The US-based Cartel Capital group decided to hold its future investments in Egypt until further notice, Alternative investment manager Ayman Abou Hend said Saturday.
This step comes following the significant increase in the US dollar prices against the Egyptian pound, the official told Amwal Al Ghad.
Cartel Capital is a leading multi-stage private equity and venture capital firm providing capital for start up and growing companies whose principal business centers on products and services that can make use of high information technology solutions.
Abou Hend stated that the sudden increase in the US dollar prices led the company to hold pumping investments in the Egyptian market.
The CBE raised the dollar rate for the first time on 18 January to EGP 7.23 from EGP 7.18. Last Thursday, the CBE increased the dollar exchange rate against the Egyptian pound again by 10 piasters, before issuing another rise of 10 piasters on Sunday, to reach EGP 7.8301.
The dollar exchange rate stabilised at EGP 7.7301, while it was at EGP 7.78 for bid prices in banks and at EGP 7.8301 for asking prices.
Abou Hend clarified that the increase in dollar prices was ‘expected’ since the beginning of 2015 but the changes in Egyptian pounds’ price against the foreign currency leads the investors to concern about entering the local market.
The official added that the Egyptian market’s conditions have led to the company to postpone pumping the targeted investments ; estimated at US$5 million, noting that there are lots of structural problems in the local economy.
Moreover, Cartel capital was eying investing US$10-20 million in the Middle East; of which US$5 million to be invested in Egypt in 2015, Abou Hend said.