Layoffs beyond tech

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WHAT WE’RE TRACKING TONIGHT

THIS EVENING: The FRA is reviewing fair value assessments for Damietta + Port Said ports

Happy hump day, friends. We were relishing in a Ramadan news slowdown, but that appears to have given way to a rather brisk day here in Omm El Donia.

THE BIG STORY TODAY

Fair value studies completed for Damietta, Port Said ports: The Financial Regulatory Authority (FRA) is reviewing fair value studies of the state-owned Damietta and Port Said terminal operators ahead of stake sales in the two firms, Al Borsa reports citing unnamed sources it says have knowledge of the matter. Finance and Banking Consultants International (FinBi) wrapped up the studies last week, according to the local news outlet.

THE BIG STORY ABROAD

It’s a rather mixed bag in the international business press this afternoon, as no single story leads the conversation. Among the stories to take note of: Alibaba is planning to restructure its business by splitting up into six separate units, and is looking at potential IPOs for each unit (Financial Times | CNBC).

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

Egypt’s limited fiscal space means that a “large-scale” privatization program is essential if it is going to bring an end to the ongoing FX liquidity crisis and plug our multi-bn USD financing gap, Morgan Stanley analysts wrote in a note yesterday.
Bidding war for Pachin continues to heat up: Eagle Chemicals yesterday boosted its offer for EGX-listed Paint and Chemical Industries (Pachin) in response to Dubai-based National Paints Holding’s new bid last week.
Four industrial property developers have been awarded more than 1.8k feddans of land in New October City through the New Urban Communities Authority’s (NUCA) new online bidding system

? CIRCLE YOUR CALENDAR-

PSA- Start planning next month’s holidays now:

Coptic Easter falls on Sunday, 16 April;
Sham El Nessim is on Monday, 17 April;
Eid El Fitr should land on or around Friday, 21 April (it’s still not clear what days will be official holidays);
Tuesday, 25 April, is Sinai Liberation Day, for which we’ll likely have a day off on Thursday, 27 April.

PSA- Need funding for a green project? You can now apply to the second round of the Smart Green Projects Initiative until the end of May, according to a Planning Ministry statement. Eligible projects must use technology solutions to address environmental issues, present evidence of feasibility or innovation, and provide a written acknowledgement that no awards have been received during the initiative’s first round, among other requirements. You can view the full list of criteria here and apply here.

☀️ TOMORROW’S WEATHER- We’re getting slightly more seasonal weather, with the mercury peaking at 24°C and falling to 11°C in the evening.

We are delighted to share with you that the Enterprise Exports & FDI Forum will be taking place on Monday, 15 May at the Four Seasons Hotel at Nile Plaza.

DO YOU WANT TO ATTEND? The first wave of invites is going out soon. If you’re a C-suite exec, exporter, investor, official, banker, or someone who should be part of the conversation, please TAP OR CLICK HEREto request a spot at this exclusive event.

WANT TO SHARE YOUR STORY ON STAGE? Drop a note to Patrick here and let’s talk.

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

There are few hundred mn jobs at risk of being wiped out by AI + Layoffs are happening beyond tech

SIGN OF THE TIMES- AI is coming for your jobs. The latest artificial intelligence developments could make it equipped to take over around 300 mn positions across the US and the eurozone, the Financial Times reports, citing Goldman Sachs research. Most of those working full time will be able to automate half of their workload using AI, freeing them for more “productive activities.” AI advancements could increase productivity, pushing the annual global GDP up 7% over the coming decade.

Who could get the boot? Goldman Sachs names lawyers and administrative assistants among those most likely to be let go and replaced with AI systems.

That wave of tech layoffs isn’t actually contained to the tech world: Nearly half a mn jobs in different sectors across the world have been cut since October, Bloomberg reports, citing its own data. Although tech giants such as Meta and Amazon account for a massive chunk of these layoffs, Bloomberg’s analysis shows that the recent wave of layoffs is sector agnostic, with the consumer discretionary sector accounting for the second-largest number of job cuts (108k positions) after tech. The financials, industrials, and communications sectors come in next, with each sector seeing more than 40k layoffs since October.

Who’s been spared: The energy sector saw the smallest number of job cuts in the past six months, with fewer than 4k layoffs, according to Bloomberg’s analysis. Energy companies — including oil majors Exxon Mobil and Chevron — have had a bumper year thanks to higher oil prices in the wake of Russia’s war in Ukraine.

Hunters: A gruesome, revenge-filled story about the hunt for escaped Nazi officers in the US

? ON THE TUBE TONIGHT-
(all times CLT)

Not for the faint of heart: Amazon original Hunters is gritty, gruesome, and full of revenge. Loosely drawn from real events, a band of Jewish Holocaust survivors living in New York hunt down the numerous escaped Nazi officers who are conspiring to build a Fourth Reich in 1977 America. The true elements of the story are based on Operation Paperclip, the US government’s secret program to relocate German scientists, many of them Nazis, to the US. With a cast led by Al Pacino and the series produced by comedy and horror specialist Jordan Peele, Hunters is audacious and — at times — extremely violent, though tense scenes are upturned by cheeky quips or emotional moments. Not to mention that the outfits (especially in season two) are ineffably cool. You can watch two seasons of Hunters on Amazon Prime Video.

⚽ Egypt and Malawi hit the field for their Africa Cup of Nations qualifier match just minutes before we dispatched this afternoon’s edition. The score currently stands at xx. Egypt temporarily fell back to the second spot in its group behind Guinea, which beat Ethiopia yesterday 3-2 to give it a total of nine points — three ahead of the Pharaohs. The top two teams in each group will qualify for the 2024 Africa Cup of Nations in Côte d’Ivoire.

Today in the UEFA Euro 2024 qualifiers:

Scotland v Spain (8:45pm)
Turkey v Croatia (8:45pm

For the young and not so young, Goha in Beit Yakan in Al Darb El Labbana puts on a show adapting Goha’s famous anecdotes, along with other short scenes from Egyptian folklore with enduring messages. The production will run on 5, 7, and 8 April, with ticket proceeds going to public sector children’s hospitals. For more information, check out the event’s Facebook page and for reservations click here.

Discover Islamic history and attend a mawlawia tomorrow at 9pm at the Prince Taz Palace. Entrance to the event is without charge.

Want to get some exercise during Ramadan for a good cause? Participate in the Trifactory’sRamadan Virtual Running Challenge and try to run (or walk) 100 km by the end of the month. Proceeds from participants’ tickets will be donated directly to Misr El Kheir for its annual Ramadan campaign to feed less fortunate families.

Pick up new fabric skills with a Macrame workshop: Starting this Thursday, 30 March until Saturday, 1 April at Gusour Cultural Center you will have the chance to learn with Martina Luther the fundamentals of this art form through her workshop.

Get your karaokeon at Room Art Space in New Cairo this Wednesday, 29 March. Check out their Facebook page for more details.

Enjoy oriental music in the AUC Tahrir Cultural Center garden this Thursday, 30 March at 8:30pm. Zaii Zaman — a trio of violin, oud, and double bass players — will be playing traditional Arabic music to their audience. This event is open to the public and is without charge.

Attend a Sufi Dance Performance on Friday, 31 March at Dawar Arts. Immerse yourself in the season with a mulit-faceted cast and crew who will provide a performance of dance, poetry and singing.

Love the drum? Join a drum circle on Friday, 31 March with Mostafa Baccar at Gusour Cultural Center. There will be two 50-minute drum circles, the first at 8pm and the second at 9pm. Check out their page on Facebookto know more details about the event.

The Comedy Bunch’s “Make’em Laugh 16” at Art Room Space in New Cairowill be stirring some chuckles on Saturday, 1 April. Want to have your shot at stand-up? This will be your chance as there will be an open mic during the evening. Visit their Facebook page to learn more details and register.

Get moving after iftar with Trifactory’s Relay Run next Wednesday, 5 April in Palm Hills Club, 6 October. Call up four buddies for a 2-hour (non-konafa-related) competition to run as many laps as possible. This event is happening from 9-11pm. Visit Trifactory’swebsite to register.

Want to make new friends in the great outdoors?Head over to the Wadi Degla Protectorate next Friday, 7 April with your food in hand and join others gathering for iftar or sohour. The event is organized by Backpacker.

Expose yourself to some art and culture and walk around central Cairo: Qahrawya are organizing two separate “iftour” (iftar tour) events next month, which entail an art walking tour after sitting down for iftar together. The tours include one in Zamalek on Saturday, 8 April and one in downtown Cairo on Saturday, 22 April, both starting at 5:30pm.

Nawara Negm’s Enta El Sabab Yaba (It’s All Because of You, Father) is an intimate, honest, and hilarious personal account of Negm’s life with her late father, renowned poet Ahmed Fouad Negm. Nawara approaches her father not as a poet, a songwriter, or a prominent activist, but as a father — taking an extremely honest view of the man without falling for the idolization trap. Nawara’s writing is bold, witty, and sharp — which is unsurprising, given her parents were two of the most controversial and outspoken writers of their time. Nawara touches on her parents’ time in prison under different presidents, reflecting on the melodrama using a skillfully crafted balance of facts and sharp satire. The book explores complicated and delicate issues like childhood trauma, separation anxiety, guilt tripping, contradicting parenting styles, and so much more, with a lot of understanding — and a little judgment. The book is written in Arabic and can be found in Diwan, Al Shorouk, and the Readers corner.

What the markets are doing on 28 March, 2023

MARKET NEWS-

Contact Financial Holding will pay out dividends of c. EGP 0.25 per share for 2022, after the company’s ordinary general assembly signed off on the payout last week, according to an EGX disclosure(pdf).

MARKET ROUNDUP-

The EGX30 fell 0.3% at today’s close on turnover of EGP 1.6 bn (21.4% below the 90-day average). Foreign investors were net sellers. The index is up 9.0% YTD.

In the green: Sidi Kerir Petrochemicals (+7.5%), Ezz Steel (+7.4%) and Elsewedy Electric (+6.5%).

In the red: CIB (-3.9%), Rameda Pharma (-1.9%) and EFG Hermes Holding (-1.7%).

Meet our founder of the week: Youssef Rizk, co-founder of Moonshot

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 Youssef Rizk (LinkedIn), co-founder of Moonshot.

My name is Youssef Rizk and I’m the cofounder of Y Combinator-backed Moonshot, a company that helps aspiring tennis players fund their careers through a number of backers in exchange for a portion of their future earnings. Sports like tennis are very expensive, so we wanted to create a platform for athletes to achieve their potential, irrespective of their means. This idea is not just limited to tennis and sports, but in the future could involve other sectors like music, education, film, and content creation.

I’ve lived in London for nine years. I came here to study electrical and electronic engineering and went on to work for a company called Palantir Technologies as a forward deployed engineer, which is basically an engineer who talks to customers. This is also where I met my cofounder, Dimitris Nikolaou. We started working at Palantir on the same day and left on the same day, as well, because we both got that entrepreneurial itch.

If you want to give building your own company any justice, you give up anything in your life that is noise. You don’t have room for any unnecessary stress in your life, so you instinctively become very methodical about the things you allow yourself to spend time on. The lows are really low and the highs are very high, which comes with a certain rigidity of having to eat, sleep, and exercise well. This leaves very little time for other things.

You also give up your peace of mind. The worst part is the existential dread of not knowing what happens tomorrow — you may or may not be around tomorrow as a company. You have to be very comfortable with simmering in uncertainty.

It can also get very lonely. You know that no one is coming to your rescue. You are the single proprietor of this company and if you stop pushing, nothing is going to move. So, it takes a lot of mental resilience. However, you can set yourself up in a way where you have a good support system of the people you trust.

The best part of my job is that I’m building something from scratch that I believe in and solves a problem first-hand. This is worth every bit of foregone salary. The ability to just put the thoughts you have into action and work towards the way you’d like to see the world work.

If I could give entrepreneurs one piece of advice, it would be making sure you have a safety net. This could entail working somewhere for a while to save some money or raising some money. The stress and the angst that comes with building your company is enough; you don’t need to compound that with worrying about the money. You need to optimize the risk return for your gamble, which is essentially what starting a company is. Bootstrapping is noble, but raising money could actually give entrepreneurs a bit of that peace of mind and help them go further. Additionally, before you start a company, be very deliberate about the experiences you want to get before you do that.

The most important KPI I look at every day is revenue. This should be the main KPI across 99% of cases because other KPIs, like number of users, may give you a false sense of accomplishment. Your company is fundamentally underpinned by whether you can get people to pay you money for your product or service. Secondary KPIs for us include the number of athletes on the platform, for instance, but it all boils down to revenue.

In the current funding climate, you need to make the money last as long as possible. It is pretty unclear right now what the landscape will look like, which is why you should aim for three years of runway in your bank account.

Our short-term goal is to prove this concept scalably in the tennis space, and after that expand to other sports, like golf and motorsports. After that, we want to go into team sports and maybe even beyond sports altogether.

Although parents tend to be more risk-averse, mine were very supportive about me starting my own company. But that also goes back to the fact that we had raised the funding from Y Combinator, which derisked the situation.

The last great thing I read was Greenlights by Matthew McConaughey as an audio-book. It’s an autobiography that focuses on all the red lights in his life, which basically means all the bad things that happened to him, and how they eventually turned into green lights. He says that if you stop at a red light, you’ll never make it to the green light, so it is an overall very positive outlook on life.

In my down time, I do a lot of calisthenics and play tennis, as well as the occasional chance to travel and hang out with people.

THE ENTERPRISE ENTERTAINMENT CALENDAR

APRIL

16 April (Sunday): Coptic Easter

17 April (Monday): Sham El Nessim.

21-26 April (Friday-Wednesday): LaLiga Egypt Football Camp, Xanadu Hotel, Makadi Bay, Hurghada.

22 April (Saturday): Eid El Fitr (TBC).

25 April (Tuesday): Sinai Liberation Day.

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

MAY

1 May (Monday): Labor Day.

1 May (Monday): Backstreet Boys at 7pm, ZED East, New Cairo.

4 May (Thursday): National holiday in observance of Labor Day (TBC).

JUNE

10 June (Saturday): Thanaweya Amma examinations begin.

28 June-2 July (Wednesday-Sunday): Eid El Adha (TBC).

30 June (Friday): June 30 Revolution Day.

JULY

18 July (Tuesday): Islamic New Year.

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

23 July (Sunday): Revolution Day.

27 July (Thursday): National holiday in observance of Revolution Day.

SEPTEMBER

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

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

OCTOBER

6 October (Friday): Armed Forces Day.

13 October- 20 October (Friday-Friday): The sixth edition of El Gouna Film Festival (GFF).

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