The Central Bank of Egypt’s (CBE) decision to float the Egyptian pound prompted the US company Cartel Capital to activate a $50m acquisitions plan in the Egyptian market.
Ayman Abou Hend, head of the Direct Investment Sector in the American Cartel Capital Company in the Middle East and North Africa, said that his company is waiting for the pound to stabilise against the US dollar at banks so as to evaluate investment opportunities.
He explained that the company intends to increase the $50m according to the nature of investment opportunities in the Egyptian market, and general attractiveness. The average value per acquisition ranges between $10-20m.
Abou Hend pointed out that the company targets three main sectors: the financial services sector, particularly financial leasing and factoring companies. The pharmaceutical sector is also a target for the company, despite it having monitored pharmaceutical companies’ ability to import raw materials or manufactured drugs from abroad.
The third sector is the new industrial projects that enjoy a five-year tax exemption for manufacturing strategic products imported from or exported abroad. He pointed out that food industries are highly recommended for Cartel Capital to invest in.
The Supreme Council for Investment has issued a number of investment and tax incentives over a five-year period for land reclamation projects and crops imported from abroad or to be exported. The same feature applies to new projects that manufacture products or strategic goods to be imported from abroad or to be directed for exporting.