Making an Egyptian Von Trapp family

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THE WEEK IN REVIEW

PRIVATIZATION + ECONOMY NEWS: Eastern Company tapped for a new majority shareholder + Where do we stand with the IMF?

Good morning, friends, and HAPPY FRIDAY. We hope that you had a productive week and have plans in place to escape the weekend heat.

Do you have a Mozart in your midst? If you want to make sure, or would like your small humans to dabble with music, then we have the guide for you. As promised, we have a selection of venues all around Cairo for you to take your young ones to experience music, play an instrument or properly sing.

Enterprise Weekend comes out each Friday at 9:00am CLT. We’ll be back on Sunday at 6am with EnterpriseAM. Until then: Enjoy the weekend.

LAST WEEK IN 3 MINS-

Besides some material updates on the macroeconomic front, the two big themes of the news cycle this past week were M&A and energy.

BUT- Privatization also made an important appearance in the news, with a very encouraging development in the state privatization program.

PRIVATIZATION-

State-owned tobacco manufacturer Eastern Company is getting a new majority shareholder, after Emirati investment firm Global Investment Holding agreed to purchase a 30% stake in the company as part of the government’s privatization efforts. The transaction will see Global Investment Holding acquire the shares for USD 625 mn, and will help secure USD 150 mn to help Eastern purchase manufacturing inputs. The agreement comes after Eastern’s parent company, the Chemical Industries Holding Company, had last month said it would only be willing to part with 15.3% of the company under the state’s asset sale program.

ALSO FROM THE PRIVATIZATION WORLD- State-owned Banque du Caire is reportedly looking to bring on a strategic investor and is looking to finalize an agreement sometime during 2024, Banque Misr chief Mohamed El Etreby said. However, it remains unclear what the transaction would mean for the bank’s long-awaited IPO.

ECONOMY-

What’s happening with our IMF review? It remains unclear whether we’re on track for IMF officials to come into town in a week’s time for their review of our USD 3 bn loan program, with a Finance Ministry official confirming to us that the Fund has yet to confirm a date for the visit, which is scheduled for 15 September. The first review was originally supposed to take place in mid-March but was postponed after we fell short on meeting several key conditions of the loan agreement.

Meanwhile, the contraction in Egypt’s non-oil private sector stabilized in August, with the monthly purchasing managers’ index reading coming in at the same level as July’s reading, suggesting some level of stabilization in economic conditions. Although August’s PMI reading was the highest level since August 2021, it also marked the 33rd consecutive month that business activity has been in decline.

PLUS- Egypt’s net foreign liabilities narrowed by USD 800 mn in July, driven by a slight easing in FX liquidity in the banking sector. The country’s net foreign asset position improved to negative USD 26.3 bn from negative USD 27.1 bn in June.

AND THEN THERE WAS QUITE A BIT OF ENERGY NEWS-

Israel, Cyprus, and Greece are about to make big decisions about the future of East Med gas, with the three countries agreeing to form a deeper energy partnership to export Israeli gas to Europe and connect their energy grids, amid new momentum to set up a gas pipeline connecting Israel and Europe.

This comes as one energy giant doubles down on Egypt, while another exits stage left: Italian energy giant Eni and its partners will invest USD 7.7 bn in their Egypt operations over the next four years, marking a massive step up in its spend on exploration. Meanwhile, London-based, Egypt-focused SDX Energy inked a heads of terms — a non-binding letter of intent — to sell its entire Egypt portfolio to an unnamed “large multinational operator,” as the company looks to focus more on its operations in Morocco.

ZOOMING OUT- The government purchased fresh hedging contracts covering 35% of its estimated oil imports for the current fiscal year that ends in June 2024, as the oil market has jumped more than 20% since the start of the fiscal year. The contract locks in crude purchases at around USD 75-80 / bbl. Egypt’s FY 2023-24 budget penciled in a USD 85 / bbl price for crude, and expects the country to import around 100 mn bbl this year.

PLUS SOME M&A-

Sanlam and Allianz move forward with their pan-African merger: South African non-banking financial services firm Sanlam and global ins. provider Allianz have received regulatory approvals to merge the bulk of their African operations, creating the largest pan-African non-banking financial services business on the continent. The companies first revealed the merger plans in May 2022.

Beltone’s Cash acquisition is nearing completion: Beltone Financial Holding inked a share purchase agreement to acquire 100% of Minya-based microfinance provider Cash after completing due diligence on the company. Beltone is waiting on the approval of the Financial Regulatory Authority before finalizing the acquisition

Another supermarket chain in distress: Awlad Ragab plans to liquidate EGP 850 mn-worth of assets by the end of 2023 to avoid default, with eight branches, a factory, and a warehouse all on the liquidation docket as the supermarket chain looks to repay part of its dues to banks, leasing companies, and suppliers. The indebted supermarket chain has been looking to restructure since January, when owner Mahmoud Ragab revealed that the company has accumulated over EGP 2.2 bn in outstanding debt. This comes a few months after supermarket chain Alfa Market began closing branches to sell off assets and repay debts.

FOLLOWED BY A SMATTERING OF INVESTMENT + DEBT-

#1- BUE gets a big FDI ticket: Pan-African private equity firm AfricInvest is investing USD 40 mn (EGP 1.2 bn) in the British University in Egypt through a capital increase, marking “one of Egypt's largest foreign direct investments in education to date.” The founding Khamis family will remain the majority shareholder of the university.

#2- Our second ADEX loan in a month: Abu Dhabi Exports Office (ADEX) — the export finance arm of the Abu Dhabi Fund for Development — is set to extend a USD 100 mn revolving loan to the National Bank of Egypt (NBE) to fund imports from the UAE. The financing agreement seeks to boost Emirati exports to Egypt.

#3- Yanmu Logistics Park — a joint venture between HAU Logistics and Kuwait-based global supply chain and infrastructure player Agility — lined up a EGP 1.5 bn, 10-year loan from CIB to help fund its first logistics park east of Cairo. Yanmu will build logistics parks and warehouses across Egypt.

WHAT’S HAPPENING NEXT WEEK-

We’re set to start off the week with Capmas and the Central Bank of Egypt publishing inflation data for August on Sunday. Annual inflation has been accelerating for the past several months, hitting an all-time high of 36.5% y-o-y in July.

PSA- The deadline for Egyptian men to settle outstanding military service in FX is set for next Wednesday, 13 September. The Foreign Ministry provided a WhatsApp number (+20 12 7563 8989) and email (info@tagneedinit.gov.eg) for enquiries. More details here.

AND- We’ll be keeping our eyes peeled on any updates on the IMF’s pending review of our USD 3 bn loan program. We recap the latest in Last Week in Three Minutes, above.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

YOUR MOST CLICKED LINKS-

Our take on the 2024 budget conversation with your boss, clients, CFO, CEO or Board was a hilarious hit. (YouTube)
Published progress reports on the state ownership policy and IPO program from the Cabinet’s Information and Decision Support Center (IDSC) were eagerly read. (IDSC report)
It seems that our readers have a sweet tooth for Fou. (Fou by Farah’s website)
Philip Morris involvement in Global Investments Holding as indirect shareholders got some attention. (DIFC website)
More details about the progress reports, state ownership policy and IPO program pulled in readers. (I DSC report)

AROUND THE WORLD IN SEVEN DAYS-

Antony Blinken, Biden’s secretary of state, is rallying the troops in Ukraine. He shared that a new installment of US war assistance valued at USD 1 bn will be on its way along with support for the nation’s air defenses.

Surging oil prices were a focus as pledges by Saudi Arabia and Russia made on Tuesday to maintain supply cuts sent prices soaring.

We lost Mohamed Al Fayed early last week , the former owner of Harrods and the Ritz Carlton in Paris. The b’naire is listed by Forbes as the fourth-richest Egyptian with a net worth of more than USD 2 bn.

☀️ THE WEATHER THIS WEEKEND- Yep, summer definitely isn’t over: Stay cool and hydrated today — and don’t skimp on sunscreen — because we’re in for a daytime high of 42°C before the evening brings us a more tolerable 25°C nighttime low. The mercury will drop a few degrees tomorrow, peaking at 38°C during the day and falling to 25°C at night.

HAPPENING THIS WEEKEND-

There are a couple of days left of Animatex, which wraps up tomorrow at AUC Tahrir Cultural Center.

The Elite Stand Up Comedy show is also happening tomorrow at The Marquee, Cairo Festival City.

Where to take your kids (young and old) to dabble in the arts — part two

The Enterprise Guide to creating the Egyptian version of the Von Trapp family: Last week, we broke down our top picks for courses and academies in Cairo for visual arts. Today, we’re getting into music — a great way to nurture minds, young and old, and another fantastic way to get them off devices and away from screens. Below we have our roundup of the best places to take your younger ones to try some instruments or sing a few notes — you might discover a virtuoso under your roof.

#1- The Spruce Music Academy, founded by guitarist Khaled Azab, offers musical instrument and singing courses. They offer piano, drums, and violin courses, along with three types of guitar: Electric, acoustic, and classic for training. Spruce will soon offer tabla (oriental drum) and vocal coaching courses, representatives told Enterprise. All their 45-minute sessions are private and are held once, twice, or three times a week, depending on the category. The academy accepts children starting from five years old to ensure that they are able to physically play the instrument.

WHERE- You can find them in the First Settlement, New Cairo.

THE PRICE TAG- There are three packages: Standard, silver, and gold.

The standard package is going for EGP 1.2k, which covers four 45-minutes sessions.

The silver package will set you back EGP 1.5k. This package includes four sessions, including two practice course books and musical accessories.

The gold package is for EGP 2k, covering four sessions, plus two jamming and two make-up sessions, unlimited practice sessions, marked down musical accessories, course books, and a 50% discount on monthly workshops.

#2- The Bandmakers Music Academyoffers a variety of musical instrument courses. Their musical instrument courses include guitar, violin, piano, and drums. The drum and violin courses accept students aged seven years and above. Piano and vocal courses will take on students starting from five years and above. Guitar courses will enroll students starting from six years and above. Sessions are weekly and each lasts for 40 minutes.

WHERE- You can find their venues in 26th July street, Zamalek; Beverly Hills, Sheikh Zayed, and two branches in New Cairo: One in the Mivida Clubhouse and the other one in the Lake House's The Club.

THE PRICE TAG- All courses are for EGP 1.7k.

#3- The Pocket Music School was founded by professional guitarist Sherif Watson. The academy offers a variety of musical instrument and vocal coaching courses including both acoustic and electric piano. Other instruments offered are the violin, guitar, both acoustic and electric; drums, acoustic and electric; saxophone and bass guitar. A child can start piano and drums at the age of six, while the rest of instruments are available from the age of seven years old and above. All the 45-minute sessions are given privately.

WHERE- You can find the school in two locations: Their main branch is in New Cairo, next to Choueifat International School, and the other in the Metropolitan School.

THE PRICE TAG- All courses cost EGP 1.7k.

#4- The Rizkallah Foundationoffers a variety of musical instrument courses, including guitar, drums, violin and piano. Courses are mainly offered once a week and sessions are private.

THE PRICE TAG- All the courses are going for EGP 900.

WHERE- There are several branches: New Cairo, inside Platinum Club, Katameya Residence compound ; in Leap nursery inside Katameya Plaza Mall; Madinaty compound inside Leap nursery ; Dokki ; Maadi inside Petals preschool ; and Sheikh Zayed inside Hewaya Art Center.

#5- Back to basics with the Cairo Opera House: The Talents Development Center offers both art and music courses for children starting from six years, with no upper age limit for adults. The center provides oriental instruments such as oud and tabla, as well as Western instruments, such as the guitar, drums, violin and flute. The classes are usually taught in groups.

WHERE- The courses are held at the Talents Development Center inside the Cairo Opera House in Zamalek.

THE PRICE TAG- Each three-month course cycle costs EGP 850.

The Equalizer 3: Is it Denzel’s last? + Maadi’s Joy Luck is easy on the wallet but many favorites are missing

? AT THE MOVIES-

The Equalizer 3 continues this year’s trend of final installments and reluctant heroes. Threequalizer, as it’s affectionately called (watch trailer, runtime: 3:02), is Robert McCall’s (Denzel Washington) last adventure as a mysterious vigilante who exacts bloody vengeance on a slew of deserving bad guys. This time, McCall finds himself in a small town on the coast of Sicily, Italy, where he plans on retiring his avenger persona to live a quiet, idyllic life. Of course, things don’t go as planned. A trigger-happy mafia family starts plaguing the town and he doesn’t stand by to watch.

Don’t get distracted by the B plots. A CIA operation, an international drug ring, and a terrorism plot were added to what would’ve worked well as a straightforward story. The film pretty much follows the same premise as its predecessors, wherein McCall does bad things to bad people, but Washington’s portrayal of McCall never gets old. The ease with which he switches from a charming older man to a steely intimidating force of nature is thrilling to watch.

You might want to watch this movie just for the scenery. The movie is not sponsored by the Italian Tourist Board, but it might as well be — the coastal countryside is captured beautifully by director Antoine Fuqua. A quick disclaimer: Much of the scenery ends up soaked in blood, and the movie earns its R rating within the first three minutes. The good news is that by the end, we finally get answers about McCall’s past. If you’d like a refresher before you see the last installment, The first and second Equalizer films are available on Netflix.

WHERE TO WATCH- The Equalizer 3 is showing in VOX Cinemas at City Center Almaza and Mall of Egypt, Premiere in Sheikh Zayed, Zamalek Cinema, and Citystars Cinema.

Awlad Hareem Karim is a nebulous roster of characters, but a whole lot of fun. A sequel to the 2005 movie Hareem Karim, Karim El Hosseiny (Mostafa Amar) once again finds his life entangled with those of the leading ladies. Dalia Elbeheri, Ola Ghanem, Bushra, and Basma reprise their roles as the four women who continually cross paths with Karim and inadvertently wreak havoc on his life. Karim is now a widower, accounting for Yasmin Abdelaziz’s absence, grabbing the attention of these women, most of whom are also now unmarried.

If the cast wasn’t already big enough, each of the five main characters now have their own children, who — coincidentally continuing their parents’ legacy — find themselves entangled in each other’s lives by accident, not knowing that their parents share a history. One mother puts out an ad to find her daughter a husband, one son of another’s is in love with Karim’s daughter, while another tries to date her as well. Plenty of hilarious hijinks ensue, but there is an undercurrent of poignant reflection on the realities of growing older, though the film is occasionally inelegant about it.

Fans of the first installment will find joyous nostalgia in this film. Younger audiences who aren’t familiar with it will undoubtedly have fun relating to the new generation of rascals and rising stars, including Mostafa Amar’s son Tayam, that make a mess of Karim’s life. And if you’re wondering if Maha’s (Dalia Elbeheri) temperamental husband Hussein (Khaled Sarhan) delivers his signature punch to Karim for just being associated with his wife, the answer is a resounding yes.

WHERE TO WATCH- You can catch Awlad Hareem Karim at VOX Cinemas at City Center Almaza and Mall of Egypt, Citystars Cinemas, and Cairo Festival City.

? FROM THE BOOKSTORE-

10 Minutes 38 Seconds in this Strange World does not shy away from difficult topics. In yet another skillfully written and compelling novel, British-Turkish author Elif Shafak invites us into the world of Leila, a woman whose dying thoughts speak volumes as she refuses, even as she knows she is taking her last breaths, to keep quiet about the cruelties she has endured throughout her life in Istanbul.

No stranger to controversy, Shafak’s seventeenth novel remains true to form as it tackles sex and violence — topics that are sure to spark controversy in her homeland as her previous works have before. This time around, Shafak tells us the story of a prostitute, Leila Tequila, who has been left for dead in an Istanbul dumpster as she thinks back on her childhood, her tough upbringing, and the less than ideal circumstances that have shaped her life. The novel is split into two different parts, the Mind and the Body. Through them we learn about those harsh realities: Through the smells and flavors — of sugar and coffee — as well as the outcasts — from Madames to lovers — that have permeated Leila’s life.

WHERE TO FIND IT- Elif Shafak’s novel, as well as many others by the author, can be found at Al Shorouk and Diwan bookstores.

? HOT AND FRESH OUT OF THE KITCHEN-

Maadi residents and Cairene foodies will be familiar with Joy Luck, but being tucked away on the first floor of an unassuming building and with a darkened glass storefront, it’s easy to miss. But those lucky enough to stumble upon it or go on a recommendation — thank us later — will quickly become frequent patrons. The staples you’re used to are on the menu if you’re looking for a familiar meal, but if you’re feeling particularly adventurous, here’s what we recommend.

The must haves: Our favorite appetizers were the shredded potatoes and the spicy cold wide glass noodles. It’s deliciously peanut-y and the sauce is to die for, but it has a very strong kick to it. So, we know we said no regular dishes, but their sweet and sour chicken stands out — it’s shaped differently than the bite-sized pieces we’re used to, which makes it a little harder to eat but with an exceptional crunch.

We’ve never seen these desserts before. We tried the sweet eggs, which are soft fried slices of omelet topped with a caramel sauce that hardens when pieces are placed in a bowl of cold water. We’ve heard that the sweet potatoes are even better, but we haven’t had a chance to try it, which brings us to our next point…

… Don’t rely on your favorite dishes always being available. Their ingredients seem to run out quickly and sometimes they’ll apologetically refuse to make something if they feel like their ingredients aren’t fresh enough, which we appreciate. Pro tip: Double-bag your leftovers because they have a tendency to spill.

? Per person: EGP 350

? Outdoor seating: No

? Alcohol: No

? Accessibility friendly: No

Is Erin Carter a spy or a criminal?

Who is Erin Carter? While this may not be an Emmy-worthy show, we’re here for the quick pace of the action-filled narrative. The fact that the events take place in Barcelona also helps with our habit of living — as well as traveling — vicariously through screens. When Erin, played by awardwinning Evin Ahmed, hastily leaves the UK with her young daughter, we can tell she’s running from trouble, although we are not sure what kind, exactly. When the pair relocate in Barcelona and start a new life together, things are looking up, particularly when Erin meets and marries Jordi, a nurse. Stability is finally here: Harper loves her stepdad, Erin works as a history teacher in an international school in the city, and all is well…

…Until that one fateful incident: An armed robbery takes place in a supermarket one evening and Erin’s instincts kick in to protect her child. But what we see is far more than a mama bear in action — it is the work of a skilled professional who leaps at danger and gravely injures an armed criminal, who — plot twist — happens to recognize her. Erin’s propensity to confront danger ironically seems to have put her on a new level of jeopardy — one that makes even her own daughter Harper, question who she is.

WHERE TO WATCH- The mini-series is available for streaming on Netflix.

Ear candy for all history buffs

The Rest is History is an informative history guide bringing pivotal historical events back to the spotlight. History buffs will be pleased to know that it is one of the highest-ranked UK history podcasts on Spotify and Apple and is presented by Tom Holland and Dominic Sandbrook, two well-seasoned historians.

This podcast has been around the block: Their 30-minute to one hour episodes are out three times a week with topics that have consistently kept listeners intrigued since the podcast started in 2020. No monotony here: Holland and Sandbrook have their unique style while they narrate a historical event in a simple, straightforward manner, while firing out questions at each other to keep readers on their toes.

Paris 1968: The Return of De Gaulle: This episode, released in late July 2023, is the second one covering different events that took place in 1968 in Paris. Holland and Sandbrook will walk you through the episode as they delve into De Gaulle’s world while recording in different parts of Paris. Aside from his origins and political career, they touch on how rebellious when he refused the truce with Nazi Germany in 1940, resisted parliament’s decisions, and how he was the poster boy of the French resistance during the Second World War.

WHERE TO LISTEN - The show is available on Spotify, Apple Podcasts, BBC Sounds, Google podcasts and Podcast Addicts.

THE ENTERPRISE ENTERTAINMENT CALENDAR

SEPTEMBER

7-9 September (Thursday-Saturday): Animatex4th Edition at AUC Tahrir Cultural Center.

9 September (Saturday): The Elite Stand Up Comedy show at The Marquee, Cairo Festival City.

14-17 September (Thursday-Sunday): Medfest Cinematic Film Forum at AUC Tahrir Cultural Center.

21-23 September (Thursday-Saturday): L’Etape Egypt by Tour de France, Sharm El Sheikh.

22-23 September (Friday-Saturday): Tamino Sahar Tour concert in AUC Tahrir Cultural Center.

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.

13-20 October (Friday-Friday): El Gouna Film Festival (GFF).

28 October (Saturday): DJs Kygo, Tiësto, Kung and Frank Walker concert, Giza Pyramids.

NOVEMBER

11 November (Saturday): El Gouna Half Marathon 2023, El Gouna.

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

16 November (Thursday): Jim Gaffigan’s Barely Alive Tour at The Marquee, Cairo Festival City.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

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