France’s Vicat Group is keen to keep on investing in Egypt throughout times of prosperity and crises, according to Sinai Cement Country Manager Tamer Magdy. These provide the strongest reasons that push the company to continue its work in the market, despite its exposure to multiple losses.
The French company has been operating in the Egyptian market since its acquisition of the Sinai Cement Company in 2003, Magdy said. He also said that Egypt is very promising for investment, despite the negative impacts of the novel coronavirus (COVID-19) crisis on the Egyptian economy. The main indicators remain satisfying, and global consensus remains confident with Egypt’s GDP expected to reach 5% in 2022, Magdy noted.
“The economic reform decisions taken by the Egyptian Government maintains positive growth rates for the economy,” he added, “Moreover, there is an optimistic view of investment in the Egyptian economy, and the cement sector is one of the promising sectors that overcomes the challenges it faces to attract new foreign investments to this sector.”
Vicat is waiting for the Egyptian Government to start its plan to develop Sinai, the company’s main market.
Losses recognised before were huge to cover, however the decision of the Egyptian Competition Authority to reduce production by at least 10% will save the industry. Additionally, it will have a positive impact on the economy as a whole as all the current jobs will be preserved and all the income of all the suppliers and customers of the cement industry, Magdy disclosed.
Magdy also noted that demand for cement decreases annually, with there being a demand for 56 million tonnes by the end of 2016. This figure is expected to drop to 43 million tonnes by the end of 2020, reflecting a decrease of 20%, which means more challenges facing the cement industry in Egypt.
