The way to a foreign investor’s pocket book is through their stomach
INVESTMENT WATCH- The way to a foreign investor’s pocket book is through their stomach. Ours is a consumer-led economy, and Egyptian consumers love food above all else. Fitting, then, that we head off on our Eid holiday with news of new FDI in food and food-centered retail:
India’s LuLu Group is planning to invest USD 1 bn in Egypt over the next three years to build out its branch network, Internal Trade Development Authority (ITDA) head Ibrahim Ashmawy said, according to Al Mal. The Abu Dhabi-based, Indian-owned hypermarket operator inaugurated its second branch in Egypt — which cost EGP 180 mn — earlier this week. LuLu had said last year it plans to open two branches in Egypt in 1H2020, including one in Wadi Degla and another in the Fifth Settlement. The company said in summer 2019 that it would invest USD 500 mn in its expansion in Egypt.
Kraft Heinz will invest over EGP 920 mn in Egypt over the next five years to add 14 new production lines, Managing Director Hany Elmessiry said, according to the local press. The company plans to increase its output to cover domestic consumption and sell to export markets. The company exports nearly EGP 680 mn-worth of goods, or 20% of its annual output, to countries in the Gulf and Africa.
Hero Foods is planning to invest USD 5 mn by the end of 2020 to expand its jam factory in Qalyubia, Middle East and Africa (MEA) operations head Mahmoud Bazan tells the local press. The Swiss food manufacturer will use the investments to add capacity to what is already one of the largest jam factories in the MEA region. The company has spent over USD 70 mn in expansions and upgrades since it acquired the factory in the early 2000s.