Destination inspiration

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WHAT WE’RE TRACKING TONIGHT

THIS EVENING: Auto sales dropped to their lowest levels in 5 years in March

Good afternoon, ladies and gentlemen, and happy hump day. In today’s issue, we look into how job applicants exploit AI to get into recruiters' inboxes — but still don’t get the job. We also have the latest stats on our auto sales.

THE BIG STORY TODAY-

Auto sales fall to five-year low: Auto sales in March fell to their lowest level since at least January 2019, noting a 43% m-o-m drop to 4.2k units, according to figures from the Automotive Marketing Information Council (AMIC). The figure is the lowest we’ve seen since we started keeping track of auto sales in the country in January 2019.

February went a little differently: Sales saw a rebound in February from a 10-month low recorded in January with distributors selling some 7.4k units.

The breakdown: The dip was driven by a 53% m-o-m decrease in passenger car sales, with just 2,750 units sold throughout the month. Truck sales were also down 10% m-o-m to 920 units, while bus sales remained flat at 522 units.

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

Leading the conversation in the international business press this afternoon: HSBC CEO Noel Quinn has unexpectedly stepped down after almost five years at the UK-based bank. Quinn’s tenure saw the lender’s stock price and bottomline soar throughout the pandemic as operations were redirected to focus on Asia, while drastic restructuring led to 35k layoffs in the past five years. Quinn, who has been at HSBC for 37 years, made the decision to step down around March, citing the need for a better work/life balance. He will be retaining his role as CEO until a successor has been chosen and has agreed to be on call until the end of his notice period in April 2025. Lebanon-born Georges Elhedery, currently CFO, is reportedly a leading candidate for the position. (Bloomberg | Financial Times | Reuters)

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

Beltone has something up its sleeves for exporters: Beltone Holding subsidiary Beltone Investment Holding (BIH) will launch a USD 100 mn private credit platform geared towards the needs of Egyptian exporters big and small as well as companies with overseas operations.
More details on Act Financial’s upcoming IPO: Investment management firm Act Financial wants to either acquire or merge with another entity to create “a big financial entity,” after going public.
Importers of all goods will soon be able to take out letters of credit: The central bank will start handing out letters of credit (LCs) to importers of non-essential goods at the start of June — including for goods already stuck at ports and new imports.

☀️ TOMORROW’S WEATHER- The mercury will peak at 31°C and drop to a low of 18°C, according to our favorite weather app.

Is AI hacking the recruitment process?

AI is helping people cheat the job application system: AI-powered services like LazyApply and LinkedIn’s Easy Apply feature help workers fill out thousands of job applications a day. So while AI may be part of the solution for many looking for employment after mass layoffs in the tech industry due to AI, it is now posing a huge problem for recruiters in the face of the resulting surge in job applications, according to Wired.

Recruiters now have to wade through a sea of résumés to find “real” candidates. A tech company recruiter speaking to Wired suggests that AI has even been completing difficult online assessments for the applicants. Very few candidates pass this company’s assessment, the recruiter noted, and in one instance, a person who moved onto the interview round couldn’t answer any questions about the assessment task.

Uno Reverse: AI-powered recruiting services are also adding to the problem. Platforms like LinkedIn and Indeed now offer AI-powered tools to automate parts of the hiring process, which help source and rank candidates. But AI’s programming is often biased and ineffective, and might favor candidates who are more active on the platform, exclude those who aren’t, or sideline candidates based on race and/or gender, replicating some human biases.

The consensus is that we’re far from the point where AI can take over application and recruitment.Recruiters resent AI-backed applications and don’t yet trust AI hiring tools enough to fully embrace them. The tech might not be advanced enough to effectively take over anytime soon, and in the meantime, some recruiters are choosing to field applications by hand, keeping the “human” in human resources.

Fallout: The post-apocalyptic RPG game has transformed into a series on Amazon Prime

? ON THE TUBE TONIGHT-
(all times CLT)

Fans of the game Fallout, rejoice — the game is back in the form of anAmazon Prime series. If you don’t know what we’re talking about, the post-apocalyptic series is adapted from Bethesda’s beloved post-apocalyptic RPG franchise, which takes viewers on an exhilarating ride through a world ravaged by nuclear devastation.

But there’s a new narrative within the Fallout universe rather than simply retelling one of the games. While this approach doesn’t always make the cut (as seen in Netflix’s Witcher adaptation), here it pays off brilliantly. Whether you’re a die-hard fan of the game or a newcomer to the franchise, the show’s visuals and storytelling make it easy to enjoy.

It all starts in 1950s America, where former TV star Cooper Howard finds himself relegated to children’s parties amid the “Red Scare.” But in this version of history, the nuclear apocalypse hits, sending survivors rushing to fall-out shelters, or vaults, that have been built in preparation for this day. Fast forward two centuries, and we are introduced to one of the vaults, number 33, that has lived an idyllic existence until (spoiler alert) it is shattered by a raid led by Moldaver (Sarita Choudhury).

Overseer of Vault 33, Hank MacLean (Kyle McLachlan), is kidnapped, prompting his daughter Lucy (Ella Purnell) to venture into the surface world. Unprepared for its dangers, Lucy faces threats including giant cockroaches, sea monsters, and the Brotherhood of Steel’s attempts at control. Meanwhile, Aspirant Maximus (Aaron Clifton Moten) pursues a mission intertwined with Lucy’s, all while being hunted by the Ghoul who has a personal vendetta.

It blends classic post-apocalyptic tropes with a wry, 50s-inspired aesthetic. Co-creators Geneva Robertson-Dworet and Graham Wagner expertly infuse the series with humor, irony, and genuine emotional depth. The result is a gripping narrative that keeps you hooked from start to finish, sprinkled with nods to the games for fans to enjoy.

WHERE TO WATCH- You can watch the series on Amazon Prime Video or catch the trailer (watch trailer, runtime 3:18)

Or you can go to something similar at Rawabet Art Space where they’ll be bringing El Sira El Hilaleyah to the stage presenting a collection of inspiring stories from The Hilali Epic on tomorrow from 8pm. The storytelling performance will tell the tales of the spirit of heroism, bravery, and generosity, which is considered one of the most important and popular traditional folk tales. Get your tickets at Ticketsmarche.

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

Join the Nouma x Lamba Art tour by Qahraweya this Saturday, 4 May. The tour will take you on a journey through the contemporary art scene of Downtown Cairo. You’ll also get to go on a felucca ride. To reserve your spot, message their page.

HAPPENING LATER-

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.

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.

If you’re not planning to travel she makes the experience of listening enough for you to think you’re there. From the bustling streets of Marrakech to the serene landscapes of the Scottish Highlands, each destination comes to life through the power of sound, all from the comfort of your own home.

For those who are planning to travel, you’ll get a fair share of travel advice and tips. Insider recommendations on where to eat, stay, and explore different destinations to expert insights on travel trends and industry developments.

PRO TIP- The recommendations and experiences do differ based on budget, season, and cultural/political state of the country. So her recommendations might not be as accurate. We would recommend doing your own research after listening to her recommendations.

You can listen on Apple Podcasts and Podtail.

What the markets are doing on 30 April, 2024

The EGX30 fell 6.0% at today’s close on turnover of EGP 3.5 bn (29.1% below the 90-day average). Local investors were net buyers. The index is down 1.8% YTD.

In the green: E-finance (+0.36%).

In the red: Talaat Moustafa Group (-12.03%), Qalaa Holding (-10.7%) and EIPICO (-10.4%).

Meet Mohamed El Zanaty, our Founder of the Week

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 Mohamed El Zanaty (LinkedIn), co-founder and CEO of Zanaty Farm.

My name is Mohamed El Zanaty, and I’m the CEO of Zanaty Farm, which farms premium quality organic eggs and aspires to be one of the country’s top producers of eggs.I have a degree in Mechanical Engineering from AUC and have amassed over 15 years of experience in the oil and gas sector. I reached a juncture where I turned to my family and collectively agreed to embark on a new venture: The establishment of an egg farm. Leveraging my father’s existing involvement in providing engineering solutions for the poultry sector, we agreed to initiate our own agricultural enterprise.

We decided we want to be on the production side rather than pursuing sales or trading. Specifically focusing on egg production, we came to our decision with a thorough market analysis revealing a gap in the quality of egg farming. We then focused on the quality of eggs available to consumers, emphasizing factors such as the health and well-being of our hens. A key determinant of egg quality lies in the conditions under which they are produced — optimal environmental factors including lighting, temperature, and humidity, coupled with a nutritious diet free from illnesses or diseases.

Initially, my family was concerned about me taking this decision at this stage of my life.However, as the business flourished it became increasingly clear to everyone that this is the way forward. Our business is constantly evolving and expanding — we continually work on being resilient by prioritizing optimization and exploring diverse financing to navigate any hurdles coming our way.

As a startup founder I don’t feel lonely. My family — especially my sister, who’s also my partner — has been a constant source of support. She’s not just there for moral support; her knack for thinking outside the box and finding solutions to technical challenges has been incredibly helpful. And when I start to feel overwhelmed, she’s always there to help me regain focus. And then there’s the memory of my late father, whose words of encouragement and “we can do it” attitude that still inspires me every day.

The most gratifying aspect of my role is witnessing the positive feedback on the quality of our product. Our decision to establish our business in Beni Suef — the ancestral homeland of my family — was driven by our dream to demonstrate that world-class products can cater to even the most marginalized markets within Egypt, as well as nationwide. On the other hand, the most challenging aspect is when external factors that are beyond our control fall into our laps, such as inflation, that significantly impacts our operational costs.

It’s important to formulate a comprehensive long-term plan and vision for your business — one that sets you apart from competitors. At Zanaty Farm, we always emphasize on delivering sustainable quality. What is also equally crucial is consistently working on your network within the industry, particularly with individuals who have achieved success. The willingness of experts to help is remarkable, and the wealth of knowledge, shared experiences, and insights they offer can make a huge difference and help save you time, effort, and resources.

One startup that has continuously made significant strides in the market is Breadfast.They were the first app that addressed the need for convenient online grocery shopping, providing customers with the option to have groceries delivered to their doorstep within 20-30 minutes and eliminating the need to visit supermarkets. Having collaborated with Breadfast since 2019, I’ve witnessed their impressive growth over the past five years.

If I weren’t so busy with my business, I’d likely be diving into the manufacturing sector, particularly in sheet metal forming. It’s a perfect match for my background, since I specialized in materials and design. I’ve always been intrigued by the idea of Egyptian products making a mark on the global stage.

My two cents on the startup scene: There are pros and cons —the biggest strength for startups in Egypt is that entrepreneurs start their businesses by using a “problem-solving” mindset — meaning trying to identify what is missing in the market or what needs to be improved or solved — which makes adapting to changes and issues inevitably faster. The biggest challenge is the competitive economic landscape, where prioritizing short-term financial stability becomes essential. This emphasis on immediate financing may (inadvertently) postpone the research and development within the startup ecosystem.

On a lighter note, I really value my downtime. I’m an avid football fan, with a penchant for analyzing Premier League coaches’ strategies. Observing how they mold and refine their teams throughout the season and adjusting tactics on the fly is truly inspiring. Outside of football, my wife and I love escaping to the beach whenever we can. Egypt’s abundance of beach spots means we’re spoiled for choice year-round. It's our go-to stress reliever and a fantastic way for me to recharge my batteries.

ENTERPRISE ENTERTAINMENT CALENDAR

APRIL

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.

1 May (Wednesday): El SiraEl Hilaleyah at Rawabet Art Space.

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

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

4 May (Saturday): Nouma x Lamba Art tour by Qahrawya.

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.

10 May (Friday): Madinaty Half Marathon at Madinaty Open Air Mall

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.

30 May (Thursday): Mochakk Concert at Saqqara Pyramid

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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