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1

WHAT WE’RE TRACKING TONIGHT

THIS EVENING: Banque Misr + NBE launch new USD certificates

Good afternoon, friends. We hope that you’re surviving the heat on this blackout-filled afternoon and have managed to ease back into the grind as we bring this hot hump day to a close.

THE BIG STORY TODAY

State-owned Banque Misr and the National Bank of Egypt have launched new high-yield USD certificates of deposit, according to statements (pdfs — here and here). Each bank is offering two three-year certificates — one with a 27% total return with an upfront payout of the three years of interest in EGP equivalent, and another with a 7% annual interest rate, with interest paid out in USD on a quarterly basis. The minimum buy-in for each certificate is USD 1k, with the certificates available as of tomorrow.

CORRECTION- In this morning’s edition of EnterpriseAM, we had an incorrect figure for Beltone’s recent capital increase of EGP 10 bn, the largest such transaction of its kind in Egypt as of the date of publication. The story has been amended on our web edition.

THE BIG STORY ABROAD

The role of manmade climate change in the ongoing global heat waves is dominating the international business press this afternoon, as the mercury continues to rise to record-breaking readings in conventionally mild-temperature countries in Europe. The sky-rocketing temperatures are going to occur between five to ten years, but with the 2 °C annual increase the sweltering heat can occur more often. Reuters | BBC | Associated Press | Financial Times

HAPPENING NOW- The US Federal Reserve’s Open Market Committee meeting kicked off today.


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

MARK YOUR CALENDARS- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial, or fill out this form and we’ll be in touch.

STAY TUNED for more detail about our agenda.


DID YOU MISS THE ENTERPRISE EXPORTS AND FDI FORUM? Tune in to the Enterprise Podcast and listen for yourself : The Enterprise Podcast is back with another installment of our forum series, where we bring you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum, which took place in May.

WANT TO LISTEN? Head to: Apple Podcast | Spotify | Google Podcast | Anghami. We’re releasing a new episode every Sunday morning.

IN THIS WEEK’S EPISODE- We ask some of the biggest multinationals and suppliers operating here — namely, in logistics, e-commerce, and FMCG — what it is they’re looking for in a local partner, product or service and what are some of the pain points they’ve had to cope with. We were joined on that panel by Khaled Morsy, CEO of DB Schenker Egypt, Omar Elsahy, General Manager at Amazon Egypt, Tarek Kame l, Chairman and CEO of Nestlé Egypt and Sudan.

☀️ TOMORROW’S WEATHER- The heat will persist at 40°C during the AM and drop to a milder 28°C at night, according to our favorite weather app.

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FOR YOUR COMMUTE

New Pharaoh based game + WorldID is the new identification?

Walk among the pharaohs: Video game company Creative Assembly’s latest strategy video game Total War: Pharaoh takes place during the New Kingdom of Egypt in the years leading up to the collapse of the Bronze Age. The game is based on written accounts, archeological discoveries, and art to revive ancient Egypt in an emerging gameplay, the Guardian wrote. The game allows you to become Egypt’s “last great Pharaoh and stand against the collapse of an iconic civilization,” following the death of the old Pharaoh. The game, which will be out in October of this year, allows players to play as a number of Egyptian rulers — Ramesses, Amenmesse, Tausret, Seti, Irsu, or Bay.

The newest entrant to the crypto world is… just a little bit unsettling: Worldcoin, a new crypto project founded by OpenAI CEO Sam Altman, launched yesterday, Reuters reported. Among other products, the project offers identity verification by creating digital passports called World IDs that can only be obtained through an in-person iris scan using a specific orb, co-founder Alex Blania told Reuters. The purpose of the World IDs is to distinguish between real people and AI bots online. These IDs can be stored on crypto blockchains to preserve privacy and prevent them from being governed by any single entity. Worldcoin is positioning its World ID as a product that will be necessary in the era of generative AI chatbots, including ChaptGPT, which are able to generate human-like language. Worldcoin has attracted 2 mn users during its beta phase so far and is expanding its “orbing” operations to 35 cities in 20 countries.


Stockpiled Yeezys are flying off the shelves: Adidas received EUR 508 mn (around USD 565 mn) for orders of 4 mn pairs of unsold Yeezy shoes, the Financial Times reports. This comes, ironically, as CEO Bjorn Gulden stated that the company would “probably not make [net income]” on its remaining Yeezy inventory back in March. The company ended its partnership with Kanye West in late October after he made antisemitic remarks that left the fate of the remaining inventory unknown. Adidas announced in May that it would sell some of this inventory through an online sale, which saw huge demand. This exceeded the company’s most optimistic forecast, sources familiar with the matter told the Financial Times.

Adidas will give back: The company is planning to donate some of the proceeds from the sale of its unsold Yeezy inventory to charity, the Financial Times says, citing sources familiar with the matter. It has already chosen five charities in the US and China, including the Anti-Defamation League and the Philonise and Keeta Floyd Institute for Social Change, the sources added. Adidas is also planning to use some of the proceeds to pay royalties to Kanye West and to cover costs of ending the partnership, including laying off staff, closing production facilities, and the legal costs.

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ENTERPRISE RECOMMENDS

Watch freediving documentary The Deepest Breath — but with caution

📺 ON THE TUBE TONIGHT-
(all times CLT)

The Deepest Breath is not for the faint of heart. If you happen to be claustrophobic or have thalassophobia (fear of deep bodies of water), then this might not be the documentary for you. This emotional A24 feature film ( watch trailer, runtime: 2:21) is an exploration of the thrilling, and dangerous, sport of freediving. A combination of real footage and reconstructions of certain events tell the story of freediver Alessia Zecchini, her coach, and world-renowned safety diver Stephen Keenan during her quest to break the world record.

If you’re unfamiliar with freediving, it’s an extreme sport where divers plunge down into the ocean without an oxygen tank, aiming to reach record-breaking depths in a single breath. Director and screenwriter Laura McGann does an amazing job showing the beauty and serenity that drives people to compete in the sport, but does not minimize the tragedy that many experience during their attempts. Unfortunately, depictions of the dangers of freediving in The Deepest Breath are graphic and upsetting, so be prepared.

⚽ Tomorrow’s Women’s World Cup matches to catch:

  • Japan v Costa Rica (8am)
  • Spain v Zambia (10:30am)
  • Ireland v Canada (3pm)

🎤 OUT AND ABOUT-
(all times CLT)

Get a dose of laughter at Cairo comedy club’s stand-up comedy tonight. Six hilarious comedians will perform at this sold out set tonight at Rawabet Art Space starting from 8pm.

Dress to the nines for a night of fine music. Hisham Kharma will perform at a concert at the Cairo Opera House tomorrow at the Open Air theater starting at 8:30pm. Tickets are available on TicketsMall website.

Cairokee Empire returns: Cairokee is hitting the stage with two mega-concerts at New Cairo’s Manara Arena on Thursday, 27 July and Saturday, 29 July. Tickets are sold out.

Samar Tarek x El Sawy Culturewheel . Samar Tarek will perform at El-Nahar Hall, El Sawy Culturewheel on Thursday, 27 July at 8pm. Tickets are available on the venue’s website.

The New Alamein Festival is still rolling. The singer Ahmed Saad will perform at the New Alamein, North Coast on Thursday, 27 July. You can book your ticket from Tazkarti.

Get ready for a new edition of Shorelines musical festival . The festival is back in its second edition at Almaza Bay, North Coast starting from Thursday, 27 July until Friday, 28 July. Throughout the two days, the festival will host local and international singing talents. You can book tickets from here.

Nancy Ajram and Raghab Alama x the New Alamein Festival. The Lebanese stars will be hitting the stage in a duo musical concert at the New Alamein city on Friday, 28 July. Tickets are available on Tazakarti.

Let your ears and soul get filled with Hany Shenouda’s nostalgic music. The musician Hany Shenouda is having a concert at Cairo Jazz Club 610, Sheikh Zayed branch on Wednesday, 2 August. You can book your ticket from here.

💡 UNDER THE LAMPLIGHT-

Scott Fitzgerald’s The Beautiful and Damned is a criminally underrated novella that explores the decadence of a fortune and the nature of love. The novel follows 1920s socialite Anthony Patch and his wife Gloria in their reckless pursuit of pleasure. Projecting the dispositions of his own marriage unto his characters, Fitzgerald crafts a raw and realistic relationship between the two main characters. Underneath the glittery and glamorous imagery, Fitzgerald buries a warning on how overindulgence can ruin us. The Beautiful and Damned is perfect for readers who enjoy classics that dive deep into themes of morality and the roaring ‘20s, you can buy it now in Diwan or Amazon.

This publication is proudly sponsored by

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GO WITH THE FLOW

What the markets are doing on 25 July 2023

The EGX30 fell 0.4% at today’s close on turnover of EGP 1.62 bn (15.9% below the trailing 90-day average). Local investors were net sellers. The index is up 19.7% YTD.

In the green: Ezz Steel (+5.7%), Edita (+1.1%) and Mopco (+0.9%).

In the red: Qalaa Holdings (-3.6%), Credit Agricole Egypt (-3.4%) and Ibnsina Pharma (-3.1%).

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Founder of the Week

Meet our founder of the week: Farida El Sabh, co-founder of Lanalou

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 Farida El Sabh ( LinkedIn), co-founder of Lanalou.

My name is Farida El Sabh and I am the co-founder of Lanalou, an Egyptian brand that produces creative child-related products such as cosmetics, tailored kids’ furniture, and educational flash cards to nurture the child’s mind, body, and soul. I am now a mother of two and I graduated from the American University in Cairo (AUC) majoring in theater with a psychology minor. During my senior year, I worked with a digital marketing agency called ripplemark as an intern and I continued working with them for two years after graduating, and then I started establishing my own brand.

My eldest daughter, Lana, was the main inspiration for my brand, which I named after her nickname. The idea came up when I gave birth during covid-19 as I was supposed to travel to the US where my mother lives and stock up all the baby essentials such as clothes, books, and cosmetics from there. Unfortunately, flights were suspended globally and I was not able to travel. I started creating and designing educational flash cards for Lana myself and surprisingly my family and friends loved it and they wanted me to make similar ones for them. So, I thought of starting my own brand and flash cards were my first product. We printed them in four languages — English, French, Arabic, German.

The best part of my job is the positive feedback I get from my customers. I’m filled with joy when a parent tells me their child started to love reading after using your flash cards and book. Also, when a parent tells me that there is a notable improvement in their daughter’s/son’s hair condition after using our hair products.

The hardest part of my job is to hire qualified people in my team. I always search extensively until I find the skilled people who truly believe in the brand’s purpose and goals to fit in the required positions.

If I could give someone who is thinking of starting their own business just one piece of advice, it would be to exist first and everything will flow afterwards — just keep on pushing and be persistent.

The three most important KPIs that I look at everyday are the brand’s online sales, adding new products, while maintaining our quality, and the number of places we are selling products at. We already have our products placed in a number of pharmacies and supermarkets.

I don’t feel like being a founder of a startup is a lonely journey, as I have a strong supportive team that always has my back.

Lanalou is a self-financed business — we did not formally receive any external funds.

All of the business’ income is invested back in the company. If I would target investors or external funding in the future, I would choose strategic funding partners who have the same beliefs and vision, move the brand forward, and add to it.

My short-term growth plan is to add new meaningful products to the brand, mainly in the educational and cosmetics lines. My long-term goal is to expand our brand inside and outside Egypt and start exporting our products.

My family is very supportive and they truly believe in what I am doing. I always turn to Mohamed Hammouda ( LinkedIn) , my husband and the co-founder of Lanalou, when I need to fix a difficult problem in my work. I trust him blindly and he always supports me and solves complicated problems. My kids are very proud of their mother, especially my eldest daughter, who feels so happy seeing her nickname on the shelves of the supermarket.

I love to learn and get my mind nourished, so books truly inspire my mind and soul. The book I am currently reading is Traction: Get a Grip on your Business by Gino Wickman, which helps any entrepreneur to develop your business efficiently. Also, Kindergarten is Too Late by Masaru Ibuka inspired me a lot through my motherhood journey and when I started my business.

Working out is one hobby I’ve recently adopted with my husband. I always workout at 6am in the morning and this puts me in a good mood for the rest of the day and helps me function better at work and at home with my kids.

One startup that I think is killing it is Thndr. Their work to simplify investing and facilitate access to the right tools and resources to empower investors is a great idea.

If I weren’t building the business I’m building now, I would have started another business — I don’t think I would be an employee or work in my family business.


JULY

26 July (Wednesday): Massar Egbari concert, Cairo Jazz Club 610, Sheikh Zayed, Cairo.

26 July (Wednesday): Hisham Kharma concert, Cairo Opera House, El Zamalek, Cairo.

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

27 July (Thursday): Samar Tarek concert, ElSawy Culturewheel, Zamalek, Cairo.

27 July (Thursday): Cairokee mega-concert, Manara Arena, New Cairo.

27 July (Thursday): Ahmed Saad Concert, New Alamein Festival 2023, New Alamein, North Coast.

27-28 August (Thursday-Friday): Shorelines musical festival, Almaza Bay, North Coast.

28 July (Friday):Nancy Ajram and Raghab Alama Concert, the New Alamein Festival 2023, New Alamein, North Coast.

28 July (Friday):Ali Qandil stand up comedy show, ElSawy Culturewheel, Zamalek, Cairo.

28 July (Friday): Route Tech Summit 2023, Greek Campus, Tahrir, Cairo.

29 July (Saturday): Cairokee mega-concert, Manara Arena, New Cairo.

29 July (Saturday): Ali El Hagar concert, El Sawy Culturewheel, El Zamalek, Cairo.

AUGUST

2 -3 August (Wednesday-Thursday): Fintech Revolution Summit, Cairo Festival City.

3 August (Thursday):Massar Egbari concert, Bibliotheca Alexandrina, Alexandria.

8 August (Tuesday): Jadal Concert, El Sawy Culturewheel, El Zamalek, Cairo.

10 August (Thursday): Jadal concert, Bibliotheca Alexandrina, Alexandria.

11 August (Friday): Amr Diab Summer Concert, Golf Porto Marina, North Coast.

13 -19 August(Sunday-Saturday): El SawyCulturewheelbook fair, ElSawy Culturewheel, Zamalek, Cairo.

12 August (Saturday):Massar Egbari concert, El Sawy Culturewheel, Sheikh Zayed, Cairo.

21 August (Monday): Akher Zafeer concert, El Sawy Culturewheel, El Zamalek, Cairo.

25 August (Friday): Russ Concert, New Alamein Festival 2023, North Coast.

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): El Gouna Film Festival (GFF).

NOVEMBER

15-24 November (Wednesday-Friday): Cairo International Film Festival (CIFF).

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

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