Cancer patients outside the 57357 hospital in Cairo. The hospital has received record funding after a call for donations. AFP
Cancer patients outside the 57357 hospital in Cairo. The hospital has received record funding after a call for donations. AFP
Cancer patients outside the 57357 hospital in Cairo. The hospital has received record funding after a call for donations. AFP
Cancer patients outside the 57357 hospital in Cairo. The hospital has received record funding after a call for donations. AFP

Egypt children's cancer hospital given $8m after closure threat


Kamal Tabikha
  • English
  • Arabic

Egypt’s largest children's cancer hospital has received donations worth $8 million in the last three weeks after saying it might be forced to close.

The Children's Cancer Hospital Egypt, better known as 57357, said in December it would be closed in six months without an increase in donations.

Since then, the hospital, which is entirely funded by donations, has collected 250 million Egyptian pounds, enough to keep it running for more than three months.

The amount is a record in a single month, said a senior official at 57357 — the bank account number through which the hospital receives donations.

The donations surpassed amounts previously collected during Ramadan, a time when Egyptians typically give more to charity.

The 320-bed hospital, which opened in 2007 following nearly a decade of fundraising events, announced a streamlined budget think week which aims to cut spending to 80 million Egyptian pounds per month.

Celebrity call

Following the hospital’s distress call in late December, a number of celebrities posted videos on social media aiming to raise awareness and save it from closure.

However, many social media users demanded transparency on how donated funds were being used.

In late December, MP Soliman Wahdan submitted a formal request to parliament for an investigation into the hospital’s finances.

Mr Wahdan told the house that he had been informed of a number of bad practices that he thinks contributed to the drying up of the hospital’s funds.

He said unreasonably large salaries were given to high-profile executives whose roles were not clearly outlined.

He also called for the publication of the finances of an academy launched in the hospital to train Egyptian oncologists, which was allocated sizeable funds.

Dr Obada Sarhan, a member of the hospital's board of trustees, told a pro-government talk show there was no financial malpractice.

He said the drop in donations was caused by economic constraints brought on by the Covid-19 pandemic and the Russia-Ukraine war harming Egypt’s economy.

In August, a second branch of the hospital, which opened in 2015 in Tanta, a city in Egypt’s rural Gharbeya province, was also shut down due to a lack of funds.

It led to outrage from families of the branch’s patients, who plastered calls for help on the walls of the hospital. They also gathered outside the building to call on authorities to step in and keep the hospital open.

A small group of patients from the Tanta branch were transferred to the city's university hospital, which opened an oncology centre to receive them.

Dr Sarhan promised to publish the hospital’s 2021 financial records to put donors at ease that their money was not being mishandled.

Mr Wahdan's call for an investigation is yet to be addressed by parliament.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

Updated: January 11, 2023, 11:44 AM