Minister Osama Saleh: Africa; Promising Investment Opportunity for Egyptian Companies
Osama Saleh, Minister of Investment, emphasized that African markets offer many great investment opportunities for Egyptian companies wishing to expand their business, particularly in the field of infrastructure, which most of the continent’s markets lack. This is, in addition, to projects related to construction, energy and cables.
A number of Egyptian companies have started operating in some markets in Africa, achieving success in many fields, especially in agro-processing, he added.
Egyptian-Sudanese Overland Route: A Vital Point Linking African Markets
Saleh further expects that the overland route linking Egypt with Sudan will not only increase channels of communication between Egyptian companies and markets in South Sudan but markets in the continent as a whole.
Moreover, the Minister stressed that the near future will witness significant cooperation between Egypt and southern African countries for investment purposes. He pointed out that some Egyptian companies are running businesses in South Africa with the aim of promoting and enlarging their investments. This will, in turn, enhance integration between the two sides.
Concerning the logistical problems experienced by some African markets, he explained that they are still debating with the Central Bank the fact that Egyptian companies operating in these markets are unable to transfer their profits to Egyptian markets, due to the inefficient banking systems in such markets.
He added that the present Government is working hard to create opportunities for investment in many African markets; most notably, the Prime Minister’s recent visit to Algeria has opened up new, extensive horizons for Egyptian companies working in contracting and infrastructure, given that such fields will be required by Algeria in future.
This visit has also managed to strengthen the ties between Egyptian and Algerian companies. Indeed, the Arab Contractors company has been granted the privilege of establishing a whole new city in Algeria in a great investment deal. This goes to show that there are tremendous investment opportunities in the surrounding markets.
Sudan, Algeria, Uganda, Ethiopia: Key Promising African Markets
He also noted that a number of other important African markets are currently being considered for Egyptian investments. These markets include the two parts of Sudan, which have remarkable potential for investment; Algeria and Uganda, particularly in irrigation projects; and Ethiopia, with which we seek to launch investments.
In terms of internal investment, Saleh affirmed that some industries are suffering from gas shortages. Meanwhile, an agreement has been concluded with Algeria to export gas to Egypt until the ongoing gas exploration projects have been finalized, in order to get Egypt’s gas levels, which have decreased as a result of the increased consumption of electricity, back to normal.
In his reference to the Ministry’s current strategy, Saleh said it has a multi-axis development plan for supporting its various affiliated sectors.
These axes include restructuring the public business sector and maximizing its contribution to economic development by developing its projects, obtaining approvals from the relevant bodies for a number of legislative procedures concerned with the mortgage market in an attempt to support non-banking financial services, and providing facilities for the insurance sector, brokers working in the same sector, and both local and foreign investors in the money market.
Money Transfer: Biggest Problem Facing Egyptian Investors in Africa
The Minister of Investment defined the most prominent obstacles facing foreign investments in Egyptian markets as the factional demands of workers and the difficulty of obtaining licenses for plots. “We are currently coopering with other bodies in order to facilitate the procedures required for obtaining plots and their licenses,” he added.
The Minister also stressed that a large group of Egyptian companies have decided to pump more massive investments into the black continent.
The biggest of these investments are from Citadel Capital (CCAP.CA), which has invested in Uganda’s railways, and El-Sewedy Cables, a leading company in the field of electricity, which has launched investments in Namibia, Malawi, Yaounde, Equatorial Guinea, Zambia, Luanda, Kigali (which is next to Ethiopia), Nigeria and Mozambique. Meanwhile, El-Sewedy Electrometer’s investments in Ghana included Rafi for Aluminium and Mansour Chevrolet.
As for the construction sector, the Arab Contractors Company is investing in Equatorial Guinea, Nigeria, Yaounde and Ghana, with Pretoria and Abidjan next.
Furthermore, El-Nasr for Import and Export relies on its branches in Uganda to export powdered milk, soft drinks and juices, and to import coffee, fish and sesame. It also imports cocoa from Ghana, exports food products to Zimbabwe and Niger, and imports tobacco from Zimbabwe, in addition to dealing with Nigeria, Yaounde, Burundi, Zambia (next to Senegal) and Togo.
There are also Egyptian investments in Namibia, where companies such as Unionaire for Air Conditioners, the Egyptian International Pharmaceutical Industries Co. (EIPICO), and a software and IT company owned by businessman Mohamed Naseer are operating, Similarly, Pharma is operating in Niger and Jedco International Pharmaceutical Company in Gabon.
The Eastern Company for Tobacco (EAST.CA) has investments in Malawi, Egypt Air in Nigeria, and Mantrac for Electric Appliances and Voltage Converters in Nigeria, Tanzania, and Kenya. Orascom also has construction projects in Nigeria and provides mobile services in Burundi.
Egypt’s investments in the field of telecommunications and mobile services are also evident in many African countries. For instance, Leo, a subsidiary of Orascom Telecom Holding (ORTE.CA), offers mobile services in Namibia, Alkan Telecom is establishing communications networks in Sierra Leone, Tanzania, and Ghana, and mobile phone bridges in Kenya and Ouagadougou, in addition to its investments in Niger and Senegal, while Egypro is providing telecommunications and mobile services in Nigeria and Abidjan.
Saleh stressed that the timing of ASEA’s 16th conference is appropriate in light of the economic downturn, as it will help maintain Egypt’s position in the continent. He added that the Egyptian Exchange will play a key role in supporting African stock exchanges by providing them with any technological support they need.
