Just five years after joining the AUC Venture Lab as a budding startup, Swvl has made its debut on the Nasdaq ––  the first Egyptian unicorn, first V-Lab graduate and first North African tech startup to list on the U.S. stock exchange. 

Entering the exchange next to other tech giants with a valuation of $1.5 billion, the fast-growing transportation company is also the second in the Middle East to list on Nasdaq via a SPAC (Special Purpose Action Committee) merger, following Anghami. The company merged in July of last year with Queen’s Gambit Growth Capital, a SPAC that boasts  being 100% female-led.

Founded by Mostafa Kandil '15, Ahmed Sabbah and Mahmoud Nouh, Swvl set out to improve public transportation in Egypt through tech-enabled ridesharing services. The company now operates in 115 cities in 18 countries across Latin America, Europe, Africa and Asia.

Kandil rang the Nasdaq Opening Bell on March 31 in a ceremony marking the company’s debut. 

"We are very excited to see Swvl's team reach this inspiring milestone,” said Ayman Ismail ’95, ’97, founding director of the V-Lab and associate professor and Abdul Latif Jameel Endowed Chair in Entrepreneurship. “At AUC Venture Lab, we take pride in having been part of Swvl's early journey and continue to be committed to being a catalyst for growth and to empowering more inspiring founders during their journeys. [Swvl is] “an inspiration to many entrepreneurs and one that paves the way for an entire generation of tech startups.”

Kandil began his studies as a petroleum engineering student at AUC but ended up seeking a more dynamic path, as he was always keen on exploring the business world. In 2017, Swvl joined AUC Venture Lab, Egypt’s first University-based accelerator and incubator which offers acceleration programs to high-growth, innovation-driven tech startups. 

In August 201, when Swvl announced that it would list on the Nasdaq, Kandil said, "I’m proud to say that being an AUC student was the start of the journey that brought me to this moment in my life."

Accelerated by the V-Lab in Cycle 8, the team was able to launch the application before graduating from the cycle. The startup has seen impressive growth since its launch, crossing Egypt’s borders and establishing roots abroad. Kandil was named — along with co-founders Nouh and Sabbah — among Forbes Middle East’s Top Arab 30 under 30 in 2018.    

To date, the V-Lab has graduated over 300 graduate startups that have gained EGP 3 billion in investments and created 10,000 jobs, leaving a lasting impact on the greater community and regional development ecosystem. In 2021, the lab was recognized as the Best Accelerator/Incubator Program in North Africa by the Global Startup Awards.

Watch Kandil ring the Nasdaq Opening Bell.

AUC’s Mina Sami, assistant professor of Economics, and Wael Abdallah, assistant professor of Finance, have published a first-of-its-kind report on Africa’s crypto boom, aptly entitled “Does Cryptocurrency Hurt African Firms?” 

A lack of data around cryptocurrency in Africa, coupled with ever-increasing public interest, earned Sami and Abdallah recognition as among the top 10% of SSRN authors in the MENA region.

Their latest report, published in February 2022, shows that cryptocurrency negatively impacts African micro-entities, particularly those in “less competitive” sectors such as energy, financial, industrial, and consumer services. “Each 10% growth in the cryptocurrency market cap reduces the market value of African firms by 0.76%,” Sami and Abdallah’s paper outlines. 

It also finds that cryptocurrency trading in Africa has a particularly adverse effect on firms that are less experienced and highly indebted. 

Additionally, Sami and Abdallah outline how macroeconomic factors and companies’ internal policies are part of the adverse landscape created by the crypto boom. Even with cryptocurrency banned in many African countries, this fails to protect companies in less competitive sectors. 

The reason for this, Sami argues, lies in behavioral finance. “The pain of loss is higher than satisfaction from gains,” he affirms; consequently, with some sectors underperforming as the coronavirus pandemic shook businesses and economies globally, investors are looking for alternatives. 

In much of the world, including developing economies, the answer became crypto. 

The crypto boom is particularly worth watching in MENA and Africa as it may, on the surface, seem at odds with low financial inclusion levels plaguing emerging and developing markets in the same geographic vicinity—a shocking 57% of Africa’s population is unbanked.

Despite the parallels in many of these emerging markets, they are far from being a monolith. According to global data, 2.6% of Africa’s population are crypto users, although this figure is calculated through median ranges, and is not necessarily representative of every market in Africa. Egypt’s crypto users stand at 1.7 million, a massive number despite the stigma and skepticism with which the public widely views crypto and digital currencies, and as the Central Bank of Egypt does not yet allow crypto trading. Another commendable market is Kenya, ranking fourth globally with 8.5% of the country’s population being crypto users. 

Sami and Abdallah see that crypto’s popularity is poised to grow even more. “I believe there will be great growth in Africa’s crypto markets in the next year. People are unbanked and the stock market has high transaction costs, while cryptocurrency is decentralized and transaction costs are low…So the trend is very likely to grow in Africa, especially with the prospect of inflation and depreciating currencies in much of the continent; this makes crypto very attractive for traders…a safe haven,” Sami explains, grouping crypto with more traditional safe haven assets like gold and crude oil.

While Sami and Abdallah don’t offer a solid answer as to whether crypto should be legalized in more African markets, they do say that their findings call for an excruciating need for further innovation—this, they say, is the one prime aspect that might mitigate the adverse effect crypto growth has on African micro-entities.

“Firms must be more competitive in the market,” Sami affirmed, quoting Robert Solow, winner of a Nobel Prize in Economics, in saying, “What guarantees country-level economic growth in the long-term is innovation.”

He continued: “Real estate and IT thrive [in Africa] because they innovate, whilst in other sectors productivity is very low—something that we need to boost. Entrepreneurs in Africa are not well guided or backed with enough knowledge, which makes companies [especially SMEs] less productive.”

Speaking on the paper’s recognition and ranking, Sami said, “This opens a new area for research, encouraging researchers and academics to work on these topics. People living here in the region, or outside, need information and research about this market.”

In a rapidly changing world, there is no one easily digestible answer to tackle the threats posed by shifting market trends and novel prospective assets. Sami and Abdallah’s new report shows just that; with all the merits that crypto offers investors, and all the promise it holds in Africa, this comes at massive cost for conventional institutions and a host of less-than-lucrative sectors.

“The role of the government should be to increase innovation and improve regulation in the traditional financial markets, in order to compete with cryptocurrency,” concludes Abdallah. “In improving the efficiency of our financial markets, we must be more transparent and pass regulations that facilitate investment flows.”

These lessons will not only capitalize on crypto’s promise—despite most cryptocurrencies posing a generally high risk level—but also potentially reap wider gains for economies at large.

In an unannounced move, Egypt’s Central Bank raised key policy rates by 100 basis points and devalued the Egyptian pound by nearly 17% on Monday, March 21, leaving many panicked with flashbacks to 2016 when the bank floated the pound and its price plunged by 48%.

Samer Atallah '97, associate professor of economics and associate dean at AUC’s School of Business, was not surprised this time around — or the last. “We could see the signs of pressure on the currency since maybe late last summer or early fall,” he says. “It was clear that the price at which the dollar was trading for the pound in the market was lower than the value of a dollar.”

Indeed, many news outlets and financial institutions such as Bloomberg and JP Morgan rang warning bells ahead of the recent devaluation, pointing to rising inflation as well as a predicted drop in tourism from Russia and Ukraine due to the war.

Since the floatation of 2016, Atallah and others have hoped that Egypt’s Central Bank would transition to a managed float, allowing market forces to determine the dollar exchange rate, the professor explained.

“The reality is, however, if you go on Google and look at the graph showing the exchange rate, you’re going to find a very straight line for the past two years,” he says. 

This straight line is indicative of the bank’s control of the exchange rate, Atallah states. “We’ve had COVID, a decrease in tourism, fewer exports and still, no changes to the exchange rate. It is clear that the value of the Egyptian pound that is listed on your bank’s screen is not reflective of reality.”

Monday’s sudden change, however, has aligned the exchange rate to reflect that which many, including Atallah, previously estimated as a true rate.

Why Now?

Contrary to the whispers one might hear in the streets, the CBE’s move was not only a reaction to the Russian invasion of Ukraine, Atallah believes. “While the last step in the race is probably [the conflict], it does not mean that we weren’t already moving in this direction,” he says, citing excessive reliance on volatile portfolio investments and the accumulation of external debt.

There is also chatter about the devaluation preceding the announcement of an additional incoming loan from the International Monetary Fund (IMF) as a requirement for securing the funds, as the 2016 devaluation preceded a USD 12 billion dollar loan from the IMF.

While Atallah asserts that he can only speculate on such claims, he explained the difficulty of securing a loan with a quasi-fixed exchange rate.

What Now?

Seeing as this isn’t the first time for this to happen and with less than a decade between now and the last devaluation, what’s to come is rather predictable, according to Atallah: “For a country that relies very much on importing essential commodities, the effects are typical: this will lead to inflation,” he says. “Almost all food, almost everything that is energy is tied to the price of the dollar.”

Pointing out a contrast in how this affects foreign investors and the wealthy versus the average Egyptian, he continues: “While firms that invest in EGP are welcoming this, the people in the street are not. Even without people fully understanding the dynamic of how the dollar price affects the cost of living, once they are aware of the increase, they know that prices will rise and they will ask for higher wages and so on. It has become something inherent in our collective conscience.”

When asked about the pound regaining ground, as it slowly did in 2016, Atallah explains that any predictions are simply estimates and cannot be relied on. “The rates are based on highly sophisticated models that look at transactions, trade and asset pricing. They are also extremely sensitive to market conditions.”

Moving Forward

With devaluation rattling economic stability and escalating prices, and with less than a decade in between Egypt’s last devaluation and this one, many are wondering: How can we avoid repeating this again?

“If we don’t want this to happen again, we must do things differently,” Atallah stresses. “This means that whatever the amount of portfolio investment we get from abroad, we make sure to invest in productive capabilities, meaning projects that lead to jobs and exports, rather than debt instruments and infrastructure.” 

Dean of AUC’s School of Business Sherif Kamel '88, '90, '13 recently published his debut book, Leading Change in Challenging Times: Lessons of Disruption and Innovation from Egypt – Thoughts, Observations, and Reflections.

The book reflects the experiences and sentiments of Kamel, who grew inspired by Egypt’s history and attached to its cultural heritage and resilient people. Its underlying theme is the profound belief that Egypt remains uniquely positioned as the land of unparalleled opportunity, and that it can become an intellectual, cultural, economic and geopolitical powerhouse within a dynamic and changing world.

News@AUC caught up with Kamel to learn more.

Give us a summary of your book

The book is a collection of my personal thoughts, observations, reflections and beliefs on a number of subjects that are very dear to my heart.

It touches on Egypt—its history, the potential of its youth and the economy—and, on the organizational level, the importance of thought leadership, the governance model and how agile, adaptive and iterative the organization needs to be to be able to navigate the challenges we face every day. It also covers the culture within organizations and how entrepreneurial and innovative they should be. Finally, the book covers the institutional history of AUC’s School of Business.

The book is in a hybrid format: part memoir, part institutional history and part inspirational business leadership advice. It mainly focuses on a period of five years between 2009 and 2014—while I was serving as Dean of AUC’s School of Business.

This book is for a diverse audience, including students, scholars, learners, administrators, deans–especially of business schools, entrepreneurs, CEOs mentors, policymakers and the like.

Why the title, Leading Change in Challenging Times: Lessons of Disruption and Innovation from Egypt?

We live in challenging times—whether economically, socially or politically—and that affects individuals, organizations, businesses and society at large. 

The title also points to the changes that have been happening within the realm of organizational development and digital transformation, not just over the past few years, but over the past 40 years. 

What prompted you to write this book?

I've had experiences in government, civil society, the corporate world and academia. They all relate to one element, and that is human capital development, something I believe to be the most important asset in every society, and surely, Egypt.

So, I thought of sharing my experiences and insights, not only around accomplishments but also including failures, for there is a lot to learn from our various endeavors including and ups and downs. I firmly believe that sharing one’s experience is a huge privilege—it's an honor, not an obligation, so that we all learn from each other and build on each other’s journeys

The initial idea was to cover the School of Business, but then I realized that the school doesn't stand alone. It's part of a larger ecosystem and affects people inside and outside of our community. So I thought to look at the entire ecosystem of the school both on and off campus: how it develops, how it impacts itself and how it progresses while facing challenges and opportunities.

I also wanted to document the institutional memory of the School of Business. The legacy of the school extends 75 years. Since we launched our first programs in economics back in 1947, we have had quite an impact on higher education and the community, both in Egypt, and in the region we serve most, which is the Middle East and North Africa. 

Finally, I wanted to showcase the school to those that may not know much about it. My aim has always been to increase its global footprint, and that can only be done by telling the story of the school, its impact and its ongoing work on and off campus, including its portfolio of community development and services..

What is the book’s intended message?

The book aims to convey a number of messages. 

1. For the society: Human capital is Egypt’s most important asset and the potential game-changer for society.

2. For the individual: Learning and development come in different shapes and forms and––more importantly––it is a lifelong journey and never a destination. 

3. For the organization: Sustained organizational success requires thought leadership, a vision, strategic planning, efficient execution, an institutionalized corporate culture, proper governance, an empowered team and a dynamic and adaptive enabling environment for innovation and discovery.

4. For the future: The growing power and reach of digital transformation and the innovative capacities of entrepreneurial mindsets and offerings of tech-enabled startups will continue to transform lives and livelihoods creating opportunities for socioeconomic development and growth.

Describe your process for writing this book.

Writing this book was an interesting journey. I began collecting my thoughts to write something about the school back in 2014. I originally planned to finish this project in just two or three years, but after seven and a half years, the book was finally published.

The time it took was worth it, and overall the journey was extremely enjoyable, especially pinpointing the messages I wanted to get across, building on the history of the School of Business and looking forward at what to expect in the future of business and management education during a disruptive period.

Did you discover anything in particular that surprised you while writing this book? 

When you spend time accumulating experiences and journeys, things tend to pop up and you begin to think about them differently. Something I noticed was that my diverse experience across different sectors have never been focused on anything other than inspiration, collaboration, hard work, shared experiences, human capital development and relationships—that, to me, is the only way impact can be realized. It was nice to identify a thread linking the experiences of my career.

Can you summarize for us some important lessons you learned by leading AUC's School of Business?

I think that would require another book!

First, I want to highlight the importance of building and supporting a strong team. Part of doing this is creating a team that will challenge you. I myself am lucky to have such a team here at AUC.

Second, in an ever-changing and transforming world, it is very important to remain relevant and competitive. I don’t see myself as the dean of a business school, I see myself as the CEO of an intellectual enterprise. In this regard, you must always push for quality, for more diversity, for more innovation, competitiveness and agility. Don’t be afraid to take risks—even if you don’t reach your target, you will learn something new.

Next, I’ve learned the necessity of practicing what you preach. For years, the School of Business has been promoting entrepreneurship and innovation in Egypt. We must practice this by remaining entrepreneurial in leading the school and consistently raising the bar for ourselves.

Does the book touch on AUC's role in developing Egypt? If so, could you elaborate?

Yes, the entire book expands on the role of the School of Business in educating the next generation of business leaders, policymakers, entrepreneurs and change agents—whether in government, civil society or the private sector. For close to 103 years, AUC has been an integral, impactful player in Egypt’s higher education ecosystem through leadership, research, community development and services. 

The book’s summary calls Egypt the "land of unparalleled opportunities"—could you briefly explain this statement?

Egypt has a long history of cultural heritage. It's a growing population with ample resources and opportunities across different sectors, most of it remaining untapped.

In terms of people, we are capable of accomplishing much more than where we are today. The tourism, agriculture, industry and ICT sectors––to mention a few––have high potential as well, and for these sectors to reach their true potential, there must be an integrated development strategy that includes investing in Egypt’s human capital in education and lifelong learning with universities and higher education institutions with an invaluable role to play.

I dream and aspire that in the next few years, Egypt will start realizing some of these untapped opportunities.

What feedback have you received from readers so far?

I am delighted to say that people have so far found the book exciting. Readers have said that it has a personal tone of someone telling their story, which invites people to share and understand my journey. Readers have felt like they are a part of a conversation rather than reading lines of advice. This was exactly my intention. 

Anything else you’d like to add?

I’d like to end by stating that each journey has its unique added value. And I believe that each person, from all walks of life, can and should contribute something. All they need is an opportunity, an opening. 

It's up to those who are in these leading or enabling positions to provide that opportunity to others and help them grow and succeed. Doing so will bring a healthy mix of perspectives, and in turn more inclusion and diversity to organizations, both of which will strengthen them. 

This book is just one more attempt to highlight a unique journey that represents a business school in an emerging economy that has served society for many years. The narrative shows how things went, including the rights and the wrongs. We need to build on what has happened and take it to the next level. This book is for another 75 years of impacting society, introducing innovative offerings and engaging with different constituents for a better future to all.

Get your copy of Leading Change in Challenging Times here.

Want to learn more? Attend a virtual book talk on Leading Change in Challenging Times on Thursday, March 31 at 5 pm.

Undergraduate Students in AUC’s School of Business ranked third globally in the Canada-based Engineering Commerce Case Competition (EngComm), the “world’s only student-led multidisciplinary case competition.” The students also won awards for Best Business Solution, Best Engineering Solution and Most Economically Feasible Solution. 

The winning team –– made up of students Abdallah Sabah, Yasmin Tarek, Moustafa Awad and Nourhan Nada and led by Assistant Professor Hakim Meshreki –– first competed against five teams from AUC in the qualifying round then against 16 teams from prominent academic institutions worldwide in the final round. 

“This is the second time for me to take part in EngComm, albeit this time, the competition was fully online,” said Awad. “Despite not traveling, the competition was still as engaging, and I really enjoyed competing against top universities around the world once again. I’d like to give a shoutout to Dr. Hakim, who continuously produces winning teams in this competition.”

Established in 2013, the Canada-based Engineering Commerce Case Competition brings together students with a technical background in engineering and those in interactive fields such as business and economics. During this year’s final competition, the AUC students had to solve two case studies, each six hours long, as well as a 12-hour case study.

“My favorite case study was the 12-hour case, which centered around the development of aerospace vehicles and its implementation within the Canadian community,” said Tarek. “We designed a VTOL [vertical take-off and landing craft] and worked together to ensure its success for various applications ”

The competition took months of preparation, with the students practicing cases from previous years and meeting with former AUC contestants. “We spent more than 18 hours a week solving cases, with a total of over 100 hours, but the twist was that they were consecutive,” Tarek added. 

For the students, the experience was both educational and entertaining.

“It was truly riveting,” said Nada, echoing the same sentiment. “I learned so much throughout the entire journey, from the months of training to the actual competition. I got to engage in conversation with individuals of diverse backgrounds. I’m also glad I got to work with Professor Hakim and my teammates. It was a fruitful experience.”

“I am so honored to have experienced such a well-rounded and extensive competition as I can wholeheartedly say who I am today is not the same as when I first embarked on this journey,” said Tarek. “From the long, long hours of case study practice with my team members to the professional development training and feedback sessions provided by Dr. Hakim and Dr. [Ahmed] Tolba, I have learned so much about the importance of interdisciplinary connectivity. This experience taught me valuable lessons, such as the importance of diversity within a team and problem-solving frameworks within a professional setting. The competition encompassed life lessons behind case study practices, and I know it will benefit me for years to come.”