Elsewedy Electric operates in five sectors: industry; construction; technology; investment; and development. CEO and President Ahmed Elsewedy talks about his company's plans in Africa and beyond.
ELSEWEDY ELECTRIC IN EGYPT
What have government reforms done to encourage the private sector to invest in energy projects?
Ongoing reforms involving regulatory framework and subsidies have created opportunities for the private sector following the end of the government monopoly on the electricity. There are many investment opportunities in the electricity and renewable energy sector, and the government is working to provide incentives to attract private investors. For example, GOE has several mechanisms, including a feed-in tariff system for solar photovoltaic and wind projects of less than 50MW, and a competitive bidding scheme for build-own-operate contracts, as well as independent power producer systems. There are also investment schemes that cover key challenges facing the private sector, such as land allocation contracts, taxes and tariffs, subsidies and investment programmes.
With the development of new cities in the country and new industrial zones, what opportunities are there for your company?
Progress on the government's ambitious plans to establish new cities and industrial zones is steady, and is reinforced by a productive investment framework. The availability of energy sources--especially electricity and renewable energy--is positioning Egypt as an attractive destination for industrial investors.
The above, coupled with Elsewedy Electric Industrial Development's (EID) successful business model, positions us as a market leader when it comes to developing and maintaining integrated industrial cities and zones. EID has the largest industrial land bank in Egypt, with more than 25m sqm across the country. Around 70% of our total land bank has already been sold--a clear indication of the competitive offering available at EID.
What is the energy outlook for Egypt considering it wants to start exporting energy in the next five years or so?
Egypt intends to supply 20% of generated electricity from renewable sources by 2022-12% from wind, 5.8% from hydropower and 2.2 % from solar.
It plays a key role in regional and global energy markets because of its geographical proximity at the crossroads of international trade. Thus, Egypt can be the main feeding market for electricity to surrounding countries in the Gulf and Africa. There are active...