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Sunday, 7 Jul 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

FX reserves hit a new peak in June.
2

FOR YOUR COMMUTE

Say hello to the six-day work week.
3

ON THE TUBE TONIGHT

Into the tragic life of Anna Nicole Smith.
4

Sports

Zamalek and Al-Ismaily meet on the pitch tonight.
5

OUT AND ABOUT

Last chance to grab tickets to Ahmed Helmy’s Memo.
6

Ears to the Ground

Seinfeld and Veep star takes to the podcast.

Sunday, 7 Jul 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 EVENING: FX reserves peak to USD 46.4 bn

Good afternoon, folks, and happy Sunday. Another shorter business week kicks off and we look forward to another long weekend. As you may know the whole nation will be off on Thursday 11 July, in observance of the Islamic New Year.

And that includes us folks here at EnterprisePM Egypt, who will be taking a break from your inboxes this Thursday and will be back on Sunday afternoon.

THE BIG STORY TODAY

FX reserves reach new record high: Egypt’s net foreign reserves increased by around USD 260 mn in June to reach just under USD 46.4 bn, surpassing last month’s record high of USD 46.1 bn, according to central bank figures.

ICYMI: Last month’s figures topped their pre-Covid peak of USD 45.5 bn after the final tranche of the Ras el Hekma funds landed in state coffers in mid-May. The USD 20 bn tranche consisted of USD 14 bn in fresh inflows and USD 6 bn in the form of a previous UAE deposit at the Central Bank of Egypt, and brought our reserves to their highest level on record.

THE BIG STORY ABROAD

Elections in the EU have been dominating the headlines this past week, today by France’s parliamentary run-offs. Ballots are indicating that the country’s eurosceptic far-right party, the National Rally (RN), may come out on top. Experts believe that while the party may grab the most seats in the National Assembly, an absolute majority is still beyond their reach. But a hung parliament is still bad news for President Emmanuel Macron, creating space for a detrimental divide in parliament and in the economy. Last week, Macron’s centrist Renaissance Party and the left-wing New Popular Front pulled candidates out of the race to pool votes in an attempt to curb a RN win. Initial projections are expected to be announced tonight. (Reuters | CNBC)

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

  • Business activity just shy of growth in June: Egypt’s non-oil private sector activity picked up to its highest level in three years in June, with companies seeing a rise in order volumes for the first time in three years due to easing price pressures and stabilizing economic conditions.
  • What can we expect from the new Madbouly cabinet? Prime Minister Moustafa Madbouly held a presser on Thursday a day after his new cabinet was sworn in and took office.
  • Infinity has an ambitious five-year investment plan for Egypt: Our friends at renewable player Infinity Power are planning to invest USD 10.5 bn in Egypt over the next five years.

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 look into the local ceramics industry and the repercussions of the current power crisis on it.

☀️ TOMORROW’S WEATHER- Mercury is peaking with a high of 36°C but will be dropping to a low of 24°C at night in the capital city. It will be a bit cooler in Alexandria and the North Coast, with a high of 32°C and a low of 25°C, according to our favorite weather app.

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2

FOR YOUR COMMUTE

Could Greece be onto something?

Greece is adding to its inventive offerings — Alongside democracy and theater, the country is now introducing the six-day workweek. While the world is valorizing a move towards a four-day work week and shunning hustle culture, this European nation has approved legislation that enacts a six-day working week where employees work up to 48 hours during the business week, with a 40% raise in overtime pay as incentive, according to The Washington Post.

How come? Labor shortages seem to be the culprit behind this move. This comes alongside ensuring that workers are compensated for their overtime work and that tax evasion for undeclared work is also addressed.

It’s not for everyone. This isn't a case where the entire country is about to change its routine. Employees in industrial or manufacturing sectors or other fields where hours often reach 24-hour shifts are those who are presented with the 6-day-week option. Niki Kerameus, the labor and social insurance minister, explained that the option should only be used for “urgent operational demands” that have been impacted by the labor shortage and experience unexpected workload, according to The New York Times.

Employment experts disagree. Pundits have made it clear that this may be disastrous to worker health, predicting high turnover due to faster burnout, illness related to overworking, and even desperate workers ignoring these health cues, leading to death. Malissa Clark, director of the University of Georgia’s Healthy Work Lab, which specializes in the intricacies of work-life balance, said that the move is “[definitely] a step in the wrong direction.”

Against the current. Globally, many forward-thinking countries have been looking at shortening the work week, some of which are piloting the idea — others have even implemented it. Iceland, Japan and South Africa are also among those who are experimenting to see how four-day-weeks might impact staffing, productivity, costs, and operations. Syriza, the leftist opposition party in Greece, called the move “a return to working conditions of the 19th century that puts the country to shame.”

It’s technically optional… But is it? The fact that the six-day week is not a requirement only creates the illusion of choice, according to Brigid Schulte, director of the Better Life Lab. She said that the increase in pay is enough of an incentive to make people choose it over their health. “You’re making it difficult to turn [the pay] down,” she added.

Could Greece be on to something? Only time will tell. “If all of a sudden Greece turns around its economy, maybe people will take a second look,” said Schulte, “but I don’t think that will happen.”

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3

ENTERPRISE RECOMMENDS

The life and death of tabloid superstar Anna Nicole Smith

? ON THE TUBE TONIGHT-
(all times CLT)

Remember Anna Nicole Smith? In You Don’t Know Me, a documentary by director Ursula McFarlane, unfolds the boisterous life of the former centerfold and model, Vicky Lynn Hogan — known as Anna Nicole Smith — whose tragic death at age 39 made some headlines. Known for her blonde bombshell persona and tabloid exploits, Smith’s story unfolds as a cautionary tale of fame, fortune, and personal tragedy.

From a small-town Texas upbringing to international stardom: Smith’s life was often overshadowed by controversies and public scrutiny. However, the documentary juxtaposes Smith’s public image with her private struggles, revealing a woman trapped between the allure of celebrity and the harsh realities of personal demons.

If you were curious about her marriage to an oil b’naire, then this documentary might answer some questions. Central to Smith’s narrative is her relationship with the elderly oil moghul J. Howard Marshall II whose infatuation and subsequent marriage to Smith sparked legal battles and family discord. The film explores the complexities of this relationship, hinting at possible motives while refraining from definitive conclusions, leaving viewers to ponder the true nature of their bond.

All this is shown through archival footage and interviews: It captures Smith’s vulnerabilities and aspirations, showcasing her journey through highs and lows, from fame to battles with addiction. The documentary touches on poignant moments, such as Smith’s reunion with her estranged father and the tragic loss of her son shortly before her own death.

It occasionally sidesteps deeper analysis into her relationships and the societal pressures contributing to her downfall. The documentary serves as a reminder of the perils of fame, leaving viewers to contemplate whether Smith's story was a tragicomic tale of love, exploitation, or both.

WHERE TO WATCH- You can watch the documentary on Netflix or catch the trailer (watch the trailer, runtime: 2:29)

⚽ Gameweek 30 of the Nile League continues with three matches today, First and foremost: Zamalek is going head to head with Al-Ismaily at 7pm.

We also have:

  • Baladiyat Al Mahalla vs Al Masry (4 pm)
  • El Gouna vs Ceramica Cleopatra (7 pm)

We now know the Copa América semi-finalists: Brazil exited the tournament overnight after losing to Uruguay on penalties (2-4), while Colombia beat Panama 5-0.

Who against whom: Canada will clash against Argentina on Wednesday at 3am, while Uruguay will face off against Colombia on Thursday at 3am.

? OUT AND ABOUT-
(all times CLT)

HAPPENING THIS WEEK-

Helmy on stage: The comedic genius Ahmed Helmy will be performing in his interactive play Mimo at the Grand Nile Tower Hotel in Cairo. Catch the show this week, Thursday 11 July, and Friday 12 July. Get your tickets here.

Affichat w Aflam for the cinema aficionados. This exhibition showcases a vast selection of the late Pierre Sioufi’s collection of more than 10k pieces of Egyptian cinema memorabilia from 1932-2017. Showing in three editions, with the first ending this Thursday, 11 July, it will display pieces from the 1930s to 1970s. The exhibition is open from 10am to 10pm at Bibliothek.

Egyptian Nights with Cairokee. The Egyptian band will be performing at the AAST in Alexandria as a part of the Egyptian Nights Festival on Saturday, 13 July at 8pm. Click here for the tickets

Master the art of punch needle embroidery at Darb 15 on Friday, 12 July from 12pm Whether you’re a seasoned stitcher or a complete beginner, this workshop is perfect for anyone looking to unwind, get crafty, and unleash their inner artist. To book your spot DM Darb 15 on their Instagram.

Another tribute night from El Sawy Culturewheel is dedicated to Lana Del Rey. Brooklyn Babies will be performing their homage to the queen of summertime sadness on Saturday, 13 July from 7pm. Get the details here.

Mona El Shazly will be hosting a special live episode hosting Medhat Saleh at the New Alamein Festival on Thursday, 11 July at 10pm. Get your tickets here.

If you missed it, musical icon Mohamed Mounir will be performing the next day on Friday, 12 July at the New Alamein Festival from 9pm. Get your tickets here.

HAPPENING LATER-

Smooth melodies, upbeat rhythms and enticing energy. Don’t miss Blackout ’s smooth jazz tunes at Cairo Jazz Club on Sunday 14 June at 8pm. Message CJC on Facebook to reserve.

20 years of Masar Egbari: The band is celebrating its 20th anniversary with a concert at Al Sawy Culturewheel, Nile University branch in Sheikh Zayed, on Thursday, July 18, at 8pm. Click here to get your tickets.

Mouled Ahl Al Zikr x Sawy Culture Wheel: Sheikh Mahmoud Al-Tohamy will present an evening of recitation and chanting at El Sawy Wheel in Zamalek on Friday, July 19 at 8 pm. (Tickets)

? EARS TO THE GROUND-

For fans of both insightful conversation and Julia Louis-Dreyfus’ signature wit, Wiser Than Me with Julia Louis-Dreyfus is a podcast that hits the sweet spot. This interview series features the acclaimed actress sitting down with extraordinary women who have lived full and impactful lives.

The podcast breaks away from the mold of typical celebrity interviews. Here, Louis-Dreyfus sheds the interviewer persona and instead fosters warm, open conversations with her guests. These women, all over the age of 70, come from diverse backgrounds and professions, offering a wealth of wisdom and experience.

You even get to take a look inside the world of Vera Wang. At the time of the recording (likely sometime in 2023), Wang was 74 years old and still a major force in the fashion world. The episode offers a glimpse into her remarkable career journey, from her early days as a figure skater and fashion editor to her rise as a bridal wear icon.

It’s a refreshing change of pace from the celebrity interview circuit. It offers a space for older women to share their stories, wisdom, and a good dose of humor. If you're looking for a podcast that will make you laugh, think, and appreciate the power of experience, this show is definitely worth checking out.

WHERE TO LISTEN- You can listen to this podcast on Apple Podcasts, Spotify, iHeart and Amazon Music.

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4

GO WITH THE FLOW

What are the markets doing on 7 July 2024

The EGX30 rose 0.8% at today’s close on turnover of EGP 3.8 bn (7.1% below the 90-day average). Local investors were the sole net buyers. The index is up 14.9% YTD.

In the green: EFG Holding (+8.1%), Palm Hills Development (+4.2%), and Fawry (+1.7%).

In the red: Abu Qir Fertilizers (-3.0%), AMOC (-2.2%), and Mopco (-1.8%).

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5

INSIDE INDUSTRY

How Egypt’s ceramics sector is navigating challenges stemming from natgas shortages

The latest casualty of the gas shortage: Ceramics. Egypt’s ceramics industry is facing a number of challenges amid the nationwide natural gas shortage, which has led to a considerable decline in production and exports. Enterprise spoke to a number of industry players to learn more about how the ceramics, porcelain, and sanitaryware sectors are navigating these challenges and what needs to be done to revive the industry and go back to normal production rates.

REMEMBER- It’s not just ceramics. Fertilizer companies have been struggling to keep the lights on and operations ongoing amid the ongoing gas shortage, with many having to pause operations time and time again.

The context: The nation’s power crisis and shortage of gas supplies has forced major companies from energy-intensive fertilizer industries to halt operations. The government recently secured 20 LNG shipments as it works to ensure it has sufficient supplies for households and factories during the current period of increased demand expected to last till September.

In numbers: Egypt currently houses 33 ceramics factories, and has a large amount of the raw materials used by the industry, according to data from the Chamber of Building Materials Industries (CMBI). The sector employs over 100k workers.

Local components make up between 80-90% of the sector’s production inputs and the output covers — and even exceeds — local demand. However, further incentives from the government are needed to help increase exports of ceramics.

The float caused a surge in gas prices: The decision to float the EGP was translated into a 55% increase in natural gas prices for ceramics factories, pushing production costs up to the point where they were higher than their foreign counterparts, subsequently causing a drop in exports, 10th of Ramadan Investor Association Vice President Sobhi Nasr told Enterprise. Domestic sales also declined, the association said in a report, which further increased the companies’ losses.

The float had a direct impact on the sector: The ceramics and brick industries’ prices are specifically linked to the USD exchange rate, which further worsens the sectors’ woes, CMBI head Ahmed Abdel Hamid tells us. That paired with the dip in sales led many companies to accumulate debts owed to the state’s Egyptian General Petroleum Corporation and the Electricity Ministry.

Ceramic exports are a major source of FX: When operating at full capacity, ceramics producers could generate exports of USD 400 mn. But, our ceramics exports recorded USD 80 mn last year, a 60% decrease in comparison to the USD 200 mn recorded in 2021.

THE SOLUTION- Industry players Enterprise spoke to proposed a number of ways to help out the industry:

1- Pricing natural gas in EGP instead of USD. Pre-float natural gas was going for EGP 145 per mn British thermal units (BTU) — around EGP 5 per cbm.

2- Slashing the price of natural gas for the industry to USD 3 per mn BTU;

3- Pricing natural gas based on the pre-float USD price — when it stood at EGP 30.8 — and making sure it doesn’t fluctuate.

Could green energy be the answer? Although it could be an opportune time for factories to kickstart their transition to renewable energy, this would require even more financial support and funding, sector sources told Enterprise.

To tackle the problems: The 10th of Ramadan Investor Association went to the government with the array of challenges facing the sector in efforts to find a solution with the aim of increasing the sector’s total exports to around USD 400 mn annually.

Your top industrial development stories for the week:

  • Radex Export Company to launch new cassava factory in Beni Suef: Radex Export Company is pouring EGP 650 mn into a new cassava factory that will eventually have a production capacity of 80 tons per day, Chairman of the Board of Directors Ahmed Abdel Ghaffar told Al Borsa. The company also plans to sow cassava next to the factory, initially aiming to produce seedlings sufficient to cultivate 2k acres of cassava.
  • Delta Misr for Plastics (Delpack) to boost production capacity: Delpack plans to invest EUR 5 mn over a three-year period to increase the number of its production lines from four to six at its Sadat City plant, Vice Chairman Bassem Hussein told Al Borsa. The expansion is slated to accelerate production from 600 tons a month to 1k tons, as the company targets annual sales of EGP 600 mn by tapping new export markets, Hussein said.
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THE ENTERPRISE ENTERTAINMENT CALENDAR

JULY

7-31 May-July (Tuesday-Wednesday): Cairo Cinema Days program, at Zawya Cinema.

11-2 June-September (Tuesday-Monday): Afeshat w Aflam exhibition at Bibliothek.

7 July (Sunday): Hafla Geil Qadim Vol.2 at Room Art Space.

7 July (Sunday): Islamic New Year.

8 July (Monday): Nazra concert at El Sawy Culturewheel.

9 July (Tuesday): Cairo Comedy Club at Boom Room, Open Air Mall, Madinaty.

11 July (Thursday): National holiday in observance of Islamic New Year.

11-30 July-August (Thursday-Friday): New Alamein Festival at North Coast.

11-12 July (Thursday-Friday): Mimo at the Grand Nile Tower Hotel.

12 July (Friday): Punch needle embroidery at Darb 15.

13 July (Saturday): Lana Del Rey tribute night at El Sawy Culturewheel.

13 July (Saturday): Cairokee at the AAST.

16-17 July (Sunday-Monday): Cairo Consultants Forum 2024 at Royal Maxim Palace Kempinski.

18 July (Thursday): 20 Years of Massar Egbari at El Sawy Culturewheel.

18-10 July-August (Thursday-Saturday): Summer Music Festival at the Cairo Opera House.

19 July (Friday): Sheikh Mahmoud Al-Tahami at El Sawy Culturewheel.

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

AUGUST

3 August (Saturday): Founders Live at MINT Incubator by EGBANK

SEPTEMBER

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

OCTOBER

6 October (Sunday): Armed Forces Day.

29-30 October (Tuesday-Wednesday): Intelligent Cities Exhibition & Conference (ICEC) at Waldorf Astoria.

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