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Sunday, 28 Apr 2024

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

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Today at a glance

1

The Big Story Today

Hospitality investors are getting a new subsidized financing initiative to build more hotel rooms.
2

INSIDE INDUSTRY

What does FY 2024-25 have in store for local industry?
3

FOR YOUR COMMUTE

Egypt was the second-wealthiest country in Africa last year.
4

ON THE TUBE TONIGHT

Baby Reindeer: Another terrible tale of obsession.
5

Sports

Arsenal vs Tottenham this afternoon.
6

Ears to the Ground

The FT investigates the Goenka network’s Vipassana retreats.
7

OUT AND ABOUT

Ali El Haggar to perform a tribute concert to Mohamed Fawzi.

Sunday, 28 Apr 2024

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

WHAT WE’RE TRACKING TONIGHT

THIS AFTERNOON: Tourism + finance ministries to launch subsidized financing initiatives for hospitality investors

Good afternoon, folks, and happy Sunday. It’s a relatively slow start to the week as far as the local news cycle goes, but we have the rundown on the distribution and concentration of wealth across African countries — including the number of m’naires and b’naires in Egypt last year.

THE BIG STORY TODAY

Subsidized financing for new hotel rooms: The Tourism and Finance Ministries have reportedly reached an agreement to launch a subsidized financing initiative that offers hospitality investors looking to build new hotel rooms loans with a 12% interest rate, Al Mal reports, citing sources it said have knowledge of the matter.

The rationale: Finance Minister Mohamed Maait last week told the House of Representatives’ budget committee that the current hotel room count isn’t sufficient to welcome more tourists into the country. And because the sector is one of the country’s stronger and faster FX magnets, the ministry came up with the subsidized financing initiative to encourage investors to invest in hospitality expansions and add more hotel rooms.

What’s next: The mechanisms under which the initiative will be implemented will be drawn up by the finance and tourism ministries. The sources expect it to reach the cabinet for discussion, without mentioning a specific date.

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and our competitive advantages are clear to many of them: We’re a massive consumer opportunity and the regional export hub of tomorrow.

…but here at home, our community is in a rut. The enthusiasm gap between domestic business leaders and global investors is stark.

We’d all do well to remember: It’s a chicken-and-egg kind of thing. Foreign strategic investors will be reluctant to commit capital here until they see Egyptian businesses leading the way.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks.It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

THE BIG STORY ABROAD

No single story has captured the imagination of the international press today. Among the stories on the front pages:Investment firm Elliott Management has reportedly gone all-in on Sumitomo, a Buffet-favored trading house based in Japan, investing JPY tens of bns. Meanwhile, World Economic Forum President Borge Brende has been urging the application of certain economic measures without which he claims the global economy will face low growth for the coming decade. Elsewhere, international development sharks are circling the ruins of Gaza — which has been under attack by Israel for almost seven months, resulting in the killing of 34k Palestinians — to plan for the “economic development” of the territory. They plan to rebuild Gaza as a “Mediterranean commercial hub.”(Reuters | Bloomberg | CNBC | NYT)

** 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: After the Madbouly government unveiled its spending plans for the upcoming fiscal year to the House of Representatives, we take a look at what the FY 2024-25 state budget has planned for local industry, which is expected to contribute 15% of GDP.

☀️ TOMORROW’S WEATHER- The mercury is going to climb to a high of 26°C and drop to a low of 18°C, according to our favorite weather app.

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2

FOR YOUR COMMUTE

Wealth concentration + distribution in Africa

Egypt was the second-wealthiest country in Africa in 2023, according to a report by leading advisory firm Henley & Partners analyzing the richest countries in Africa. In addition to breaking down the distribution and concentration of wealth in African countries and cities, the report also looks at economic mobility and how investors have been moving their money across the continent.

The nitty-gritty: The Big 5 of Africa — South Africa, Egypt, Nigeria, Kenya, and Morocco — account for 56% of all m’naires and 90% of all b’naires in Africa. Out of the 21 b’naires on the continent, seven of them are based in Egypt. Meanwhile, Cairo is listed as the ninth most expensive city in Africa, and the third wealthiest.

But it’s not all sunshine and rainbows: The number of m’naires in Egypt dropped 22% y-o-y, following the trend among the three wealthiest countries on the continent, and factors into the overall 8% reduction in African m’naires since 2013. Dominic Volek, a senior at H&P, says that while the continent’s growth trends are promising — thanks to fintech, eco-tourism, and green tech, among others — currency depreciation is the main culprit behind the continent’s setbacks. Egypt, Nigeria, Angola, and Zambia have all seen currency depreciations over 75% within the past decade.

Where are the m’naires going? A large portion of this attrition of high net-worth individuals is a result of migration, with 18.7k HNWIs leaving the continent since 2013, according to New World Health’s head of research Andrew Amoils. Of the 54 African-born b’naires, 33 have left the continent. This includes South Africa’s Elon Musk. The UK, US, Australia, and UAE have seen the largest numbers of migrating African HNWIs. Others have switched it up, moving to France, Switzerland, and Monaco, with fewer settling in Portugal, Canada, New Zealand, and Israel.

The overall outlook is positive: Volek describes Egypt as one of the pockets of prosperity in Africa, and one of the fastest-growing markets in the world. Africa is expected to see its m’naire population growing 65% within the next decade, led by Mauritius, Namibia, and Morocco. Justice Malala, a political commentator and newspaper columnist, reports a prediction that African countries will account for 11 of the 20 fastest-growing economies across the globe this year.

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3

ENTERPRISE RECOMMENDS

The latest story of an obsession gone too far

? ON THE TUBE TONIGHT-
(all times CLT)

Baby Reindeer is a tale of obsession gone too far. This terrifying tale is based on true events that grip you from the very first episode and refuse to let go until its disturbing conclusion. Based on Richard Gadd’s harrowing real-life experience of being stalked — with Gadd playing himself in the series — this adaptation delves deep into the psyche of obsession, fear, and self-destruction.

Donny Dunn (Richard Gadd)navigates a nightmarish descent after a Coke. Donny Dunn is a struggling comedian and writer, whose life takes a terrifying turn when he meets Martha (Jessica Gunning), a middle-aged woman, who shows up at Donny’s pub — despite her inability to pay for her drink, he shows kindness by waiving the cost of her drink and buying her coffee when she admits she can’t afford it. What starts as seemingly innocent interactions soon escalates into a nightmare as Martha relentlessly stalks Donny, bombarding him with incessant messages and infiltrating every aspect of his life.

Donny gets entangled in Martha’s web of obsession and the tension mounts, leading to a devastating downward spiral. The series explores the complexities of their twisted relationship, raising uncomfortable questions about culpability and the blurred lines between victim and perpetrator.

It’s reminiscent of a horror film, with an atmosphere of palpable dread, uncomfortable close-ups, and disorienting angles that amplify the tension.

It’s not for the faint of heart, but for those willing to confront its unsettling truths, it offers a riveting and profoundly affecting journey into the depths of human darkness. Approach with caution, but be prepared to be rattled to your core.

WHERE TO WATCH- You can catch the seven-episode series on Netflix or catch the trailer (watch trailer, runtime 2:22)

⚽A new challenge for Arsenal: Tottenham will host the Gunners in the North London derby at 4pm today as part of Gameweek 35 of the Premier League. Arsenal needs to land all three points to continue competing with City in the league, after Liverpool fell behind in the ranking with a recent disappointing streak.

Manchester City is ready to take the lead: City will face Nottingham Forest at 6:30pm and has its eye on the top spot, which can be achieved if Arsenal fails to come on top today.

The European league matches we are following today:

  • Bournemouth vs Brighton (Premier League, 4pm)
  • Real Betis vs Sevilla (La Liga, 10pm)
  • Napoli vs Roma (Serie A, 7pm)
  • Lyon vs Monaco (Ligue 1, 8pm)

Whites to the Confederation final? Zamalek will face a difficult match at Ghana’s Dreams Stadium at 7pm for the second leg of the African Confederation Cup semi-final. It failed to score against its opponent during the first leg in Cairo, which ended in a goalless draw, but there’s still hope for a victory, which will lead Zamalek to the final. The team has only lifted this championship cup once back in 2019. The team that comes out on top between the two will face the victor of the match between Morocco’s RS Berkane and Algeria’s USM Algiers.

Today in the Egyptian League:

  • Al Masry vs Al Dakhiliyah (4pm)
  • El Mokawloon vs Smouha (7pm)

? OUT AND ABOUT-
(all times CLT)

HAPPENING THIS WEEK-

Ali El Haggar will be performing a tribute to the legacy of the late musical legend Mohamed Fawzi as part of the 100 Years of Singing series at Cairo Opera House. The singer will perform an ensemble of Fawzi’s most popular songs tonight at 8 pm. Grab tickets to this homage here.

Iconic producer Metro Boomin is hitting the stage at Kundalini Grand Pyramidstomorrow at 9:30 pm, and again on Tuesday.

Learn some salsa or show off your moves at CJC 610’s Salsa night with Soul Motion Studio tomorrow at 8pm. For reservations get in touch on Facebook.

Looking for a night of Egyptian folklore? The Egyptian Project & Mawawil will be performing at CJC 610 this Wednesday, 1 May at 9pm. For reservations message their Facebook page.

If that doesn’t float your boat, CJC 610 are also rewinding the tapes and hosting a 90’sFlashback night on Friday, 3 May at 9pm. For reservations send them a message on their Facebook page.

HAPPENING LATER-

The Cairo Flea Market is back. Head to the Fish Garden in Zamalek on Saturday, 11 May to browse through local products, antiques, and pre-loved treasures from 11 am to 7 pm.

Fans of Cairokee and Marwan Pablo need to catch theirperformance of El Mahatta at The American University in Cairo on Friday, 17 May. Get your tickets now while you can on Tazkarti.

The Elite are back in town to bring you a night of laughter. The troupe are back from their international tour to celebrate their five-year anniversary in their hometown. The Super Show is being held at the Cairo International Stadium on Friday, 24 May at 8 pm. Grab tickets here to laugh along with Taha Dessouky, Waleed El Moghazy, Ahmed Khairy, Mohamed Ashraf, Ahmed Essam El Sayed, Mohamed Helmy, and Toffi.

Egyptian violin and piano duos Fouad and Mounib will be performing at Theatro Arkan on Friday,10 May. Get your tickets at Ticketsmarche.

Spend a spring day with Tamer Ashour and Mahmoud El Esseily. The singers will be performing at Family Park in Rehab on Friday, 10 May. Doors open at 7pm. You can find tickets here.

? EARS TO THE GROUND-

The Financial Times’ Untold: The Retreat is investigative journalism that will leave your ears tingling. The podcast features the impact of intensive meditation retreats and the harm they could have as opposed to the wealth of good benefits they intend to achieve.

The Goenka network’s Vipassana retreats, described as “a type of intensive meditation” are all the rave with the c-suite crowds and can be near impossible to get in on. However, the series explores the dark side of the retreat: Individuals who attended them and suffered from practices such as the ten-day silent vipassana retreats citing them as “hardcore” and akin to “voluntary prison sentences.”

One of the episodes is about Emily, a high-achieving student who returns from the retreat in a distressed state, believing she is the Messiah. Other testimonies detail hallucinations, and psychosis, with tragic outcomes, such as suicide.

Don’t get us wrong — we are for meditation and wellness, but the podcast emphasizes that this vipassana retreat was harmful to many. In a society where meditation is often celebrated as a path to inner peace and self-improvement, this series provides a necessary counterbalance by shedding light on the risks and dangers associated with intensive meditation practices. It’s a must-listen for anyone interested in holistic well-being and the potential pitfalls of spiritual practices.

You can listen onApplePodcasts, Podtail, Audible, and Spotify.

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This publication is proudly sponsored by

4

GO WITH THE FLOW

What the markets are doing on 28 April, 2024

The EGX30 fell 4.9% at today’s close on turnover of EGP 2.3 bn (53.9% below the 90-day average). Regional investors were net sellers. The index is up 1.0% YTD.

In the green: Elsewedy Electric (+1.2%).

In the red: Egypt Kuwait Holding (-13.8%), Oriental Weavers (-11.0%) and Talaat Moustafa Group (-9.7%).

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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

How the Madbouly government plans to boost Egypt’s industry in FY 2024-25

What the government has in store for the manufacturing industry in 2024-25: Last week, Finance Minister Mohamed Maait delivered his budget statement to the House of Representatives, kicking off the annual state budget process. The new budget — which expects to see economic growth picking up pace to 4.2% in the coming fiscal year, up from an estimated 2.9% in FY 2023-2024 — sees manufacturing contributing around 15% of Egypt’s GDP next fiscal year.

BUDGET REFRESHER- Total spending for the upcoming fiscal year is projected to increase to EGP 3.9 tn, with the majority of spending allocations going towards interest payments, social support, and investments. That includes some EGP 495.8 bn earmarked for public investments. The government expects total GDP to hit EGP 17.3 tn, rising from EGP 13.9 tn this fiscal year, with expectations that the growth will be underpinned by industrial and service sectors.

Lots of fresh incentives + investments coming for industry: The new budget has earmarked some EGP 40.5 bn to finance several programs geared towards stimulating the economy, with a particular focus on supporting industry and exports. The government has also penciled in:

  • EGP 23 bn for export subsidies,
  • EGP 8 bn for low-interest loans for manufacturing,
  • EGP 6 bn in spending to maintain subsidized electricity prices for industry,
  • EGP 1.5 bn to maintain real estate tax exemptions for factories,
  • EGP 1.5 bn in cash incentives for SMEs,
  • EGP 500 mn to support the automotive strategy.

REMEMBER- The Madbouly government has been signaling for the past couple of years that it wants to make industry and local manufacturing a core part of Egypt’s economic growth, with several incentive packages rolled out to help support local industry. In 2022, the government identified nine priority sectors to get a hand from its EGP 200 bn import substitution program. Cabinet has also rolled out new regulations at the end of 2022 to boost investments, including facilitating the process for companies to obtain a golden license, as well as making automotive-linked engineering industries eligible for several incentives provided under the Investment Act.

Industrial development rests on three pillars: To hit its growth targets, the government has identified three core components that will help support local industry, according to the government’s economic plan. The three pillars are import substitution, industries with export potential, and green industries.

#1- Import substitution: The first component of the strategy focuses on deepening local manufacturing of industrial components as a means to reduce reliance on imported goods and production inputs. The government is looking to stimulate the local manufacturing of products to substitute imports through 152 different projects with a combined production capacity worth USD 3 bn. These projects include producing paper products, medicines, serums, pipes, automotive components, and the iron and steel industries. Their output would together cover around 11% of our current trade deficit.

This has already been on our radar for some time: Cutting down on imports in favor of relying more on locally produced goods has been a goal for the government for several years. Back in 2018, the cabinet — which was then headed by Sherif Ismail — had ordered a study of the total import of goods and services over the previous three years to help the government set policy priorities for which goods can be manufactured by the private sector domestically. In the years since, import substitution has cropped up multiple times as a focal point for the government as part of its economic strategies. In 2022, the Madbouly government said it would focus on nine industries with which to spearhead its import substitution push: Wood and furniture, engineering, food and agriculture, chemicals, textiles, pharma and medical, printing and packaging, building materials, and metallurgical industries.

#2- Industries with export potential: The government’s economic development plan is also zeroing in on developing certain industries with “distinct” export potential, with hopes of raising industrial exports by 20%. In particular focus: Food, textiles, and engineering and chemical industries exports. These sectors are already among our top performing industries in terms of export revenues in 2023, with chemical products and fertilizers reeling in USD 6.54 bn, food netting USD 5.46 bn, and textiles accounting for USD 1.12 bn of our export revenues last year. The government plans to give these industries a boost by disbursing additional export subsidies and hosting more exhibitions abroad.

REMEMBER- The Madbouly government previously said it is looking to increase its exports to USD 100 bn a year by 2027 as part of its plan to increase the private sector’s role in the economy.

#3- Green industries: Last but not least, the government is looking to ramp up the activity in environmentally friendly industries, including the production of electric cars, green hydrogen, solar panels, and water- and electricity-saving devices, according to the strategy.

Your top industrial development stories for the week:

  • Chinese investors eye up opportunities in New Beni Suef City: A Chinese delegation was in New Beni Suef City to review investment opportunities. (Statement)
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THE ENTERPRISE ENTERTAINMENT CALENDAR

APRIL

28 April (Sunday): Ali El Haggar tribute concert at Cairo Opera House.

29 April (Monday): Tahqiq Show at Rawabet Art Space.

29 April (Monday): Salsa night at CJC 610.

29 April (Monday): Hany Shaker concert at Cairo Opera House.

29 April (Monday): Metro Boomin concert at Kundalini Grand Pyramids.

30 April (Tuesday): Metro Boomin concert at Kundalini Grand Pyramids.

30 April (Tuesday): Reading Reem Basyuni's latest work at Bibliothek Egypt.

30 April-5 May (Tuesday-Sunday): Next Level International Summer Camp.

MAY

1-6 May (Wednesday-Saturday): Maadi Book Festival.

1 May (Wednesday): The Egyptian Project & Mawawil at CJC 610.

3 May (Friday): Youth to Business (Y2B) event at The GrEEK Campus.

3 May (Friday): 90’s Flashback at CJC 610.

5 May (Sunday): Coptic Easter.

5 May (Sunday): National holiday in observance of Labor Day.

6 May (Monday): National holiday in observance of Sham El Nessim.

10 May (Friday): Tamer Ashour and Mahmoud El Esseily concert at Family Park.

10 May (Friday): Fouad and Mounib at Theatro Arkan.

11 May (Saturday): Cairo Flea Market at Zamalek Fish Garden.

17 May (Friday): El Mahatta at The American University in Cairo.

23-25 May (Thursday-Saturday): The Design Show at Cairo International Conventions Center.

24 May (Friday): The Glow Run by The TriFactory at Palm Hills Sports Club.

24 May (Friday): The Elite Super Show at the Cairo International Stadium.

25 May (Saturday): Techne Summit at the Cairo International Stadium.

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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