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Sunday, 13 Oct 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

The IMF is cutting surcharges and saving Egypt USD 300-400 mn.
2

INSIDE INDUSTRY

A look into Egypt’s local router manufacturing industry.
3

FOR YOUR COMMUTE

Musk’s reveal falls flat.
4

ON THE TUBE TONIGHT

Tune in, habibi.
5

Sports

UEFA matches to keep an eye on.
6

OUT AND ABOUT

Watch a beach trip go wrong.
7

Ears to the Ground

A history of rock.

Sunday, 13 Oct 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

IMF slashing of surcharges set to save Egypt USD 300-400 mn

Good afternoon, folks, and welcome to the start of the workweek.

THE BIG STORY TODAY-

#1- The IMF’s recently announced plan to cut surcharges could save us a whole lot of dough, officials tell Enterprise: Egypt stands to save between USD 300-400 mn, thanks to the reduction in surcharges announced on Friday, a government source told Enterprise. Before the decision to cut fees by an average of 36% starting next month, Egypt had been forecasted to pay the IMF USD 646 mn in surcharges over the next five years — marking it as the world’s fourth largest surcharge payer — according to the Centre for Economic Policy Research.

The government should soon have a more precise figure of how much it will need to pay out in surcharges going forwards: Discussions between the government and the Fund about the country’s new discounted rates and its repayment timelines are expected to commence in the coming days, the source added.

#2- Our friends at EFG Hermes have successfully advised on an EGP 1.4 billion securitized bond issuance for Bedaya Mortgage Finance, marking the second issuance in the company's EGP 3 bn securitization program, according to a statement (pdf). The four-tranche bond, with tenors ranging from 13 months to 81 months, received credit ratings from A- to AA from the Middle East Rating and Investor Service.

THE BIG STORY ABROAD-

Dubai’s state-owned port operator DP World is set to go ahead with a USD 1.3 bn investment in its London Gateway port following reports that the firm would suspend the project, the UK government confirmed. The news comes following reports that DP World had put the investment on hold following comments from two British ministers criticizing its subsidiary P&O Ferries for firing 800 people with immediate notice in 2022 and replacing them with cheaper agency labor.

ALSO- US officials believe Israel has narrowed down its list of targets for its response to Iran’s attack earlier this month to military and energy infrastructure, with officials under the impression that attacks on nuclear facilities or assassinations are not part of the plan. (Reuters)

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

  • Round four of the Egypt, Romania joint committee: Egypt and Romania have bolstered their economic ties with a series of agreements signed during the fourth session of the Joint Committee for Economic Cooperation in Bucharest.
  • Delta Steel set for private sector cash infusion to boost production: Garawany Group subsidiary International Steel Industry is looking to invest EGP 5.5 bn to upgrade and expand state-owned Delta Steel through a nine-year lease agreement.
  • Egypt, Eritrea, Somalia discuss regional issues: President Abdel Fattah El Sisi met his Somali and Eritrean counterparts on Thursday during his visit to Eritrea — the three sides discussed the need to strengthen cooperation amid regional challenges.

CORRECTION- In this morning’s version of EnterpriseAM Egypt, we ran a story based on local media reports that GB Capital is looking to become an investment bank. An official from the company reached out to tell us that they are not and have no intention of becoming an investment bank. The story has been removed from our website.

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.

☀️ TOMORROW’S WEATHER- The October heatwave is still going strong, with the mercury expected to reach a high of 34°C and a low of 22°C in the capital tomorrow, according to our favorite weather app.

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2

FOR YOUR COMMUTE

Robots and disappointments are themes of Musk's latest release

Musk’s long-awaited We, Robot reveal left investors and analysts unimpressed. Elon Musk has been promising the arrival of fully autonomous vehicles since 2016, and last Thursday’s reveal of the Cybercab was expected (by Musk) to be a pivotal moment for Tesla — but it only stoked investor doubts about Tesla’s ability to deliver, said CNBC, and resulted in a nearly 9% drop in stock shares.

Not buying it, literally. Musk’s net worth also saw a USD 15 bn dip following the event. The market reaction was swift, with analysts labeling the event “underwhelming,” and others criticizing the lack of near-term updates on Tesla’s Full Self-Driving feature progress.

Mr. Promises promises again. Musk once again aimed too high, projecting that Tesla will have the Cybercab in production by 2027 and available for under USD 30k. Analysts were quick to point out that the tech mogul provided no real details about how Tesla planned to achieve these goals, including where the cars will be manufactured or how costs would be reduced to fulfill said price tag.

The event also highlighted Tesla’s focus on its Full Self-Driving feature, with Musk stating that unsupervised FSD could be ready in Texas and California as soon as next year. Yet, much like the Cybercab, the vision for FSD is far from reality — the technology Musk insists on implementing still requires human intervention and nothing was provided to prove otherwise. Instead of using lidar and sensor-based tech for FSD — tried and tested tech implemented successfully by several companies like Waymo, who rolled out fully autonomous cars last year — Musk insists on relying on camera input, notoriously susceptible to weather-related failure.

The unveiling took a confusing turn with the introduction of Musk’s Optimus robots. A fleet of humanoid robots under development by Tesla stiffly walked out amongst the crowd as Musk promised a functional android that could “do anything” including various chores, babysitting, and “[serving] drinks.” While Optimus robots in promotional videos functioned to implement basic tasks like watering plants, those revealed in person did nothing but wave to the audience, with a few holding a cup of ice.

One more promise: In 2023, Musk had promised that Optimus would be performing “useful tasks” and available to the public by the end of last year. The robot, according to Musk, will be priced in the same range as the Robotaxi at USD 20k, produced “in high volume, ultimately millions of units,” and eventually cure poverty. Musk did not provide any details on how that would be achieved.

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3

ENTERPRISE RECOMMENDS

Love is Blind touches down in Dubai

? ON THE TUBE TONIGHT-
(all times CLT)

Why pick between marrying for love or gawaz salonat when you can do both? Love is Blind, a Netflix dating show that first premiered in the US in 2020, has become an international sensation, adapted to eight different versions including Love is Blind: Brazil, Love is Blind: Sweden, and most recently, Love is Blind: Habibi. Set in the UAE, this version caters to contestants and viewers from all over the Middle East.

The set-up: The premise of the show is finding love without being distracted by the material — namely physical appearances — pushing the contestants to form deeper connections based on character. To achieve this, the men and women participating have private conversations on either side of a wall in individual pods. They go on multiple of these “dates,” and speak to each other without seeing the person in the other pod. Once two contestants decide to be together, they are married within four weeks.

What to expect, habibi? The inclusion of Arabs from various countries and backgrounds makes for interesting dates. We see contestants with traditional Arab values disagree with people with more modern, westernized ways of living, and not just between couples. There are working women who will choose their careers above all else, and more conservative women who are looking for a provider to take care of. Some of the men are possessive and advise the other male contestants against speaking to certain women they’ve taken a liking to — approximately 3 minutes into the pod date — and others who describe themselves as womanizers.

Usually it’s only up to the couple to decide to get married, but Arab conventions tweak the rules a little. If love matches are formed, the parents’ blessing is still necessary. Once everyone’s squared away (if no one has changed their mind), the couple is brought to tie the knot (or break the bond) in front of a ma’zoon on set.

WHERE TO WATCH- You can watch the show on Netflix or watch the trailer on YouTube (runtime: 1:28).

⚽ What we’re keeping an eye out for In the UEFA Nations League tonight:

  • Finland vs. England — Group B2 (7pm)
  • Greece vs. Ireland — Group B2 (9:45pm)
  • Austria vs. Norway — Group C2 (9:45pm)

? OUT AND ABOUT-
(all times CLT)

HAPPENING THIS WEEK-

A reunion of five wealthy friends in Sahel takes a turn in the play Sa7ebna. From Thursday, 17 October until Sunday, 20 October at AUC Tahrir you’ll get to follow the narrative where tensions rise, and buried emotions and conflicts come to light. You can grab tickets at Ticketsmarche.

The Ma3 Kamel E7terami season finale will hit the El Masrah Theatre stage live for the first time. On Friday, 18 October Mohamed El Aty will be giving you a night of comedy that breaks the fourth wall. Reserve your spot at Ticketsmarche.

Catch Massar Egbari and Disco Misr at El Malahy on Friday 18 October. The concert is slated to start at 7pm. Get your tickets at Ticketsmarche.

Egyptian artist Ash is back with a concert from the heart of the Pyramids of Giza, part of his world tour, on Friday, 18 October. Get your tickets from Nacelle’s website.

Registration is still open for the Scaled Games. Show off your skills by taking part in one of the three sporting competitions available: running, football, or crossfit. Running and crossfit will both take place on tomorrow, while the football tournament will take place starting Friday, 27 September to Friday, 11 October. All events will happen in New Heliopolis City. You can sign up on Ticketsmarche.

The largest collection of prints in the country. Cairopolitan is bringing together a collection of artwork from over 180 local and regional artists to display in the Cairo Prints Exhibition. The gallery will be open from Friday, 18 October till Monday, 18 November in Garden City.

HAPPENING LATER-

The fourth edition of Forever is Now is approaching. This year, a lineup of 12 global visionary artists are ready to display their work at the iconic Pyramids of Giza — including two groundbreaking AI-powered projects. The exhibition will start on Thursday, 24 October and continue till Saturday, 16 November.

Did somebody say cheese? The third edition of Egypt Cheese Festival will begin on Thursday, 31 October at Al Horreya Garden. This is the only dairy and cheese festival in Egypt and the Middle East so prepare to witness all the different sorts of this delicious delicacy. The festival will last till Sunday, November 3.

Prepare for the sixth edition of The Marakez Pyramids Half Marathon, organized by the TriFactory. Pick your race of choice and start training, because the marathon will take place on Saturday, 14 December. Note: Ticket prices will increase in a week, so get in line for early bird registration on the marathon’s website.

Party like you’re in Ibiza. Circoloco — the iconic Ibiza party — is coming to the Pyramids on Friday, 15 November. The 9-hour party kicks off at 6pm and will feature an array of electronic, house, and techno music. Grab your tickets from Collard Tickets.

Egypt’s premier electro and dance music event. Witness immersive visuals and soundscapes with an electrifying lineup of international and local artists at the Aura Music Festival. The festival will take place on Friday, 13 December at Lac Du Caire. Tickets are available at Collard Tickets.

? EARS TO THE GROUND-

A History of Rock Music in 500 Songs is a podcast offering a compelling exploration of the genre. Each episode of the show dives into the history and making of one particular iconic song, combining music history, analysis, and cultural commentary.

Andrew Hickey’s approach is both scholarly and engaging. The host intertwines music theory with social history, drawing interesting connections between the foundational roots of rock to its modern expressions.

The episodes are packed. Hickey provides a wealth of information in each episode, from the musicians involved to the societal implications of the music, all while keeping listeners captivated. The inclusion of short song excerpts add to the listening experience and allow the audience to immersively engage with the music.

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

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4

GO WITH THE FLOW

What the markets are doing on 13 October 2024

The EGX30 fell 2.6% at today’s close on turnover of EGP 4.0 bn (1.1% below the 90-day average). Local investors were the sole net buyers. The index is up 20.3% YTD.

In the green: Mopco (+2.3%), ADIB (+1.5%), and Oriental Weavers (+1.4%).

In the red: Elsewedy Electric (-8.3%), Juhayna (-7.8%), and EFG Holding (-7.3%).

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Our weekly look at the issues, trends, and policies that are shaping Egypt's manufacturing industries.

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5

INSIDE INDUSTRY

A look into Egypt’s local router manufacturing industry

Egypt’s first locally manufactured routers are on the way: In a step to bolster the country’s local manufacturing capabilities and connectivity, the Information Technology Industry Development Agency (ITIDA) signed contracts with Telecom Egypt and three private companies to design and develop locally made high-speed internet routers last March. “We aim to thoroughly localize the electronics industry to achieve self-sufficiency in the local market, boosting the export of Egyptian electronic products on a global scale,” CIT Minister Amr Talaat said at the time.

The players involved: The private sector companies included El Sewedy Electrometer, ElAraby Group, local electro-medical and electronic equipment manufacturer BioBusiness, and fiber optic cabling solutions manufacturer HitekNOFAL OPTIX.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

But not all of the companies may end up actually producing routers: Designs for the routers are expected to be finalized by January 2025. From the three companies presenting, one of the designs will be chosen as the winner — with possibility of more than one being chosen if multiple companies present suitable designs.

We should see locally made routers from Telecom Egypt in the market around 3Q 2025: The winning company will be given a three-month grace period after completing the design to sign the official agreement and finalize the initial quantities and production stage, a government source told Enterprise. Under the agreement, the winning company will deliver the first batch of routers to Telecom Egypt within six months of the contract signing.

It’s all part of a larger plan: The router manufacturing plan is part of the government’s EgyptMakes Electronics initiative, which aims to deepen local manufacturing and reduce imports of electronic products. Since 2015, the CIT Ministry has been working to localize the country’s electronics manufacturing industry under the initiative with an initial focus on mobile phones, tablets, GPS tracking devices, LED lighting, smart meters, LED TVs and displays, and solar energy systems.

There’s a big market for routers in Egypt: As of January 2024, Egypt had 82 mn internetusers, representing a penetration rate of 72.2%, some 45.4 mn social media users and over 110 mn mobile phone users — accounting for 97.3% of the population— according to DataReportal.

And it’s only growing: Internet users grew by 1.3 mn or 1.6% y-o-y from January 2023, according to data from Kepios cited by DataReportal.

But the infrastructure and tech isn’t quite up to the job: The high demand is unfortunately not met with the necessary digital infrastructure, with Egypt’s average mobile internet speed coming in at 22.11 Mbps, while fixed internet speeds average 64.53 Mbps. The country ranks 91 globally for mobile internet speed and 73 for fixed broadband.

The domino effect: Following the ITIDA’s project, several internet service providers have initiated their own programs to manufacture routers for their customers, signaling a broader industry trend toward local production.

Vodafone Egypt was quick off the mark to join in: Vodafone Egypt reportedly inked a partnership with Al Safy Group and Malaysian tech company Green Packet back in September to localize high-speed home router production in an agreement that will see it produce 1 mn routers a year, according to local media reports. Vodafone Egypt also partnered up with ElSewedy Electric to begin producing advanced communications equipment in the country as part of the telecoms company’s efforts and strategy to support the localization of electronic manufacturing to help promote Egyptian-made products, Vodafone Egypt told Enterprise.

As were e& Egypt: The Egyptian arm of UAE state-owned telecoms company e& in collaboration with Sico Egypt recently announced the start of local production for Egypt’s first 4.5G router. Sico Egypt Chairman Mohamed Salem highlighted that the company’s focus is to enhance local manufacturing capabilities and provide advanced technological products that meet market needs with high quality and competitive prices. He noted that Sico was the first company to offer a locally made smartphone and is now delivering Egypt’s first 4.5G router, designed and manufactured entirely in Egypt.

It’s about more than meeting local demand: The initiative aims to localize the manufacturing of routers so that they can stop relying on imports by the start of 2026, our government source told us. However, the plan is to also start exporting them as well, with a particular focus on Africa, the source added.

Your top industrial development stories for the week:

  • Industry Ministry and ILO partner of productivity, working conditions project: The International Labor Organization in partnership with the Industry Ministry will work on a three-year EUR 2.5 mn to boost productivity and working conditions in industry. The Italian government-funded project will provide technical support, consultations and training to SMEs and local institutions. (statement)
  • Plastic fantastic: Plastic and acrylic manufacturer Rubex has launched trial operations of a new acrylic sheet production line, expected to boost the factory’s production capacity by at least 50% and reduce costs by a minimum of 9%. (Al Borsa)
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THE ENTERPRISE ENTERTAINMENT CALENDAR

OCTOBER

28 September - 24 October (Saturday-Thursday): Bastet’s Daughters Exhibition at Craftastic.

7-21 October (Monday-Monday) First Wave exhibition at Downtown Cairo.

13-17 October (Friday-Tuesday): Cairo Water Week at The New Administrative Capital.

17-20 October (Thursday-Sunday): Sa7ebna play at AUC Tahrir.

18 October (Friday): High Five group at City Centre Almaza.

18 October (Friday): Ma3 Kamel E7terami season finale at El Masrah Theatre.

18 October (Friday): Massar Egbari and Disco Misr at El Malahy.

18 October (Friday): TriFactory Tough Mudder 5K run at Sodic.

18 October (Friday): Ash at Pyramids of Giza.

18 October - 18 November (Friday-Monday): Cairo Prints Exhibition in Garden City

21-26 October (Saturday-Thursday): Premier Padel P2 Tournament at New Giza.

24 October - 16 November (Thursday-Saturday): Forever is Now art exhibition at the Pyramids of Giza.

24 October (Thursday): Omar Khairat Concert at Monaco Hall, Triumph Luxury Hotel.

24 October - 16 November (Thursday - Saturday): Art D'Egypte’s Forever is Now Bus Tour at the Pyramids.

25 October (Friday): TriFactory Trailmaster run at Wadi Degla.

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

31 October (Thursday): TriFactory’s The Glow Run at Badya Palm Hills.

31 October- 3 November (Thursday-Sunday): Egypt Cheese Festival at Al Horreya Garden.

31 October - 8 November (Thursday-Friday): Cairo International Jazz Festival at the historic American University in Cairo.

NOVEMBER

8 November (Friday): TriFactory’s The Run for Upper Egypt at New Giza.

14-16 November (Thursday-Saturday): Raabta Wellness Festival at El Gouna.

15 November (Friday): Circoloco Ibiza at The Great Pyramids of Giza.

16 November (Saturday): Charlotte Cardin at Cairo Jazz Club 610.

16 November (Saturday): TriFactory Half Marathon at El Gouna.

22 November (Friday): TriFactory TMK run at District 5.

DECEMBER

6 December (Friday): TriFactory PMH warm-up run at District 5.

13 December (Friday): Aura Music Festival at Lac Du Caire

14 December (Saturday): TriFactory’s The Marakez Pyramids Half Marathon at the Great Pyramids of Giza.

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