Fifteen current Tomorrow’s Leaders students joined the newly launched College-to-Work Pipeline (TLP) program this spring, becoming the first TLP cohort at AUC. 

Giving students the opportunity to launch their dream startup or get hands-on experience with industry leaders, TLP aims to bridge the skill gaps between the college to work pipeline, enabling undergraduate and graduate students to find meaningful employment and leadership opportunities in their areas of interest or launch their own startups upon graduation to become future employers. It is a joint effort between the U.S. Department of State, Bureau of Near Eastern Affairs Assistance Coordination and the American University of Beirut, Lebanese American University, Georgia Tech and AUC.

“The TLP program offers Tomorrow’s Leaders students a unique opportunity to either work on a startup idea or on a real-life hands-on project,” explained Ahmed Tolba ’97, ’01, associate professor of marketing, chair of the management department and academic director of TLP at AUC.

Partnering with the public and private sectors as well as nongovernmental organizations, the program offers Tomorrow’s Leaders students relevant, on-the-job training experience and entrepreneurial opportunities attuned to market demands. TLP seeks to incentivize employers to increase employment opportunities and preparedness for youth leadership in the MENA region.

“I am very excited about this opportunity and confident it will be an enriching and valuable experience for students,” Tolba said.

Under TLP, AUC has adopted two of Georgia Tech’s programs for students to take part in. The first is the Create-X course, which will instill entrepreneurial confidence in students and empower them to launch successful startups. According to Tolba, three TL students this semester will be guided by experienced faculty and industry experts to turn an idea into an entrepreneurial venture.

Create-X is implemented under the AUC course Entrepreneurial Lab: Developing and Launching a New Venture. Industry partners for Create-X so far include Wataneya for the Development of Orphanages and the AUC Venture Lab.

The other program, Vertically Integrated Projects (VIP), is a transformative approach to enhancing higher education by engaging undergraduate and graduate students in ambitious long-term and large-scale projects. Three TLP students will join industry partners, as well as other students from different disciplines, to tackle three real-life projects under the supervision of experienced faculty members. 

Industry partners for this semester include UNDP Accelerator Lab, Fusion Solutions, UNICEF Egypt and a local design studio, with the projects varying from developing a video game and creating an e-platform to raising awareness of nutrition and preserving the biodiversity of tourist areas. 

“I joined the gaming for impact project because I want to utilize all my capabilities (management, computer science and graphic design) to truly experience what multidisciplinary means. It will help me accelerate my learning process and push forward my career.” said Youssef Anwar, a TLP student majoring in management of information and communication technology.

Ola Dayeh, a TLP student completing her master’s in migration and refugee studies who is working on a UNDP-affiliated VIP project, echoed this sentiment: “I am thrilled to have this opportunity of working with a team and to be supported by a faculty member and development professionals.”

Most projects will be complete by the end of the semester, while some that require more time will continue through the summer. Sulaf Taha, TL senior director, is eager to see the results of both programs.

“We hope that this pilot project can demonstrate the success of hands-on cocurricular learning in enhancing students’ employability and ability to succeed in the changing dynamic labor market,” she said.

The AUC Ethics HelpLine encourages the AUC community to report any acts of misconduct or violations of the University's policies on its premises. It guarantees confidential reporting and documentation of complaints, as well as the timeliness and completeness of the administration’s response. News@AUC spoke to Wessam Abozeid, senior director of compliance in the Office of General Counsel and Compliance.

What is the benefit of an Ethics HelpLine?

The AUC Ethics HelpLine is a tool to report any misconduct, actual or potential legal violations, or violation of University policy. The AUC Ethics HelpLine also provides the option to report anonymously. This confidential and impartial web-based system directs the reports to the authorized University official to handle the issue and track progress to ensure timely resolution.

During the AUC Ethics HelpLine’s three-month pilot phase, we will work to improve/optimize the system to meet the University’s needs.

Why does AUC need an Ethics HelpLine?

The earlier we address any potential misconduct, the easier we prevent or remedy any potential impacts or risks, and the better we improve our working and learning environment.

When should people file a report through the AUC Ethics Helpline? 

Any situation, activity, or transaction that could potentially violate a law, regulation, or University policy or procedure could be a compliance issue. If you are concerned that an activity is inappropriate under these guideposts, or if you encounter a situation that simply feels wrong or makes you uncomfortable, you should speak to your supervisor or contact the University official that manages the area in which the issue has arisen. If, for whatever reason, you are uncomfortable going through these channels, or if you have raised an issue with the appropriate people but feel that it has not been addressed, you can make a report through the AUC Ethics HelpLine.

What are examples of types of cases that should be reported?

Examples include, but are not limited to:

• Any forms of waste, fraud, abuse, or neglect whether rising to the level of potential illegality or at minor levels, that appear relatively easy to rectify for the general benefit of AUC and our community;
• False claims, financial misstatements, or accounting or auditing irregularities;
• Undisclosed or unmanaged conflicts of interest;
• Physical, sexual, verbal, and mental abuse;
• Retaliation;
• Mismanagement or abuse of authority relating to a contract or grant, including the competition for or negotiation of a contract; and/or
• A substantial or specific danger to public health or safety. 

What distinguishes the AUC Ethics HelpLine from other reporting platforms that currently exist?

Any community member (faculty, staff, students, vendors, and visitors) can use the AUC Ethics HelpLine to raise a concern. Additionally, the AUC Ethics HelpLine supports anonymous reporting. Meanwhile, only students can report concerns or violations through the Advocate system.

Is this common practice in other universities? Can you give examples?

Yes, most universities have several tools for reporting concerns and the option to report anonymously. Many US institutions such as Harvard University, Georgetown University, Columbia University, and Northwestern University, as well as the American University in Beirut, use the same third-party provider, NAVEX, to facilitate reporting.

Other examples include Lehigh University, Miami University, Cornell University, Villanova University, Claflin University, and the University of Buffalo.

Who manages the AUC Ethics HelpLine? 

The Senior Director of Compliance manages the AUC Ethics HelpLine.

What is the role of the third party, NAVEX Global? What's the benefit of having this third party?

The NAVEX system is entirely stand-alone and web-based, which means it does not link to AUC’s internal systems. In fact, NAVEX, as the provider, is contractually committed not to pursue a reporter’s identity. This enables individuals to report issues and concerns associated with unethical or illegal activities while maintaining anonymity and confidentiality.

How can someone file a report?

The AUC Ethics HelpLine is carefully designed to maintain confidentiality and anonymity at every step. Go to the AUC Ethics HelpLine from any device (mobile, home computer, etc.) and select "Make a report."

Following the on-screen instructions, complete the report as thoroughly as you can. Specify what report you would like to make from the available choices and read the anonymity information carefully—it helps to ensure that you do not compromise your identity during the reporting process. It is recommended to include the following information about the incident you are reporting:

• Who: persons engaged in the incident, including titles
• What: what specifically occurred
• Where: the location of the incident
• When: the time and duration of the incident

Create a password and write it down with the "Report Key" that will be given to you. You will need both of these to follow up on, review, or amend your report later.

You may also email the Senior Director of Compliance at [email protected] or visit our office in person on the 2^nd floor of the Administration Building to file a report in person.

Who can file a report?

Students, faculty, staff, vendors, or visitors to the campus may file a report through the AUC Ethics HelpLine.

Who accesses these reports? 

The AUC Ethics HelpLine enters reports directly onto NAVEX’s secure server. NAVEX makes these reports available only to the Senior Director of Compliance and individuals designated by the University’s complaint procedures, who are charged to promptly evaluate the report and decide how to follow up for effective resolution. Depending on the nature of the report, the system will send it to the appropriate University official.

Can people file anonymous reports? Will their identity be known to anyone?

Yes, they can. The AUC Ethics HelpLine allows you to submit reports anonymously. The AUC Ethics HelpLine does not generate or maintain any internal connection logs with IP addresses, so no information linking your PC to the AUC Ethics HelpLine is available.

How do people who file a report guarantee that they will not be discriminated against afterward? Are there policies that protect them?

Reports filed through the AUC Ethics HelpLine (and reports made through other University channels) are covered by the Policy on Reporting Unethical or Illegal Conduct, which recognizes that reporting is a service to the University and prohibits retaliation of any kind for reports that are made in good faith.

What happens after someone files a report?

If you include your contact information when filing your report through the AUC Ethics HelpLine system, the Senior Director of Compliance will follow up with you directly to schedule an in-person or telephone meeting. If you file your report anonymously, NAVEX will send you an email when the Senior Director of Compliance responds to your report or asks you any follow-up questions. You will have the option to continue to respond anonymously via the AUC Ethics HelpLine.

Can someone provide additional information after filing a report? How? 

When you file a report through the AUC Ethics HelpLine via the online system, you will receive a case key number and the system will ask you to choose a password. You can return to the AUC Ethics HelpLine system at any time to access the original report or add further information.

Will people who file a report be informed of the outcome? When?

Yes, the reporter will be notified of the outcome of any reports filed once the investigation is finalized. The investigation time varies on a case-to-case basis.

What can people do if a false report is filed against them? What if the report is anonymous?

Any reports or complaints filed through the AUC Ethics HelpLine will be fully investigated, and actions will only be taken based on the evidence found, not just based on the report itself.

How can people get more information about the AUC Ethics Helpline?

They may visit the AUC Ethics HelpLine page or contact the Compliance Office by email at [email protected] or in person on the second floor of the Administration Building.

Climate change is a global threat. According to NASA, 97% percent of climate scientists agree that human activities are the main cause of climate-warming trends over the past century, and most of the leading scientific organizations worldwide have issued public statements endorsing this position.

A study co-authored by Angie Abdel Zaher (MBA ’00), assistant professor of accounting, titled “Vulnerability to climate change: Are innovative countries in a better position?” takes another perspective, highlighting the impact of a country’s degree of innovation on its vulnerability to climate change.  

The more we know about the unknown, the less fearful it can become and the less damage it can project, explained Abdel Zaher, highlighting the ultimate theme behind the study. The research findings prove that a country can cope with adverse effects of climate change by knowledge exploration (as evidenced by research and development spending) and application (as evidenced by patenting). 

Most of the research nowadays focuses on the consequences of climate change. However, international business research on this issue falls short.  

“Climate change is happening and is influencing our livelihood in multiple ways,” she said. “Many studies have reflected on the danger it carries in terms of global warming and the environmental influences. However, among financial leaders, climate change is threatening the way they do business as it will never be ‘business as usual’ again.”  

Using a longitudinal sample of 73 countries for the years from 1998 to 2013, the study looks at the impact of innovation, openness to trade, and regulatory quality on a country’s vulnerability to climate change. Research findings indicate that R&D expenditures as a percentage of GDP (innovation input), openness to trade, and regulatory quality decrease a country’s vulnerability to climate change. In addition, openness to trade moderates the effect of patenting rates (innovation output) on a country’s vulnerability to climate change.

“Climate change impacts the country’s economic, social, and environmental livelihood, but the way each country deals with its own vulnerability to climate change will vary depending on how it utilizes its knowledge resources to combat such vulnerability,” affirmed Abdel Zaher.

From accounting equations to vulnerability of climate change, accountants are usually asked to project and analyze potential risks affecting the business operations. They go beyond the numbers, investigating factors that may threaten the client’s bottom line profits. Auditors are usually asked to give projections a year ahead about the financial business viability, and with such environmental issues coming to play, the predictions are shady.

“More than 1,500 of the world’s large companies are adopting the framework of the International Integrated Reporting Council, mandating companies to disclose environmental and social governance concerns to assess its performance,” added Abdel Zaher. “We, as accounting professionals, have tried to clarify some of these climate change concerns, but it is not enough to combat the hazards of climate change.” 

Abdel Zaher’s research aims to shed light on issues that are critical across the globe through the examination of country factors. It produces insights into how countries’ commitment to knowledge creation and application can better translate into sustainability. The research also stresses on the role that Multinational companies can play, in which their strategic choices can directly impact the outcomes of climate change policy, as they are mechanisms of knowledge and technology transfer and thus the benefits in one country can be used to feed into the need of another country to manage its climate change risks

“The findings will not just benefit the policymakers of the countries considered, but also those multinational companies that are crossing borders and must consider the risks of climate change on their operations,"  said Abdel Zaher.

#AUCFutureMakers 

This fall, AUC welcomed the first cohort of students to its Master in International Management/CEMS (The Global Alliance in Management Education) — the only AUC program ranked by the Financial Times and The Economist. AUC is the only CEMS academic partner in Africa and the Middle East.

“CEMS is one of the best and the only graduate program in the history of AUC and the Egyptian and Middle Eastern education that enjoys a Financial Times ranking in the top 10 universities,” said Hakim Meshreki, visiting assistant professor of marketing and CEMS academic director.

With a vision to “comprise the world’s finest students”, students spend a full calendar year at the CEMS program. The first semester is spent at their home university, and the second semester abroad as an exchange program in one of the 31 schools and academic partners. The student can follow the opposite track whereby they can spend the first semester abroad and the second semester at their home university. The third semester is an eight-week semester of international internship outside their home university, where they are exposed to the international flavor of a global organization through an internship outside their home country — preferably in one the 68 CEMS corporate partners.

By the time they graduate, students should prove their mastery of three languages, approved by CEMS, including the English and Arabic languages. "You can’t be a global manager without being able to communicate in at least three languages or even more,” affirmed Meshreki.

“The unique global network and the perfect balance between academia and practical international experience are what made me enroll in the CEMS program,” said Julian Friedrich Sendlmeier, a German student enrolled in the program.

CEMS started back in 1988 by four European universities to form a Master in International Management that has the multicultural aspect of managing global firms. With more than 30 academic partners worldwide, CEMS has an edge in combining academic and practical approaches, graduating global managers in different countries worldwide. The program has 20 academic partners in Europe, two partners in North America, two partners in South America, six partners in Asia, and one in Africa and the Middle East: AUC.

CEMS also has over 70 corporate partners from all over the world including Henkel, Procter & Gamble, Bain & Company, DHL Consulting, Google, Facebook and Hyundai and many others from various industries.  

“I chose to enroll in the CEMS Master in International Management because it is not the typical master’s program where you would go by the book,” said Yara Koura, one of the CEMS students at AUC.

CEMS is a pre-experience program that neither requires years of experience nor GMAT score to join the program. "You just need to pass through the panel interview, which is one of the things we base our decision on apart from other basic University requirements like GPA,” explained Meshreki. “We base our selection criteria on different dimensions, including global mindset and openness to differences; resilience and competitiveness; and ethics and social responsibility.”

For more information about the program, click here.

Attend the Digital Education Campus Conversation on October 9 in Moataz Al Alfi Hall, AUC New Cairo to learn more about the innovative initiative. 

According to Forbes, the worldwide e-learning market is projected to be worth $325 Billion in 2025. In its second century, AUC will be more focusing on its potential to innovate via empowering learners through digital education as the first university to have a robust information technology infrastructure and a Center for Learning and Teaching infrastructure. The News@AUC team spoke with Hoda Mostafa, director of AUC's Center for Learning and Teaching about digitizing education at AUC.

Can you tell us more about the Digital Education at AUC?

Digital education, in the broad sense, is not new to AUC. We have always strived to lead the transformation of higher education through digital education and innovative pedagogies for many years. It started in the early 2000s, before we moved to AUC New Cairo, with the adoption of a learning management system across the University and the adoption of multiple instructional technologies across the board, whether it is web 2.0 or specific instructional technologies in the classroom, platforms that students use across the disciplines. We offer strong support through the Center for Learning and Teaching (CLT) around the active integration of technology into the classroom in what we call  “pedagogically sound” ways. In other words, we do not encourage the integration of technology for its own sake, but because it improves the educational and the learning experience for our students, and it is also a learning opportunity for our faculty.

What is the more recent Digital Education Initiative all about?

It is a University-wide initiative around digital education to include online, blended learning as part of our innovation pillar at AUC. Online and blended programs are being introduced to provide greater access to our extended education offerings within our programs and diplomas. This modality allows learners from anywhere around the globe to take our courses. For example, by offering courses fully online in Arabic, we are expanding our reach and appealing to the Middle East and North Africa region and other audiences. For undergraduates, we have started offering Arabic courses in a blended format this semester.

In 2013, President Anderson established a Task Force on Blended learning with the mandate, "To develop guidelines and best practices for an institutional implementation of blended learning at AUC and to assess AUC’s readiness for such an initiative”

In 2014, the AUC provost established a standing committee on Blended and Online instruction that was made to set or recommend policy and strategy at the University level for blended and online instruction.

It is only in the latest strategic plan of the University that blended and online learning became a specific strategic goal.

What are your biggest challenges?

Faculty require support to design and teach in an online or blended learning modality. We already have experience with faculty who have taught courses in a blended format, which means that part of the class time is replaced with an online experience so they are doing some things online and some things face-to-face, and the course is designed so that it flows naturally. Teaching online is not the same as teaching face to face. This is a challenge when introducing these new mindsets to the learning landscape at AUC. Students also need support to succeed as online learners.

How are you working to overcome those challenges?

We are working on training faculty on how to design blended-learning courses, whether they're degree or non-degree programs, so we are building up capacity for our faculty to become more familiar with designing courses. We are also training instructors to teach online because it is very different than teaching in the classroom.

It is important to understand that in any initiative like this, there is always slow incremental gradual change, changing the culture, and establishing strong roots and capacity building. Expecting faculty to teach online or even to teach with technology requires capacity building and professional development and that’s why we are very lucky that we have a CLT at the University that can support faculty to explore new ways of teaching with the support of an infrastructure that allows this; whether it is a technological infrastructure like a robust institutional learning management system or the support system of skilled instructional designers and instructional technologists at CLT, which is unique in the region.                

Who will benefit from this initiative?

The digital education would benefit the entire community of educators and learners and learners beyond AUC students.

In the few courses that have recently been launched, we have had over 900 students who took non-degree courses in the area of extended education.

How is it different from blended learning? And from what AUC currently offers online?  

Blended learning is part of the initiative, but the scope of the initiative now is to go fully online with a focus on the professional non-degree area, not just AUC students. Through the School of Continuing Education, we have just launched one diploma, “Foundations of Business Administration” as a pilot.    

The establishment of the digital education unit at the Center for Learning and Teaching is what makes it different. Now we have a unit and a whole team; an instructional technology team, instructional development, and video production and multimedia team. The teams are composed of nine exclusively dedicated members to support faculty in everything related to digital education, whether it is the traditional or not so traditional integration of technology into the classroom, video conferencing, the production of videos in our state-of-the-art studio or the design of blended and online courses with the full support of the instructional design and technology team.

Why is this an important initiative for AUC? 

We are the first university to have a robust information technology infrastructure and a Center for Learning and Teaching infrastructure.

I think it is important to think of a common purpose for higher education, and that is the transformative nature of higher education including the experiences that the students are exposed to, types of skills they learn, self-learning, interacting with people online and digital literacies. All of these things are implicit to learning in a blended or online environment. Additionally, online courses contribute to increasing AUC’s reach to people who can benefit from quality AUC courses.

But it is a slow process. That’s why we have a one, two and three-year plans, but the overarching of why it is important to AUC is because it affects everyone, technology is part of our lives, every single person should be able to teach himself new things even if learning how to cook or play the guitar through a YouTube video. We should embrace that we can offer high-quality online experiences that are equal to our face-to-face quality of education.

What are your short and long-term plans?

Our hope is to introduce some elements of a blended or online learning experience for our students and expand our reach. If you look at some of the statistics in the U.S, you'll find that over 30 percent of the students will have taken at least one online course in their undergraduate education by the time they graduate and this is increasing every year. There are multiple public and private universities that offer the same course in both versions; online and face-to-face and the students can choose.

The strategic mission of the University in the next two years is to focus on the non-degree professional certificates, diplomas and tracks through its different schools so any kind of professional offerings in extended education is a strategic kind of area for growth. This doesn’t mean we won’t be looking at opportunities in the post-graduate offerings at AUC as well.

How can people apply or learn more about it? 

Through CLT as mediators of the process. The schools and their programs are identifying the programs that have the potential to go online, they are doing market research and addressing their audience, building on their knowledge of their learners and program placement. It is a school-driven initiative according to the needs of their community of learners.  CLT serves as a service and support center and not necessarily a decision-making entity. We serve the schools with the purpose of bringing together all stakeholders; chairs, program directors, deans, faculty to the same kind of space.

How will the stakeholders benefit from the Digital Education Campus Conversation taking place on October 9?

On October 9, we are holding a communication event followed by an opportunity-seeking activity,  bringing together the stakeholders, asking common questions like where do you see the potential of online learning within your community of learners. The community of the School of Continuing Education is very different than the executive business community and the Kamal Adham Center for Television and Digital Journalism learners and we should respect the differences so that our products align with the market needs.

In this community campus conversation, stakeholders will hopefully meet to explore opportunities at CLT and leave with a better understanding of their needs and the transformative power of integrating digital education, whether online, blended or web-enhanced learning into their programs.

The AUC Venture Lab at the School of Business celebrated the graduation of the 11th cycle of the Startup Acceleration Program and the fifth cycle of the FinTech Acceleration Program.

"This Demo Day, we graduate a new cycle of innovative and impactful startups that contribute to different industries in our ecosystem, including energy, education, e-commerce, health care and fintech," said Ayman Ismail, Abdul Latif Jameel Endowed Chair of Entrepreneurship and AUC Venture Lab director. "As AUC V-Lab moves past its five-year marker, we continue to celebrate dedicated work and creative business ideas to support the growing impact of entrepreneurial mindsets.”

As Egypt’s first University-based accelerator, AUC Venture Lab provides acceleration services to startups, leveraging AUC’s intellectual capital, world-class facilities and research capacities. It connects entrepreneurs with a wide network of alumni, faculty, mentors and investors. Over five years, AUC V-Lab has graduated more than 120 startups.

Through its Startup Accelerator, AUC V-Lab offers a 16-week program providing business support for innovative startups to grow their business and boost the Egyptian economy.

AUC V-Lab also houses the FinTech Accelerator, which offers a 16-week customized program for FinTech startups providing entrepreneurs with specialized business finance and technology support, where startups gain valuable insights from some of the smartest minds in the startup and fintech worlds.

Startup Acceleration Program

Health Care

The Startup Accelerator cycle incubated startups across a myriad of sectors. Focusing on health care, CDOC is a medical consultation app for patients to connect, chat and consult with physicians. The service is provided by specialized doctors who are legally registered at the Egyptian Medical Syndicate in different specialties.

There is also MoDo, a local healthcare directory with more than 44,000 service providers, which enables users to locate the best nearest service provider. It gives them the option to filter providers using insurance network, as well as rate the service and share their experiences in just a few clicks.

Also incubated in this cycle is Instadiet, a web and mobile app that connects users with certified dietitians to address diet challenges. It allows dietitians to maximize their patient capacity while offering patients a hassle-free journey as they can select their dietician, receive tailored meal plans and track their progress, all online. 

“AUC V-Lab added value to my startup in two key areas," said Ahmed Tawfik, founder of Instadiet. "First, they introduced me to their network of partners and mentors who helped me close B2B deals that I hadn’t considered before. Second, they introduced me to a network of high-caliber fellow founders with a complementary set of skills that helped push my startup even further."

Sustainability 

The cycle also hosts Bio Life, provider of an affordable alternative source of energy for sustainable rural development, as it offers a biogas digester that is easily installed at homes and is both cost- and energy-efficient.

Fintech Acceleration Program

Facilitating Procedures

As for the FinTech Acceleration Program, it incubated Gigaaa, an intelligent personal assistant platform that provides users access to all range of products and services through voice command and automatically processes user payments through the Gigaaa wallet while continuously gathering data through machine learning for a more personalized experience.

To ease the routine and red tape, Egr2atk offers a platform to connect individuals with licensed offices to issue governmental documents, to minimize time and effort for users while increasing the capacity of licensed governmental offices. “Being part of the AUC Venture Lab for such a small time helped me build a stronger network as well as discover new opportunities I did not know were available," said Ayman Mostafa, founder of Egr2atk. "Also, I am now equipped with strong tools that will enable me to move forward with my business."

Other startups are FINSOFT SWITCH, a middleware between banks' host and offline delivery channels (POS, E-Commerce and MPOS) supporting banks' payment gateway system and XPay, a digital platform facilitating cashless payments within communities. Through its secure portal and app, XPay works to swiftly manage payments and financial transactions ruling out weak financial controls and time consuming cash-based operations.

Mohamed Abdelmottaleb, co-founder of X Pay, said: “One clear value we gained from the Venture Lab is that we’ve learnt how to challenge our business model and our impact model. We have also been introduced to a good selection of mentors.” 

Egypt has moved from being in a “crisis zone” only two years ago to an “investor haven” now, according to Bloomberg.

Tarek Selim ’92, ’95, economics professor and most recently a research fellow in emerging markets at the Massachusetts Institute of Technology, explains why the Egyptian economy is on the rise and what it can do to continue to improve.

What exactly does “floatation” mean?

In economic terms, the recent floatation of the Egyptian pound is called a "shock," which implies the economy takes several years to absorb it. Historically in similar countries, it takes up to five to seven years to fully absorb such a shock. The first three years after the shock are the most critical, and the next few years tend to be minor. Egypt’s economy has almost passed three of the critical years with inflationary pressures on the quality of life.

The floatation of the pound has been costly to the average citizen in terms of inflation. The wage rate did not increase in proportion to the increase in prices. This caused a decline in the quality of life and the people’s purchasing power of goods and services, which is a critical challenge moving forward.

Why did the Central Bank of Egypt (CBE) choose to float the Egyptian pound?

The floatation policy basically creates an incentive to export because the currency becomes cheaper relative to other currencies abroad. For example, suppose Egypt is producing a product costing EGP 100. If the exchange rate is $1 to EGP 1 and Egypt exports the product, then it will cost $100 to the receiver abroad. However, when the exchange rate changes dramatically to EGP 10 per dollar, the value of the same EGP 100 decreases to $10, so it should be cheaper to export. One of the major benefits after the flotation of the pound is export potential, and this is not yet realized. But I am optimistic. However, the potential to increase exports for Egypt has many constraints, including scale, infrastructure, and bureaucracy.

What if the CBE had not decided to float the Egyptian pound?

The country’s reserves would have been depleted fast, rather than increasing the way they are right now. Egypt doesn't have the resources to sustain such a depletion, so I think the “shock” was needed. However, complementary policies should have been put into place to make sure that quality of life was not affected in a very drastic way. This includes wage adjustments, anti-monopoly policies, scale incentives, and less bureaucracy. Right now, this should be one of the government’s priorities.

Can you explain why the floatation of the Egyptian pound put Egypt in a “crisis zone?”

The Egyptian economy has gone through a lot in the past couple of years. Especially after the revolution — all the turbulence, all the uncertainty. Uncertainty is a risk factor, especially for international investors who are looking for emerging markets. Countries are competing in the world market, quite similar to companies in domestic markets, hence a competitive advantage for Egypt must be strategized. The local market is the global market now.

Why do you think Egypt is becoming an “investor haven?”

The term “investor haven” might be an over-statement. If I'm an investor and I consider my options, the first thing I look for is the rate of return — which is the yield. Egypt has one of the highest yields on consumption-driven investments due to its market size. Also, Egypt’s yield on certificates on investment, which are considered a safe investment, is around 18 percent. The second thing is the risk factor. Egypt’s risk ratings have been improving, and the currency risk factor has been stable. The exchange rate has been stabilized over the past year, contrary to expectations. In the past one or two years, a lot of people expected the currency to devalue and continue to devalue. I think now it has stabilized, but there is a risk of such stabilization not to be maintained. Although there has been a stable political environment, yet an improvement in the economic returns of critical sectors, such as tourism and the Suez canal, in addition to a needed surge in manufacturing scale exports, are of high importance. Natural gas is helping the economy move forward, which is very good but not sufficient in the long run.

What can Egypt do to keep improving investor confidence?

Egypt has a lot of natural resources in addition to energy, like cement, marble, granite, aluminum and fertilizers. There are a lot of industries that could actually flourish and expand into the international market, and I think this should be our next step economically. It's not really the number or amount of investments alone; it’s the quality of investments that we should focus on. Egypt is in need of labor-intensive investments –– investments that absorb a lot of labor. When investments absorb more labor, this solves the unemployment problem. Also, local innovation is needed, such as in digital manufacturing. In the latest World Economic Forum’s Global Competitiveness Index, Egypt has jumped 15 ranks upwards, yet its level is still low at 100th place out of around 140 countries. Egypt can do better. There is huge, yet unrealized, potential. Quality of the labor force, government bureaucracy, education-work matching, and huge public debt are major challenges to improve the country’s competitiveness.

Are there any additional factors that make Egypt an investor haven?

Egypt is a consumption-driven economy, and local investors tend to be family businesses. That's why the sectors that are low-risk and high-return tend to be food, clothing and real estate. In Egypt, 90 percent of our income is spent, when the world average is around 77 percent. This, by itself, is an indicator to attract investments in certain sectors. Social economic behavior has consumption ripple effects. Once you start investments in Egypt, the supply in your investments will be enough to attract as much demand as possible. What is needed is local innovation, better governance, scale enhancement for export-led investments, and successful Egyptian brand penetration into the world market.

Is it likely that Egypt will stay an investor haven?  

Egypt has huge but unrealized potential, and we need to plan for realizing such potential. Having investments is important, but not sufficient. We need to complement it with other things — labor-intensiveness, local innovation, human capital mapping, technology transfers, competitiveness and bold strategies to enhance the overall efficiency for each of the different sectors. Policies play an important role. In the past, the priority was more on the infrastructure, physical capital and mega projects. Now, the focus should be on human capital and quality and scale of investments, which I think is the right shift of policy that will result in long-term economic success.

The AUC Venture Lab, Egypt’s first University-based startup incubator and accelerator, recently celebrated its fifth anniversary. During those five years, the V-Lab incubated 115 startups that generated EGP 88 million in revenues, raised more than EGP 220 million in investments and created more than 500 new jobs. V-Lab was also recognized as a top university business incubator in Africa and high-impact incubator in the Middle East and North Africa region by UBI-Global.

“AUC Venture Lab had a distinctive impact on Egypt’s entrepreneurial ecosystem,” said Ayman Ismail ’95, ’97, director of the AUC V-Lab and the Abdul Latif Jameel Endowed Chair in Entrepreneurship. “[This impact is] not only by supporting innovative, high-growth startups, but also by connecting them with AUC’s educational mission through experiential learning, where students and entrepreneurs work together and collaborate to create value for the startups.”

Since its launch in 2013, AUC Venture Lab has provided more than 1,500 hours of mentoring and training to its entrepreneurs. These V-Lab graduates, driven by creativity and determination, went on to provide life-changing services and experiences, contributing to facilitating lives across Egypt and the region.

Since its founding, the AUC Ventura Lab Startup Accelerator was supported by several corporate partners, including the Arab African International Bank (AAIB), a corporate leadership co-founder, as well as SODIC, Shell and General Electric. “The collaboration between AAIB and AUC Venture Lab marks a unique alignment between financial and academic institutions for the interest of entrepreneurs,” said Hassan Abdalla, chief executive officer of the AAIB. “As a main driver in the Egyptian economic scene, the financial sector must play a role in empowering the entrepreneurship ecosystem in the country.”

FinTech Future

People are constantly trying to find ways to better manage their money and time, and financial technology (FinTech) is helping the world move in that direction, with the AUC V-Lab becoming a regional and local hub for this transformation. In Fall 2016, V-Lab launched the AUC Venture Lab FinTech Accelerator in partnership with the Commercial International Bank (CIB). Since then, the V-Lab FinTech Accelerator has graduated 18 FinTech startups, contributing to the growth of the FinTech ecosystem in Egypt.

With the FinTech field growing in Egypt, both financial and non-financial institutions are becoming more open to these innovations, and entrepreneurs are finding more ways to stand out when they enter the world of FinTech. Q-Less, founded by AUC student Walid Wael Abou ElNour, Saeed Talaat ’16, Hashim Ibrahim ’16 and Youssef Galal, is a startup that’s out to tackle one of the country’s most frustrating experiences: being in queues and hoping to not waste your day while trying to make a payment. Q-Less is an online platform built on a system that facilitates transactions between customers and service providers. It allows customers to make everyday payments, renew subscriptions and pay tuition without having to stand in endless queues.

Abou ElNour, finance and accounting major at AUC and financial analyst of Q-Less, said that the startup joined the AUC Venture Lab at a mature stage, with a developed prototype and business model. Nonetheless, the lab played the role of a mentor and supporter. “The V-Lab was more of validation,” Abou ElNour explained. “We had access to different mentors with high expertise in their fields who were able either to validate and support what we did or guide us to more efficient and profitable alternatives,” he said. “Both were beneficial for all of us. They greatly expanded our knowledge and understanding.”

The process of entering the V-Lab takes startups through several stages. It starts with applications, screening, mentoring and judging, then it becomes serious business, where startups go through the acceleration process, where they receive intensive training. Then on Demo Day, startups are presented, and finally, there is incubation, where startups are granted an extended amount of time to use the V-Lab’s services.

“It gave us more trust in our startup,” said Abou ElNour. “As entrepreneurs, we are always on a ride in an emotional rollercoaster of doubts, hope, success and failure. However, having your idea mentored and supported by people with very high expertise, knowledge and impact in the entrepreneurship field at the V-Lab gave us a boost and assurance that we are on the right track.”

Startups Serving Society

Swvl

Startups who graduate from the V-Lab all have one thing in common: serving different communities and sects of societies. One of them is Egypt’s most recent and useful transportation options: Swvl – a mobile app that organizes convenient transportation routes around Egypt at reasonable prices. Co-founding CEO Mostafa Kandil ’15 and his team are alumni of the AUC Venture Lab. Today, Swvl has raised $8 million in its first round of venture capital financing, which is the largest round of funding for a tech startup in Egypt and one of the largest in the Middle East.

“V-Lab was instrumental in Swvl's early days,” Kandil affirmed. “The team's mentorship and constant feedback on how to take Swvl from zero to one was key in how we shaped our marketing, operations and other key functions. Being a V-Lab graduate was a stamp of confidence when we started fundraising.”

With its entrepreneurial support and the knowledge and guidance of mentors, the team was able to launch the application before graduating from the cycle. Kandil confirms that Swvl is on a mission to create 5,000 micro-entrepreneurs who own their vehicles to make a better living.

“What we’re doing is building public transportation for emerging markets,” said Kandil. “Often, people outside of emerging markets don’t understand the magnitude of this global issue. In these markets, the middle class doesn’t have affordable ways to commute. We’re going to these markets and building the infrastructure for them.”

La Reina

Many may have seen ads around Facebook about wearing their favorite designers’ sartorial masterpieces at an affordable price — it’s the unique V-Lab graduate, La Reina, founded by Ghada ElTanawy and Amr Diab. La Reina, which is based in a platform that allows customers to rent formal gowns, recently raised $1 million in a first round of investment from Algebra Ventures and 500 Startups.

La Reina’s service is targeted at women, with 75 percent of the team behind it being women. The couture service allows customers to rent gowns according to their occasion — whether it’s a formal evening or their wedding. In return, it allows others to make use of gowns that were bought and worn once, but are in great condition ready to be reused.

In the two years since its launch, La Reina brought in more than EGP 3.5 million in total for gown owners. “The AUC V-Lab was my first window to the startup ecosystem,” said ElTanawy. “After I joined, I was mentored by many entrepreneurs and got to know them, and they who helped me in my journey. They encouraged me to apply in competitions, one of which was RiseUp Explorer, where we were named one of six most promising startups in the Middle East and went to Silicon Valley.”

With a growing team of talented and determined individuals, La Reina is looking forward to creating a “humble boost for the local economy,” through increasing the number of items to 5,000. This will result in an increased revenue — up to 8 million for dress owners — as well as expansion to the regional market.

ElTanawy noted that V-Lab has been there every step of the way, and she expects it to always be there for support as her business grows. “The AUC V- Lab was a supporting partner all the way,” she explained. “I have always reached them for advice, and the mentors are mentors for life — not for a three-month cycle.”

She added, “When I am faced with challenges or different opportunities and I need guidance, I always reach out to them — specifically Professor Ayman Ismail. They follow up with me along the way and warn me if I have a blind spot in my business. I advise future entrepreneurs to get the most out the AUC V-Lab because it really can change your life. Consider them family because they are willing to go above and beyond for your success.”

From apps for student life, course registration, grades and sports tournaments to the creation of blended learning spaces combining in-class seminars with online resources, AUC’s new Office of Information Management, headed by Sherif Kamel, management professor and former founding dean of the School of Business, aims to bring together people and technology in innovative ways that reflect the continuous and changing academic needs in today’s digital world.

“There’s a growing trend toward on-the-go apps, and AUC should be there,” affirmed Kamel. “There are a variety of emerging learning tools and applications, and not all of them are web-based platforms. [In fact], the web is seen as the classical approach, not the most innovative and creative anymore.”

Interactivity and collaborative technologies are the way forward, Kamel noted. “I want to see more interactive communication and more apps offering a variety of services,” he said. “Some can be directly related to the learning experience, and some can be related to services and community life on campus.”

Laying the Groundwork

During this first year, Kamel will be primarily focused on conducting an overall assessment of the technology space at AUC. “This is a collective effort and should lead to the development of a strategy for information management for the next three to five years –– where we are, where we are heading and how to get there,” he said, adding that the office will always amend its strategy based on emerging and changing needs. “But we need to have something that is integrated and complements the AUC strategy,” he emphasized.   

The initial step in developing a strategy is gathering feedback from the community. “It is always important to first understand the environment by talking to different stakeholders, including students, faculty, staff and alumni, and getting their views and thoughts,” said Kamel. “We need to know what issues and challenges they’re facing. It is a community effort, and engaging different stakeholders will help bridge whatever gaps exist between what people have and what they are looking for.”

Kamel added that, as former dean of the School of Business, he had regular discussions with faculty, staff and students to understand their concerns, listen to their ideas and explore ways to improve the school. 

“I see this happening again in my new position,” said Kamel, who also met with student leaders on campus to listen to their ideas and needs.“Just a couple of days after I took on my new responsibility, I was approached by a group of students who proposed to me an app for navigating the campus. They even had an initial version built. It’s s a great suggestion and is just one example of how we hope to facilitate services offered through technology.”  

Embedded Blended Learning

A key component of Kamel’s vision for the office is revisiting technology utilization on campus, specifically, how technology is embedded in the learning experience. “It’s one thing to update the technology infrastructure and train students, faculty and staff to use it,” Kamel said,“but how are we actually embedding technology in the whole cycle?”  

A major trend in higher education, according to Kamel, is the creation of blending learning spaces. “Blended learning is the mixture of in-class seminars with online resources and webinars,” he explained. “With that combination, we can render the learning experience much more effective because after 20 years of web and online platforms, there is a huge knowledge depository out there. It’s definitely one of the things we’ll be looking at.”  

With this forward-looking vision, Kamel is exploring the different venues where existing technology on campus can be improved. This includes identifying avenues for the community to access campus services through various technology devices, expanding the way students and faculty members use technology in the classroom and offering staff members the opportunity to capitalize on the use of technology in their administrative and managerial responsibilities.

Campus Collaboration  

To accomplish all these goals, Kamel emphasized the importance of campus collaboration. A significant amount of technology infrastructure at AUC already exists, but Kamel sees an opportunity to work with different stakeholders to identify how the available resources can best benefit the University community. The office will be working with the information technology infrastructure at large and University library –– utilizing its technology tools, applications and emerging digital platforms–– to investigate the role of technology and innovative methods in the learning process, as well as explore different venues for information creation, dissemination and knowledge sharing for the AUC community. The office will also work with the academic schools, Center for Learning and Teaching, as well as the various research centers on campus.

“Coordination and collaboration will render the operation more efficient and avoid redundancy or duplication,” Kamel explained. “We should collectively be looking at how to best serve the AUC community, whether on or off campus, through technology platforms, tools and applications to meet the University’s mission.”  

For Kamel, the creation of the office is only the first step forward in a continuous effort to develop new initiatives. “I personally believe in continuous improvement and that such a process is a journey and never a destination,” he said. “This is a collective effort, and I look forward to working with different stakeholders to continuously improve students’ learning experiences, where technology is absolutely invaluable and a critical element in the learning process. With the support of the intellectual human capital on campus and with the proper and collective efforts of all, we will regularly improve the learning environment, reflecting what the different constituents want to be able to realize the positive impact on society we all desire.”

Even as Kamel discusses the technological aspects of his new position, he makes a point to never lose sight of where technology comes from and who it is for. “The most important element and building block in that space is the people; they make all the difference,” he said.