Tanzania’s ambitious $2.9-billion mega development project, the Julius Nyerere Dam, spearheaded by a consortium led by Elsewedy Electric, a prominent multinational cable and electrical equipment manufacturer mainly owned by the Egyptian billionaire El-Sewedy family, is on track to commence power generation in mid-February 2024.
In a recent meeting with Egyptian Prime Minister Mostafa Madbouly, Egyptian billionaire Ahmed El-Sewedy, the CEO of Elsewedy Electric, disclosed that the dam, measuring 1,025 meters in length and boasting a storage capacity of approximately 34 billion cubic meters of water, is now 94 percent complete and undergoing rigorous testing.
Elsewedy Electric CEO Ahmed El-Sewedy announces impending power generation in mid-February 2024
During the meeting, El-Sewedy revealed plans for an industrial zone covering 2.5 million square meters in Dar es Salaam, Tanzania’s commercial capital. Egyptian Prime Minister Madbouly emphasized the project’s significance, reflecting Egypt’s commitment to collaborating with Africa on crucial development initiatives.
The Julius Nyerere Hydroelectric Power Project (JNHPP) aims to double Tanzania’s energy production, control floods, and enhance agriculture, addressing the nation’s electricity shortage by providing clean power to more than 60 million Tanzanians and managing water flow during flooding.
Founded in 1938, Elsewedy Electric, with a majority stake owned by Ahmed El-Sewedy and his siblings, has played a pivotal role in the electrical equipment manufacturing sector. The company’s success extends to its involvement in various projects across the Middle East, North Africa, and, more recently, East Africa.
Elsewedy Electric’s stellar financial performance reflects regional success
Elsewedy Electric’s impressive financial performance is highlighted by a substantial revenue increase from EGP62.57 billion ($2.026 billion) in 9M 2022 to EGP108.8 billion ($3.52 billion) in 9M 2023.
Notably, basic earnings per share (EPS) saw a significant year-on-year rise from EGP1.29 ($0.0417) to EGP3.4 ($0.11) in January-September 2023. The company’s total assets also grew to EGP141.71 billion ($4.59 billion) in 9M-23, compared to EGP113.95 billion ($3.69 billion) at the beginning of the year.
The Julius Nyerere Dam project, initiated in 2019 and set to produce 5,920 GWh of power annually, is being implemented through a joint venture of the state-owned Arab Contractors Company and the privately owned Elsewedy Electric.
Fully financed by the Tanzanian government, the project employs 8,000 Tanzanians, 1,000 Egyptians, and additional foreign workers, according to Egyptian officials. The genesis of the project dates back to August 2017 when Tanzania awarded the construction bids to the Egyptian consortium, marking a significant milestone in regional cooperation and energy development.
