A brief history of taxes

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WHAT WE’RE TRACKING TONIGHT

THIS EVENING: Egypt’s exports grew 5.3% y-o-y in 1Q 2024

Good afternoon folks, and happy hump day. We are at the midpoint of the week and can’t decide if we should keep that jacket on or embrace the heat.

THE BIG STORY TODAY

Egypt’s exports rise in 1Q 2024: Egypt’s exports grew 5.3% y-o-y in the first three months of the year to total USD 9.6 bn, up from USD 9.1 bn a year before, according to data from the General Authority for Export and Import Control. The government’s six-year strategy dubbed EgyExTriple 10 aims to increase exports to USD 145 bn by 2030.

Behind the data: Turkey topped the list of importers of Egyptian commodities in 1Q 2024, importing some USD 874 mn in goods, followed by Saudi Arabia, the UAE, Italy and USA. Meanwhile building materials were the most in-demand export in 1Q 24, accounting for 20% of Egypt’s total exports followed by food industries, chemical products and fertilizers and agricultural crops.

THE BIG STORY ABROAD

Tension around Israel’s reaction to Iran’s attack on Saturday continues to dominate the headlines today, on the back of the Israeli war cabinet not reaching a decision after holding two meetings to discuss a response. Potential escalation has put Jordan on edge, whose airspace separates the two states. US President Joe Biden has urged Israeli PM Benjamin Netenyahu to contain the situation, emphasizing that the US would not partake in an Israeli counter-attack. (Reuters | Bloomberg | NYT | CNBC)

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

World Bank downgrades growth outlook for the current fiscal year yet again: The international lender has penciled in growth slowing to 2.8% in the state’s FY 2023-24 — a 0.7 percentage point drop from its previous forecast in January and a whole 1.0 percentage point drop from the previous fiscal year.
Egypt’s current account position has weakened over 441% y-o-y to USD 9.6 bn in 1H FY2023-24, from USD 1.8 bn recorded the same period last year.
Qalaa offloads 18% of its stake in Taqa Arabia in debt settlement agreement: Qalaa Holdings has signed a debt settlement agreement with a number of banks to settle the entirety of its EGP 4.5 bn debt in exchange for a 17.68% stake — 239 mn shares — in Taqa Arabia and a land plot overlooking the Nile.

☀️ TOMORROW’S WEATHER- The heat is on tomorrow, with the mercury climbing to 37°C and cooling down to 18°C later on, according to our favorite weather app.

Dusty weather ahead? For our friends with allergies, take caution as there is the possibility of high winds that can cause sandstorms tomorrow and hinder vision, according to the Egyptian Meteorological Authority.

Ancient Egyptians invented the first organized tax system

Taxes — and the taxman — aren’t modern inventions. In one form or another, taxes have been collected over the centuries and used to fund services (burials), government projects, like the Egyptian pyramids or valuable substances (such as ammonia that was gleaned from — you guessed it — human urine, thanks Vespasian). But the first organized taxation system was actually introduced by our very own grandfathers, the ancient Egyptians, according to National Geographic.

Taxation existed before money even existed. Jumping back to Mesopotamia, citizens paid a tax to bury a body in a grave. It cost “seven kegs of beer, 420 loaves, two bushels of barley, a wool cloak, a goat, and a bed, presumably for the corpse,” according to Oklahoma State historian Tonia Sharlach.

Ancient Egyptian rulers surveyed the land and taxed citizens on what they owned. They would travel around the country to assess the possessions of the populace, which often included ceramics, cattle, and oil, and imposed taxes on them. This became an annual tradition known as Shemsu Hor, or Following of Horus.

We also used tax tech, the Nilometer, which you can visit today. Located on the island of Al-Roda in Manial, it was a structure that was used to tax Egyptians by calculating the yearly flooding of the Nile in relation to the citizen’s harvest. More water means a healthy harvest and higher taxes, and the opposite applies, lower water levels mean taxing the people less.

Then there was the lifelong tax exemption in India — if you could solve the government’s problems. During the Mauryan Empire the government held an annual competition for ideas to solve issues they had. The victor would receive tax amnesty for the rest of their lives. Appealing? Yes. Successful? Not so much. According to Sharlach, the system was inefficient because “nobody would have any incentive to ever solve more than one problem.”

In ancient Rome, ammonia was a valuable commodity derived from human urine and used to fertilize crops, make leather, or even whiten teeth. And like all valuable products, Roman emperor Vespasian figured out how to tax it. Even when his son disapproved of the tax, claiming it was repulsive, he responded “Pecunia non olet” (money does not stink) and we can’t decide how we feel about that.

The gift of tax. The Aztecs financial powerhouses thanks to their complex tax system and meticulous record-keeping. We can even see a version of this tax record through the Matrícula de Tributos, which had pictographs indicating who paid what and to whom that the government collected during their taxation period.

Then there was the beard tax…Yes, that's right. Apparently close-shaved faces were the height of fashion and modernization in the sixteenth century, and Peter the Great of Russia felt that his nation needed to keep up with the times and pushed for his male citizens to either chop off the fuzz or pay to keep it. In another ploy to discourage growing their beards, he would make the men who paid carry a ‘beard token’ to prove that they’d earned keeping their beard.

Watch Vince Staples handle life, relationships, and his struggles as an artist

? ON THE TUBE TONIGHT-
(all times CLT)

The Vince Staples Show is a guilty pleasure for hip-hop fans that will have you chuckling. The five-episode series is reminiscent of Prince of Bel Air — except with a focus on the music scene. In the series, Rapper Vince Staples plays himself, but we’re not entirely sure where to draw the line between which events are fictitious and which are based on actual experiences.

Set in a twisted version of Long Beach, California, dubbed “The Beach,” the show follows Staples as he navigates the challenges of relationships, confronts his past, and grapples with the complexities of family dynamics, all while juggling the demands of a burgeoning music career.

Staples, known for his dry wit and sharp humor, brings to life a world filled with offbeat scenarios and unexpected twists. From surprise bank robberies to tense family gatherings, each episode offers a fresh perspective on Staples’ journey.

The series is a testament to Staples’ talent and creativity, providing a captivating showcase of his unique comedic style. There are mixed feelings where some news outlets praise the short series for its “ ludicrously suave ” humor while others think it “ lacks the ingenuity and grit needed to hold … audience’s attention until the end.”

WHERE TO WATCH- You can watch the series on Netflix or check out the trailer (watch,runtime: 1:17).

Mark your calendars for AUC’s CultureFest. This event — held at AUC Tahrir from tomorrow until Monday, 22 April — is a celebration of the Cairene spirit. Panel discussions about Cairo’s history, people, and evolving culture will kick off the festival, and will be accompanied by live music, a book bazaar, a local market, and art exhibitions. Register for the event here.

Amal Maher will perform at The Marquee Theatre at Cairo Festival City this Friday, 19 April at 9pm. Tickets are selling out fast on Ticketsmarche.

German electronic music group Keinemusik are performing at the Giza Pyramids for the first time on Friday, 19 April at 7pm. Tickets are selling out fast and are in their seventh wave, get them now on Ticketsmarche.

HAPPENING LATER-

Renowned musician and composer Omar Khairat will grace the stage again at the Egyptian Opera House for two nights on Tuesday, 23 April and Wednesday, 24 April.

Gamers, buckle up for Egypt’s biggest gaming festival:Insomnia is back at the International Exhibitions Center from Thursday, 25 April to Saturday, 27 April, making it an immersive weekend of quests, level-ups, and never ending clicking game experiences. Get your tickets here.

Consider The Climate Question part of your climate change starter pack. Hosts Neal Razzell and Graihagh Jackson jet set across the globe, bringing to us the urgent stories and solutions that define our planet’s future. From melting glaciers to scorching forests, they paint a vivid picture of our evolving world, backed by a rotating cast of expert voices.

Don’t let the weight of the topic deter you — this podcast is more than just doomsday predictions. While it confronts the harsh realities head-on, it also shines a light on the pathways to progress and hope. Through deep analysis and unwavering truth-seeking, it equips listeners with the knowledge and motivation to be part of the solution. Whether you’re a climate novice or a seasoned environmentalist,the podcast promises to keep you informed and engaged.

You can listen onApple Podcasts, BBC, Spotify and Anghami.

What the markets are doing on 16 April, 2024

The EGX30 fell 0.7% at today’s close on turnover of EGP 4.5 bn (10.1% below the 90-day average). Local investors were net buyers. The index is up 18.1% YTD.

In the green: Ezz Steel (+5.0%), Oriental Weavers (+4.9%), and Egypt Kuwait Holding (+3.7%).

In the red: E-finance (-3.3%), Abu Qir Fertilizers (-2.6%) and Alexandria Containers and Cargo Handling (-2.6%).

Meet Mohy Aboualam, co-founder and CEO of Darwinz AI

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 Mohy Aboualam (LinkedIn), co-founder and CEO at Darwinz AI.

My name is Mohy Aboualam and I’m the co-founder and CEO of Darwinz AI. We specialize in AI services geared towards leveraging data as a primary asset for businesses — offering both ready-made tools and customized solutions, ultimately adding significant value to our clients operations. I graduated from Imperial College London with a Masters of Engineering and began my career in the UK before returning to Egypt.

My interest in AI and entrepreneurship started with my thesis that was based on the use of AI. I researched how to combine different food ingredients that would taste good together based on thousands of recipes online using an AI machine model. When I graduated, I joined private consultancy firm Mott Macdonald, where I did tech consulting. I enjoyed it, but unfortunately the role didn’t involve enough AI and data science — it was more technology focused alongside some software development.

This prompted me to make a switch and come back to Egypt. I was going to join Vodafone’s AI and data science team where the vice president of Vodafone and team head of AI team Emad Al Azhary was about to leave. Instead of joining Vodafone, Emad and I, along with our third partner, Glint Ventures Studio, decided to create Darwinz AI.

We’re an AI company and a Google Cloud Build partner as well. We’re authenticated by Google to build data solutions and AI solutions for businesses, specifically our flagship product Dida — a platform that helps retail and hospitality businesses such as beauty salons like El Sagheer, restaurants like Crave, Mori Sushi, Tabali, Mongini's, and hotels. These different B2C businesses want to understand their customers’ journey better, increase their sales, upsell certain items, cut their expenses, or operate more efficiently.

Before Dida, businesses simply stored orders in their point-of-sale systems for financial and tax purposes, neglecting the wealth of data it contained. Dida integrates with these systems, syncing transactions in real-time and leveraging AI to provide actionable insights. This includes optimizing pricing, improving customer experience, creating product combos, managing peak hours, and reducing food waste.

Our latest feature, Dida GPT, offers an intuitive app interface for non-tech-savvy users to access these insights through conversational AI via an app on Apple Store or Google Play Store. They can ask about sales trends, product combinations, and trending ingredients globally. This breakthrough solution utilizes AI to unlock business opportunities and address operational challenges in retail and hospitality. By harnessing unstructured data, we provide clear visibility and proactive suggestions, transforming businesses from reactive to proactive.

My advice when starting your own business is to pick the right co-founders and teammates to make sure that everyone brings their own special sauce to the mix. I’m very grateful for my co-founders: Emad, who brings extensive experience in AI, data science, and corporate leadership, and Glint Ventures Studio who have a background in consulting and startup building. Their combined experiences and expertise enriches our team.

But building your own business means bidding corporate stability goodbye. The 9-to-5 job is stable and freeing because after 6pm you get to take your mind off things and the weekend is yours. But with startups, it’s not really like that. The satisfaction you get is from making our clients happy and actually getting real value-added from what we’re doing, as well as building the team. To me, this really compensates for what we gave up.

We have reached the hyper-growth phase in our business which needs investment. We are currently bootstrapped, but we feel it is high time to get investments for several reasons: We have paying clients, over 90% customer retention, which translates to our customers renewing their membership with us year on year. For funding, we are looking to partner with the right accelerators or funds that are strategic and can help us with our goals for regional expansion and building a commercial team in each of these markets.

We plan to grow in Egypt and create the right partnerships, as well as expanding aggressively in the region. We’re in talks with some of the biggest multinationals about partnering for our products. This comes alongside educating the market on how to use AI and how we can benefit them. Darwinz AI is also rolling out the tech to the partnering companies as we are working with them on strengthening their sales force teams.

When it comes to local startups, I believe their biggest strength is their number: There are a lot of people who aspire to build their own companies and work on their own projects. All of the resources that help entrepreneurs are also becoming much more feasible.

The last great thing I’ve listened to was Moghamra, a podcast by one of my friends that talks to different founders and people in the entrepreneurial space. I found their experiences very relatable and educational. But music, and my dog Benji, are my passion (despite growing up with a phobia of dogs). When it comes to music, I listen to everything from R&B, Louis Armstrong, Led Zeppelin, Scorpions, The Weeknd, Lana Del Rey — my music taste is all over the place.

ENTERPRISE ENTERTAINMENT CALENDAR

APRIL

17 April (Wednesday): CASTLE OF ROCK concert at Elsawy Culturewheel.

18 April (Thursday): Massar Egbari x AUC Tahrir CultureFest at AUC Tahrir Square.

19 April (Friday): Keinemusik at the Giza Pyramids by Panorama 2.

19 April (Friday): The Beatles Tribute concert at the Cairo Opera House.

20 April (Saturday): Stand Up Comedy Light Show at ROOM Garden City.

20 April-June 8 (Saturday-Saturday): Sketching Course at Art Square Academy.

23-24 April (Tuesday-Wednesday): Omar Khairat concert at Cairo Opera House.

25 April (Thursday): KONAFA CN standup comedy show at Elsawy Culturewheel.

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

25-27 April (Thursday-Saturday): Insomnia Egypt Gaming Festival at the International Exhibitions Center.

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

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

MAY

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

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

5 May (Sunday): Coptic Easter.

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

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

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

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

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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