Good afternoon, all, and happy hump day. It’s another quiet day on the business front as we hit the midpoint of the workweek.
THE BIG STORY TODAY
US Secretary of State Antony Blinken has touched down in Egypt, following a trip to Israel earlier this week. The US’ top diplomat has met with President Abdel Fattah El Sisi to discuss ongoing negotiations over a ceasefire between Israel and Hamas.
As things stand: Last night, Blinken said that Israeli Prime Minister Benjamin Netanyahu has accepted a “bridge proposal” for a ceasefire in Israel’s war on Gaza. Senior government officials from Egypt, Qatar, and the US are set to reconvene in Cairo before the end of the week in a bid to finalize an agreement based on the proposal presented in Doha last week.
THE BIG STORY ABROAD
One story is dominating the front pages this afternoon: British tech tycoon Mike Lynch and five of his guests are lost at sea after his luxury yacht “Bayesian” was hit by bad weather, causing it to sink. Twenty-two guests and crew had been aboard the boat — 15 have been rescued by the Italian coast guard and another was found dead. The remaining six missing include Lynch, his 18-year-old daughter, and Morgan Stanley’s Jonathan Bloomer.
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It might be time to turn down the AC: The Electricity Ministry has reportedly begun implementing hikes that will see household electricity prices rising by 14-40%.
Foreign investments in local debt rose in May: Foreign investments in Egypt’s t-bills sat at USD 37.5 bn (EGP 1.8 tn) by the end of May, up USD 2.5 bn from USD 35.2 bn (EGP 1.7 tn) in April.
Government is dead set on its massive wheat buy: The government will announce the purchase of 3.8 mn tons of wheat before the end of the year.
☀️ TOMORROW’S WEATHER- The mercury is peaking in Cairo at a high of 39°C before simmering to a moderate low of 26°C by nightfall, according to our favorite weather app. Sahel and Alexandria are seeing cooler weather, with highs of 33-35°C and lows of 25-26°C.
Big corporations are starting to see AI as more foe than friend. Employees have long felt the wrath of AI since ChatGPT's launch in November 2022, with over 83.9k Silicon Valley jobs slashed this year, following the AI-fueled layoff frenzy in 2023 that left around 200k employees unemployed. The job cuts were the result of optimism for an AI-led future at lower operational costs, but now 56% of Fortune 500 companies cite AI as a risk factor in their annual reports — a significant bump from just 9% in 2022.
Bigwigs aren’t worried about the loss of human touch. The primary concern is keeping up with the competition, some of which are more adept at exploiting what was meant as an aid to workers, not a replacement. Hostile consumer sentiment due to ethical and privacy concerns surrounding the tech has also started impacting the reputation of companies advertising their use of AI, forcing executives to start reconsidering its inclusion.
The industries with the largest concerns: According to the Financial Times, 90% of US media and entertainment companies and 86% of software and technology companies called “fast-growing” AI systems a business risk. Over half of healthcare, financial, and retail services, and aerospace companies voiced the same concerns. Netflix, already in a struggle with user-generated content, is worried that AI use by their competitors will affect its “ability to compete effectively” and that “operations could be adversely impacted.”
As loneliness becomes a modern epidemic, a new breed of apps is swooping in to help strangers connect. Forget dating apps — The Breakfast wants to unite people over a shared meal, arranging dinners in several cities around the world, platonically connecting folks over food, promising “No dating or networking. Just breakfast.”
The loneliness epidemic: One in five workers report feeling lonely, and the numbers climb the less time spent at the office. Some 21% of hybrid employees and 25% of fully remote workers feel lonely, according to a survey conducted by Gallup in February. Apps like The Breakfast are hitting the ground running to create a space where friendships can thrive, especially for those who crave more than push notifications from Slack and Email.
As people ditch the swiping game for real connections, big names are following suit.Bumble, the dating app that wants to be so much more, recently snapped up Geneva, an app focused on fostering friendships, even after launching Bumble BFF mode on their app. Bumble CEO Lidiane Jones noted that younger users are feeling increasingly isolated, and that “platonic bonds [are] core to the company’s future business.” Her sentiments were echoed by other Silicon Valley execs, including Maxime Barbier, co-founder and CEO of Timeleft, who says that dating app fatigue is the reason behind the change in user behavior.
What can a sixth-grader do about inequality? Set in 1980s Queens, ArmageddonTime opens a portal into the complexities of childhood and privilege through the eyes of sixth-grader Paul Graff (Banks Repeta).
The story unfolds at Public School 173, where Paul and his friend Johnny Davis (Jaylin Webb) form a bond in the cauldron of rebellion against their disdainful teacher Mr. Turkeltaub (Andrew Polk). What should be harmless youthful antics and their consequences end up serving as a microcosm for larger themes of race and privilege, opening Paul’s eyes to the reality of Johnny’s life as one of the few black students at the school.
Paul’s (star-studded) family: His father Irving (Jeremy Strong), mother Esther (Anne Hathaway), and grandfather Aaron (Anthony Hopkins) are central to his evolving understanding of American privilege and power. The Graffs, while outwardly progressive and sympathetic, are entangled in contradictions, sending Paul’s older brother to a prestigious private school funded by less savory benefactors like the Trump family.
The film is a nuanced reflection on the legacy of privilege and the painful process of coming to terms with one's place in a flawed world. Through Paul’s journey and his friendship with Johnny, the film offers a sobering yet deeply affecting commentary on race, privilege, and the struggles that define adolescence through the tender eyes of a 12-year-old.
WHERE TO WATCH- You can watch the film on Netflix or watch the trailer (runtime: 2:25).
Related
⚽ It’s a quiet day for football. The only match airing tonight is between Modern Sport and Enppi as part of the Egypt Cup’s round of 16, with kickoff set for 9pm.
Related
? OUT AND ABOUT-
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Nour Project and Wust El Balad will be performing at CJC 610 tomorrow at 10pm. For reservations send them a message on their Facebook page.
CJC 610 is rewinding the tapes and hosting a 90s Flashback night tonight at 9pm. To reserve, shoot them a message on their Facebook page.
The legendary Omar Khairat will be taking the stage alongside Esaad Younis for a live episode of Sahbet Saada at the New Alamein Festival on Thursday, 22 August. Get your tickets here.
Gen Z are getting their own festival. The Gen Z Festival celebrates local talent, creativity, fashion, and self-expression, backdropped by top local DJs and a vibrant atmosphere. The event will take place on Thursday, 22 August at D-Bay, starting 3pm.
Witness both the origin of love and its future in Kaif Badaa El Hob: fi sanat 3000. The play will take place on Friday, 23 August and Saturday, 24 August at Rawabet Art Space. Grab your tickets here.
The iconic Cairokee will be performing at the festival with Tul8te opening for them on Friday, 23 August. Find your tickets to the band’s show here.
Let your inner child roam at The Play Festival Vol.2 at D-Bay on Friday, 23 August. After the success of Vol.1, this edition promises to come back with bigger interactive experiences and live content from Peace Cake. Tickets are now available.
The Bond-Firewill strengthen family ties. The day will start with diverse activities for artistic souls, thrill seekers, or rhythm lovers and end with a cozy bonfire experience where families can tell stories, laugh, and develop closer relationships. The event will take place on Saturday, 24 August at D-Bay, starting 2pm.
HAPPENING LATER-
Immerse yourself in Omar Khairat’s musical mastery. The musician will be taking the stage alongside the Cairo Opera Orchestra as part of the 32nd International Citadel Festival for Music and Singing. The event will take place on Wednesday, 28 August at the Mahka Theatre of Salah El Din Citadel. Grab your tickets here.
End Sahel season on a high note with Adriatique at AHM Club in Silversands, where you can dance the summer away, or what’s left of it. The event will take place on Saturday, 31 August, and you can get your tickets here.
None other than Wegz to close out the iconic new Alamein Festival. The concert will take place Friday, 30 August at the U-Arena and you can grab your tickets here.
Prepare for the sixth edition of The Marakez Pyramids Half Marathon. Pick your race of choice and start training, because the marathon will take place on Saturday, 14 December. Note: The price to register is going to keep increasing. So sign up now through this link for the lowest price guarantee.
MENA’s first and only design-film festival is back:Film My Design festival is back for its third edition — under the theme Designing Our Lives for a Better Future —, taking place from Thursday, 3 October to Saturday, 12 October at Zawya Cinema. The festival features film screenings, masterclasses, a motion design exhibition, VR immersive experiences, and much more. Buy your tickets here.
Related
? EARS TO THE GROUND-
Feeling left behind? It’s Been a Minute is your one-stop-shop for all things culture. Journalist and culture critic Brittany Luse hosts the show, recapping a week’s worth of on- and offline culture, delivering critical analysis of the trends, “because culture doesn’t happen by accident.”
You think you just fell out of a coconut tree? The viral soundbite by US presidential nominee Kamala Harris gave birth to a host of memes, prompting Luse and her guests to connect the dots between coconuts, frogs, Charli XCX in an episode titled The Misunderstood Humor of Political Memes. They take a look at how memes are shaping the political landscape ahead of the 2024 US elections, a captivating tour of how internet culture intersects with real-world events, or is even sometimes astute political commentary.
If you're tired of surface-level takes and want something that digs a bit deeper but still keeps it light and engaging, this podcast is your jam. Luse and her guests make complex cultural conversations accessible and fun, proving that staying in the loop doesn’t have to be a chore.
The EGX30 rose 2.0% at today’s close on turnover of EGP 4.3 bn (19.3% above the 90-day average). International investors were the sole net buyers. The index is up 20.2% YTD.
In the green: Elsewedy Electric (+6.5%), EFG Holding (+6.4%), and Oriental Weavers (+4.5%).
In the red: Juhayna (-3.3%), Telecom Egypt (-0.7%), and Cleopatra Hospitals (-0.6%).
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 Omar Abdalla (LinkedIn), co-founder and CEO of Brown Nose Coffee.
My name is Omar Abdalla and I am the co-founder and CEO of Brown Nose Coffee, a specialty coffee roaster and cafe based out of Cairo. We source, roast, and brew our own coffee from the best ingredients we can find, putting quality and people first.
It all started five or six years after graduation. I graduated in 2013 with a bachelor’s degree in marketing from John Molson School of Business in Montreal, Canada — then I came back home to figure out what I wanted to do. At first, I spent some time working in PR and marketing, then I ended up working in contracting, and spending some time in the family business after that. But I didn't find myself in any of these fields and started to think about starting my own business.
But Brown Nose wasn't really supposed to be a business. It started off by hosting a small coffee community in one of my co-founder's houses in Maadi. We organized it through a Facebook group that we called ‘Apple pie and Coffee’ where we just served apple pie and coffee. We would invite coffee enthusiasts to try different types of coffee that we would get from abroad and test out different brewing methods.
It was a hobby, a passion, and something we loved doing. As four friends from school that were a part of that community, eventually Medhat Hassanein, Taymour Sabry, Serag Meneassy and I came together and decided to try and elevate the coffee culture in Egypt through Brown Nose.
We actually started off as a B2B company. In our early days, we would import, roast, and sell coffee to different cafes, restaurants and hotels. Soon after, we were offered the chance to open a small coffee truck in Hacienda White at the North Coast, and the feedback we got from the customers was incredible.
We realized we had the chance to become one of the first specialty coffee roasters in Egypt. During that time, all the available coffee in Egypt was imported, and the only local roasters in the country focused on traditional Arabic or Turkish coffee. There was a lot of reliance on foreign brands, with the coffee being imported already roasted, meaning it had been traveling for 3-4 months before sitting on shelves for another six. So by the time it was brewed, the beans had already lost their freshness.
It took us almost three years of research before launching. We made sure to get all the proper training and certifications on how to source and roast the beans, and taste — or, to use the correct terminology for a professional cup — coffee. We also wanted to introduce new roasts to the market. Most of the beans being used were dark roasted, and everyone was overlooking medium and light roasts that actually retained their natural flavors.
I think our branding is also a very big differentiator. We could see early on that most specialty coffee brands, both regionally and globally, took a very industrial approach to their branding and their architecture. That didn’t match our community-based vision or our personalities, and it was a good way to stand out. That’s where we came up with Mr. Mots, our mascot — an acronym for Medhat, Omar, Taymour and Serag.
The idea of coffee fostering a community is still important to us, and we want to grow it through weekly workshops that teach people about coffee, so that they can appreciate their favorite drink a little more and brew better coffee at home.
Not a lot of people know what our name means. It’s playfully rooted in the experiences of coffee professionals during coffee cupping, a process where they assess the quality of different coffees by smelling the aroma and fragrance. In our early days of cupping, we would get so close to the coffee that we sometimes ended up with coffee on our noses, leading to the inside joke of having a “brown nose.”
The recent economic conditions have created a fair share of challenges along the way, so we’re lucky to have our own coffee supply chain. The biggest issue facing the industry is supply chain issues — a lot of our products rely on imported ingredients, and with import restrictions and price fluctuations, it's very hard to keep our supply chain locked in. But we try to do our best to find or develop local alternatives that are still aligned with our quality standards, and to make sure that we have at least a six-month supply of coffee in our warehouse.
But we have plans for growth, with an aggressive expansion plan to cover all major parts of Egypt before the end of 2025. But ultimately, we hope to see Brown Nose grow beyond Egypt's borders. We want Brown Nose to become one of the few Egyptian brands within international reach — the GCC and Europe are first on our radar.
One of the ways we plan to do this is through brand engagement. Another thing we’re also eyeing is fulfilling customers’ dietary needs. We want to offer something high-quality that caters to those who are health-conscious or looking for alternatives, especially when it comes to vegetarian options. We already offer milk alternatives, but we want to ensure that whether it's a sandwich, a cake, or any product, those with restrictions won’t feel like they’re missing out on anything.
It’s not necessarily difficult, but since we try to limit our SKUs to avoid complicating in-store operations, we don’t have the luxury of offering four or five new items tailored to dietary restrictions. So, it's about finding that one product to test and hoping it does well.
Aside from work, my favorite thing to do is scuba diving. I started diving in 2014, when my now-wife introduced me to it, and have been doing it regularly ever since. I think Egypt is one of the, if not the top, best countries in the world to dive.