Flow
Inside Industry
Calendar
1

WHAT WE’RE TRACKING TONIGHT

THIS EVENING: Businesses with FX-priced business must settle their VAT only in FX + Inflation eases again in November

Good afternoon, friends and welcome to another workweek. As polls open for the first day in the presidential elections, the business news cycle here at home is also beginning to gain traction.

PSA- Voting for the presidential candidates runs from 9am-9pm today, tomorrow, and Tuesday. Find your nearest polling station by entering your national ID on the official elections website. You can also call or text 5151 with your national ID number to find your nearest location and receive your voting number.

THE BIG STORIES TODAY

#1- Sold in FX = VAT only in FX: Businesses selling a service or product in foreign currency will be required to settle their VAT dues only in foreign currency, and not in EGP equivalent, according to a Finance Ministry document seen by Enterprise.

No leeway: The new amendment canceled a rule introduced last month that allows businesses to settle their foreign-currecy VAT in local currency if they present evidence that they’ve exchanged FX worth the same amount or more than the value of the VAT within a month of the sale being booked.

We should know more soon: The new amendment should be published soon in the Official Gazette, and the ministry will issue detailed directives naming every entity that is required to pay its VAT dues in FX.

#2- November brought a second month of cooling inflation figures: Annual urban inflation in November eased for the second consecutive month due to slowing food and beverage price inflation.

Consumer prices in urban areas decelerated to 34.6% y-o-y from 35.8% in October, marking the lowest figure since May, according to data released today by state statistics agency Capmas.

This was a better recovery than analysts had predicted: The median forecast in a recent Reuters poll of analysts had inflation at 34.8%.

THE BIG STORY ABROAD

Climate is in the center of the conversation in the international press today wherePresident of COP28 Sultan Al Jaber is holding a ‘majlis’ meeting of ministers to push for a deal on reducing fossil fuel use, which has been a key demand of several other nations during the summit, says Bloomberg. Meanwhile, a draft of the Global Goal on Adaptation text to determine how poor countries will prepare for the effects of climate change, was released. The text explains that there is a financial need to help struggling countries adapt, but this draft fails to specify the amount necessary, according to the Associated Press.

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

enterprise

*** It’s Inside Industry day —your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

In today’s issue: We have our Manufacturer of the Month column, wherein we profile an industrial player with a manufacturing base here in Egypt. Manufacturer of the month is dedicated to looking at locally bred or international players to examine the success and challenges that came with being a manufacturer in Egypt, as well as their paths forward. Today, we speak to plastic product manufacturer El Khanagry Plastics.

☀️ TOMORROW’S WEATHER- It’s going to be a sunny day with a high of 23°C in the day time and a low of 15°C in the evening, according to our favorite weather app.

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2

FOR YOUR COMMUTE

Racist sentiment is rising on US university campuses, raising questions of political alignment among leaders

Top brass at big US universities are getting tangled up in questions of political alignment as Israel’s aggression in Gaza continues: University of Pennsylvania President Elizabeth Magill stepped down over the weekend after facing backlash over her testimony during a congressional hearing on campus antisemitism, according to a statement. Magill’s “voluntary” resignation came after she said at the hearing that these situations would require “a context-dependent decision,” prompting wide-spread calls, including a petition with 23k signatures, for her removal.

Financial repercussions: Prior to Magill’s resignation, a major UPenn donor decided to withdraw a USD 100 mn grant, BBC reported.

The hearings point to questions on how academic leaders’ political alignments should be treated amid the ongoing violence in Gaza, particularly as both antisemitic and Islamophobic sentiment has jumped across the US. MIT President Sally Kornbluth and Harvard University President Claudine Gay were also questioned in the same congressional hearing, and are under pressure to take a strong stance against antisemitism, the Financial Times and Washington Post note.

Shoppers are leaning into loyalty points and rewards: Some 39% of shoppers in the US — where spending is at an all time high — are relying on their saved up loyalty points to reduce the price or not pay for their holiday shopping, according to this PayPal article. Retailers have used this “game-like” structure to bring in more customers since the holiday season makes up a significant portion of their annual revenue, according to New York Times.

Here at home, we have (kind of) similar programs: Homegrown BNPL players offer loyalty programs and other reward systems — ValU and Telda offer cashback options, points, discounts, and products without charge based on previous spending value. Retailers are also looking at other setups, such as upscale fashion retailer Ego, which is offering gold coins as a cashback option. Shoppers who spend EGP 25k will receive a quarter gold coin, while those who spend a cool EGP 500k will be able to receive a gold bar weighing one ounce, as well as half a kilo of silver.

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3

ENTERPRISE RECOMMENDS

The Curse of Audrey Earshaw brings suspense to your screens

? ON THE TUBE TONIGHT-
(all times CLT)

The Curse of Audrey Earnshaw will make the winter nights even colder. In a devout community that happens to be suffering from a plague that decimates all of their crops and livestock, a mother and daughter become suspects of witchcraft.

It’s a slow-burner which helps develop the eerie atmosphere that makes this film hard to pause: The shock factor of horror films does not affect us as much as it used to, but because this movie does such a good job of creating suspense, it does get to us. The Hollywood Reporter even described watching the film as manifesting “an overall sense of dread.”

This film is an easy choice when we want a bit of fear without being scared to walk around our home alone at night. The actors give very committed performances to really sell the overall unease and fear. But do note that the actual narrative isn’t as well developed. Either way, it’s a good watch for when you’re in the mood for a little thrill and another reason to nervously wolf down your popcorn.

You can watch the film on Shahid.

⚽ The last week of the Premier League ends with an exciting match between Tottenham and Newcastle: Considered one of the most prominent matches of gameweek 16, it's scheduled tonight at 6:30pm. The Spurs, who will be playing host, are in fifth place, three points behind Man City, while the Magpies are in seventh place, one point behind the Spurs.

Luton Town will be hosting Man City today at 4pm: They are looking to achieve their first victory in the Premier League in four weeks, which comes after Luton tied with Chelsea, Liverpool, and Tottenham, and then lost to Aston Villa. The Citizens have scored 30 points so far, while Luton garnered only nine points, sitting pretty in 18th place.

More Premier League’s matches scheduled at 4pm:

  • Everton vs Chelsea
  • Fulham vs West Ham

An unexpected match in LaLiga: Barcelona will be hosting Girona tonight at 10pm in a surprising meet over this season. Girona (38 points) is performing well, and is in second place in the Spanish League standings — only one point behind leaders, Real Madrid. But this can change if it surpasses the away-from-home match scheduled today.

As for Barca…it occupies third place with 34 points, and to bridge the gap between the leading two teams it has to succeed in its next match.

Atletico Madrid has a shot with Barcelona for the third place if it defeats its guest, Almeria.The match is scheduled today at 3pm and will keep rolling until our PM is in your inbox. Atleti has 31 points in its credit, although it played one match less than the rest of the teams.

Other European leagues matches to catch:

  • Stuttgart vs Leverkusen (Bundesliga, 4:30pm)
  • Roma vs Fiorentina (Serie A, 9:45pm)

? OUT AND ABOUT-
(all times CLT)

ART-

Meet the virtual Tutankhamun: The Grand Egyptian Museum is hosting an interactive Tutankhamun exhibition, in partnership with the Spanish Madrid Artes Digitales Foundation. The exhibition kicked off and will continue until Saturday, 16 December. You can book your tour from here.

Nurture your inner artist at the self-portrait workshop hosted by Dawar Artsevery Saturday until 16 December. Click here for more information.

MUSIC-

Musician Omar Khairat will be performing two concerts at the Cairo Opera House. One will be held on Monday, 11 December and the other one on Tuesday, 12 December. Concerts will start at 8pm. Tickets are sold out.

Warm up your vocal chords, gang. Karaoke Night is back at ROOM Art Space and Cafe. ROOM’s doors are open every Tuesday for you and your friends to belt out your favorite tunes, starting at 8pm and ending at 10pm. You can reserve your spot here. Keep in mind that the entry fee is accompanied by an EGP 50 minimum order per person.

Celebrate one of the all-time greats at yet another event at ROOM Art Space and Cafe in Garden City. The venue’s doors will open at 7:30 on Saturday, 16 December, giving you a half hour to settle in before the Fairouz Tribute Night begins. The music will be provided by the Michael Onsy Ensemble band, and Batoul El Abd will be delivering the golden vocals. Tickets are priced at EGP 200, and don’t include the price of the mandatory one-order minimum per person.

Get ready for the season with the Cairo Opera House which will be hosting a series of events celebrating Christmas and New Year’s Eve:

  • The Cairo Symphony Orchestra will host a Christmas concert on Saturday, 23 December at 8pm. You can book your ticket from here.
  • For Disney fans: The Disney Classics concert will be held at the Opera’s Main Hall on Monday, 25 December. The concert will start at 8pm. Tickets are available here.
  • Don’t miss the Nutcracker ballet shows. The performances will be presented by the Cairo Opera Ballet, along with the Cairo Opera Orchestra. The first show will be held on Tuesday, 26 December, and will continue until Thursday, 30 December. Tickets are available here.
  • The orchestra will also put on another concert on Sunday, 31 December celebrating New Year’s Eve. Click here to book your ticket.

CHRISTMAS EVENTS-

Get into the Christmas spirit with these festive events all around the capital.

Want to sit back and enjoy some Christmasy tunes? Arkan Plaza has you covered. TheirChristmas Show, put together by Gaby Bishara, will bring you the smooth sounds of Louis Armstrong and Ol’ Blue Eyes himself in a blend of your favorite jazz tunes and classic Christmas tracks. Clear your schedule on Friday, 22 December to head on over.

Kazoku is hosting a Christmas Dinner in celebration of this festive season on Christmas Day. Head on over at 9pm and enjoy the great food we’ve come to expect. Mira Cassisseya will be performing throughout the evening. Interested? You can find more information in the link provided above.

Looking for something a bit more intimate? Villa Belle Époque cordially invites you to dinner on Christmas Eve. Live entertainment and a five course dinner… What more could you ask Santa for? Don’t forget to reserve ahead of time.

The classic Christmas staple The Nutcracker Ballet will be performed at the Cairo Opera House by the Cairo Opera Ballet Company everyday starting 26 December up until the 30th.

FILM-

Zawya cinema will be screening five movies for the late director Ali Badrakhan until Tuesday, 26 December. You can know more about the schedule from here.

Eins Christmas Bazaar is bringing you some handmade goodies, kicking off this past Friday and continuing until Sunday, 1 January, 2024. The bazaar is being held at the Gallery, in Maadi.

THEATER-

Relive the good old days with the ACT Theater Group. The group is reintroducing tales of Goha’s (mis)adventures into circulation, alongside other folktales of yore. Adults can bask in nostalgia, and younger ones can connect with their cultural heritage. Register for the shows on 15 and 16 December here.

Investigation, or Tahqeeq, is bringing interactive theater to its audience. Help the writer and characters solve a mystery that is revealed on the day of the performance. This unscripted, improvised performance will be playing in Rawabet on Thursday, 14 December and Friday, 15 December, starting at 8pm. Get your tickets through TicketsMarche.

EVENTS-

Future Energy Corporation CEO Sherife Abdelmessih will be hosting a book signing event for his latest book Super Vision. The event will be held on Wednesday, 13 December at Bibliothek Egypt.

SPORTS-

It’s the last day to register for the TriFactroy’s Pyramids Half Marathon on Saturday, December 23. Our country’s signature running event offers 21k, 10k, and 5k distances to accommodate anyone interested in taking part in this iconic event.

If you miss this one, don’t worry — the Cairo Half Marathon is taking place in a few months. Mark your calendars for Friday, 1 March and start stretching. Cairo Runners is bringing back a fan favorite, offering the same distances as The TriFactory. Tickets are available until 27 February, giving you ample time to convince seven of your friends to join, which will get a 10% reduction in price when you register.

? EARS TO THE GROUND-

Brought to you by Serial and The New York Times, The Retrievals explores the shocking details of Yale’s corrupt fertility clinic. The five-part series tells the sad and disturbing story of dozens of women who came to the clinic hoping to get pregnant.

But when undergoing egg retrieval, they experienced excruciating pain. The problem was, the medical staff administering the procedure didn’t know what was causing it and wouldn’t find out until months later. Susan Burton, author and part of This American Life, narrates the tale of what actually went down.

In the following episodes, you hear from the victims, how they were considered hysterical, and how they were denied more pain medication in the process.The patients also learn the truth behind their months of agony, but vengeance isn’t so black and white. What ensues is complex and forces listeners to confront their own trauma and compassion.

Listen to this if you don’t want an open-ended commitment to a podcast…and won’t lose focus as you drive. Keeping it short and to the point, The Retrievals does a great job of telling the story without too much fluff. It’s a great option even for people who can’t seem to get into podcasts because it’s delivered like more of an exposé which can get hesitant listeners hooked.

You can find it on Spotify andApple Podcasts.

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4

GO WITH THE FLOW

What the markets are doing on 10 December, 2023

The EGX30 fell 2.0% at today’s close on turnover of EGP 3.4 bn (9.4% above the 90-day average). Local investors were net buyers. The index is up 65.7% YTD.

In the green: Madinet Masr (+3.9%), Fawry (+1.0%) and EFG Holding (+0.6%).

In the red: Mopco (-10.1%), Orascom Development Egypt (-6.9%) and Palm Hills Development (-5.5%).

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Our weekly look at the issues, trends, and policies that are shaping Egypt's manufacturing industries.

Published every Sunday in EnterprisePM.

Read Inside Industry
5

INSIDE INDUSTRY

Our Manufacturer of the Month: El Khanagry for Plastics

MANUFACTURER OF THE MONTH- Once a month, Inside Industry looks at a manufacturer — whether locally bred or an international player with a manufacturing base here in Egypt. The monthly feature covers manufacturers in different industries to look at their success stories, the challenges they have faced as local manufacturers, and the path forward as Egypt looks to build a more robust local industry. This month, we spoke with Mira El Khanagry, CEO of El Khanagry for Plastics.

El Khanagry for Plastics is a plastic product manufacturer and it’s the second generation of our family business. We merged Technoplast and Modern Seouf Plastics and rebranded to El Khanagry for Plastics. I’ve been with the company since before I even graduated from university, and I’ve really grown up there — starting out as a secretary to now being in charge of the company.

El Khanagry currently focuses on manufacturing packaging, specifically for edible oils and water, preforms, jars, and pharma products. We have a very wide range of products — pretty much anything that falls under the umbrella of packaging. We have manufacturing lines for household items, garden or outdoor furniture, and some industrial supplies like car bumpers, because there’s a large amount of versatility with injection molding machines. However, our core focus remains packaging, and that’s where we direct all of our capacity — industrial supplies are only manufactured for clients on demand.

Currently, our packaging uses PET plastic, and 100% of our input materials are imported, so we’ve really been struggling with that for the past year or more. There are no suppliers of PET plastic here in Egypt, except for one plant in the Suez Canal Economic Zone, but we have to go through the same process and troubles as we do when we’re importing from outside of Egypt, so that doesn’t really resolve our issue. We were lucky that we always try to keep a strategic stock of raw materials on hand, so when all of these problems with the FX situation and import controls started cropping up, we were able to rely on that stock. However, it was when that stock became depleted that the real problems began.

All of our production output is currently sold locally, which means that we don’t have the benefit of having secured a source of FX income to offset the cost and pressure of having FX expenses. And on the local market level, the competitive landscape in our field is a bit tough because you can create products that look more or less the same, but are of vastly different quality, just by using cheaper machinery. If you invest a lot in machinery, the products look the same as their cheaper alternatives and consumers can’t always tell the difference, unless they have high quality standards and know what they’re looking for. That’s one of our edges — we really focus on quality.

To be able to export our products and have a competitive edge — or just have a feasible value proposition — we have to modify our product, which requires investing in machinery to create the right products that are exportable. Of course, I would love to be able to divert some of our production capacity and output to exports, but even the starting point of importing the necessary machinery is difficult because of the current restrictions. There has to be a complete change in the product to be able to export, but if you’re trying to navigate the current difficult situation and just keep your head above the water, you’re not left with a lot of time or room to innovate. Having smooth operations for six months would allow us the space to think strategically and start taking some action on pivoting.

By focusing on the right products to export, you’re diverting the line of production and the whole philosophy of the company — which is definitely something we’d like to consider when we have the space to do so. I would like to export a product that’s more environmentally friendly and is more recyclable. I want to start dabbling in using different materials as alternatives to plastic, without abandoning plastic altogether.

We would also need to have government and policy backing to be able to take the risk of pivoting towards exports. Say, for example, we decide to produce biodegradable packaging. That’s not really widely used or sought after in the local market, so you would need to have the government standing behind you and saying, “Yes, we want to go in that direction,” and then at least providing the business environment — including access to FX — to be able to operate and move forward in that direction. That’s not the case right now.

The analogy that captures our current situation is that it’s similar to sailing a large ship through a storm. We’re a medium to large company — had we been a small sailboat, we would have sunk by now (which many competitors have, and which is good for our business but unfortunate for the bigger picture since a healthy economy needs competition). We’ve been stuck in the middle of an “out of season” storm — ie, unexpected and not something we had planned for — for over a year and a half, and the crew is tired. All we can think about is how to stay afloat, provide for the material needs of the crew, and somehow keep them motivated to wait out the storm, even though nobody knows when that might be. But after such a long storm, the crew is hungry and down (employees’ morale is at a low that we have not seen before), the ship is worn out (even importing spare parts is a challenge), and there is still no destination in sight. When in survival mode, you need some calm sea to redirect the ship (upgrade machinery, innovate products, explore new markets). We’re hoping for some smooth sailing soon.

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CALENDAR

DECEMBER

10-26 December (Sunday-Tuesday): Ali Badrakhan’s cinema, Zawya Cinema, Downtown.

10-16 December (Sunday-Saturday): Tutankhamun: The Immersive Exhibition at the Grand Egyptian Museum.

11 December (Monday): Cheese Fondue Brunch at Villa Belle Époque.

11-12 December (Monday- Tuesday): Omar Khairat’s concerts, Cairo Opera House, Zamalek.

12 December (Tuesday): Ornament Mosaic Workshop at MAKAN Interiors.

12 December (Tuesday): Karaoke Night at Room Garden City.

14-21 December (Thursday-Thursday): Gouna Film Festival (GFF), Gouna.

15 December (Friday): Cairo Celebration Choir’s Christmas Concert at Theatro Arkan.

15-16 December (Friday-Saturday): Stories of Goha and Folktales of Yore by Act Theatre Group at Tahir Cultural Center.

16 December (Saturday): Droob Heritage Day Tour by Qahrawya.

16 December (Saturday): Christmas Wonderland at The Field, Maadi.

16 December (Saturday): Fairouz Tribute Night at Room Garden City.

21 December (Thursday): Art staged performance by Yasmina Riza at Rawabet Art Space.

21-23 December (Thursday-Saturday): Family Fun Fest by Kult Creative at the National Museum of Egyptian Civilization.

22 December (Friday): The Christmas Show by Gaby Bishara at Theatro Arkan.

22 December (Friday): Tamer Ashour Live Concert at Dandy Mall.

22 December (Friday): The High Five Stand Up Comedy Show at The Marquee, CFC.

22-23 December (Friday-Saturday): The Garden Market, Christmas Edition at Merryland Park.

22-23 December (Friday-Saturday): LA Winter Vibes Market at the Egyptian International Exhibition Center.

23 December (Saturday): Pyramids Half Marathon by The TriFactory.

23 December (Saturday): The Cairo Symphony Orchestra’s concert, Cairo Opera House, Zamalek.

24 December (Sunday): Christmas Eve at Villa Belle Époque.

25 December (Monday): Disney Classics concert, Cairo Opera House, Zamalek.

25 December (Monday): Christmas Dinner at Kazoku.

26-30 December (Tuesday-Saturday): NutCracker shows, Cairo Opera House, Zamalek.

31 December (Sunday): The Cairo Symphony Orchestra New Year’s Eve concert, Cairo Opera House, Zamalek.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

Q1 2024: Opening of the newly developed Pyramids Plateau in Giza.

2024

JANUARY

7 January (Sunday): Coptic Christmas.

25 January (Thursday): Revolution Day.

26 January-6 February (Friday-Tuesday): Cairo International Book Fair.

MARCH

1 March (Friday): Cairo Half Marathon by Cairo Runners.

11-12 March (Monday-Tuesday): Creative Industry Summit.

APRIL

9 April (Tuesday): Eid El Fitr (TBC).

25 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC).

MAY

1 May (Wednesday): National holiday in observance of Labor Day (TBC).

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (TBC).

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC).

30 June (Sunday): June 30 Revolution Day (TBC).

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

23 July (Tuesday): Revolution Day (TBC).

SEPTEMBER

15 September (Sunday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

OCTOBER

6 October (Sunday): Armed Forces Day.

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