Pepsico to pump investments of $515M in Egypt during 4 years



Thu, 25 Oct 2018 - 09:59 GMT


Thu, 25 Oct 2018 - 09:59 GMT

FILE - Pepsico

FILE - Pepsico

CAIRO - 25 October 2018: Pepisco Egypt announced on Oct. 23 pumping new investments worth $515 million during the upcoming four years, and allocating more than $16 million to develop production lines in the beverages sector to promote its operations in Egypt.

This came on the sidelines of the visit of an American delegation to Egypt to discuss investment opportunities, in the presence of Vice Chairman of the American Chamber of Commerce for the Middle East, Steve Lotus, Chargé d'Affaires of the Embassy of the United States of America in Egypt Thomas Goldberger, Head of the Federation Of Egyptian Industries (FEI) Mohamed el-Sewedy and Chairman of Pepsico Egypt Mohamed Shelebya.

The company illustrated that its investment plan for the next four years, from 2018 till 2021, focuses on three main axes which are: investment in technology and the agricultural sector, investment in individuals, and investment in community responsibility programs.

This investment plan comes within the company’s vision for the Egyptian market as one of the most important markets in the region within its strategy, “In Egypt... With Egypt... and for Egypt,” the company stated.

Chairman of Pepsico Shelbaya said that the volume of the company’s investment in Egypt during the last four years from 2014 till 2017, recorded $606 million, stressing that the company trusts the Egyptian market as one of the most important markets in the Middle East.

Shelbaya added that the company intends to direct more than $16 million to develop the production lines of the beverages sector, including Pepsi and Aquafina, and will pump other investments during 2019 in the Food sector.

For his part, Lotus pointed out that the current business climate in Egypt is suitable to attract more American investments.

He added that the American investments and the expansion of their activities in Egypt pumped about $1 billion during the last fiscal year 2017/2018, explaining that a large delegation of US companies visited Egypt, praising the efforts exerted by the Ministry of Investment to facilitate all procedures for investors, including US companies in Egypt, to pump more investments.

Minister of Investment Sahar Nasr, who witnessed the announcement, said that the Egyptian government works to encourage private sector investments, describing these investments as the main engine to achieve economic growth, provide job opportunities and eliminate poverty.

Nasr clarified that these are the reasons that pushed the government to implement economic and investment reforms, reviewing the legislative and regulatory achievements of the issuance of several laws and regulations, namely the new investment law, the law of restructuring and reconciliation, bankruptcy and postponement of financing and taxing, and amendments to the law of companies and the capital market.

The new investment law includes a number of clear incentives and full guarantees for investors, providing them with several incentives and treats men, women, Egyptian and foreign investors equally.

The law also stipulates that foreign employees should not exceed 20 percent of the total number of workers in the projects established by non-Egyptian investors.

Moreover, the bankruptcy law regulates the financial and administrative restructuring for failed projects and companies, eliminating prison sentences in bankruptcy cases and limiting punishments to a monetary fine.

It also aims to minimize the need for companies or individuals to resort to courts and to simplify post-bankruptcy procedures.

The minister praised the latest expansions carried out by American companies and the success stories of their projects in Egypt.

According to the minister, Pepsico Egypt decided to pump new investments through the upcoming four years to increase its operation portfolio by $700 million.

“Egypt has become an international center for business and investment, and the government will continue taking measures to facilitate the work of investors, and provide a productive atmosphere for business and investment in Egypt,” she added.

AmCham is organizing a conference for an American delegation that consists of 44 firms from October 23 - 25.

President Abdel Fatah al-Sisi met the delegation as well as the members of the American Business Council and the American Chamber of Commerce in Cairo on Tuesday, Oct.23.



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