Billionaire El-Sewedy family loses $36 million amid Egyptian pound depreciation

The El-Sewedy family, one of Egypt’s wealthiest and most influential families, has reportedly suffered a significant loss due to the recent depreciation of the Egyptian pound, which has raised alarm among financial experts and investors with investments in companies that operate within the country.

Despite a double-digit increase in the share price of their family business, Elsewedy Electric, the market value of their holdings in the company has decreased by more than $36 million since the start of the year.

According to data tracked by Billionaires.Africa, the shares of Elsewedy Electric, an Egypt-based multinational electrical company majority owned by the El-Sewedy family have risen by 13.58 percent since the start of the year. However, the depreciation of the Egyptian pound has offset this increase, resulting in a $36 million year-to-date loss for the El-Sewedy family.

The depreciation of the Egyptian pound can be attributed to the Central Bank of Egypt’s adoption of a more flexible exchange rate under the terms of an International Monetary Fund (IMF) financial support package.

According to Xe.com, a subsidiary of Euronet Worldwide, the Egyptian pound has depreciated from EGP24.78 against the dollar at the start of the year to EGP29.65 as of Jan. 16.

The El-Sewedy family, represented by Sadek, Ahmed, and Mohammed El Sewedy, owns a 68-percent stake in Elsewedy Electric, which is worth EGP20.15 billion ($679.7 million) at the time of writing.

Elsewedy Electric, which was founded in 1938 by the El Sewedy family and is led by Egyptian multimillionaire businessman Ahmed El Sewedy, is a leading player in the electrical equipment manufacturing industry and has played an important role in the development of electrical projects throughout the Middle East and North Africa.

Recently, the Egypt-based multinational electrical company submitted a request to the Egyptian government to build a new industrial zone in the country’s New 6th of October City. The proposed industrial zone, spanning a massive 5 million square meters, has the potential to become one of Egypt’s largest and most significant developments.

It is projected to bring in a significant boost to the country’s GDP, with an estimated yearly contribution of EGP5 billion ($184 million), and attract foreign and domestic investments worth EGP20 billion ($735.4 million) to the economy.

It will also offer employment to more than 150,000 people across various industries and include the construction and development of over 400 plants and about 100 logistical and commercial building