Vicat has been operating in the Egyptian market for the past 17 years, since its acquisition of the Sinai Cement Co in 2003 and it will keep investing in the country even during times of crises, says Sinai Cement Country Manager, Tamer Magdy.
Egypt remains promising for investment, despite the negative impacts of COVID-19 crisis on the economy. The country’s GDP is still expected to reach five per cent in 2022, said Tamer Magdy.
"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."
Magdy explained that demand for cement decreases annually, with there being a demand for 56Mt by the end of 2016. This figure is believed to have dropped to 43Mt at the end of 2020, reflecting a decrease of 20 per cent, which means more challenges facing the cement industry in Egypt.
"Regarding the problems in the cement industry, the whole sector has been suffering for over three years with the market in surplus, with the supply surpassing the demand by 35Mt leading to deterioration in prices and losses to all the companies in the sector," he told Daily News Egypt, "However, currently the Cement Producers Division is working with the [Egyptian] Government to find proposals for enhancing the sector."
