Business Today - Dec 2022 - Jan 2023 issue
In our first issue of 2023, BT looks at the year’s upcoming economic challenges, possible implications of the CBE’s withdrawal of the letters of credit system, boosting exports, and Jazeera Paint’s aim to revolutionize Egypt’s paint industry
In our first issue of 2023, BT looks at the year’s upcoming economic challenges, possible implications of the CBE’s withdrawal of the letters of credit system, boosting exports, and Jazeera Paint’s aim to revolutionize Egypt’s paint industry
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December 2022 - January 2023
Vol 28 Issue 1 LE 30
Exclusive
interview with
Abdullah
Saud
AlRomaih
Chief Executive
officer of
Jazeera Paints
2023
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Editor’s Note
Welcome 2023
It’s the first issue of 2023. A year of many challenges
is set to face global economies due to a number of
different factors including the war in Ukraine and
the post-pandemic recovery. For most economies, the
probability of a systematic financial crisis giving rise to
inflation and hiked interest rates looms ahead. It’s a year
that will test the resilience of the world economy and will
determine the future.
Egypt’s economy showed resilience to the COVID-19
crisis with slight recovery in 2021; however, the war in
Ukraine upended the recovery by triggering capital outflows,
reducing the Central Bank’s foreign reserves and
banks’ net foreign assets, and widening the exchange
rate misalignment.
Following the appointment of a new acting governor
to the Central Bank, the Egyptian government made a
commitment to shift to a flexible exchange rate. The
country, with the help of the International Monetary
Fund, announced a program that aims to reduce imbalances,
maintain macroeconomic stability, restore buffers
and improve resilience against shocks, and pave the way
for private-sector-led growth. According to the IMF, a
permanent shift to a flexible exchange rate regime will
help mitigate external shocks, prevent imbalances from
re-emerging and allow monetary policy to focus on maintaining
price stability. Fiscal consolidation will ensure
medium-term debt sustainability, while expansion of social
spending will help alleviate poverty and protect the
vulnerable.
The first two quarters of the year will be crucial in restoring
stability to the rate of the Egyptian Pound as the
demand is at the highest level on US Dollar from importers.
In this issue, we take an in-depth look at what happened
in 2022 and share our forecast for 2023.
The Business Today Egypt team wishes you all a happy
year full of happiness and success.
Mohamed Abdel Baky
mabdelbaky@egypttoday.com
Founder William Harrison
(1940–1995)
Executive Editor-in-Chief
Mohamed Abdel Baky
Managing Editor
Noha Mohammed
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Hanan Mohamed
Christine Salzmann
Nourhan Magdi
Noha El Tawil
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Heba Mekky
Graphic Designer
Yara Tarek Tabl
Business Development and
Communications Director
Imane Hassan
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January 2023
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In This Issue
Vol. 28 No. 1 | December 2022 - January 2023
www.BusinessTodayEgypt.com
Cover design by Heba Mekky
8 In Brief
4 Editor’s Note
Opinion
19 Ever Wonder Why These Particular Videos
or Content Show Up in Your “TikTok For
You Feeds?” Here Are The Answers
TikTok unveils a ground-breaking feature/
tool to give content suggested in “For You
feeds” more context.
20 It’s Time to Alleviate the Anxiety Around
EVs to Accelerate the Auto Industry’s Move
to Electrification
News in Focus
22 Lifting Restrictions on Imports
Egypt’s Central Bank cancels working with
Letter of Credit system.
By Hanan Mohamed
Face of Business
30 Revolutionizing the Paint Industry
Jazeera Paints to bring a new splash of color
to the local market.
36 Creating Meaningful and Impactful Brand
Stories
Defining storytelling, pitching, and taking
the misses to build hits with Coca-Cola’s
Islam ElDessouky.
By Christine Salzmann
In-Depth
42 Pathways to Maintain Egypt’s
Attractiveness to Foreign Direct Investment
With global crises disrupting progress in
attracting foreign direct investment, Egypt
needs to seek out dynamic new solutions to
achieve sustainable inflows.
By Noha El Tawil
46 Adopting Startup Mentality and Tactics
when Business-Building
Today’s business landscape is no stranger
to disruption and transformation as
startups continue to challenge wellestablished
and deep-rooted companies
long after the likes of Amazon and Uber
reinvented and digitized their respective
industries.
By Christine Salzmann
50 Coping with Water Scarcity: Egypt
Takes Alternatives Seriously
6 January 2023
www.BusinessTodayEgypt.com
In This Issue
Over the past years, Egypt has put
in place strategies to address water
scarcity, investing in non-traditional
alternatives including drainage water
treatment plants, the most prominent
of which is the Bahr El-Baqar station
mega project.
By Nourhan Magdy
54 Understanding Barriers to Realizing
Full Potential of Egyptian Exports
Egypt aims to attain $100-billion
exports.
By Noha El Tawil
Spotlight
58 Taking Nuclear Medicine to
Different Levels
Egypt has achieved progress in
the peaceful use of atomic energy,
and is currently moving towards
incorporating nuclear medicine in
treating different diseases.
By Nourhan Magdy
62 Delivering Global Events to Egypt’s
Shores
As tourism continues to recover at a
steady pace, Egypt’s event industry
and itinerary expands with local
and global entries in our annual
calendars. From regional superstars to
international comedians and concerts,
Egypt’s attractiveness as a regional
entertainment hub has accelerated as
lockdowns and travel restrictions wane.
By Christine Salzmann
64 World Economy to Undergo Tough
Phase in 2023
The right monetary and fiscal policies
are the only way to a healthy economy.
By Noha El Tawil
© COPYRIGHT BUSINESS TODAY EGYPT 2023.
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70 Clean Transportation Era Begins
in Egypt
bt highlights major sustainable
transportation projects Egypt has
embarked on, some of which have
already gone into operation.
By Nourhan Magdy
74 bt Scene
82 Last Word
www.BusinessTodayEgypt.com January 2023
7
In Brief Egypt
Egypt among top 10 world’s fastest growing economies in 2022: IDSC
The Cabinet Information and Decision Support Center
(IDSC) has announced Egypt is among the top 10 fastest
growing economies in the world in 2022. The center added
that many developments took place in 2022 in spite of the
international crises that had a negative impact on global
economies.
The IDSC noted that Egypt drew the world’s attention to its
ability to confront and invest in a time of crisis, highlighting
that in 2022, Egypt ranked the first country in the Middle East
to issue Samurai bonds and the first country to produce the
first 100% locally manufactured ventilators in the Middle East.
Egypt is also among the top eight nations on the 2022 Africa
SDG Index, which provides an assessment of where African
countries stand with respect to the SDGs and their progress
toward the goals, the center said.
Egypt is the first in hotel projects in Africa 2022, and fifth
globally in the Energy Use Index according to the Climate
Change Performance Index 2023. Egypt also jumped 42 places
in the World Bank’s 2022 GovTech Maturity Index (GTMI) to
rank among the top 10 fastest growing economies in the world
in 2022 as per the International Monetary Fund.
NBE, Banque Misr issue 25% saving certificates
for a year
Banque Misr and the National Bank of Egypt (NBE) issued saving
certificates with an annual return of 25% for a period of one year, in
light of the high inflation rates. The return of the certificate is paid
at 25% interest at the end of the term, or at a monthly rate of 22.5%.
The issuance of savings certificates aims to encourage citizens to
save their money in banks, in order to control high inflation rates.
The core inflation rate in Egypt recorded its highest level since 2017
in November, at 21.5%, compared to 19% in October, thus completing
the upward trend that began almost a year ago, according to Central
Bank of Egypt data.
EGX’s trading values
exceeds EGP 1 Trillion
for 1st time ever
The Egyptian Exchange’s (EGX)
trading values exceeded EGP 1 trillion
for the first time ever during 2022,
according to the head of the EGX,
Ramy El-Dokani.
El-Dokani said during a press conference
that the total trading amount
of EGP 1.094 billion in 2022, adding
that the year witnessed the recording
of the largest number of transactions
within one day in the history of
the Egyptian Stock Exchange, with
109,000 transactions.
Market capitalization witnessed
a significant increase during 2022,
reaching its highest level in its history
at the end of each year, reaching EGP
961 billion, representing 12.3% of the
gross domestic product (GDP), after
it recorded an increase of EGP 195.7
billion during 2021.
The total number of transactions
implemented during 2022 reached 11
million, compared to 11.4 million in
2021.
8 January 2023
www.BusinessTodayEgypt.com
January 2023
In Brief Egypt
Egypt’s potato exports to Russia grow by 25% in 2022
Head of the Agricultural Quarantine at the Ministry
of Agriculture and Land Reclamation Ahmed al-Attar
told local media that Egypt’s exports of potatoes to
Russia grew by 25% in 2022, recording 350,000 tons.
The official noted that the total size of potato
exports throughout the year was 875,000 tons. He
further noted that, for the first time, Egypt achieved
agricultural exports of 6.3 million tons.
In a similar context, Minister of Industry Ahmed
Samir highlighted that Egypt’s non-petroleum exports
achieved $11,575 billion in the first 11 months of
2022, recording a rise of 11%. Total exports reached
$32.575 billion in comparison to $29.405 billion
during the same period in 2021, he added.
Egypt secures $13.7B to support national development objectives
About $13.7 billion was secured in 2022 to
support Egypt’s national development objectives,
Minister of International Cooperation Rania Al-
Mashat announced. This included $11.1 billion
directed to sovereign projects across various
economic activities and $2.6 billion for the private
sector.
Al-Mashat explained that the $11 billion included
$2.4 billion for budget support to be disbursed
by June 2023 and directed to expanding social
spending including food security, universal health
insurance, and social protection programs.
The Minister also underscores that the
$2.6 billion financing to the private sector
was secured through cooperation with many
development partners, including International
Finance Corporation (IFC), Agence Française de
Développement (AFD), and the European Union
(EU), among many others.
10 January 2023
www.BusinessTodayEgypt.com
January 2023
In Brief Egypt
Egypt’s agricultural exports recorded 6M tons in 2022
Egypt’s agricultural exports recorded six million tons in
2022 with an increase of 200,000 tons. The top crops have
been citrus (1.7 million tons), potatoes (621,900 tons), and
onions (510,552).
Egypt’s exports of frozen strawberry also surged by 30%
in the first 10 months of 2022, registering $290 million,
against $240 million in the same period last year, Vice
Chairman of the Food Export Council (FEC) Ashraf El-
Sayed said early in December.
Further, Egypt’s exports of food industries grew by about
0.5%, hitting $3.490 billion in the first 10 months of 2022,
up from $3.473 billion during the same period in 2021.
Egypt aims to double the value of its exports to become
$100 billion per annum by rationalizing imports coupled
with encouraging labor-intensive and strategic industries.
As a start, the country targets $60 billion in exports by
2025. Egypt is on track to achieve this target as their value
hit $43.6 billion in 2021, and is projected to record $50
billion in 2022.
OPPO has no intention to
exit Egyptian market
The Chinese company OPPO denied rumors
of its intention to exit the Egyptian market,
stressing that all its activities and businesses in
Egypt are proceeding normally.
The company said in a statement that it
considers the Egyptian market one of the most
promising markets in the region, and has great
confidence in its great potential.
OPPO plans to continue its strategy in Egypt
during the coming period, and to continue
searching for more business opportunities with
local partners.
Many users of social media platforms
circulated posts indicating that OPPO had
stopped its activities in Egypt and closed its
offices.
CAPMAS: Extractive, transformative industries index decreases by 3.04%
in Oct. 2022
Egypt’s production index for transformative and
extractive industries, excluding crude oil and petroleum
products, recorded 111.79 in October 2022 against 115.29
a month earlier with a decrease of 3.04%, said the Central
Agency for Public Mobilization and Statistics (CAPMAS).
The production index of ready-to-wear clothes recorded
114.25 in October 2022 compared with 107.94 in September,
recording an increase of 6.04%, according to the CAPMAS.
The total index for the manufacture of electrical
equipment reached 166.85 in October down by 7.11% from
125.79 in September 2022, CAPMAS reported.
The index of pharmaceutical and chemical products hit
122.36 in October, up 3.88% from 117.39 for September,
it added.
January 2023
12 www.BusinessTodayEgypt.com
In Brief Egypt
Non-petroleum exports increase to $11.575B
in 11 months: Industry Ministry
Minister of Trade Ahmed Samir
announced that Egypt’s nonpetroleum
exports managed, in the
first 11 months of 2022, to achieve
positive indexes and rose to $11.575
billion at an 11% increase.
The exports reached $32.575 billion
in comparison to $29.405 billion
during the same period in 2021, he
noted, adding that total Egyptian
exports will reach $35 billion by the
end of 2022.
These positive indexes reflect the
ability of the Egyptian export sectors
to handle current international economic
challenges resulting from the
repercussions of the Russia-Ukraine
crisis and coronavirus pandemic,
Samir said.
At present the ministry is working
on improving the rates of Egyptian
exports to different regional and
international markets, Samir stated.
Egypt’s general budget
achieves primary
surplus of EGP 10.2B
at 0.1% of GDP
The monthly report of the
Egyptian Ministry of Finance
revealed that the state’s general
budget achieved a primary
surplus of EGP 10.2 billion
during the period from July
to September of the fiscal year
2022/2023, at a rate of 0.1% of
GDP, compared to a deficit of
0.09% during the same period
of the previous fiscal year.
The growth reflects an
increase in budget revenues of
15.6% during the first quarter of
the current fiscal year, to reach
258.9 billion pounds, despite
the increase in banks by about
19.2% compared to the same
period in the last fiscal year.
Suez Canal Authority fund not backdoor for selling the canal: SCA
The Suez Canal Authority (SCA) denied the
government’s intention to establish the Suez Canal
Authority Fund as a back door for selling the canal.
The SCA stressed that the canal and its management
will remain wholly owned by the Egyptian state and
subject to its sovereignty, and the entire staff of the
Canal Authority, including employees, technicians
and administrators, will remain Egyptian citizens.
“The aim of establishing a fund owned by the
Canal Authority is to increase the authority’s ability to
contribute to the sustainable economic development
of the Canal Authority facility and develop it through
optimal utilization of its funds in accordance with the
best international standards and rules to maximize its
value,” the Cabinet stated earlier.
It emphasized that the fund would support the
authority to confront crises and emergencies that
occur as a result of any exceptional circumstances
or economic conditions, noting that all the fund’s
accounts are subject to the supervision of the Central
Auditing Organization.
The House of Representatives sparked the debate
in its session due to the discussion of a proposed
bill on amending some articles of Law 30 of 1975
on the Suez Canal Authority system which calls for
transforming the authority into an independent
fund.
www.BusinessTodayEgypt.com
January 2023
13
In Brief Egypt
Egypt’s Central Bank raises interest rates 3% during final meeting in 2022
The Monetary Policy Committee (MPC) decided to
raise the Central Bank of Egypt’s (CBE) interest rates
by 300 basis points, or 3%, during its final meeting of
2022.
The overnight deposit rate, overnight lending rate,
and the rate of the main operation were raised to
16.25%, 17.25%, and 16.75%, respectively. The discount
rate was also raised to 16.75%.
The MPC’s decision is an attempt to contain the
inflationary pressures and to steer annual headline
inflation rates towards upcoming targeted levels.
The annual headline urban inflation continued to
accelerate further during Q4 of 2022, reaching 18.7% in
November 2022, its highest rate since December 2017.
“Similarly, annual core inflation continued its upward
trend that started over a year ago, recording 21.5% in
November 2022, its highest rate since November 2017,”
the MPC added.
Egypt increases minimum
wage for workers in private
sector to EGP 2,700
The National Wages Council approved to
increase the minimum wage for workers in
the Egyptian private sector from EGP 2,400
to EGP 2,700, as of January 1, 2023.
The Council also signed off on the
periodic annual bonus for the private
sector, which should not be less than 3% of
the insurance subscription wage stipulated
in the Social Insurance and Pensions Law,
with a minimum of EGP 100. The bonus
will go into effect in 2023.
Minister of Planning Hala El-Said, who
headed the Council’s meeting, stressed
that the current crises in the framework of
geopolitical challenges affect the economy
in all countries of the world, including
Egypt, pointing to the important role
played by the federations of the various
chambers in cooperation with the National
Wages Council in reaching a consensus on
the minimum wage despite the exceptional
circumstances the country is going through.
El-Said referred to the state’s efforts
to strike a balance between preserving
Egyptian labor and economic entities, and
setting an appropriate minimum wage.
Trade exchange between Egypt and USA hits $7.3B in 9 months
Trade exchange between Egypt and the United
States increased 13.4% on an annual basis, during the
first 9 months of 2022, the Central Agency for Public
Mobilization and Statistics (CAPMAS) revealed. Trade
exchange between Egypt and the United States rose to
$7.3 billion during the period from January to the end
of September 2022, compared to $6.5 billion during the
same period in 2021.
Egypt’s exports to the United States amounted to $1.8
billion during the first 9 months of 2022, compared to
$1.9 billion during the same period in 2021, with a slight
decrease of 1.7%.
Egypt’s imports from the United States recorded $5.5
billion during the first 9 months of 2022, compared to
$4.6 billion during the same period in 2021, an increase
of 19.5%.
January 2023
14 www.BusinessTodayEgypt.com
In Brief Egypt
Egypt’s liquefied natural gas exports register 4.86M tons in Jan-
Sept 2022: IDSC
Egypt’s exports of liquefied natural gas registered 4.86
million tons in the first nine months of 2022, compared
to 4.35 million tons during the same period in the
previous year, the Cabinet’s Information and Decision
Support Center (IDSC) announced. In an infographic,
the IDSC highlighted that Egypt’s liquefied natural gas
exports rose 35.7% year-on-year in the second quarter
of 2022, recording 1.9 million tons.
Turkey topped the list of countries importing Egypt’s
liquefied natural gas as it bought 22% of the total
exports, followed by Spain (13%) and South Korea
(10%).
Egypt’s production of gas doubles in 8 years
A report submitted by Minister
of Petroleum and Mineral
Resources Tarek el-Molla to the
House of Representatives’ Energy
and Environment Committee
indicated that Egypt’s production
of natural gas doubled between
2014 and 2022. The report
highlighted that Egypt’s imports
of gas between April 2015 and
September 2018 recorded EGP127
billion. However, the country was
able to achieve self-sufficiency later
in 2018 when production rose
to 6.8 billion cubic feet per day.
Further, the exports of natural gas
and liquefied natural gas (LNA)
recorded $7.8 billion in the first 10
months of 2022.
www.BusinessTodayEgypt.com
January 2023
15
In Brief Egypt
Egypt’s sales of gold, silver in 8 years worth $5.3B
The Ministry of Petroleum and
Mineral Resources revealed that the
sales of gold and silver recorded $5.3
billion between 2014 and 2022.
Australian company Centamin, which
is operating the Sukari gold mine
in Egypt, announced an increase in
Sukari gold mine reserves of about 1.3
million ounces, which represents the
largest increase in reserves in 10 years.
The company added, in a statement
published on its website, that the
growth of the mine reserves represents
an increase of 13% in proven and
probable mine reserves, to reach 11.11
million ounces at the end of June 2022,
compared to 9.81 million ounces at the
end of June 2021.
Since the start of production in 2009,
the Sukari mine has produced more
than 5 million ounces of gold, and today
the expected life of the mine is 14 years.
Egypt’s production
of gas doubles
in 8 years
A report submitted by
Minister of Petroleum
and Mineral Resources
Tarek el-Molla to the
House of Representatives’
Energy and Environment
Committee indicated
that Egypt’s production
of natural gas doubled
between 2014 and 2022.
The report highlighted
that Egypt’s imports of gas
between April 2015 and
September 2018 recorded
EGP127 billion. However,
the country was able to
achieve self-sufficiency later
in 2018 when production
rose to 6.8 billion cubic
feet per day. Further, the
exports of natural gas and
liquefied natural gas (LNA)
recorded $7.8 billion in the
first 10 months of 2022.
IMF approves $3B extended credit facility for Egypt
The Executive Board of the International Monetary Fund (IMF) approved the
extended credit facility worth $3 billion for Egypt. The IMF noted that $347 million
will be disbursed immediately to Egypt, which will help meet the needs of the
balance of payments and support the budget.
Egypt had reached an agreement with the IMF at the expert level in October,
allowing the country to obtain an extended credit facility worth $3 billion, provided
that this agreement is presented to the Board of Directors of the fund during
December 2022 for approval.
The agreement program, which extends for four years, also allows Egypt to obtain
additional financing of $1 billion through the IMF’s newly established “Resilience
and Sustainability Fund,” and an additional external financing package amounting
to about $5 billion provided by several international and regional financing
institutions.
January 2023
16 www.BusinessTodayEgypt.com
In Brief Egypt
www.BusinessTodayEgypt.com
January 2023
17
In Brief Egypt
CBE extends 2 initiatives in support of tourism sector
The Central Bank of Egypt has extended until March
2023 two initiatives supporting companies working in
the tourism sector that were initially set to expire at the
end of this year.The CBE made the announcement in a
circular sent to all banks operating in the local market.
The first initiative allows tourism companies to
obtain loans and stipulates that the banks accept the
beneficiaries’ requests to delay dues repayment to the
banks.
Egypt’s Central Bank
sets new targets for
inflation rates
The Central Bank of Egypt
(CBE) maintained the targeted
inflation rates at an average level
of 7% (±2%) during the fourth
quarter of 2024.
The CBE set an average rate
of 5% (±2%) for the targeted
inflation rates during the fourth
quarter of 2026.
This came with the CBE’s
decision to raise its interest
rates by 300 basis points, or 3%,
during its last meeting in 2022.
The CBE also extended a second initiative meant to
provide retail loans to the sector’s workers.
During the three-month period, the banks will be
required to carry forward the dues on the initiative’s
beneficiaries, particularly for loans obtained by workers
for consumption and personal housing.
This action will benefit only those who were punctual
in repayments according to their financial standing by
the end of September 2022, according to the circular.
Egypt’s Central Bank issues new instructions to
protect confidentiality of customer statements
The Central Bank of Egypt (CBE) issued new instructions to
protect the rights of customers and to work on establishing the
appropriate mechanism for sending their account statements.
In a new periodic letter to the banking sector, the CBE
stated that this comes as a continuation of the Central Bank’s
efforts to protect the rights of bank customers and to set up an
appropriate mechanism for sending their account statements,
whether on paper or via electronic channels, to ensure the
protection of their data and maintain its confidentiality.
It also comes in light of the trend towards promoting the
principle of sustainability by working to avoid the negative
environmental impacts resulting from the bank’s internal
activities, including stimulating electronic communication
and replacing it with the use of paper.
“The bank must send account statements to customers
every 3 months at most,” it added.
The CBE indicated that the bank should be responsible in
all cases for the delay in delivering account statements, as well
as for violating the principles of protecting the confidentiality
of customer data.
Egypt’s Central Bank cancels letter
of credit requirement for imports
The Central Bank of Egypt (CBE) announced
canceling the letter of credit (LC) system as a
requirement for imports.
The CBE said in a statement that it decided to
restore the documentary collections system for
imported goods.
The decision to enforce the LCs system, effective
since March, had required Egyptian banks to
accept only LCs for imports in a bid to curb dollar
outflows from the country.
The LCs require transactions to take place
between two banks at a higher cost and longer
time with payments taking place in advance. The
documentary collections system, on the other
side, allows direct transactions between importers
and exporters with the bank only acting as an
intermediary.
January 2023
18 www.BusinessTodayEgypt.com
Ever Wonder Why These
Particular Videos or Content
Opinion
Show Up in Your “TikTok For You
Feeds?” Here Are The Answers
TikTok unveils a ground-breaking feature/tool to give content
suggested in “For You feeds” more context.
It has always been a frequently asked
question among users on all mediasharing
platforms, “Why does this specific
type of content
appear in my feed?” And
because TikTok has always
been a trendsetter by nature
and a user-driven platform,
the platform made the decision
to end 2022 by empowering
viewers with effective
tools to customize their experience
through releasing
a new tool called “Why this
Video” in an effort to help
its community understand
their For You feed and add
more transparency and understanding
to the content
recommended for them.
So whether you’re a parent
who needs to understand the
rationale behind the videos
that frequently pops-up on
your child’s feed! A curious
teenager who wants to keep
tabs on his favorite content
creators? a business owner
who needs to regularly be
updated on the latest trends
for future business opportunities,
or just a someone
who is interested in digging
deeply into “what is happening” in their area!
TikTok is empowering you with new effective
tool to be more in control of your experience.
Simply put, by just clicking on the newly
added feature by TikTok “Why This Video”’
the platform’s community now has the ability
to customize the content that
frequently appears to them
based on four easy guidelines:
their interactions’ such
as content they watch, like or
share, comments they post,
or their searches. The suggested
accounts for them or
the accounts they follow, and
their region’s most popular
content or recently posted
content.
This is done through three
simple steps as follows:
• In your For You feed, tap
on the share panel.
• Then, tap the question
mark icon called “Why this
video”
• From there, you can see
reasons why a particular video
was recommended to you.
The fact that TikTok is
now offering its users a key
to the platform’s “kitchen
door,” where users are given
a few simplea reasons that
make it easier for them to
understand the technical
models that control the recommendation
system of their video content,
suggests that this new feature could be a gamechanger.
www.BusinessTodayEgypt.com
January 2023
19
Opinion
It’s Time to Alleviate
the Anxiety Around
EVs to Accelerate the
Auto Industry’s Move
to Electrification
By Ankush Arora, CEO of Al Mansour
Automotive
Volatile prices of fuel and gas are hurting
consumers and businesses, and
while we can look at this difficult time
as simply that — difficult — we can
also look at it as a turning point for clean energy
and an opportunity for the accelerated
adoption of electric vehicles (EVs) and EV culture,
as well as to fast-track the electrification of
Egypt’s mobility sector as a whole.
At Mansour Automotive, we’re big advocates
of moving towards the electrification of the industry,
and we see real genuine consumer interest
in EVs in the local market. Yet, consumers’
reservations about purchasing EVs and going
electric are still prevalent.
As with any major advances or changes to a
nation’s lifestyle, the fear of the unknown – as
with only 380 EVs registered in February 2022 according
to a report by Egyptian Group for Compulsory
Vehicle Insurance, many Egyptians have
never driven nor even seen an EV – has led to a
lot of uncertainty and anxiety.
However, it is important to note that people’s
hesitancy around electric vehicles is multifaceted,
and in order to further strengthen
Egypt’s EV revolution and boost the utilization
of EVs for the average consumer, there
are vital elements and misconceptions that
must be dealt with.
Currently, the biggest concern among the
EV-curious is charging convenience, which has
somewhat skewed their decision-making due to
range anxiety — the idea that EV batteries will
not last long enough between the occasional
EV-charging station and are unable to take long
journeys. In truth, the latest advances in battery
technology have actually extended their range
to more than 300km, making the true challenge
the development and expansion of sufficient EVcharging
station infrastructure.
For consumers to switch to EVs, they must
have the confidence and knowledge that they
will run into a charging station as often as they
would with a traditional gas station.
Egypt’s preparations for the transition to e-
mobility have seen EV-charging stations grow
exponentially in just a few years, with EV charging
stations to reach 3,000 by the end of 2023,
and, as part of its electrification strategy, Egypt is
also aiming to produce the first electric vehicle
by next year.
From a financial perspective, consumers tend
to believe that there is a large trade-off between
saving the environment and saving money, particularly
within the current business climate as
even traditional auto sales have plummeted, but
EVs come with great savings in operation and
fuel costs.
This will become even more prevalent as the
20 January 2023
www.BusinessTodayEgypt.com
Opinion
government accelerates its strategy to increase
locally produced green energy — with the expectation
of lowering energy prices — with international
studies revealing that even with rising
electricity and energy prices, EVs remain the
most cost-effective choice over time.
On that note, we must continue to encourage
the government to develop more incentives and
financial schemes to support Egypt’s EV revolution
by, for example, subsidizing or standardizing
the sales of EVs — for both the average consumer
and to businesses.
Electrification will play an important role in
transforming the mobility industry and reducing
the burden of rising fuel prices on the average
citizen. To accelerate the widespread use
of e-mobility and EVs, launching new EVs into
the market is a vital step as well as alleviating the
anxiety around EVs.
In the next three years Mansour Automotive
plans to locally assemble/manufacture affordable
EV in Egypt. We also introduced high-end
EVs to Egypt during COP27, in which Mansour
was the exclusive mobility principal partner and
provided 150 EVs — including electric Cadillacs
which will be available in Egypt by the end
of next year — for the conference as part of its
agenda to reduce the event’s carbon emission.
There is no way around stating that the transportation
sector needs to build its capacities to
transition to electric modes of transport, particularly
as the global energy crisis and inflationary
pressures have led to skyrocketing prices of traditional
fuel. However, we feel that this transition
will enable Egyptians to save money, protect the
environment, and progress as a nation.
www.BusinessTodayEgypt.com December 2022
21
News in Focus
Lifting Restrictions
on Imports
Egypt’s Central Bank cancels working with Letter of Credit system.
By Hanan Mohamed
The Central Bank of Egypt (CBE)
decided, at the end of December
2022, to cancel working with Letter
of Credit (L/C) and return to work
with “collection documents.”
L/Cs, also known as Documentary Credit
(D/C) is a method of payment where the buyer’s
bank guarantees payment to the seller on
the condition that the seller has to fulfill the
terms specified in the L/C.
In documentary credits, the transaction is
between the importers’ and exporters’ banks,
which are key players in the process, while the
dealing in collection documents is between
the importer and exporter directly, where the
role of the bank is only as an intermediary, and
documentary credits require larger amounts,
and the process takes longer compared to collection
documents.
In addition, it requires more complex procedures
than the collection documents in import
operations, foremost of which is the bank’s
commitment to procure the currency with the
importer depositing an amount corresponding
to the full value of the imported shipment.
The decision to enforce the L/C system, effective
since March, had required Egyptian
banks to accept only L/Cs for imports in a bid
22 January 2023
www.BusinessTodayEgypt.com
News in Focus
to curb dollar outflows from the country.
The CBE’s spring decision to oblige banks to
deal with L/Cs was blamed for causing Egyptian
ports to be full of stranded goods worth
billions of dollars.
As a result, the Egyptian government was unable
to provide the dollars needed for import
operations during the past few months, which
led to the goods remaining in the ports, as importers
could not get them through the port
customs gates except after transferring the
value of imports to the exporter in addition to
paying the freight cost in foreign currencies.
Furthermore, the importers had to pay the
rent for the spaces their goods occupy in the
port, but these are paid in Egyptian pounds.
A Crisis Breakthrough
A periodic book issued by the CBE said that
it was decided to cancel the work of the periodic
book issued on February 13, 2022 and allow
the acceptance of collection documents to
carry out all import operations.
It explained that, with reference to the circular
issued on February 13 2022, it would stop
dealing with collection documents, and to only
work with L/Cs when carrying out import operations
and exceptions from the subsequent
decision, as well as the circular dated October
27, 2022, to increase the value of shipments
www.BusinessTodayEgypt.com January 2023
23
News in Focus
excluded from the decision referred to above
from $5,000 or the equivalent in other currencies
to $500,000 or the equivalent in other currencies.
Cancellation of the L/C
In February, the Central Bank had decided
to stop dealing with collection documents in
the implementation of all import operations
and to only work with documentary credits, as
of this date, with the exception of branches of
foreign companies and their subsidiaries, and
to allow banks to accept collection documents
received for goods that were already shipped
before the issuance of this decision. This is to
govern the import process and activate the preregistration
system for shipments.
In October, the Monetary Policy Committee
(MPC) of the Central Bank said that the bank
would gradually cancel the instructions issued
on February 13, 2022 regarding the use of the
L/Cs in import financing operations until the
completion of their full cancellation in December.
The MPC stated that this is an incentive to
support economic activity in the medium term,
and the CBE will also work to build and develop
the financial derivatives market with the
aim of deepening the foreign exchange market
and raising liquidity levels in foreign currency.
Egypt’s Prime Minister Mostafa Madbouli
confirmed at the beginning of December that
the government, with all its agencies, is working
in harmony to solve the crises facing Egyptian
industries, stressing that in cooperation with
the Central Bank, they will finish the problems
of documentary credits within two months.
He pointed out that the Central Bank raised
the allowed number of shipments excluded
from documentary credits from $5,000 to
$500,000, which has created a breakthrough,
but there is still a list of commodities that they
are working on gradually, and all problems of
documentary credits will be completed within
two months.
A Welcome Decision
Director of the Cairo Center for Economic
Studies Abdel Moneim El-Sayed praised the
CBE’s decision regarding the cancellation of
L/Cs, and the return of work with collection
documents to implement import operations.
In a TV interview, El-Sayed explained that
the cancellation of the documentary credits
was a requirement of all investors, especially
the owners of factories and companies in the
previous period.
24 January 2023
www.BusinessTodayEgypt.com
www.BusinessTodayEgypt.com January 2023
25
News in Focus
He added that there is a positive reaction
from all investors regarding the return of work
with collection documents to carry out import
operations, especially since the decision leads
to no pressure on the foreign currency, and
the Central Bank’s decision will not put pressure
on importers, especially in terms of saving
dollars.
“The Central Bank’s decision will relax the
market and provide goods without pressure
on the ports crowded with goods,” he stated,
praising the timing of the decision, especially
before the start of the month of Ramadan.
Deputy of the Industry Committee in the
House of Representatives Mohamed el-Sallab
said that the Central Bank’s decision to cancel
L/Cs will open the door to the return of
production again and increase factories’ ability
to provide production requirements and
intermediate goods in an easier manner and at
less cost. Thus, prices will gradually return to
stability.
He added that it will address what sectors,
especially the industry, have been exposed to,
from reducing their ability to import in light
of the banks’ delay in opening letters of credit,
and the exposure of factories and importers
to financial problems that threatened production.
Al-Sallab stressed the importance of facilitating
import procedures, especially since production
requirements and intermediate goods
represent about 65% of imports, indicating
that placing any obstacles to the import movement
will directly affect the industry and its
ability to provide goods for the local market or
export, and thus negatively affect dollar flows
achieved through exports.
Member of Parliament Mahmoud Essam described
the Central Bank’s decision to cancel
the documentary credits system and return to
collection documents again, as “saving the industry.”
He said that the industrial sector was facing
difficulties even after approving exceptions for
the industry from the previous decision. There
were major obstacles in implementation, which
caused factories to be unable to provide production
requirements and reduce production
rates for factories that continued to operate
with a lower production capacity, especially
small ones that found importing their own
supplies difficult and which were forced to resort
to buying from importers at a time when
the documentary credits system for importers
stopped.
He stressed that the decision to cancel the
documentary credits is expected to result in
the stability of commodity prices, in light of
raising the factories’ ability to provide their
requirements, increasing the supply of goods,
and increasing the ability to export.
Goods’ Release from Ports
Egyptian ports have witnessed an accumulation
of goods worth about $14 billion since the
start of the crisis, and the volume of goods remaining
in Egyptian ports as of December 25 is
worth about $9.5 billion.
According to official statements, there is a
plan to release goods worth $4.5 billion before
the start of the month of Ramadan, in order to
provide the producers’ needs for production
requirements, in addition to providing goods
before the month, which annually witnesses
an increase in the consumption rates of many
products.
In January Madbouli said that goods worth
$6.25 were released from the Egyptian ports
during December 2022, including $1.236 billion
during the last week of the month.
During a press conference held in the port of
Alexandria, the Prime Minister added that the
government has drawn up a plan with the Central
Bank to pay off arrears of customs releases,
pointing out that its implementation has already
begun. “We are committed to announcing
weekly the volume of goods that come out,
with priority going to the exit of food and food
processing goods,” he stated.
He also announced the government has a
plan to provide foreign exchange resources
26 January 2023
www.BusinessTodayEgypt.com
News in Focus
until the end of June 2023.
Madbouli explained that the goal during
the next few weeks is to get out of “this crisis,”
adding: “We reassure manufacturers and suppliers
of all sectors of the country in order to
complete the large movement of goods exit
and ensure that the industry returns to its full
capacity.”
Madbouli had said earlier that the priority
in releasing goods from the ports would be for
food commodities, food manufacturing components,
medicines, production requirements
and factories.
Goods’ Release Paves the Way for a New Depreciation
of the Exchange Rate
Head of the International Monetary Fund’s
mission to Egypt Vladkova Hollar told Reuters
that the Central Bank had not intervened in
the exchange rate by injecting reserves into the
foreign exchange market since Egypt and that
the IMF had reached an expert-level agreement
in October. “But the late imports are not
released.”
“After the release of the goods, we expect to
see a daily change in the exchange rate similar
to the changes we see in exchange systems that
witness real currency price liberalization,” Hollar
stated.
She added that the demand for the dollar
may decrease due to the decline of the pound.
After announcing that an agreement had
been reached at the expert level regarding
the extended fund facility in October, Egypt
allowed a significant decline in the Egyptian
pound’s exchange rate from EGP 19.7/$ to
EGP 24.7/$.
Egypt had reached an agreement with the
IMF at the expert level in October, allowing
the country to obtain an extended credit facility
worth $3 billion, which was approved in December
by the Board of Directors of the fund.
The agreement program, which extends for
four years, also allows Egypt to obtain additional
financing of $1 billion through the IMF’s
newly established “Resilience and Sustainability
Fund” and an additional external financing
package amounting to about $5 billion from
several international and regional financing
institutions.
www.BusinessTodayEgypt.com January 2023
27
‘Garden Lakes’ Doors are Officially
Open in West Cairo By Hyde Park
Hyde Park Developments, the leading Real estate giant,
hosted a major event in the heart of 6 October
City to introduce and set forth their latest project
‘Garden Lakes’ in Hyde Park West, where they gave
their guests a sneak peek at ‘Garden Lakes’ and what to expect
from this new project, set to be the new talk of the town, and the
place to call your own.
The successful inauguration of “Garden Lakes” comprised a
top-class ceremony featuring performances by DJ Rodge, Kult
Bierut Shows Direction, and DJ ZAWZAW – George Soussou.
The event was attended by many celebrities, public figures, and
VIPs such as Anas Bukhash, Tara Emad, Huda El Moufti and
included multiple activities.
The event also displayed the wide and open spaces of a
‘Green Spine and Scenic Lakes through a collected guest journey
inspired by the Garden Lakes elements. Leveraging on the
unprecedented tranquility and stillness offered by the project,
Garden Lakes is eminent as the best place to relax and unwind
in its idyllic greenery atmosphere away from the noise of the
city.
Garden Lakes is a matchless project located in west Cairo; it
encompasses a variety of housing units starting from 104 sqm.
The project will also include many activities and happenings
for all its residents to enjoy, including clubhouses, swimming
pools, kids’ zone, social activities area, cycling and jogging
tracks, outdoor activities capacities, reading and recreational
areas, and co-working spaces, spacious gardens, a service area,
as well as an underground car park.
The project will be launched in West Cairo, opposite to
Tawny project, and spans over an area of 69 feddans, making
it close to all services in that area. One of the largest scheme
and design companies designed Garden Lakes, Eklego Design,
which added a modern and unique architectural touch to the
units and gave the project a more contemporary look.
Face of Business
Revolutionizing
the Paint
Industry
Jazeera Paints to bring a new splash of
color to the local market.
Determined to shake up the Egyptian
paint market, pioneering Saudi Arabian
paint manufacturer Jazeera Paints is
seeking to position itself as Egypt’s new
leading paints, colors, and construction solution as
it expands its local portfolio.
Business Today Egypt sat down with Abdullah Al-
Romaih, CEO of Jazeera Paints, to discuss their expanding
portfolio in Egypt, latest investments and
innovations, and expectations for the coming year.
30 January 2023
Face of Business
January 2023
31
Face of Business
What led to the decision to expand into the Egyptian
market? And why enter a new market during
such a globally difficult economic period?
In order to provide a more comprehensive answer
to this question, different aspects and pillars
must be taken into consideration and tackled
to cover different standpoints.
For instance, Egypt is famous for the impenetrable
economic shield it offers to its foreign
investors, as evidenced by the country’s economic
reform policies, which have experienced
tremendous growth in the previous fiscal years.
However, according to Egypt’s General Authority
for Investment and Free Zones, the rate
of GDP growth during the fiscal year 2021/2022
was about 6.6%, despite the significant difficulties
that all business entities worldwide faced because
of the negative effects of the Coronavirus
and the war in Russia.
In addition, a very appealing economic factor
that sets Egypt apart from other global markets
and encourages foreign investors to invest there
is its expanding population, which, according to
Egypt’s CAPMAS, has grown to more than 1.4
million people.
This enormous population represents a diverse
pool of target consumers for investors with
a wide range of interests and preferences as well
as significant purchasing power, providing us
with a tremendous opportunity to develop and
grow our businesses.
It is about time for a pioneering paint manufacturer
with more than 40 years of experience
to take advantage of the golden opportunity that
the Egyptian market presents, and spread our
wings with EGP 1.2 billion worth of investments
to operate in 400 stores across Egypt, with the capacity
of a 400-strong task force during the new
year.
What can we expect from your entry into the local
market in the short and medium term?
Both our short-term and long-term goals are
all about making a remarkable footprint in the
Egyptian market and since it is known that the
right start gets you ahead of the game, we decided
to dive into the Egyptian market with full
power!
We’re starting by dedicating a fully equipped
vehicle with all of the cutting-edge techniques
to tour Egypt and train employees, enhancing
their professional abilities by exposing them to
the company’s latest technologies and products,
in order to invest in their employees and keep
32 January 2023
Face of Business
them up to date with the latest trends and innovations
in the world of paint.
The Jazeera Paints Factory in Egypt was established
in 2020 at the 10th of Ramadan City, acting
as a major industrial platform supplied with
the highest and most advanced equipment and
techniques. The factory is essentially split into
five production units; the first production unit
is mainly for structural paints focusing on primers,
pastes, and all types of interiors, exterior and
spray paints. The second production unit focuses
on industrial paints and insulating paint. The
other three production units will join the force
in the upcoming year.
The company also has a team in place for logistics,
which is in charge of making sure that all
products are stored securely in warehouses using
well-planned storage techniques and cuttingedge
transportation techniques to move products
from warehouses to distribution trucks, ship
the products, and sell them in 400 stores and
showrooms throughout Egypt.
In a nutshell, with more than 2,000 highly
skilled workers putting in tireless work in every
department, our short-term goal is to establish
Jazeera Paints as a brand that consumers can
rely on for delivery, innovation, and exceptional
quality.
In terms of long-term goals, Jazeera Paints
hopes to begin branching out into new markets
by exporting products to more African countries
by 2024.
Why should Egyptian consumers choose Jazeera
Paints?
Quality, safety, and creativity are what sets us
apart! Our goal goes beyond offering a highquality
product with a wide range of colors;
instead, we aspire to be the final touch that
breathes life into any inanimate object.
Jazeera Paints dedicates all of its resources to
keeping innovation as an integral product value,
as evident in the company’s latest product Mini
Paint, which is a creative mini-product that helps
consumers test and choose colors within the
comfort of their homes.
In addition to providing products that meet
the highest international quality standards and
environmental sustainability policies, the company
also provides a one-of-a-kind shopping
experience through a website and app that uses
Artificial Intelligence (AI) and Augmented Reality
(AR) tools to expose users to a wide variety of
color options and construction solutions that are
unattainable in showrooms. All of this will create
a distinctive selling point for consumers and a
significant footprint in the Egyptian market.
January 2023
33
Face of Business
Today’s consumers expect a digital and easy-touse
experience when shopping. How would that
translate into the industries of paint and construction
solutions?
Proudly, Jazeera Paints has carved an unparalleled
digital footprint in the industries of paint
and construction solutions by designing and developing
the first website and app in the Middle
East dedicated to displaying and selling paints
and construction solutions.
We are fully aware that consumers are now
seeking a seamless, effortless, timeless, and onestop
shopping experience; accordingly, we introduced
a game-changing app and website that
has transformed online shoppers’ experiences by
exposing them to a wide variety of color options
and construction solutions that are unattainable
in showrooms.
Since the technologies embedded in the
Jazeera Paints app are unmatched by any other
paint industry app, we introduced a game-changing
experience with this innovation that affected
not only the paints industry but all other industries
that are consumer-customization driven.
It uses AI and AR to provide Arab consumers
with a unique shopping experience. The company
at large dedicates all of its resources to keeping
innovation as an integral product value. In addi-
34 January 2023
Face of Business
tion to our latest product Mini Paint that we previously
explained, the company also showcases our
innovation through Novel and Notes Clear.
Consumers have also grown to value sustainable
products or those made with sustainability in
mind. Could you tell us a bit about the company’s
sustainability efforts, if any?
Every now and then, the world witnesses paradigm
shifts that every business entity, regardless of
the industry or sector it operates in, must comply
with and adapt to.
A few years ago, we saw the beginning of the
digital transformation era sweeping the globe,
and as a result, all business organizations began
incorporating digital transformation methods,
tools, and practices into their business operations.
Today, the current new shift is all about sustainability
and how it is affecting the lives of every
single living creature on the planet. As a result,
most business entities are constantly striving to
determine the best strategy to apply sustainability
to their business operations.
For Jazeera Paints, the narrative is different
because we have always taken sustainability practices
into our own hands. In fact, our company
is regarded as the first company in the Arabicspeaking
world to incorporate environmental
sustainability measures into their operations and
production to ensure that our products are designed
and manufactured in accordance with
safety and health regulations
Now, more than 35 eco-friendly product groups
— that have been approved by international organizations
specializing in green building systems
— are currently being pumped into the company’s
manufacturing lines. Additionally, the factory
has a treatment station for the water used in the
manufacturing process to ensure that no industrial
pollutants end up in the sewage.
What are the company’s long-term aspirations for
the country and the region?
By providing distinctive premium products, we
hope to revolutionize the Egyptian paint market.
This will open up new opportunities for us to
grow and expand our company locally as well as
export goods to African countries, which is a new
market that Jazeera Paints intends to enter.
Jazeera Paints has always spoken in numbers!
In the past 42 years, we established two factories
and eight production units across the region with
a production capacity of 400,000 tons annually
of diverse products with 650 showrooms across
Saudi Arabia and beyond.
For Egypt, by 2023, we aim to have over 300
products in the market within 400 stores to reach
more clients.
January 2023
35
Face of Business
Creating
Meaningful and
Impactful Brand
Stories
Defining storytelling, pitching, and taking the misses to
build hits with Coca-Cola’s Islam ElDessouky.
By Christine Salzmann
Storytelling is a fundamental human
experience that unites people — creating
strong and influential connections,
driving deeper engagement and associations
with the brand — by simply applying
the basic elements of storytelling to advertising
copy or campaigns.
And although the leading creatives of the
world’s biggest brands continue to highlight
storytelling’s benefits; creativity and storytelling
still do not have a consistent definition across
agencies, businesses, and sectors.
“[T]he misconception about storytelling is
that storytelling is the strategy… it is not a strategy;
it is a vehicle to deliver the strategy,” says
Islam ElDessouky, The Coca-Cola Company’s
Global Creative Strategy Director for Hydration,
Sports, Tea, and Coffee.
“We need to stop this very exhaustive loop
of trying to come up with the cleverest ads because
it is labeled creative versus telling a story
that is meaningful,” he adds. We sit down with
ElDessouky to discuss storytelling, creativity,
the pitching system, and navigating collaborations
and dealing with mistakes with one of the
world’s largest brands.
Your talk at this year’s Creative Industry Summit
(CIS), Creating Meaningful Brand Stories,
had a definite impact on the audience. Could
you share with us a few of the important points
that you spoke about?
36 January 2023
www.BusinessTodayEgypt.com
Face of Business
When we say “creating meaningful brands
through stories,” it’s all about the value; and
this value can be financial and non-financial.
The brand is pretty much a promise [to the
consumer], and the main reason why a value of
a brand could go so high is because it is driving
value for a lot of key stakeholders and shareholders.
When we ask “what really builds the brand
in a meaningful way,” one very big pillar is
storytelling… because storytelling is all about
people, so [that] people can create associations
with those brands.
They see the brand as another human disguised
within a brand that connects with them,
and so, here, there are a lot of learnings that we
wanted to share; such as that storytelling, first
of all, is a commitment. It’s not a campaign, it is
not a formula. It is a commitment.
Lastly, stories are about people. They’re not
about products, so we cannot simply go and say,
“listen, here is the bottle and bubbles and all.
Yeah, that’s an ad. And it’s fine to do that as
well, because you need to promote the product
and what it does and the benefits it gives to people.
However, for you to create higher associations,
you need stories.
I’ve shared some key principles of how you
can drive successful storytelling, [but another]
is to take risks, because you can’t please everybody.
[The best examples] are artists.
If you [listen] musicians such as Duke Ellington
who had a phenomenal quote about
it or Dave Chappelle, who is a very polarizing
www.BusinessTodayEgypt.com January 2023
37
Face of Business
I believe
that risk is
very much
a mindset
in the
marketing
industry
today.
People
want to do
whatever
has
worked in
the past,
but that is
counterintuitive
to
progress.
comedian, they will tell you that the reason why
they have such a large amount of advocacy is
because they are taking risks and the reason
why they take risks is because they connect with
some people more than others.
When you try to please everybody, it goes to
the common denominator. You don’t say much
when you try to do that.
Coca-Cola is well-known for its storytelling,
could you give me an example of something Coca-Cola
did recently that felt very risky on the
creative stage that increased its brand value?
For instance, last year the brand went into
gaming and collaborations, and these are two
territories that we were not necessarily doing a
lot on but I think, now, we’re doing much more
on [these fronts].
Recently, we launched a new flavor with DJ
Marshmello. DJs have a certain genre of music,
so you could be a Coca-Cola fan but that’s not
the music you like, or the flavor is not [to your
taste]. For a brand like Coca-Cola, innovation,
believe it or not, is risky because it is such a big
brand with such a massive and loyal fan base.
Contrary to that, the brand has taken the
other approach, [more like] “[we] are going to
drop a lot of innovations, and at the end of the
day, if it doesn’t work out for whatever reason,
we are going to learn from it and get better.”
I believe that risk is very much a mindset in
the marketing industry today. People want to
do whatever has worked in the past, but that is
counterintuitive to progress.
You cannot progress and make leaps if you
don’t take risks; whether by putting your name
with someone like DJ Marshmello or creating a
flavor that [not all] people will like.
There are always risks when you want to collaborate
and co-create with someone, but we
are taking [a lot] of steps [in filtering the person].
The person needs to fit with the brand,
not to maximize risk but to maximize the association.
What’s your top tip on navigating how to select
collaborators for the brand to ensure that
you’re protecting Coca-Cola and, at the same
time, maximizing the partnership?
The tip I would give is for every marketer to
understand that we are no longer in control of
creativity like we used to be. I know that people
often see creativity [as only] manifesting in advertising,
but creativity is manifested in a lot of
things
It used to be a one-way dialogue; I have a TV
channel, then I’m going to put my ad on it.
Nobody comments, likes, shares, or dislikes. It
used to be very controlled, and the planet was
not included in this conversation. Now it has
gotten democratized with the democratization
of creativity; the planet and the people own it
now, it’s not the brands, the entertainment industry,
or publications, it is now owned by everybody.
Look at all the social media platforms, see
what people are creating as content and how
they amass a lot of followership versus brands
and whatnot. The minute you recognize that
you’re not in control [of creativity], and somebody’s
doing it better than you, you’re going to
be looking forward to collaborating.
[Telling influencers and creators to] talk exactly
as “I direct you to,” that doesn’t work anymore…
The majority of them will not because
their key attribute is their content creation and
authenticity. So, the minute you [let go of] control
is the moment you liberate yourself and really
collaborate. So that would be the only tip I
would share.
Creative strategists and ad-people have been
very vocal about the significance of storytelling
in the past few years; what would you say are
currently the biggest misconceptions still going
around today in this regard?
I believe that the misconception about storytelling
is that storytelling is the strategy. Storytelling
is just one pillar to build your brand.
The brand needs to have a creative strategy,
which will decide how the brand is going to
sound like, where the brand is going to tap into
audiences and consumers, etc.
Storytelling is simply one key pillar in your
marketing mix that really amplifies how you
build the brand. A, it is not a strategy; it is a
vehicle to deliver the strategy. B, a lot of people
treat storytelling as extremely clever advertising,
it shouldn’t be. It could be a story that is
not necessarily unique or innovative, but it’s
extremely relevant because it has people at the
center of it.
We need to stop this very exhaustive loop of
trying to come up with the cleverest ads because
it is labeled creative versus telling a meaningful
story.
It’s well-known that creative strategy heavily affects
business strategy and goals, but with the
increasing number of channels and marketing
tools in the market today, how can businesses
apply creative strategy in driving success across
diverse channels?
Contrary to a lot of people, I think having
38 January 2023
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Face of Business
Coca-Cola Marketing Campaign
For Gamers “Real
Magic - One Coke Away
From Each Other”
an abundance of channels is a blessing, it’s not
the opposite. I know this can intimidate and
overwhelm people because [of questions like]
“where do I get resources?” “Where do I get resources
to place my brand in all of these channels?”
In my humble view, everything revolves
around people. Your target audience — you
can call it that, or your tribe or cohort — they
have certain passions and overindulge in certain
channels versus others. For example, I am
what is commonly known globally as a sneakerhead,
which means I love sneakers — I have
probably have a lot more than I should — and
there are certain [channels] I overindulge in,
such as hip-hop and basketball, more than anybody
that is not a sneakerhead.
Sneaker brands, whether Nike, Adidas, Puma
or Reebok, they want to use a channel to talk to
me from an ROI perspective. So, they may think
“we know that sneakerheads are into hip-hop,”
so [they might say] let’s sponsor a program that
shows hip-hop artists, or let’s be in a clip with a
hip-hop star, or let’s get a hip-hop star in our
ad, etc.
[With that] I’ll see the product on a channel
that I’m used to, so the brand is basically catching
the fish where the fish is already going to
instead of trying to invite it to go to the desert.
The question always is, with people, where are
they? Then you can craft your strategy based on
where they are spending more time and where
they are more passionate.
Everybody is in the business of attention now,
including entertainment. Netflix competes
with YouTube over attention, it competes with
brands, competes with books. Everything competes
for attention. People have 24 hours; we
don’t have more. We haven’t been able to crack
the code where we increase the number of
www.BusinessTodayEgypt.com January 2023
39
Face of Business
Coca-Cola’s campaign celebrating
KSA’s decision to lift its prohibition
on female drivers in 2017
hours per day, so that’s fixed, and everybody’s
trying to get a piece of it.
How can businesses foster and apply creativity
in the workplace?
That’s a big question, and I’ll probably come
short, and I think most people will come short
too because it has a lot of elements into it. But
in my humble view, creativity, first and foremost,
means a solution to a business problem
or a business opportunity.
And secondly, the [company] culture has to
be willing to learn, because nobody can foster
creativity without the acknowledgment that
we’re going to fail more than we’re going to
succeed.
When people asked Michael Jordan, greatest
basketball player of all time, why he was so
great, he said because, “I missed a lot of shots.”
He made a lot of [baskets] but he also missed.
He recognized that “oh, I shot 40,000 times,
out of which I scored 20,000.” People [tend] to
look at the hits and they forget the misses. Businesses
are the same; you’re going to win some
and lose some, so it has to be a mindset first and
foremost.
Third is to have the desire, not just the ability,
the desire to learn from the misses, because we
usually shy away from that.
Let me ask you then while we’re on this, do you
have a mistake or something that did not go
as planned that you learned a lot from when it
comes to your time working at Coca-Cola?
I can start with one that is very dear to my
heart, which is about Sprite. Sprite is a great
brand, and the target is usually teens and
young adults. And during a part of my career
when [targeting] the Gulf countries — [these
countries] didn’t have a lot of the [usual] target
audience living in that demographic — we kept
pushing on global passion points like basketball,
music and whatnot… but these were not
the people drinking Sprite [there].
We kept doing this and pushing for it, but
it didn’t work out. Then we became a global
anomaly, people were saying “oh, Sprite in that
part of the world is not working.” We needed
to understand, so [we asked] who is the biggest
group here that consumes Sprite?
[Turned out, Sprite drinkers] living in these
countries primarily come from India and Pakistan,
and it wasn’t about basketball, it was cricket.
So, we changed everything to target cricket,
and [it grew] like wildfire, doubling business
like no tomorrow, and that is why I say embrace
the misses.
We have that as a company; so, we kept going
for two years and it wasn’t working, but we
learned, and when we learned, we understood
and changed the solution. What we don’t have
[as a company] is the idea of shying away, [we]
accept the misses to guide future success.
I struggled with it personally a lot because I
40 January 2023
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Face of Business
love the brand and I love the passion points. I
was like “okay, it’s music and basketball, what’s
not to love?” But, it’s [just that] the people were
different, so that is why you pivot. Once we did,
success came forward.
What is your take on the “traditional” pitch system
and what can both agency and corporate
sides do better to facilitate the process?
This is a difficult question because I think
that the problem is not pitching, but how we go
about pitching and how we can achieve some
sort of informal understanding of how it should
work because every person, every company, and
every agency has their own take.
A pitch is a rallying cry from a company looking
to try outside of its ecosystem to find a better
solution to some of the recurrent problems
that they’re unable to solve, whether it’s a creative
or strategic failure to solve it or a financial
issue.
The ones [typically] struggling are agencies,
more than the companies as they are in a more
advantageous kind of situation; a company
opens a request for pitching and then a lot of
agencies jump on board. It’s the agencies that
struggle with how the process or the lack of a
process affects them.
Some principles that I believe should be
agreed upon is how is a pitch financially [compensated]?
Any company that is invited will
spend numerous hours on developing the
pitch, because that is how the industry functions,
win or lose.
There needs to be some sort of movement
[or protection for] agencies, such as a regulator,
and so if it is not applied, agencies do not
participate in the pitch and so cannot complain
and break the system.
Secondly, what is a pitch and how is it defined?
By the amount of work required, the
amount of effort that goes into the pitch? Is it
owned by the agency in the [event] that they
lose the pitch, or is it owned by the client that
gave the brief that inspired the work? All of
these, in my opinion, are reasons why [pitching]
is broken.
I haven’t been in Egypt for a long time, but I
assume that these are very common symptoms
in a lot of places. I would [say] that what needs
to happen is that agencies will create some sort
of regulator between them that is comprised of
all agencies, and is independent and very transparent.
I [believe] that we will still need pitches because
it gives a great opportunity for companies
and agencies to tap into problems and opportunities
that they can actually create an impact on.
We have that as a company; so, we
kept going for two years and it wasn’t
working, but we learned, and when we
learned, we understood and changed
the solution. What we don’t have [as
a company] is the idea of shying away,
[we] accept the misses to guide future
success.
Coca-Cola’s Limited
Edition flavor with DJ
Marshmello
www.BusinessTodayEgypt.com January 2023
41
In-Depth
Pathways to Maintain
Egypt’s Attractiveness to
Foreign Direct Investment
With global crises disrupting progress in attracting foreign direct
investment, Egypt needs to seek out dynamic new solutions to
achieve sustainable inflows.
42 January 2023
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In-Depth
By Noha El Tawil
Egypt has been working towards the localization of
many industries and turning into a manufacturing
hub that would supply to Africa and the region, leveraging
its unique location. Attracting foreign direct
investment (FDI), is paramount, to bring in not only money but
also new technology. That is in addition to its most important
functions, which are creating employment opportunities and
contributing to the economic growth of the country. However,
global crises are disrupting the progress achieved so far, so solutions
have to be devised.
www.BusinessTodayEgypt.com January 2023
43
In-Depth
Milestones
According to the World Investment Report by
the United Nations Conference on Trade and
Development (UNCTAD) published in June
2022, Egypt was the second largest recipient of
FDI in Africa in 2021 with $5.1 billion, in spite
of the 12-percent decline.
Former Chairman of the General Authority of
Free Zones and Investment (GAFI) Mohamed
Abdel Wahab stated in December that Egypt
had garnered FDI worth $11.6 billion in nonpetroleum
sectors during FY2021/2022, achieving
a growth of 81.3 percent compared to the
previous fiscal year, and that is the highest in
10 years.
The largest share of FDI (42 percent) is reinvested
earnings, which grew by 11 percent
($525.7 million) to hit $4.9 billion. The second
largest is composed of inflows aimed at founding
new companies in Egypt ($282.2 million)
and expanding existing ones. Those rose by
$2.1 billion to become $3.4 billion, representing
29 percent of total FDI. Sales of companies
and productive assets came third (20 percent)
as they recorded $2.3 billion with a spike of $2.2
billion. As for the fourth and last place (nine
percent), it went to the purchase of real estate
units at $970.3 million with a rise of $353.9 million.
Given that one-fifth of FDI achieved in the
last fiscal year is the outcome of asset sales,
more has to be done to achieve sustainable inflows.
As indicated on GAFI’s official website,
the sectors targeted for FDI are those of real
estate, ICT, mining, education, healthcare, financial
services and insurance, agriculture and
land reclamation, tourism, pharmaceuticals,
food industries, oil and gas, textiles, transport
and logistics, electricity and renewable energy,
retail, and automotive.
The government had already created the
three-month “Golden License,” which is a single
approval to buy/rent land, operate, and manage
projects. The license is offered to investors
implementing projects of priority to the government,
and can be extended for an additional
three months in case of tangible progress.
Most Attractive Sectors for FDI
Economic and Financial Researcher Fathi al-
Gazzar tells Business Today Egypt that the most
attractive sector now in Egypt for FDI is that of
energy due to three main reasons. One is the
ongoing international race to secure energy.
The other is the appeal of the sector to developed
countries. And, the third is the low supply
ensued from the Russia-Ukraine War.
He clarifies that investors would be interested
in both traditional sources of energy and
renewable energy. The interest in renewable
energy in particular stems from the fact that
Europe is undergoing an energy crisis, he says.
In addition, developed states want to expand
developing countries’ reliance on renewable
energy, and hence, save up more natural gas for
themselves, Gazzar adds.
“There is a thirst in the energy sector now,”
the researcher reiterates. On the other hand,
“other sectors are currently much less attractive
because of the currency crisis, while foreign
investors want to repatriate their profits. Also,
direct investment is a long-term one . . . The
problem here in Egypt is that the local market
is not stable on the side of consumers,” Gazzar
points out.
Assistant Professor of Economics at the University
of Beni Suef Mohamed Rashed agrees
that the most attractive sectors are those pertaining
to energy, such as oil and gas exploration,
and renewable energy, like solar power,
wind energy, green hydrogen. Yet, he also sees
potential in the sectors of petrochemicals, food,
and real estate development.
How to Become More Interesting
To attract foreign investments, “we need attractive
investment legislations, economic stability,
and profitability … The Golden License
is useful for a very short period of time, but later
investors will have to deal with a lot of bureaucracy.
Also, the administrative measures a business
will be handling on the long-run must not
be changing at a high frequency. They have to
remain unchanged for a long period of time,”
Gazzar stipulates.
“As for profitability, it is intertwined with the
market dynamics. The decline in the Egyptian
pound’s value is only attractive, if the investor is
sure that the rate is fair, and that it would not
sharply go down anytime soon, as that affects
projections pertaining to costs and revenues,”
Gazzar highlights.
Similarly, Rashed suggests that in order to
ensure the sustainability of FDI flow, a stable
legislative and institutional environment must
be ensured, in addition to sustainability of high
economic growth, decline in inflation, stability
of the foreign exchange market, speed of the
issuance of licenses, and simplification of measures
by abandoning bureaucracy.
FDI and Export
Gazzar says that if an investor builds a plant
in Egypt with the aim of exporting, their main
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In-Depth
market will have to be Africa, because Europe
and the United States are mainly interested in
raw materials. “That is not viable to our economy,
as we want to boost the added value. By contrast,
targeting Africa with semi-finished goods
can be lucrative,” Gazzar explains.
Rashed shares the same point, highlighting
that the trade deals Egypt has, especially
those of the Common Market for Eastern and
Southern Africa (COMESA) and African Continental
Free Trade Area (AfCFTA), are an important
factor in attracting FDI. “That is especially
true of multinationals, which now want to
make up for the weakening of existing supply
chains and that have been proved flawed since
the outbreak of COVID-19. Egypt is one of the
countries that are eyed as a doorway to African
markets, given its location between Europe and
Asia,” Rashed clarifies.
2023
Gazzar anticipates that the “Flight to Quality”
behavior, fear of investing in developing countries,
and recession that began in 2022 will persist
in 2023, and even in 2024, if the intensity of
the war does not ease.
Rashed explains that the high inflation
that occurred in the aftermath of the Russia-
Ukraine War prompted central banks to raise
interest rates, including the Federal Reserve,
which raised the rate to 4.5 percent. “That has
incurred the withdrawal of many direct investments
from developing states, whose currencies
deteriorated because of high inflation,” Rashed
adds. However, he is more optimistic, estimating
that a gradual increase in the flow of FDI
into Egypt may happen in the second half of
2023, showcasing the very high rank the country
enjoys on the continent in terms of attractiveness
to FDI.
With regard to foreign direct investments already
in the market, the economics professor
suggests that they can be encouraged to expand
through the elimination of the malfunction in
the foreign exchange market and the currency
black market. That is in addition to offering tax
discounts, and introducing more free zones,
which grant investors tax and tariff discounts as
long as they export at least 50 percent of production.
www.BusinessTodayEgypt.com January 2023
45
In-Depth
Adopting Startup
Mentality and Tactics
when Business-Building
Today’s business landscape is no stranger to disruption and
transformation as startups continue to challenge well-established
and deep-rooted companies long after the likes of Amazon and
Uber reinvented and digitized their respective industries.
By Christine Salzmann
Upstarts like Amazon and Uber, and others such as Airbnb,
quickly gained a large market share in the retail, taxi cab,
and hospitality industries by providing niche and highly
personalized solutions, encouraging other businesses to
scramble to create and scale similar solutions. And yet, many still trail
behind their younger tech rivals.
46 January 2023
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In-Depth
However, innovation is not confined to the
tech realm. Companies and corporations are
capable of, and should be, reinventing themselves
and cultivating innovation to capitalize
on the opportunities and learnings afforded
by these disruptions and launch new offerings
in pace with innovative startups.
New business is good for business
Recently, McKinsey & Company surveyed
more than 1,000 senior executives from every
region and a wide range of sectors, with its results,
unsurprisingly, suggesting that companies
that prioritize new business-building are
above others in terms of revenue growth.
According to the report, eight out of ten
stated that new business-building was a top-five
strategic priority; 46% said it was in their top
three. By 2027, the respondents said they expect
29% of revenue will come from new business,
which was defined as the creation of new
revenues through new products, services, or
businesses based on new capabilities.
The businesses that placed new businessbuilding
as their top-three priority showed accelerated
growth and higher resilience, even
during economic shocks; those surveyed estimated
that new business created in the past
five years accounted for 12% of their revenues
and 21% of their enterprise value.
The management firm revealed that, on average,
respondents have begun to invest 5% of
revenues into new business-building and are
establishing 1.5 new businesses annually.
A separate McKinsey & Company report
published in fall 2022, which conducted an
in-depth study of the growth patterns and performance
of the world’s 5,000 largest public
companies over the past 15 years, reaffirmed
revenue growth’s critical role in driving corporate
performance. An additional five percentage
points of annual revenue correlates with
an extra three to four percentage points of total
shareholder returns (TSR)—the equivalent
of increasing market capitalization by 33-45%
over a decade.
www.BusinessTodayEgypt.com January 2023
47
In-Depth
With technology lowering the complexity
and cost of logistics, and the internet enabling
faster accessibility to businesses, it’s never been
easier to start and scale a company; companies
can make smaller investments than ever before
to create, measure, and respond to global demand
through new business ventures.
Some companies have turned to startups to
gain insights and understand how they’ve developed
products and services so they too can
create organizations with the ability to drive
new ideas to swift implementation, and to pivot
frequently.
Reinvention and evolution
The art of surviving as a business is adapting
to new circumstances within the company
or the market. Prime examples are Netflix,
which went from DVD rentals to streaming giant
and content creator, and Lego, which has
become a multiplatform franchise with movies
and video games attracting audiences of all
ages after being close to declaring bankruptcy
in the early 2000s. By reinventing themselves,
they have managed to expand their business
ventures, and break into new markets or create
new ones.
The most prevalent factor in many of the
stories is technology; data and technology are
driving business change. Successful businessbuilders
look to integrate new technology, or
create their own systems and software, while
accelerating decision-making by making it autonomous
and accessing external financing
and capital like startups.
In its latest report mentioned above, McKinsey
& Company revealed that the largest portion
of the respondents’ current and future
investments is being directed toward sustainability
and digital technologies such as artificial
intelligence, the Internet of Things, and
augmented reality, displaying the growing
trend of digitizing operations for efficiency
and creating digitally-native solutions.
As a tactic, serial entrepreneurs use the uncertainty
that usually scares off larger public
companies by “hacking” problems through
multiple small and low-risk experiments, de-
48 January 2023
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In-Depth
veloping within a fast validation cycle and using
small groups of early beta test users which
would act as early adopters of a larger market
segment.
For established companies, it’s better to consider
these, when using startup tactics and lessons,
as more of an evolutionary step rather
than a revolution. Most are already operating
according to a successful business model and
provide effective products/services to customers;
it is about creating fresh opportunities for
revenue and growth through new market entry,
and unlike startups, companies with a solid
position within their industry face less risk.
Startups born in economic downturns show
the importance of value-added products
Both the local and global economies are
dealing with heightened inflation - creating
the biggest macroeconomic challenge in the
modern era of central banking — with Egypt’s
inflation reaching a five-year high of 18.7% in
November 2022, according to the latest data
by the Central Agency for Public Mobilization
and Statistics.
On top of that, there is a 98% chance of
a global recession as we move into 2023, according
to research firm Ned Davis (NDR) —
NDR’s recession probability reading has only
been this high twice before, in 2008 and 2020
— while the Organization for Economic Cooperation
and Development (OECD) expects
the global economy to avoid a recession next
year.
With this amount of uncertainty, companies
may decide to slow down on new businessbuilding,
however, startups tend to shine during
this time, looking at it as an opportunity to
break into markets with fresh offerings.
Many of today’s biggest disruptors were born
out of recessions and succeeded by providing
clear value to customers, and new twists to classic
industry models.
The Great Recession (2007-2009) witnessed
the creation of Airbnb and Uber, both of which
began as ideas to earn money during a difficult
economic downturn. The biggest takeaway
from their climb to success? Delivering services
and products that create value, whether it is
monetary (Airbnb’s hosts and Uber’s captains)
or convenience for end customers.
Another lesson gleaned is developing a
product/service with a strong focus and differentiation
rather than investing in launching
the new digital marketplace or solution
that combines the best of several competitors’
features and offerings, making it too broad
and difficult to differentiate from others in
the market. Focus on developing a great initial
product with innovative technology at first,
with a list of possible follow-on products that
can be commercialized down the line to stay
ahead of the competition.
Generally, a sustainable competitive advantage
requires value-creating products, processes,
and services that are unmatched by today’s
competitors, and simplifies the customer’s
journey; it is also important to plan content
and new services/products to maintain your
position as you scale.
Startups tend to lean towards a “focusing
on the foundations first, and then optimizing
later” mentality, a mindset that companies
should consider to keep up with the rapidly
changing business landscape and the continued
influx of disruptive startups.
While successful startups’ rapid growth,
scalability, and high adoption rates are great
to look at, keep in mind that these innovative
companies/grown-up startups also run the risk
of being disrupted by a new generation of agile
upstarts that will use the same techniques
and business models to their advantage, emphasizing
that the importance of understanding
the journey to reinvention and innovation
will always be continuous.
Successful business-builders
look to integrate new
technology…while accelerating
decision-making by
making it autonomous
Many of
today’s biggest
disruptors
were
born out of
recessions
and succeeded
by
providing
clear
value to customers,
and
new twists
to classic
industry
models.
www.BusinessTodayEgypt.com January 2023
49
In-Depth
Coping with Water
Scarcity: Egypt
Takes Alternatives
Seriously
Over the past years, Egypt has put in place strategies to address
water scarcity, investing in non-traditional alternatives including
drainage water treatment plants, the most prominent of which is
the Bahr El-Baqar station mega project.
50 January 2023
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In-Depth
By Nourhan Magdi
Egypt is diversifying its efforts to meet
the challenges facing the water sector
to secure water to sustain the rapidly
growing population, especially amid
negative impacts of climate change.
The country has embarked on many major
projects that serve the opened and covered networks
of the republic’s agricultural drainage systems.
Egypt suffers greatly from water scarcity, which
is why the state is making great efforts, grounded
in scientific findings, to face water challenges
resulting from limited water resources. Over
the past years the nation has implemented several
major projects reusing agricultural drainage
with the aim of implementing projects contributing
to agricultural expansion, achieving food
security and mitigating desertification. Among
these projects are the Bahr El-Baqar, al-Hamam
and al-Mahsama wastewater treatment plants.
The Egyptian Ministry of Water Resources
and Irrigation recently completed the construction
of the main Al-Salam wastewater station,
which consists of seven units with a capacity of
11 cubic meters per second. The state-of-the art
facility uses energy-saving equipment and features
an automatic control system in operation,
using high-tech programmed control devices to
ensure the safety of operation of the station’s
equipment
The Al-Salam station is part of the major
Bahr El-Baqar drainage water treatment system,
and raises 5.60 million cubic meters per day to
the treatment plant. The facility was registered
in the Guinness Book of Records as the largest
water treatment plant in the world, producing
2,044,000,000 m³ per year.
Bahr El-Baqar Wastewater Treatment Plant
With a capacity of 64.8 m³ (2,288 ft³) per second,
Bahr El-Baqar treatment plant introduces
a sustainable solution for environmental pollution
recovery and irrigation water source (via
recycling the water of Bahr El-Baqar drain), protecting
the environment and generating enough
water to support the cultivation of 400,000 feddans
in Sinai.
Started in 2019 and inaugurated in September
2021, the EGP 18 billion Bahr El-Baqar wastewater
treatment plant is the largest facility of its
kind in the world, treating around 5 million cubic
meters of water from the Bahr El-Baqar basin
every day. The 155-feddan facility has four treatment
lines, each with the capacity to process 1.25
million cubic meters of water each day.
The plant is located 10 km south of Port Sai’d
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tunnels in Sinai, 17 km east of Al-Qantara city. It
is considered one of the most important projects
that aim to develop the Sinai Peninsula to leverage
its natural resources. The project will contribute
to the reclamation of 456,000 feddans (or
4,500 m2) by recycling and using agricultural,
industrial and sewage wastewater, which will be
diverted from the western to the eastern banks
under the Suez Canal. Upon treatment, all water
will be dispensed into the Sheikh Jaber’s Canal.
The plant operates through four units of water
treatment, where each unit amounts to a capacity
of 1.4 million cubic meters per day.
The amount of treated water per year reaches
2 billion cubic meters, and the amount of hydrated
sludge per year amounts to 460,000 tons.
The construction of the treatment plant was
carried out by Egypt’s Arab Contractors (Arabco)
and Orascom Construction, after they were
selected by the National Authority for Drinking
Water and Sanitary Drainage through a competitive
bidding process.
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In Numbers: The Bahr El-Baqar Wastewater Treatment Plant
• Two canals: intake canal with a total length of 587 meters within the
borders of the plant, final wastewater treated channel and outlet canal
with a total length of 895 square meters.
• Four main courses of wastewater treatment, which include water
intake pumping building, rapid/slow mixing basins, sedimentation basins,
filters with discs, ozone basins and chloride tanks.
• Two sludge treatment units, where each unit consists of sludge
pumping building, sedimentation basins, mechanical drying buildings,
solar units for sludge drying.
• Sedimentation and services support buildings, consisting of chemical
injection buildings, chloride injection buildings, ozone generation buildings,
supporting generators building, electric boards and transfer buildings,
workshop building, chemical substances storage building, workers/
employees building, mosque and the main administration building.
Inside the Bahr El-Baqar Wastewater Treatment
Plant
The treatment plant’s units are divided into three phases as follows:
Phase 1- Pre-Treatment Phase
• Intake building, that consists of the refineries and intake pumps,
where the coarse and fine refineries operate on removing all small and
large planktons before the water flows down to the following phase of
treatment.
• The intake pumps’ capacity amounts to 1.4 million cubic meters per
day, where every building contains 5 pumps (4 operating and 1 substitute)
with each pump’s capacity reaching 4 cubic meters per second.
Phase 2- Water Treatment Phase
• Water treatment for initial sedimentation is done by adding materials
to adjust pH levels and help in the formation of flocculants and sedimentation
at the bottom of sedimentation basins. For example, sulfuric acid,
sodium hydroxide, ferrous chloride and polymer on sedimentation work
and the formation of large particles from the suspended solids inside the
mixing and settling tanks. These are then moved into the lamella sedimentation
tanks that cover 11, 600 square meters, used in the sedimentation
tanks and pipes technology for a more efficient process.
• Triple disc filters, where 120 filters are used in the project, with a
designed capacity of 1,992 cubic meters per hour per filter. The filtering
surface amounts to 32,800 square meters of fine polyester membrane
and a filter size of 10 microns in order to achieve the highest quality and
standards of purified irrigation water.
Phase 3- Post Treatment Phase
• Includes the water sterilization process by injecting ozone or chlorine.
The sterilization and disinfection of water before entering contact
tanks for purification, in order to control the water’s smell. Ozone,
hence, is injected to eradicate all parasites, bacteria and all harmful
organic substances from the water. In order to reduce chemical oxygen
consumed to reach the desired ratio of outflowing water, sterilization occurs,
followed by the final product being exited to Sheikh Jaber Canal.
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In-Depth
Understanding Barriers
to Realizing Full Potential
of Egyptian Exports
Egypt aims to attain $100-billion exports.
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Egypt aims to attain $100-billion exports, so as
a first step, it eyes $60 billion by 2025. The value
of exports recorded $45.2 billion in 2021, and is
projected to reach $50 billion in 2022. The top
importer of Egyptian goods in 2021 was the European
Union, as the country’s exports to the bloc
almost doubled to $14.5 billion by 2021, up from
$7.7 billion in 2017. The other major groups are
the G7 ($9.9 billion), ESCWA ($8.9 billion), African
Union (AU) member states ($5.5 billion),
and BRICS ($4.6 billion).
On the bright side, non-petroleum exports
represented 71.5 percent ($32.34 billion), while
petroleum ones were just 28.5 percent ($12.9 billion),
as stated by Prime Minister Mostafa Madbouli
in February. The top non-petroleum exports
are chemicals, construction material, food,
engineering products, agricultural crops, and
ready-made garments.
By Noha El Tawil
Being an export-oriented economy is
essential to ensure the quality of local
products is on par with international
standards, bring in foreign currency,
and create jobs highly needed in an overpopulated
country like Egypt. Boosting exports is
bound to multiple factors that involve the nature
of components, manufacturing processes,
pricing, and import markets.
Size of Egyptian Exports
Markets
Head of the Industrial Development Department
at the Egyptian Industries Federation Basel
Shoirah tells Business Today Egypt that Egyptian
producers should target all markets, and not just
specific ones, as they all have good potential. Another
reason is that Egypt enjoys a distinguished
location, and free trade agreements with many
countries and blocs.
Shoirah maintains that to achieve such an end,
producers have to enhance the quality and price.
Yet, the businessman explained that the issue with
offering competitive prices is the high costs of energy,
and inputs, which are often imported.
Head of the Egyptian Forum for Economic
Studies Rashad Abdo agreed on the same point
of striking a balance between price and quality.
He tells Business Today Egypt that to enter new
markets and increase Egypt’s sales, the products
have to be characterized by good quality, and offered
at reasonable prices. “Price and quality are
the main determinants of importers’ decision to
buy from us,” Abdo said.
Products
Head of the Industrial Development Department
at the Egyptian Industries Federation Basel
Shoirah says that Egyptian producers are doing
well in various sectors, and can export. Nevertheless,
he points out that the size of Egypt’s exports
of products involving technology is still limited.
As for importers’ comments on Egyptian goods,
Shoirah says that the negative ones are on the
quality of certain processed merchandise, while
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the positive ones are on speed given the location.
“For instance, the flow of agricultural products to
Europe is good, as they arrive very fresh,” the businessman
clarifies.
On that front, Abdo suggests attracting investors
who can produce goods of high value, and
who can bring in advanced technology. “We
also should leverage our location by luring investments
into SCzone, and particularly, sectors
known for high demand worldwide. That would
give us an advantage,” especially in times of crises
that disrupt global supply chains, Abdo adds.
Obstructions
The head of the Egyptian Forum for Economic
Studies explains that the factors that reduce exports
are bureaucracy, transport costs, ban on
exports of certain goods, and high costs of inputs.
With regard to transport costs, these can
be mitigated by selecting locations that are near
ports when building plants. As for inputs, expanding
reliance on local components should reduce
costs; however, those components have to be of
decent quality, as that should be the main factor
when making the choice, Abdo stresses.
On whether Egyptian producers are exportoriented
or not, the economics professor says it
depends on profitability, as investors would go
with whichever achieves more profits.
Shoirah explains that Egyptian producers are
interested in export, but the Egyptian market is
huge and plants are not large enough to supply
locally and abroad. That is why they have to set export
as a target that they must focus on and work
towards, the businessman maintains.
“We should target multinationals that can use
Egypt as a regional center to build plants that
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would supply to other countries as well … I myself
talked to investors, and the thing they like most
about Egypt is the huge market,” Shoirah says.
What To Do
Member of the Home Appliance Department
at the Engineering Industries Chamber Bahgat Al
Dahesh tells Business Today Egypt that increasing
exports is a goal that both the government and
producers must work towards. Speaking of the
role of the government, Al Dahesh says there are
three areas where the government is doing well,
while there are three others where efforts need to
be maximized.
Starting with areas that are already working
well, Al Dahesh lists the first as the free trade deals
Egypt has, as the absence of tariffs can counterbalance
the higher price, if the quality is good
enough. The second is that the government covers
70-80 percent of the costs of fairs held abroad
to promote Egyptian goods. “It would be great to
increase such fairs,” Al Dahesh suggests. The third
is export subsidies whose value ranges between 15
and 18 percent depending on the percentage of
local components. “For instance, if the local component
is at least 70 percent, the exporter is paid
the maximum percentage, which is 18 percent of
the value of the deal,” Al Dahesh explains.
As for the aspects that could be done better,
one is improving the role of commercial attaches,
as they have to carry out market research of needs
and demands that Egyptian exporters can fulfill.
“I receive calls from foreign embassies offering intermediate
products, and arranging business-tobusiness
meetings,” Al Dahesh says, pointing out
that local companies, regardless of size, cannot do
high-cost market research abroad.
Another area is encouraging feeding industries.
Al Dahesh clarifies that the lack of those industries
in Egypt ensues from the fact that tariffs on
raw materials are higher than those on finished
intermediate products. The range of the former is
5-10 percent, while that of the latter is 0-2 percent.
That makes local components more expensive.
Hence, the raw materials have to be exempted
from tariffs, Al Dahesh stresses.
Finally, there has to be a database of Egyptian
producers and what they produce, so that potential
importers can search by product. Al Dahesh
underlines that digitalization must also be on the
side of Egyptian manufacturers who have to better
promote themselves online.
R&D
Al Dahesh says that manufacturers have to work
on three aspects to be able to export, and that
those would not materialize without R&D. One
is that they have to make products that suit the
requests of importers. “Most manufacturers assemble
so they are not able to adjust the products,
and tailor them to the preference of importers,”
the expert explains.
Another aspect is that the exporter has to meet
quality standards in terms of good finishing, reliability,
and certification pertaining to safety, energy
efficiency, and environment-friendliness.
And, last, R&D can help increase the local component,
cut the cost of materials needed to produce
the components, maintain the quality, and
reduce the price of the final product by altering
the design and cancelling unnecessary features
that are not prioritized in the target market.
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Spotlight
Taking Nuclear
Medicine to
Different Levels
Egypt has achieved progress in the peaceful use of atomic
energy, and is currently moving towards incorporating nuclear
medicine in treating different diseases.
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By Nourhan Magdi
With progress made in the diversification
of the energy mix, and
achieving the maximum utilization
of the peaceful uses of the
atomic energy for the welfare of the Egyptian
people, the country has moved to expand the
use of what has come to be known as “nuclear
medicine” in treatment of different diseases,
which has proven more efficient than traditional
methods.
Nuclear medicine involves the use of radioactive
material inside the body to see how organs
or tissue are functioning, for diagnosis, or to target
and destroy damaged or diseased organs or
tissue for treatment.
Over the past few years, the Atomic Energy
Authority, headed by Dr. Amr Al-Hajj, has succeeded
in achieving great successes in the field
of nuclear medicine by resorting to the peaceful
applications of atomic energy, whether in
medical or other fields, which confirms Egypt’s
keenness to adhere to standards of the International
Atomic Energy Agency and benefit from
this technology to serve the community, achieve
public safety and preserve the environment.
The Atomic Energy Authority, represented by
the National Center for Radiation Research and
Technology, was able to develop a laboratory,
at the highest levels of safety and quality that is
compatible with international standards, for the
production of amniotic tissue extracted from
placenta at the Atomic Energy Authority, where
an experimental production of amniotic tissue
and many scientific experiments were conducted
to prove its therapeutic efficacy and clinical
compatibility for patients with bedsores, diabetic
foot and radiation burns.
Dr. Nashwa Kamal Radwan, a researcher at
the National Center for Radiation Research and
Technology and head of the radioactive amniotic
tissue project, stated that the end product has
proved an excellent effectiveness compared to
traditional methods of treatment and compared
to internationally competing products.
These successes were proven in scientific
journals and international conferences, and the
researches were recorded on the official website
of the authority. In order to record the innovative
successes clinically, Dr. Radwan added that
amniotic fluid was also tried as a treatment to remove
facial wrinkles and acne scars, saying that
“the results were impressive.”
According to Radwan, the product costs $700
in America for one batch, while it can be provid-
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The gamma irradiation units
participate in achieving the state’s
strategies through the following roles:
1
Achieving food
security
2
Preventing storage operations
in strategic crops such
as onion, garlic and potato
crops, which are strategic
crops, in order to reduce
waste.
3
Eliminating microbes that
cause spoilage of meat,
poultry and fish, which
works to preserve protein
quality.
4
Achieving food safety by
eliminating pathogenic
bacteria in food, fungi
that secrete mycotoxins,
and parasites harmful to
human health.
5
Promoting exporting by getting rid of
pests and insects that afflict many foods
(fresh fruits and vegetables, dates,
grains, etc), which works to facilitate
and overcome the agricultural quarantine
requirements when exported.
ed in Egypt at a price of only EGP 250 ($10.15).
Egypt has considered the use of atomic energy
in other fields including food preservation.
The decision was taken based on the country’s
agenda in maintaining safe and environmentally
friendly practices.
That’s why the gamma irradiation units at the
two locations of the National Center for Radiation
Research and Technology in Cairo (Nasr
City) and Alexandria participate in achieving
the state’s strategies by achieving food safety and
security, preventing storage operations, eliminating
microbes that cause poultry spoilage and
promoting export abroad by getting rid of pests
and insects, thereby avoiding the agricultural
quarantine requirements when exported.
Other roles include sterilizing medical supplies
at the National Center for Radiation Research
and Technology, such as syringes, dialysis
filters, blood transfusion tubes and equipment,
medical threads, gloves, medical cotton and
gauze, doctors’ scrubs and masks, artificial heart
valves, screws used in orthopedic surgery, raw
materials used in the pharmaceutical industry,
cosmetics, empty containers used to fill drops
and medicines, and others.
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Dabaa Nuclear
Power Plant
The National Center for Radiation Research
and Technology in Egypt has been producing
blood irradiation indicators, eliminating
the need to import the RadAver reagents from
abroad using hard currency.
Blood irradiation reagents are used in irradiation
of blood and some of its components for
tumor patients. They are chemical reagents that
depend on the occurrence of a certain chemical
reaction, which shows a clear color change from
yellow to red at low doses of up to 25 Gray (gy).
These reagents are used by sticking them on
bags of blood, plasma, or some of its other components
during the irradiation process using
gamma rays or x-rays, in order to visually verify
the irradiation process. The only acceptable way
to prevent the spread of blood transfusion diseases
is to irradiate blood and its components
before the blood transfusion process.
Dr. Atef Abdel Hamid, former head of the
Atomic Energy Authority, Dr. Yasser Shaaban
and Dr. Ahmed Mohamed Bayoumi conducted
numerous researches and were able to synthesize
new materials that were highly sensitive to
ionizing radiation crucial for the manufacturing
of blood irradiation reagents.
In November, Egypt celebrated the beginning
of the construction of the second nuclear reactor
at the Dabaa Nuclear Power Plant (DNPP)
west of Alexandria.
The Dabaa project is Egypt’s first-ever nuclear
power plant, and is designed to generate nuclear
energy for peaceful purposes in collaboration
with Rosatom, the Russian state-owned nuclear
engineering company in charge of building the
plant.
The planned four reactors for the plant are expected
to operate at a full capacity of 4,800 MW,
with each reactor generating 1,200 MW, by 2030.
The Egyptian Nuclear and Radiological Regulatory
Authority (ENRRA) is responsible for the
regulation and control of safety, security, nuclear
safeguards and emergency of all the nuclear
and radiological facilities and activities.
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Spotlight
Delivering Global Events
to Egypt’s Shores
As tourism continues to recover at a steady pace, Egypt’s event
industry and itinerary expands with local and global entries in our
annual calendars. From regional superstars to international comedians
and concerts, Egypt’s attractiveness as a regional entertainment hub
has accelerated as lockdowns and travel restrictions wane.
By Christine Salzmann
When looking for an example of how
Egypt is growing as an event destination,
Somabay is a clear example
of integrating the hospitality and
major events industries to create an end-to-end
solution.
For the past few years, the location has become
the backdrop to Egypt’s biggest multi-sport event
the Tri-Factory Endurance Festival, as well as one
of the largest global open-water swimming competition
Oceanman.
On the heels of hosting one of famed Croatian
cellist duo 2Cellos’ farewell concerts, we sat down
with Ibrahim El Missiri, CEO of Abu Soma Development
Company (ASDC) — the master developers
of Somabay — to discuss their upcoming events,
Somabay’s growing portfolio and expansions.
“Somabay was honored to collaborate with such
leading companies like RMC & MBC that are always
keen to present exceptional insights aiming
to impress different audience categories, El Missiri
told us, adding that the “historic concert is proof
of Somabay’s strategy to host various activities that
promote tourism revitalization and attract tourists
all over the world to enjoy the beauty and charm of
our beloved Egypt.”
“We pride ourselves on immersing our guests in
amazing moments that get rid of their daily stress
and lift their spirits. That weekend came to build
on our previous laudable endeavors to bring mega
international events all the way to Egypt, which
aligns with Egypt’s 2030 Vision to promote our
country as one of the best touristic destinations all
over the world,” he explained.
In early December, Egyptian Minister of Tourism
and Antiquities Ahmed Issa revealed that
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Egypt plans to stimulate inbound tourism and increase
foreign tourist arrivals by 25-30% annually,
with the aim to hit a revenue mark of $30 billion
by 2025.
Egypt’s Central Agency for Public Mobilization
and Statistics (CAPMAS) announced in September
that international tourists who visited Egypt
during the first half of 2022 reached 4.9 million,
compared with the H1 of 2021’s recorded 2.6 million
tourists.
When asked about what decision-making factors
come into play when prospecting and selecting
events, El Missiri told us that as part of the
approach to establish Somabay as an “all-time favorite
destination for each and every member in
our community,” the activities provided reflected
“a growing trend among our generation here in
Egypt.”
“In the past [year], Somabay was keen on bringing
international events like Oceanman, and Miss
Elite to [Egypt to] cater to different target audiences.
That’s why it was essential for us to be part
of 2Cellos’ final world tour as part of our strategy to
become an all-round player among real estate developers
within the luxury and lifestyle [segment],”
he said.
As the year closes, we asked the CEO about Sombay’s
upcoming events; he stated that “Somabay is
very keen on creating a series of diversified events
and celebrations to make its residents and visitors
experience one of a kind across all the holidays every
year, that’s why once again, we are ending 2022
with our mega New Years’ Eve party partnering
with the renowned byGanz to give us a top-notch
event.”
Somabay was the first development project in
the Red Sea Governorate and the first among the
only six integrated development projects in Egypt,
El Missiri explained, adding that the Egyptian government
has put significant effort into developing
the infrastructure of this area and facilitating the
development of roads and airports to make it easier
to reach the Red Sea Governorate.
“[By] cooperating with the Red Sea Governorate,
the destination becomes a potential economic
and touristic opportunity. I’m proud to say that
Somabay shows that there could be an established
community where people can come and settle,” he
told us when asked about his previous comments
on transforming Somabay from a holiday getaway
to a first-home destination.
Somabay’s strategy is to create a fully integrated
community for residents offering diversified facilities
that cater to everyone’s needs and more, he
clarified.
“It’s worth mentioning that after COVID-19 remote
working and connectivity have been more
common and applied in many businesses and corporates,”
E Missiri said. “[In that regard] I believe
that living in Somabay is the optimum choice and
opportunity for any type of business that is based
on connectivity creating a structured productive
working atmosphere.”
Moving into 2023, El Missiri discussed the
ASDC’s success in 2022, stating that “Somabay is
currently moving faster than we thought we’d ever
be. We’ve launched three projects in a year, which
is mind-blowing. Blanca, a prime beachside residence
project, The Coves, an amazing place with
insane topography and landscape, and finally, Bay
Central, an expansion to the Marina, the most
luxurious side of Somabay. Last year we launched
Mesca Cabanas, which was a great success, people
just loved it!”
According to the ASDC CEO, visitors will no longer
need a “fancy big home” to enjoy all that Somabay
has to offer, highlighting that the area also
provides smaller places to stay while still allowing
access to the beach.
“We also launched our new brands Somabay
holidays and StayR. StayR is a luxury vacation rental
and top-class concierge services apartments in
Somabay, expertly combining personalized hospitality
with a refined local touch to transform your
vacation into an exceptional experience of a lifetime,”
El Missiri explained.
El Missiri with 2Cello’s
Luka Šulic ` and Stjepan
Hauser.
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Spotlight
World Economy
to Undergo Tough
Phase in 2023
The right monetary and fiscal policies are the only way to a
healthy economy.
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65
Spotlight
By Noha El Tawil
In the first months of the COVID-19 pandemic,
it was hard to forecast when the
world economy could rebound to prepandemic
levels. Yet, a promising performance
had begun to show in 2021, before
the Ukraine War drove up the prices of energy
and food, incurring inflation and financial crises
in many countries around the world. Economic
projections for 2023 are rather grim.
Although positive growth will persist almost
worldwide, the pace will be quite slow. And, to
prevent further deterioration, the right monetary
and fiscal policies must be put in place in
tandem with a focus on green transition, as it
will ensure sustainability and efficiency on the
long term.
Growth and Inflation
In its latest World Economic Outlook released
in October, the International Monetary
Fund (IMF) estimated that global growth would
plummet from six percent in 2021 to 3.2 percent
in 2022, and 2.7 percent in 2023. Those
figures are the lowest since 2001, except for the
periods of the global economic crisis and CO-
VID-19 lockdowns. The drop is intertwined with
economic contraction in the United States during
the first half of 2022, and in the eurozone
during the second half of the same year. That
is coupled with the harsh reemergence of the
pandemic in China, which also suffers from a
stagnant real estate sector.
Speaking of global inflation, it is expected to
almost double, recording 8.8 percent in 2022
up from 4.7 percent in 2021. Yet, it is expected
to fall to 6.5 percent in 2023, and 4.1 percent
in 2024. The most imminent risks that may
cause inflation to persist are hiking prices of
food and energy, shortage in Russian gas to
Europe incurring a reduction in output, and
a resurgence of COVID-19 or other health
crises. The average price of the oil barrel in
2023 is estimated at $85.52, down from the
projected $98.19 in 2022, which will impact oil
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exporters and oil importers differently.
Inflation is hitting low-income citizens in developing
countries hard, given that half of their
expenditure has been directed to food, which
means that their health and living standards are
at grave risk.
Simultaneously, the current strict conditions
of financing can give rise to a debt distress in
emerging markets. In addition, the property
crisis in China can take a toll on the domestic
banking sector, generating a cross-border spillover.
Sad News for Developing States
In Asia’s emerging and developing economies,
growth is projected to decline to 4.4 percent
in 2022 and 4.9 percent in 2023, down
from 7.2 percent in 2021. Similar economies in
Europe will experience no growth in 2022 and a
slight one in 2023 (0.6 percent). The decline is
also happening in Latin America and the Caribbean
as growth will slump from 3.5 percent in
2022 to 1.7 percent in 2023. A similar scenario
is projected for the Middle East and Central
Asia, as oil prices are expected to dip. Growth is
expected to be 3.6 percent in 2023, down from
five percent in 2022. The region that is enduring
a less dramatic contraction is sub-Saharan
Africa where growth is projected to drop from
4.7 percent in 2021 to 3.6 in 2022 and 3.7 percent
in 2023.
General Recommendations
The report recommends that the priority of
monetary policies must be inflation containment,
while that of fiscal policies must be the
protection of vulnerable groups. It also encourages
the intensification of “structural reforms”
in order to “improve productivity and economic
capacity,” as that in turn would “ease supply
constraints” and contribute to countering inflation.
The IMF further stipulates that green transition
would be beneficial on the long run, primarily
in terms of energy security and climate
change mitigation.
Blow to Global Trade
The World Trade Organization (WTO) estimates
that the volume of merchandise traded
globally would grow by just one percent in
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Spotlight
2023, down from the projected 3.5 percent in
2022. That is because demand is expected to
drop in Europe due to the rising energy prices
caused by the Ukraine War, which puts pressure
on households, and raises the costs of manufacturing.
In the United States, raising the interest
rate is shrinking expenditure in the areas of
housing, motor vehicles and fixed investment.
As for China, the outbreaks of COVID-19 are
disrupting production. As for developing countries,
they are already grappling with rising fuel,
food, and fertilizer bills.
In 2022, the ranking of regions in terms of
growth in export volume is — from the highest
to the lowest — the Middle East (14.6 percent),
Africa (six percent), North America (3.4 percent),
Asia (2.9 percent), Europe (1.8 percent),
South America (1.6 percent), and the Commonwealth
by Independent States (-5.8 percent).
As for imports, the ranking is topped by
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“The World Trade Organization
estimates that the volume
of merchandise traded
globally would grow by just
one percent in 2023, That is
because demand is expected
to drop in Europe due to the
rising energy prices caused by
the Ukraine War, which puts
pressure on households, and
raises the costs of manufacturing.”
the Middle East (11.1 percent), followed North
America (8.5 percent), Africa (7.2 percent),
South America (5.9 percent), Europe (5.4 percent),
Asia (0.9 percent), and the Commonwealth
by Independent States (-24.7 percent).
The projections for 2023 in terms of rise in
imports are 0.8 percent in North America; one
percent in South America; -0.7 percent in Europe;
9.4 percent in the Commonwealth of Independent
States; 5.7 percent in Africa; 5.7 percent
in the Middle East; and 2.2 percent in Asia.
Exports are estimated to grow by 1.4 percent in
North America; 0.3 percent in South America;
0.8 percent in Europe; 3.3 percent in the Commonwealth
by Independent States; -1 percent
in Africa; -1.5 percent in the Middle East, and
1.1 percent in Asia.
Forecasts for Egypt
The IMF projects that Egypt will achieve the
second-highest real GDP growth in the Middle
East and Central Asia in 2023, which is 4.4
percent. The highest figure will be recorded
in Mauritania at 4.8 percent. The financial institution
also estimates that Egypt’s real GDP
growth in 2022 will be 6.6 percent, up from 3.3
in 2021. It speculates that in 2027, the country
will record a real GDP growth of 5.9 percent,
the highest in the region along with that of Somalia
(six percent).
As for consumer prices, they, unfortunately,
could spike by 12 percent in 2023 up from the
projected 8.5 percent in 2022, and 4.5 percent
in 2021. Nevertheless, the figure is expected
to fall to seven percent by 2027. On the other
hand, unemployment is estimated to remain
stable at 7.3 percent in 2022 and 2023, as that
was the figure recorded in 2021. Regarding the
current balance of payment, it will keep declining
from -4.4 percent in 2021 to -3.6 percent in
2022, -3.4 percent in 2023, and -1.6 percent in
2027.
www.BusinessTodayEgypt.com January 2023
69
Spotlight
Clean Transportation
Era Begins in Egypt
bt highlights major
sustainable transportation
projects Egypt has
embarked on, some of
which have already
gone into
operation.
By Nourhan Magdi
Egypt has embarked on a number of sustainable transportation
projects based on environment-friendly technologies
in passenger transport and green infrastructure.
Transportation is the second cause of environmental pollution
in the country, as a result of carbon emissions, with transportation
being responsible for 23-2% of carbon emissions in the atmosphere,
according to Egyptian Minister of Transport Kamel El-Wazir.
70 January 2023
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Spotlight
This has pushed the authorities to lay the
foundation for different projects and expansions
including a monorail, electric train, the
light rail transit (LRT), high speed electric
train and the Bus Rapid Transit (BRT).
The aims, states the Ministry of Transport,
is to transform transportation into collective
means, thereby reducing the number of cars
and alleviating traffic congestion.
Demonstrating the country’s stance in maintaining
a safe and green environment, Egypt
operated 260 electric buses in Sharm El-Sheikh
to transport delegations attending the 27th UN
Climate Change Conference (COP27) hosted
in November. The ministry has begun its plan
to convert to electric transport in Sharm El-
Sheikh and the tourist cities of Hurghada,
Luxor and Aswan.
In addition, the monorail is set to operate by
2023.
Cairo Monorail
With its two lines extending for almost
100km, Cairo Monorail is considered the longest
monorail network in the world, where pon
completion, it is expected to be transporting
45,000 passengers per hour in each direction.
The monorail is among various methods of
green transportation that Egypt has been constructing
in order to improve mobility for its
population, reduce emissions, and ease traffic
congestion.
Linking Cairo, New Cairo’s Fifth Settlement,
the New Administrative Capital and Sixth of
October City, the monorail will be Egypt’s most
advanced means of mass transportation, as it
runs on electricity instead of diesel. It is esigned
to run at 90 km/hour and is fully-automated
and driverless.
In August 2019, Bombardier Transportation,
Orascom Construction and the Arab Contractors
signed an agreement with the National Authority
for Tunnels to design, build and operate
two new monorail lines in Egypt. A consortium
comprising Orascom, Alstom, and Arab Contractors
has been implementing the project.
The first monorail line will extend 54km from
East Cairo to the New Administrative Capital,
with 22 stations and a depot. The second line
will be around 42km in length connecting the
Giza Governorate to Sixth of October City with
12 stations.
The total cost is slated to be €2.5 billion, and
trains will have rubber tires to reduce noise, in
addition to being corrosion-resistant and recyclable.
Although the ticket price has not yet been
officially determined, the Transport Minister
www.BusinessTodayEgypt.com January 2023
71
Spotlight
has indicated that it could be around EGP 25
($1.02).
Egypt’s BRT system
The BRT is a high-quality bus-based transit
system that delivers fast, comfortable, and costeffective
urban mobility. BRT has the potential
to improve accessibility in Greater Cairo by extending
the reach of the metro, bus, and paratransit
systems.
The BRT, the first of its kind in the country,
will serve 25 million people living in Greater
Cairo (a quarter of Egypt’s population) through
47 stations located on the Ring Road.
The Ring Road will consist of six lanes for
motorists, and a separate lane designated for
BRT buses, bringing the total to seven lanes
in each direction. The upgrading of the Ring
Road, which is considered one of the most congested
highways in Greater Cairo, has been underway
to expand the lanes from four to seven
in each direction.
Operating on electricity and stopping at designated
stations, the BRT system will replace
microbuses, which will be completely banned
on the Ring Road.
The BRT system is designed to travel for a distance
of 106 kilometers, where buses will operate
18 hours a day with a speed of 50km/hour.
It accommodates three bus models: single, dou-
72 January 2023
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Spotlight
ble, and triple buses that can transport between
95 and 300 passengers.
In January 2022, El-Wazir announced that the
first 10 stations of the BRT system will begin to
be established, with architectural and construction
diagrams already completed.
In May 2021, El-Wazir stressed that this project
would help Egypt cope with an ever-growing
demand for means of transportation, especially
when the government is relocated to the New
Capital.
In addition, the country inaugurated its first
light rail transit (LRT) in July, which can accommodate
1 million passengers per day. The lines
of the 105km LRT, some of which are still under
construction, link Greater Cairo with Egypt’s
new Administrative Capital, east of Cairo.
Egypt further decided to invest in electric
cars, providing several charging stations in Cairo
and Giza.
The nation’s Nabq Protected Area, located in
South Sinai Governorate, has also inaugurated
its new environmentally friendly transportation
service with electric cars and water bikes.
www.BusinessTodayEgypt.com January 2023
73
BT Scene
Allianz Egypt Supports “Save Hospital 57357” Donation Campaign
Allianz Egypt, the leading insurance company in Egypt affiliated
to Allianz Global Investors, announced the support
of “Save Hospital 57357” donation campaign.
Allianz Egypt will contribute to the cost of Stereotactic
radiosurgery (SRS) that provides excellent clinical results
in treating a broad spectrum of brain tumors non-invasively
with fewer side effects than those resulting from traditional
surgical approaches or radiotherapy. Such an initiative goes
in line with Allianz Egypt’s corporate social responsibility
strategy.
Allianz Egypt has been keen on funding cancer treatment
for children in Egypt, as supporting the health sector as well
as children and youth is a key factor of the group’s corporate
social responsibility. These areas aim to build a healthy community
and enable youth and children to view sustainability in
Egypt and create a promising future for the coming generations.
Allianz Egypt focuses its social responsibility on main pillars
that include supporting youth and creativity for development
and helping offer equal access to quality education.
Such goals are materialized in the partnerships Allianz Egypt
has entered into with prestigious entities.
Tatweer Misr is Finally Flowing West with Its Latest Project ‘Rivers’
Tatweer Misr, one of the leading real estate development companies
in Egypt, announced the launching of its latest project “Rivers” in the
heart of New Zayed — placing the real-estate developer in all strategic
destinations across Egypt. The announcement was made in the last
week of November during the opening of Tatweer Misr’s new sales office
in West Cairo at Arkan Sheikh Zayed.
The launching event was a 10-minute unique experience that took
the guests into three different rooms. The first room started with a
video of both Dr. Ahmed Shalaby, President and CEO of Tatweer Misr,
and Karim Radwan, Chief Commercial Officer, in which they welcomed
the guests, shared a glimpse about the company and its projects and a
brief on the inspiration behind the project’s masterplan.
The second room was a 3D, holistic experience that took the attendees
on a tour to “Rivers” to be fully immersed in the new project’s experience;
from the greenery surroundings and the sense of smell that
was triggered by the lemon grass to the fresh air of the place. The third
room was designed in a form of a dining room to give the guests the
sense of home while watching a sales pitch video explaining everything
about the project. Finally, guests were led to round table booths where
sales representatives were ready to answer any questions and attend
to further requests.
“Rivers ... our latest contribution to the real estate scene, is a
boutique living experience that depicts exclusivity flowing west and
pays tribute to natural serenity, and unrivalled privacy in the heart of
New Zayed. Through Rivers, Tatweer Misr has successfully placed its
footprint in all of the most strategic locations in the real estate market
in Egypt, meeting our aspirations of being widely spread across the
country,” said Dr. Ahmed Shalaby, President and CEO of Tatweer Misr.
He continued,” Rivers asserts our strategy of creating smart, sustainable,
and happy communities, leading Tatweer Misr to be a leading
company with a pioneer vision and business model, that is committed
to design excellence, innovation and sustainability.”
Master planned by world-renowned Italian architect Gianluca Peluffo
and Partners, the carefully designed project is set to place residents’
life at the intersection of tranquility and action, offering units with landscape
and river views. Situated on 100 acres of greenery and turquoise
waters, Rivers is located in a prime location in the heart of New Zayed,
three minutes away from Sphinx International Airport, 12 minutes from
Sheikh Zayed, and 35 minutes from Downtown. The project also allows
direct access to Dabaa-Rod Al Farag Axis, Cairo-Alexandria Desert
Road, Dahshur Road and El-Mehwar.
Rivers encompasses more than 700 units with sizes that vary between
180 and 350 square meters. The project offers a diverse array
of single-family homes that range from standalones, twin houses and
town houses, where every unit is guaranteed a waterfront and landscape
view with intertwining rivers and central parks. Moreover, Rivers
provides multiple facilities and amenities including a clubhouse, central
parks, an outdoor gym, and a commercial hub with cafes and retail
stores in addition to walk lanes and bike lanes.
Guided by a unique vision to offer exceptional quality and tangible
diversity in its five projects; IL Monte Galala at Ain Sokhna, Fouka Bay
& D-Bay at the North Coast, Bloomfields in Mostakbal City, New Cairo
and Rivers in New Zayed, West Cairo, Tatweer Misr has succeeded in
building multilayered partnerships over the past years that resulted
in developing an innovative active network solution where sustainable
and smart city services meet the Internet of Things. Today, the real
estate developer is setting the benchmark for integrated living through
innovative projects that create destinations and reflect the met needs
of their smart, sustainable and happy communities.
74 January 2023
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bt scene
Launch of Menthum – a Pioneering Digital Saving Solution in Egypt
Team Menthum recently announced the launch of an innovative
digital saving solution in Egypt: a first-in-market mobile app
that makes saving simple, smart, and secure. Menthum brings
together a novel product concept, an innovative workflow, and
a money market fund to create a comprehensive customerexperience
(CX). Egypt’s first purpose-built digital money market
fund, a.k.a. “Menthum Money Market Fund,” invests in safe
Egypt government Treasury Bills (T-Bills).
The product is the brainchild of a team of veteran professionals
with extensive expertise in banking and finance: Himanshu
Shrimali, Co-Founder & CEO of Menthum Holding, was leading
the retail banking division at a large Egyptian bank, and Ismail
Sarhank, Co-Founder & COO, has held a leadership role in the
financial services industry.
Speaking at the product launch, Shrimali explained the motivation
for devising a novel saving solution. “We work hard to
make money. Our money should also work hard for us! While
desiring a better return on our money, we care for its safety
even more. Menthum was created to earn solid return on our
liquid savings yet ensure peace of mind. We strongly believe that
a product created to address a strongly felt personal need will
positively add value to fellow Egyptians’ lives.”
Offering an overview of the market offerings for liquid savings,
Ismail Sarhank said, “We all keep a part of our money in liquid
form, for our short to medium term needs and goals — be it
school fees, health expenses or a car, a house or a holiday. However,
a typical bank account in Egypt pays low interest on liquid
savings, in the range of 4 to 6% annually. This rate is generally
based on the account balance. Few banks offer daily interest accounts
and require high balance to earn good interest.”
Sarhank added, “A money market fund, which is as safe as
a bank account from a credit risk perspective, can earn returns
upwards of 10% annually or more in the current interest rate environment
and that’s how Menthum made this process simple,
smart and secure.”
“From our experience, we felt the need to create a hasslefree,
customer-centric saving solution that assures first and
foremost the safety of money, while ensuring convenience of
use. Thus, we created Menthum, ‘A Fresh Way to Money’. The
word ‘Menthum’ (inspired by Latin for ‘Mint’) denotes a ‘Fresh’
way to save, manage and add value to money,” Shrimali explained.
Customers can download the mobile app from the comfort
of their home/office and complete the sign-up process in under
a minute. The Menthum team then visits the customer to complete
the Know Your Customer (KYC) requirements and obtain
their signature. Their Menthum account is then activated and
customers can freely add money; with no restriction on the
minimum amount. Customers earn daily return as soon as their
money is credited in their Menthum account. There is no lockin
period. Hence, customers can withdraw money at any time.
“With the growing dynamism of the country and the increasing
demand for innovative products that add more value in our lives
in a secure manner, we sense that Egyptians are at a turning
point for embracing change and pioneering ideas,” Shrimali
noted. “We hope to play a significant role in enhancing financial
inclusion in Egypt by expanding the availability of innovative saving
solutions to a wider base of Egyptians.”
“We thank the team at Azimut led by Ahmed Abou El Saad,
who swiftly understood our vision and worked with us to realize
the country’s first digital fund.” Shrimali and Sarhank concluded,
“We would also like to express our sincere gratitude and appreciation
for Menthum’s regulator, the Financial Regulatory
Authority (FRA) of Egypt, for their pragmatic approach and proactive
support. They certainly walk the talk when they say Building
Bridges Not Walls!”
Menthum Holding for Financial Investments S.A.E. is licensed
and regulated by the Financial Regulatory Authority (FRA) of
Egypt. Menthum Money Market Fund is licensed & regulated by
the Financial Regulatory Authority (FRA) of Egypt.
www.BusinessTodayEgypt.com January 2023
75
bt scene
Cairo 3A signs an exclusive partnership to distribute Driscoll’s berries to the local market
Within a designated framework to expand its product portfolio of
crops and increase the company’s sales, Cairo 3A Agricultural Company
— an affiliate of Cairo 3A group — announced the signing of a partnership
contract with Driscoll’s International Company. Driscoll’s is the
world’s leading company in cultivating, producing and exporting blackberries,
blueberries, raspberries, berries and strawberries. Under the
agreement, Cairo 3A Agricultural will be the sole representative for the
marketing and sales of these goods in the Egyptian market.
Delivering a variety of new and distinguished products that suit the
different tastes of Egyptians is one of Cairo 3A Agricultural’s intents
through signing this partnership. This also comes in line with the country’s
directives to establish partnerships with major international companies
and encourage attracting foreign investments to Egypt.
Driscoll’s International Company granted the exclusive partnership
to Cairo 3A Agricultural on the grounds of its distinguished experience
in producing and distributing fruits and vegetables to the Egyptian and
global markets.
“We are pleased to sign a partnership contract with Driscoll’s International
Company, which is considered the largest producer of berries of all
kinds in the world, with a 70% market participation,” announced Mr. Ali
El-Gamil, CEO of Cairo 3A Agricultural Company. “Driscoll’s is cultivated
in 21 countries and marketed across more than 60 countries in North
America, Europe, and the Middle East. That’s why winning the exclusive
partnership will help us penetrate many new distribution channels in the
local market and increase the volume of products we distribute, especially
fruits of various kinds.”
El-Gamil unveiled that the agreement includes a plan to export strawberry
products by Cairo 3A Agricultural to different distribution areas
handled by Driscoll’s worldwide. This will contribute to placing Egypt on
the global map for the cultivation of some specialized types of fruits, and
will also grant transferring investors’ destinations to invest in the Egyptian
agricultural market.
He also stated that it was mutually agreed to reach a 300 million EGP
volume of cooperation during the first year, whether from distributing
Driscoll’s products in the Egyptian market or exporting Cairo 3A Agricultural’s
strawberry products through Driscoll’s distribution network
across the globe. With an optimistic plan to exceed the barrier of EGP1
billion by the fifth year, Cairo 3A aims to obtain a 50% market share of
berries sales in the local market in 2023, provided that it exceeds 90%
by 2028.
“We identified the major companies operating in the local market and
studied them thoroughly to choose the one that will contribute to supporting
our vision, Cairo 3A Agricultural was the most suitable company
to match our standards,” said Mr. Shadi Fayed, who manages sales and
key accounts of Driscoll’s in the Middle East and North Africa. “Driscoll’s
vision is to consolidate its position all over the world, serving a larger
number of customers, and creating many new delightful moments for
consumers, through consuming berries. Cairo 3A Agricultural Company
gained our trust due to its long experience in the Egyptian market, its
production of a wide range of high-quality fruits, and its great storage
and distribution capabilities to many different distribution channels in the
Egyptian market.”
Romain Contat, regional head of Driscoll’s, added that providing all
kinds of berry products at reasonable prices to all consumers and supplying
them to all relevant outlets is the company’s primary goal.
Cairo 3A Agricultural Company is a leading company operating in
producing and distributing fruits and vegetables in the Egyptian market.
It owns 2,500 acres in Wadi El-Natrun to grow several crops, a packing
station with a production capacity of 120 tons per day that includes 6
packing lines, and one of the largest cold storage facilities in the Middle
East and Africa with a capacity of 6.6 pallets to ensure that fresh fruits
and vegetables remain of high quality. The facility also includes 3 cold
rooms, 2 freezer rooms, 2 pre-cooling units, and 1 quick-freezing tunnel,
in addition to the Qutof concentrates factory, which operates with
an annual production capacity of 12,000 tons. The company is one of
the largest companies exporting fruits and concentrates in Egypt and
exports its products to over 40 countries worldwide.
Somabay becomes a benevolent contributor for the African Hope foundation
Abu Soma Touristic Development Company (ASDC) sponsored
a charity paddle tennis tournament organized by a
group of students of the British International School in Cairo
(BISC). In an attempt to brighten the spirits and holiday
mood, proceeds from the tournament will be contributed to
offering 350 Christmas support boxes to the orphans and
children at the African Hope Foundation.
Bringing 40 players to the Royal Paddle Arena in the Bull
Sports Complex, the charity event attracted between 60-200
customers of different age demographics, paddle competitors
of levels A, B & C as well as various international school
communities.
76 January 2023
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Stunning Cadillac Heralds Electrifying Era of Luxury and Refinement in Egypt
Cadillac will redefine luxury motoring in Egypt, starting with the
stunning design and artfully integrated technology of the LYRIQ
luxury SUV, General Motors (GM) and Al Mansour Automotive.
Globally, Cadillac will be all-electric by 2030, with the LYRIQ spearheading
the transformation of the brand synonymous with American
luxury and innovation.
Cadillac’s all-electric future in Egypt kicked off at the COP27
global sustainability conference in Sharm El-Sheikh, where the
LYRIQ is part of GM’s EV demonstration fleet being utilized by attendees.
Mohamed Mansour, Chairman of Al Mansour Group said, “In a
month when Mansour Automotive and GM are Principal Partners of
COP27, the world’s most important climate conference, the launch
of Cadillac represents an exciting glimpse of a cleaner and greener
future for Egypt. Our two great companies have partnered for well
over 40 years and this is another significant moment in our longterm
relationship.”
“There is no doubt that the future is electric; the only questions
that remain are when, and how?” said Shilpan Amin, Vice President
and President of General Motors International. “Innovation is in
Cadillac’s DNA, and in partnership with Mansour Automotive, we
have no doubt that Cadillac has the legacy and expertise to make
it a closer reality in Egypt. Not only that, but we are also making it
extraordinary by promising a completely new ownership and driving
experience, that will redefine what we want and need from our
luxury vehicles.”
Sharon Nishi, Managing Director of General Motors Egypt, stated,
“Cadillac has an illustrious history in Egypt, especially hailing from
the time of the golden age of the Egyptian Cinema when Cadillac was
the ultimate definition of luxury. We are thrilled to announce the return
of Cadillac to Egypt with its all-new all-electric lineup from 2023.
Egypt is one of the most important markets for General Motors Africa
and Middle East. Bringing our luxury brand, Cadillac, as an all-electric
brand in its 120th year is a milestone for us, and we cannot wait to
start our journey with Egyptian luxury customers.”
“We are committed to deliver on Cadillac’s first-class and sophisticated
customer experience to the Egyptian market. Al Mansour
Automotive Company has been a market leader since inception and
continues to bring innovative products, services, and technologies
for the discerning Egyptian consumers,” stated Ankush Arora, CEO
of Al Mansour Automotive.
Cadillac is defining the future of luxury transportation through a
series of exciting new electric vehicles, including the 2023 LYRIQ
which sold out in the United States within two hours of its launch to
customers earlier this year.
Cadillac is a true icon of luxury automotive with a 120-year heritage
— and its all-electric future will continue to position the brand
at the leading edge of technological advancement and luxury for
customers.
GM’s advanced and fully flexible Ultium battery platform underpins
the LYRIQ and Cadillac’s future electric portfolio, offering
performance and driving range exceeding many petrol-powered
vehicles.
Cadillac LYRIQ will be available with premier technologies and
stirring performance capabilities enabled by the vehicle’s dedicated
electric architecture. A 12-module, 102 kilowatt-hour battery pack
and an all-wheel-drive Ultium Platform deliver a Cadillac estimated
500 horsepower and 610 Nm of torque — and a range of approximately
500 km with a full charge. LYRIQ also offers high-speed DC
fast charging enabling customers to add an estimated 125 km of
range in about 10 minutes of charging time and 265 km of range in
about 30 minutes of charging time.
The interior is clean and simple with a focus on secondary and
tertiary design elements, including intricate laser etched patterns
through wood over metal décor, which has never been done before.
The large, curved LED screen is the centerpiece, alongside the distinctive
black crystal grille, and all the components are incorporated
artfully, blurring the lines of separation among technology, lighting
and décor.
The bold plans to announce the return of Cadillac to Egypt were
revealed at a press conference at The Nile-Ritz Carlton in Cairo on
November 10th, 2022.
www.BusinessTodayEgypt.com January 2023
77
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Global fashion brand DeFacto opens 25th store in Egypt
Continuing to invest in Egypt without losing momentum, DeFacto
opened the doors of its 25th store in the country. Attending the opening
of the new store in Maxim Mall, DeFacto General Manager of Merchandising
and Marketing Barış Sönmez said that they plan to continue their
investments in Egypt.
Operating continuously in 93 countries from Europe to Asia with a
team of 15,000 people in more than 500 stores, global fashion brand
DeFacto continues its investments in Egypt which it started by opening
its first store in 2013, without losing momentum. “We will continue to
increase our investments in Egypt in 2023, where we attracted great
interest,” Sönmez said.
Continuing to bring the latest trends to its customers in Egypt,
DeFacto’s newest addresses had been Cairo and Alexandria. The new
stores opened in recent weeks, in Maxim Mall and Green Plaza Mall,
offer a wide range of products for women, men, children, babies and
accessories.
“As DeFacto, we have succeeded in becoming a leading brand that
satisfies all our customers in Egypt thanks to our collections that are
appealing to people of all ages and styles, our wide store network and
our strong online channels. Our primary goal and the secret of our
business is to offer our customers the latest collections at the most
affordable prices by adapting to the ever-changing fashion. Seeing the
happiness of our customers proves us that we are following the right
strategy by investing in Egypt. In 2023, we plan to continue our invest-
ments at the same pace,” Sönmez said.
DeFacto attaches great importance to the employment of personnel
with disabilities in Egypt as well as in its operations in other countries.
The global fashion brand was awarded the Certificate of Appreciation for
Employing People with Disabilities in Compliance with the Law by the
Egyptian Ministry of Labor for employing people with disabilities in the
field and head office.
MIP Reveals its Roadmap for Sustainability during COP27 in Sharm El Sheikh
In line with COP27 theme ‘Together for Implementation’ Misr Italia
Properties (MIP) unveiled a series of unique practices across its diverse
developments. MIP prioritizes quality through partnerships that help present
comprehensive projects taking its values and sustainability measures
into account, towards a greener future.
“COP27 in Sharm El Sheikh focused on constructive implementation
and this has been the guiding principle of our strategy; the real estate
industry as estimated by the World GBC is responsible for about 40% of
global carbon emissions; as an industry, real estate development needs to
take proactive steps to reduce its impact on the planet and its resources,”
explained Mohamed Hany El Assal, CEO and Managing Director of Misr
Italia Properties.
During the first week of COP27, the company signed The United Nations
Global Compact Network Egypt (UNGCNE) “Egypt’s Sustainable Communities”
Initiative Declaration with the aim of building better lives and the
Climate Ambition Accelerator, promising to collaborate and share best
practices across the construction and real estate value chain and to ensure
the well-being of people and the planet. In that light El Assal added that
“we are thrilled to be part of this initiative which aims to coordinate members’
efforts to resolve barriers that stand in the way of industry growth
and bring forward best practices to achieve sustainability, and reshape the
industry in a way that sustains the environment.” Italian urban planner and
architect Stefano Boeri and his exclusive presence with Misr Italia Properties
demonstrated the latest technologies used within IL BOSCO’s Vertical
Forest project, elaborating on the partnership with MIP and its impact on
the environment; through combating pollution by absorbing about 7 tons
of carbon dioxide annually and producing 8 tons of oxygen.
In line with the company’s customer-centric “Inspired by You” approach
towards sustainability, MIP’s main priority is their client’s quality of life and
moving towards a greener climate by introducing innovative, time and
cost-efficient methods in urban planning. In that regard, Mohamed Khaled
El Assal, CEO and Managing Director of MIP, highlighted that “we believe
that in order to get closer to achieving the UN’s Sustainable Development
Goals and Egypt’s 2030 vision for sustainable living, we leverage our local
and international partners’ expertise to create the best for our clients and
to maintain best practices and to secure partnerships that reflect our commitment
towards creating sustainability within our projects, MIP signed an
MOU with Schneider Electric where the latter is planned to employ their
expertise and together develop smart-city concepts using EcoStruxure
systems, which enables comprehensive management of all infrastructure
including DCIM, security, command and control centers, energy, heating,
air conditioning, and water. El Assal further added that “another partnership
we are proud of securing is signing an agreement with Future Clean
Energy towards implementing solar panels on the roofs of 3 commercial
malls with a capacity of 400 kilowatts from solar power plants to produce
renewable energy and save user expenses by up to 20%.”
Misr Italia Properties stands among the industry’s most proactive leaders
that invest towards having a green development in 2022, and goes
in line with Egypt’s Climate Change Strategy 2050 by prioritizing smart
technology systems in all its residential, commercial and administrative
projects with the aim of adding value to people’s lives and the environment
they’re a part of.
78 January 2023
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COFE App signs agreement with Saudi Coffee Company to become their premium
online coffee marketplace
COFE App, the premier online coffee marketplace, recently announced
the signing of an agreement with the Saudi Coffee Company
(SCC). As per the agreement, COFE App will be the premium online
partner for SCC supporting them in amplifying their reach to coffee
lovers in the Kingdom and beyond. This strategic partnership between
COFE and SCC is aimed at propelling the Saudi coffee industry into the
digital era, consequently empowering local producers to connect with
end users with greater ease and convenience.
The partnership between COFE App and SCC is set to propel the
coffee e-commerce sector further, making Saudi-grown beans available
to coffee lovers through COFE’s mobile app. Both companies are
united in the purpose to transmit technology and knowledge to the
Kingdom in a number of areas, including coffee production, roasting,
marketing, and sales, as well as all other activities, in order to promote
the Kingdom as a frontrunner in the sector.
Commenting on the agreement, COFE App Founder & CEO Ali Al
Ebrahim expressed: “It is a proud moment for us at COFE to be working
with SCC. We hope that this partnership will help in giving Saudi
coffee the visibility and reach that it truly deserves. Through our work
in Saudi, we hope to take this integral part of our culture and tradition
to the world. I would also like to take this opportunity to thank
everyone involved in making this possible. It is truly the beginning of
something great.”
The platform has seen widespread acceptance from users in the
Kingdom and was listed as the Top 10 Most Downloaded Food Delivery
and Restaurant Apps (2021) in the kingdom in a survey conducted by
Communication & Information Technology Commission (CITC) of Saudi
Arabia.
SCC is a Public Investment Fund (PIF) company launched by the sovereign
wealth fund of Saudi Arabia with a mandate to develop the Saudi
coffee industry. SCC plans to invest over SAR 1.2 billion ($319 million)
in the national coffee sector over the next ten years to increase annual
output from 300 tons today to more than 2,500 tons by 2030. Saudi’s
domestic coffee market was estimated to be worth $1.96 billion in
2021, and is expected to grow to $2.78 billion by 2025.
“It is a pleasure to be partnering with COFE App. Their passion for
the cumulative growth of the coffee industry is very evident, and we are
happy to say that they share both our vision and values. Coffee is a very
integral part of Arabian culture and we wish for the world to witness
it through our efforts. We hope that this partnership is the beginning
of coffee lovers discovering the nuances of Saudi coffee and how it is
ready to compete with some of the best producers in the world,” said
Mohammed Zainy, Marketing Director of Saudi Coffee Company.
As KSA transforms into a digital growing economy with a focus on
locally grown coffee beans this might just be the next big thing in the
evolution of the global coffee market.
Thndr Allows Users to Invest in the top 30 Egyptian companies in one go
Thndr Securities, Egypt’s most popular investment platform, allows
investment in Misr Equity, a CI Assets Management investment
fund with a cumulative return, and has allowed this to be accessible
to its users. The first fund of its kind to achieve a return
equivalent to that of the EGX30 Capped Index is referred
to as MISR Equity C130 on the application.
Thndr platform allows its users seeking investment
in Misr Equity fund to purchase and sell its securities,
recording the latest price of EGP 10.02, with no minimum
or maximum limit. This falls in line with Thndr’s
objective to diversify its investment products offered on
the platform, which will enable its users to expand their
money market investments and acquire benefits that
cannot be attained on their own. Additionally, it offers
both beginner and experienced investors equal opportunity
to put their money in a specialized institution that
is licensed by the Financial Regulatory Authority.
CI Capital, the biggest asset management company
in Egypt with managed assets amounting to EGP 39 billion at the
end of 2021, launched Misr Equity Investment Fund to achieve a
return echoing the EGX30 Capped Index. The Fund invests 90% of
its money in a portfolio of stocks, aiming to a close representation
of the index.
“We are proud to add new and diversified investment products
that cater to all segments of Egyptian society. Misr Equity Fund
(CI30) confirms our pursuit of achieving this goal. The fund represents
an opportunity as an investment tool for those
interested in achieving wealth through long-term investments.
A study conducted by the Egyptian Stock
Exchange in 2018 proved that investing in the 30 biggest
listed companies achieves the highest returns
compared to investing in other saving vessels,” said
Mr. Ahmad Hammouda, CEO and founding partner of
Thndr Securities Brokerage Company. “An investment
of EGP 1,000 per month in the main index of the stock
exchange for a period of 20 years achieves a return of
EGP 2.92 million, compared to EGP 288,000 in the case
of saving without investing.”
The platform currently allows investors to buy
shares in the Egyptian exchanges, as well as trade the
securities of four funds including Azimut Fixed Income
Fund, Misr Takaful Fund, Azimut Opportunity Fund (AZ Opportunities),
and Misr Equity Fund (CI30). As a result, the platform’s users
increased to 800,000, and most recently in November, the largest
number of transactions carried out in Egypt was through Thndr,
with a total of 213,000 trades.
www.BusinessTodayEgypt.com January 2023
79
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Juhayna becomes the first Egyptian company to win The Superior Taste Award
from the International Taste Institute
Juhayna’s full cream dairy products won The Superior Taste Award 2022,
one of the most prestigious awards in the food and beverage industry globally,
presented by the International Taste Institute, in Brussels, Belgium. The
evaluation was undertaken by a panel of 198 world-class chefs and sommeliers,
who carry 86 Michelin stars that are awarded to the finest chefs and
restaurants around the world.
Juhayna is the first Egyptian company to receive this award, after undergoing
a sensory evaluation that includes visual, aromatic, flavor, and textural
aspects, as well as final mouth feel. The evaluation process took place over
136 hours of blind tasting that was conducted on thousands of products
from all over the world, with the aim of selecting the best among them.
Passant Fouad, Director of External Communications at Juhayna, stated:
“We are proud to receive this award, not only because it crowns our efforts
in providing products with the highest levels of taste and quality to our
consumers, but also reflects how Egyptian companies are able to provide
products of competitive quality. This indeed puts us on the global map and
strengthens our identity as one of the leading food and beverage companies.
Juhayna constantly works on improving the quality and taste of its products,
while maintaining the characteristics that the Egyptian consumer is accustomed
to in our product portfolio. That’s why we are always keen to provide
100% natural products without any additives.”
Fouad added that Juhayna pursues a strict strategy pertinent to the
quality and safety of its products that revolves around adopting numerous
practices in its factories, which include but are not limited to activating
several internal audits on dairy products. In addition, these products are periodically
tested for quality, totaling almost 9000 tests per day, with a total of
more than 3 million tests annually. The company is always keen to perform
the above-mentioned in order to ensure the safety of its products and their
compliance with the highest standards of quality and taste before it reaches
the consumer. It also pays great attention to the development of its products
backed by a specialized research and development team to ensure that the
company is compatible with the latest technologies that guarantee both
quality and taste.
It is worth noting that Al Masreya,which is Juhayna’s dairy factory has
succeeded in obtaining many quality certificates, including an AA+ rating in
BRCGS Food Safety Global Standard, which has been one of the most stringent
global standards over the past 20 years. The rate that Juhayna obtained
is the highest rating attained by a company in the Egyptian food industries.
The 5th Edition of Cairo Design Award Celebrated Winners from 8 Categories at The Baron Palace
Cairo Design Award (CDA) celebrated its 5th edition during a grand ceremony
attended by the Italian Ambassador in Cairo, His Excellency; Michele
Quaroni, and the Portuguese Ambassador in Cairo, Her Excellency Manuela
Franco, at the iconic Baron Palace Empain. The CDA ’22 edition honored 8
categories of design that included architecture & landscape, interior design,
fashion design, jewelry design, set design, product design, and graphic
design. The Event featured tunes by HOH, CDA ’22 set the seal on the first
edition of Cairo Design Week, which took place across different key landmarks
in Korba over the course of 7 days in the period between 19-25 of
November.
CDA acts as Egypt’s primary platform for local and
international designers through providing an innovative,
all-encompassing community that supports and
celebrates achievements in the design industry. “CDA
has been the destination for designers in Egypt for 5
years, our community has grown since 2017 and attracted
innovators who work to make their visions a
reality. That couldn’t be possible without the guidance
of our jury represented by a lineup of experts who
employed their expertise towards the development
of talents throughout,” said Hisham Mahdy, Founder
of CDA and President of Cairo Design Week, to guests at the gala dinner.
Administered by 7 juries, represented by a total of 14 local and international
jury members, CDA ’22 featured Brendan Macfarlane and Ebtisam
Farid representing the Architecture and Landscape category; Kegham
Djeghaliain and Yasmine Yeya representing Fashion Design; Ghalia Elsrakbi
and Hani Mahfouz representing Graphic Design; Gauthier Guillaume and
Karim El-Hayawan representing Interior Design, Alia Mouzannar and Amina
Ghali representing Jewelry Design; Guillame Credoz and Cherif Morsi representing
Product Design; and Monica Alberte and Mohamed Attia representing
the Set Design Category.
CDA’22 is in partnership with WE, POD, DMC, MO4/SceneHome, V Digital,
Mega FM, 3 Brothers, Marmonil, Hi Lights, FAB Misr, LMD, IMAGE, GLC,
i-Con Smart Solutions and Aroma.
List of CDA ’22 winners:
• Architecture & Landscape: RHY Team (Hussein Hazem, Rania Youssef,
and Youssef Ismail) won the gold award for their design “A Chance,” and
Sarah El-Dawy won the silver award for “E-Waste Colony,” and Wissam
Ayman El -Sawy won the bronze for “Mutated Gardens.”
• Fashion Design: Reem Atout won the gold for her “Teta Chic” collection,
and Almah won the silver award for “Foe-Fur.”
• Graphic Design: Aley Baracat secured the gold
and silver awards for designing the games of “El-
Manseb” and “The Game of Me,” Alia Tobala won the
silver for “Hermoonatek: Ely Mesawahaky,” and Nora
Abushadi won the bronze for “L’Artisan.”
• Interior Design: Mohamed Shebeny won the gold
award for “Be My Eyes,” Two Emms Design Studio
secured the silver for “CO-55_Square One,” and MYS
Architects (Mahmoud Ragheb & Yasmine Ammar)
won the bronze for “Raw – Multipurpose Building in
Cairo Desert Road.”
• Jewelry Design: Sammar El Sawy won the gold for “SeaHorse,” Nada
Elhadad won the silver for “Metamorphosis,” and Kione Art – Yasmine El
Biali won the bronze for “Seismic Restraint.”
• Product Design: Undefined won the silver award for “Eruption Collection,”
Mohamed Mamdouh El Haddad won the silver for the design of “El
Nahla Stool,” and Ahmed Shawky and Mostafa Wagih won the bronze for
“Cleo Chair.”
• Set Design: Salma Taimour won the gold for “Bimbo,” Eslam El Banna
won the silver for “Ramez Movie Star,” and Ahmed Shaaban won the bronze
for “Bioderma.”
80 January 2023
www.BusinessTodayEgypt.com
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With investments exceeding EGP 100 million: Majid Al
Futtaim inaugurates its Mall of Egypt Road in partnership
with the New Urban Communities Authority and
the Egyptian Armed Forces Engineering Authority
Majid Al Futtaim, the leading shopping mall, communities, retail and leisure pioneer
across the Middle East, Africa and Asia, inaugurated the Mall of Egypt Road in 6th of
October City under the auspices of the Ministry of Housing, Utilities and Urban Communities
and the New Urban Communities Authority on December 18, 2022. The sixkilometer
road, established in partnership with the Egyptian Armed Forces Engineering
Authority, witnessed an investment of over EGP 100 million, providing the community
with alternative routes to and from various key locations within 6th of October City and
Sheikh Zayed City. The project also included the road’s lighting and landscaping, further
showcasing Majid Al Futtaim’s commitment to positively contributing to the country’s
infrastructure.
The inauguration was attended by Mr. Adel El Naggar, Head of the 6th of October
City Development Authority, on behalf of H.E. Dr. Assem el Gazzar, Minister of Housing,
Utilities and Urban Communities, Representative Saboura El-Sayed, a member of the
House of Representatives and Assistant Secretary of the Mostaqbal Watan Party, Mr.
Hani Shaker, Chairman of the Security Council, Ms. Hanan Abdel-Azim, Deputy Head of
the 6th of October City Authority, Major General Amgad Anwar, Director of the General
Administration of Giza Traffic, and Mr. Radi Khalil, Deputy Head of the 6th of October
Authority, amongst other governmental figures, in addition to some of the region’s top
real estate leaders.
Adel El Naggar, Head of the 6th of October City Development Authority, stated: “The
implementation of this road is the beginning of a fruitful collaboration between the
Ministry of Housing, represented by the New Urban Communities Authority, and the
private sector, represented by Majid Al Futtaim. The project showcases the Authority‘s
keenness in involving the private sector in the country’s development witnessed during
President El-Sisi’s presidency, specifically with regards to the establishment of new cities,
which the authority is currently contributing to, along with a number of investors; all
with a total investment of 1.1 trillion Egyptian Pounds.“
Diaa Yahia, Country Head at Majid Al Futtaim Properties Egypt, added: “At Majid Al
Futtaim, we strongly believe that entities have a responsibility towards the communities
in which they operate, and need to play an integral role in the development of their
surrounding environment. With that said, we are honoured to host the inauguration
of our Mall of Egypt Road with our esteemed partners, the Ministry of Housing, Utilities
and Urban Communities, the 6th of October City Development Authority, the New
Urban Communities Authority and the Egyptian Armed Forces Engineering Authority,
building on our contributions to the development of the country’s infrastructure.”
Yahia added: “This remarkable milestone is a testament to Majid Al Futtaim’s contribution
to the local infrastructure, which has included the development of over 18
kilometers of roads, two bridges, five roundabouts and two pedestrian bridges; all
during the construction of Mall of Egypt, City Centre Almaza and City Centre Maadi. That
achievement also reflects Mall of Egypt’s vision to provide neighboring communities
with a safe and comfortable journey to and from its premises. Not only can visitors
reach our mall easily, but the local community is now provided with alternative routes
to improve traffic and facilitate commuting. With that said, we hope to continue introducing
partnerships that will support our society.”
Arab social media platform
Baaz launches its
first referral program with
financial rewards in Egypt
Baaz, the first Arabic social media platform,
has launched a referral program that enables
its users to achieve monetary returns by inviting
their community to register on the platform.
Baaz users who have verified their accounts
and have already gained a bronze level
token can now be eligible to receive a dollar for
each referral’s registration. The beta version
of this feature is now active in four Arab countries,
namely Egypt, Jordan, Iraq and Algeria,
with plans to expand in other markets across
the region.
Through this program, Baaz seeks to expand
its community in the Arab world by rewarding
its loyal users with the benefit of reaping financial
rewards on the platform. By hosting the
largest gathering of Arab communities online,
Baaz aims to encourage users to join communities
that discuss similar interests and share
the same passions.
Commentating on the launch, Musab Sharayri,
Chief Executive Officer at Baaz, Inc. stated:
“The team at Baaz has been dedicated to introducing
a unique revenue stream for its users
and content creators, and we are extremely
proud to see this referral program come to
light. Through the launch of this program, we
will be enabling our valued users to monetize,
empowering them to become community leaders
and encouraging them to generate meaningful
discussions across their topics of interest
through a simple and convenient process. We
look forward to continuing to provide our communities
with innovative tools to connect.”
Users who meet the profile of the referral
program are eligible to earn up to USD 200 and
a minimum of USD 50.
To learn more about the program, download
the Baaz application using the following links:
• Google Play:https://play.google.
com/store/apps/details?id=com.baaz.
baazapp&hl=en&gl=US
• App Store: https://apps.apple.com/us/app/
baaz/id1092130570
www.BusinessTodayEgypt.com January 2023
81
Last Word
““The War in Ukraine War is close to turning
one year old, causing an economic downfall
worldwide...Nevertheless, we will continue the
road of development we have started”
— Egyptian President Abdel Fatah El-Sisi.
82 January 2023
www.BusinessTodayEgypt.com