Good afternoon, ladies and gentlemen, and welcome to a relatively brisk issue to wrap up the first day of the short workweek.
THE BIG STORY TODAY
Have we got the second tranche from the IMF? Egypt has reportedly received the USD 820 mn second tranche of the USD 8 bn package agreed on with the IMF, two unidentified government sources told Asharq Business.
Earlier than we expected: IMF mission chief for Egypt Ivanna Hollar said during a press conference earlier this month that we could receive the tranche this summer after the fund completes its third review of the facility it agreed on with the government.
THE BIG STORY ABROAD
The US House has voted to pass USD 95 bn in aid to Ukraine, Israel, and Taiwan.An impasse that spanned six months ended with the approval of USD 61 bn in aid to Ukraine partly to address Kyiv’s dwindling ammunition, USD 26.4 bn to Israel, and USD 8 bn to Taiwan in the wake of growing tension with China. The Israel aid bill is meant to replenish the state’s missile defenses, despite Biden’s insistence that the US will not support Israel’s retaliation against Iran’s attacks last week. Democrats were able to maneuver a USD 9 bn package in humanitarian aid designated to Gaza as part of the aid package to Israel. (Bloomberg | BBC)
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** CATCH UP QUICK on the top stories from today’s EnterpriseAM:
Gov’t slashes 2024 privatization program targets: The government aims to raisearound USD 1 bn through the privatization of state-owned companies and assets via stake sales to strategic investors or EGX listings this year.
New Chinese projects coming to our industrial zones: Egypt has inked 14 agreements with Chinese companies to set up projects alongside the Egyptian private sector during the China-Egypt Zhejiang Economic Forum on Thursday. The agreements include a USD 800 mn fiberglass and polyester factory with China’s Xin Feng Ming Holding.
*** 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: An increasing number of international companies are looking to turn Egypt into a manufacturing and export hub for home appliances, with several companies trying to take advantage of recent government incentives as well as Egypt’s location and market demographics.
☀️ TOMORROW’S WEATHER- Monday is continuing with the recent rise in mercury with a high of 32°C and chilly lows of 18°C in Cairo at night, according to our favorite weather app.
Is a new pandemic on the horizon? The next global outbreak will probably be caused by a strain of the flu, suggests a new study cited in The Guardian. Long-term research has shown that the influenza virus has been constantly mutating and evolving, returning each year as a “little pandemic,” says University of Cologne’s Jon Salmanton-García, who conducted the study.
The international study, which will be made public in the coming few days, surveyed 187 senior scientists. Almost 60% of the disease experts polled believe that the next pandemic will be caused by a strain of the flu, and 21% believe that the strain — referred to as Disease X — is still unidentified by science and will appear out of the blue, much like covid-19.
Should we be worried? Scientists are apprehensive, but are quick to note that vaccines against many flu strains, like H5N1 have already been developed. The H5N1 virus, known as the avian flu, saw an outbreak in tandem with covid, and has an “extraordinarily high” mortality rate, says the World Health Organization. Now affecting birds, humans, and cattle, the threat of the virus has experts on high alert. While developing a vaccine for a new strain of the flu on the fly would present logistical issues, virologist Ed Hutchinson says that it won’t have to be developed from scratch as was the case for covid.
That doesn’t mean that we shouldn’t be prepared. Many of our “old bad habits” have been making their way back, says Salmanton-García. People have gone back to coughing and sneezing into their hands, leaving the house without a mask despite being sick, and generally taking no precautions to deter infection. Practices learned in covid’s wake can help us, not just with resurgences of covid, but in shielding ourselves from H5N1 and avoiding the potential new pandemic.
An 80s remake of Road House faces a challenge of living up to the gritty charm of the 1989 original starring Patrick Swayze. Directed by Doug Liman, this remake bypasses theaters and heads straight to Amazon Prime Video.
Elwood Dalton (Jake Gyllenhaal), a skilled bouncer with a troubled past, relocates the action from Missouri to the Florida Keys. Gyllenhaal’s portrayal captures the essence of his predecessor, blending dry wit with exceptional martial arts prowess. Dalton’s journey unfolds amidst a chaotic backdrop of bar-room brawls and shady characters, including a menacing motorcycle gang led by Dell (JD Pardo), and a villainous developer named Brandt (Billy Magnussen).
While the plot weaves through drugs, corrupt cops, and boat chases, it often takes a backseat to the adrenaline-pumping fight sequences and larger-than-life characters. Supporting roles, such as Frankie (Jessica Williams) and Knox (Conor McGregor) , a flamboyant hitman, add depth to the film’s colorful ensemble.
The film’s two-hour runtime may test viewers’ patience — but it delivers on its promise of thrills and entertainment, thanks to impressive stunt work and Gyllenhaal’s compelling performance. Liman strikes a balance between campy-fun and gritty realism, creating a viewing experience that keeps audiences engaged. While it may not always hit the mark in terms of storytelling, the film succeeds in providing movie-star charisma and an enjoyable ride from start to finish.
WHERE TO WATCH- You can catch the 80s remake on Amazon Prime.
Related
⚽ It’s Clásico Day: Real Madrid will play against Barcelona at the Santiago Bernabéu Stadium in Madrid in the El Clásico match at 9pm tonight. Los Blancos, the home team, is currently at the top of La Liga with 78 points, whereas Blaugrana is eight points behind in second place.
The match falls within the gameweek 32 of the Spanish League and is a great chance (perhaps even the last) for either Barcelona to close the eight-point gap or for Real Madrid to take back the title from its traditional rival.
Liverpool focuses on its last remaining trophy: After being eliminated from the Europa League by Atalanta last Thursday, Liverpool is back to focusing on the English Premier League since it exited the quadruple race, which it was a candidate for around a month ago. (The team clinched the EFL Cup, but lost the FA Cup and the Europa League)
The Reds will be hosted by Fulham in gameweek 34 of the Premier League at 5:30pm today in hopes to make up for their three-point difference with Arsenal, which defeated Wolverhampton and topped the League standings temporarily.
Also happening in the Premier League:
Aston Villa vs Bournemouth (4pm)
Crystal Palace vs West Ham (4pm)
Who will go up against City for the FA Cup final? Coventry and Man U will play the semi-final for the FA Cup at 4:30pm today. The victor team will qualify for the final match against Man City, which eliminated Chelsea yesterday with a clean goal.
The White Knights have got their eyes on theCAF Confederation Cup: El Zamalek will host Ghana’s Dreams for the first leg of theCAF Confederation Cup semi-final today at 6pm, and the second leg match will take place in Ghana next Sunday, 28 April. The qualifier of the aggregate of both matches will play the final against the qualifier of Algeria’s USM Alger against Morocco's RS Berkane.
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🎤 OUT AND ABOUT- (all times CLT)
HAPPENING THIS WEEK-
AUC’s CultureFest is (still) here. This event — held at AUC Tahrir until tomorrow, Monday, 22 April — is a celebration of Cairo’s history, people, and evolving culture. Enjoy the live music, book bazaar, local market, and art exhibitions. Register for the event here, and read our guide to know what to expect.
For two nights only you can catch Schokolade, a theatrical performance of how a bewitched boy became trapped in a piano at Rawabet Art Space tonight at 8pm. Grab your ticket here.
Enjoy a fun day full of games (and smiles) with family and friends. Society of Play is hosting their next PlayDate in Heliopolis on Tuesday, 23 April. For more information — and inevitably registration — click here.
Gamers, buckle up for Egypt’s biggest gaming festival:Insomnia is back at the InternationalExhibitions Center from Thursday, 25 April to Saturday, 27 April, making it an immersive weekend of quests, level-ups, and never-ending clicking game experiences. Get your tickets here.
HAPPENING LATER-
Ali El Haggar will be performing a tribute to the legacy of the late musical legend Mohamed Fawzi as part of the 100 Years of Singing series at Cairo Opera House. The singer will perform an ensemble of Fawzi’s most popular songs on Sunday, 28 April at 8 pm. Grab tickets to this homage here.
Also taking place at the Cairo Opera House is Hani Shaker’s celebration of the Spring Festival. The artist will be taking the stage at the Main Hall on Monday, 29 April at 8 pm to usher in the season. Tickets are available here.
Don’t miss out on Metro. Iconic producer Metro Boomin is rocking the stage at Kundalini Grand Pyramids on Monday, 29 April at 9:30 pm, and again on Tuesday, 30 April.
Spenda spring day with Tamer Ashour and Mahmoud El Esseily. The singers will be performing at Family Park in Rehab on Friday, 10 May. Doors open at 7 pm. You can find tickets ranging from EGP 400 to EGP 20k (for 10 people) here.
TheCairo Flea Market is back. Head to the Fish Garden in Zamalek on Saturday, 11 May to browse through local products, antiques, and pre-loved treasures from 11 am to 7 pm.
The Elite are back in C-Town to bring you a night of laughter. The troupe are back from their international tour to celebrate their five-year anniversary in their hometown. The Super Show is being held at the Cairo International Stadium on Friday, 24 May at 8 pm. Grab tickets here to laugh along with Taha Dessouky, Waleed El Moghazy, Ahmed Khairy, Mohamed Ashraf, Ahmed Essam El Sayed, Mohamed Helmy, and Toffi.
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👂 EARS TO THE GROUND-
An unscripted history of reality TV. In a world where reality TV often gets dismissed as mere “guilty pleasures”, such as Keeping with the Kardashians and Survivor, Spectacle emerges as a refreshing and enlightening exploration of the genre’s cultural impact. Hosted by Mariah Smith, who takes listeners through the evolution of reality television.
Each episode is dedicated to dissecting a different show, with a nuanced look at how reality TV has both reflected and shaped societal norms and trends. From the early days of the genre to its current status as a cultural phenomenon, Smith chronicles the highs and lows, the controversies, and the triumphs, shedding light on the complex dynamics at play behind the scenes.
It’s for anyone who has ever been fascinated by the allure of reality TV or who simply wants to understand its broader cultural significance. With its engaging storytelling, insightful analysis, and thought-provoking discussions, this podcast offers a fresh perspective on a genre that is often misunderstood. So next time someone questions your love for reality TV, arm yourself with the proper knowledge and prepare to enlighten them on its cultural and social impacts.
The EGX30 rose 1.0% at today’s close on turnover of EGP 2.9 bn (42% below the 90-day average). Regional investors were net buyers. The index is up 15.0% YTD.
In the green: Qalaa Holdings (+8.2%), Ezz steel (+6.1%) and Fawry (+3.5%).
In the red: Telecom Egypt (-1.9%), Talaat Moustafa Group (-1.4%) and Eipico (-0.6%).
International companies are looking to turn Egypt into a manufacturing and export hub for home appliances, with several companies moving in the past few months to set up factories in the country. These companies are looking to take advantage of recent incentives from the government — including the golden licenses — as well as Egypt’s location and market demographics to boost exports.
A look at the size of the market: Although there are no official figures, market studies suggest the electronic appliance market in Egypt reached EGP 126.7 bn in 2021, growing 24.5% y-o-y. Egypt currently has 11 large-scale factories for local brands, in addition to agents and distributors for international brands, according to Wafi Abu Samra, a member of the Giza Chambers of Commerce’s electrical appliances division.
We’ve been rather import-heavy, although imports have been declining: Egypt’s imports of durable consumer goods dipped around 19.7% y-o-y in 2023 to reach USD 3.39 bn, according to recent CAPMAS figures. The products that saw lower imports last year include refrigerators — with the value of imports falling to USD 126.8 mn at the end of 2023, compared to USD 157.5 mn at the end of 2022 — as well as washing machines, the imports of which declined 27% y-o-y to USD 24.6 mn in 2023.
There are a few international players angling to make Egypt a regional hub: Korean electronics giant Samsung began manufacturing TV screens in Egypt several years ago, with plans to expand its local manufacturing footprint by producing other electric appliances. In the years since it first set up shop in Egypt, Samsung now manufactures smartphones and was recently awarded a golden license as the Madbouly government works to help localize the country’s mobile industry. Chinese electronics and household appliance manufacturer Hisense is also in talks with the government to assemble its products locally, after entering a partnership in 2021 with El Araby Group to launch a home appliance assembly line here. Hisense is reportedly gearing up to start trial production from its Ain Sokhna facility, according to sources in the know who asked to remain anonymous.
The golden license has been a significant point of attraction: Much like Samsung, Turkish home appliances retailer Beko is building a USD 100 mn home appliance factory in 10th of Ramadan to manufacture refrigerators and ovens, while Haier Egypt earned a golden license for its USD 160 mn factory in 10th of Ramadan.
Egypt could become a real regional hub for home appliance manufacturing, with the local industry becoming deeper over time, General Authority for Freezones and Investment Chairman Hossam Heiba told Enterprise. Some companies already have a c.70% local component quota, according to Heiba, who said that the goal is to hit a 90% local component quota within five years.
The big focus for now? Boosting exports: Household appliances could be a dark horse for Egypt’s engineering industries exports, particularly as foreign investments are flowing in after the recent EGP float, head of the Engineering Export Council Sherif El Sayyad told Enterprise. With the number of manufacturers currently in the country, and with that figure set to grow as imports and the availability of components become easier with the easing of the FX crunch, the manufacturing of home appliances could grow significantly and be well-positioned to export, El Sayyad said.
What’s holding us back: El Sayyad pointed to the need for a more expedited disbursal process for export subsidies that would allow exporters to get their hands on the subsidies within three months. It’s also critical to ensure that manufacturers consistently have access to raw materials required for production, particularly as the industry looks to rely more on sourcing local components, El Sayyad said. Metals in particular are in short supply, head of the Federation of Egyptian Industries’ engineering industries division Mohamed El Mohandis told Enterprise. “Currently, we’re facing a serious shortage of sheet metal, stainless steel, and other metal products because there’s only one sheet metal producer in Egypt,” El Mohandes said, stressing the importance of working with local or foreign private sector players to set up large-scale metal production projects.
The good news: Manufacturers agree that FX availability is no longer a cause for concern, with all of our sources confirming that they are able to release their goods from ports without trouble.
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