Opportunities for Investors in Egypt - The Dust Has Settled

This past year has been very challenging for companies in Egypt. So much uncertainty and added costs due to increased interest rates and the cost of sourcing USD from outside the banking system..

The dust has settled. For now..

Many companies are left struggling after this past year, creating opportunities for investors with cash. These companies can be classified as follows:

1. Successful companies that have been adversely affected by the economic conditions: these companies are currently overleveraged and suffer from the effect of debt servicing on their cashflows. Their economics are sound but they need a push, but more debt is out of the question. These companies are prime investment targets.

2. Somewhat successful companies whose inefficiencies in some areas have been exacerbated by the conditions of last year. These companies are less attractive than the first group, but are still excellent investment targets for active investors who are willing to put in the effort to address areas of inefficiency.

3. Companies that are struggling due to the change of economics: these companies are suffering from a higher cost base without a corresponding higher willingness to pay. The economics of these companies no longer work. These companies should be avoided by investors as they require a major change in direction that would be too costly and risky.

Inari Capital has a solid pipeline in companies of type 1 and 2. We know how to source investors for these companies. If you have cash to invest or you find yourself falling into the first or second category, touch base with us!