Sadek El-Sewedy gains $405 million from Elsewedy Electric despite currency devaluation

Feyisayo Ajayi -
Key Points
  • Sadek El-Sewedy's stake in Elsewedy Electric increased by $405.77 million in 2024, despite challenges from Egypt's currency devaluation.
  • Elsewedy Electric’s market value reached $3.6 billion, driven by a 195% surge in local currency stock prices in 2024.
  • Despite the Egyptian pound’s devaluation, Sadek El-Sewedy’s stake grew by $405.77 million, showcasing resilience in Egypt's industrial sector.

Egyptian businessman Sadek El-Sewedy, co-founder and non-executive chairman of Elsewedy Electric, has navigated a challenging economic landscape in Egypt, cementing his position among the richest individuals on the African continent and in the global electrical industry.

Despite the sharp devaluation of the Egyptian pound, his 25.53 percent stake, comprising 546.5 million shares, has increased in market value by $405.77 million in 2024, highlighting his enduring influence in Egypt’s industrial sector.

Sadek El-Sewedy’s stake could have seen a higher growth of $633.88 million if not for the 39.16 percent devaluation of the Egyptian pound against the U.S. dollar. This devaluation, driven by the Central Bank of Egypt’s exchange rate liberalization efforts, has weighed heavily on assets and corporate valuations across the country.

Elsewedy Electric’s market value hits $3.6 billion

Elsewedy Electric, founded in 1938 by the El-Sewedy family, remains a dominant force in Egypt and the MENA region's electrical industry, offering cables, transformers, energy meters, and wind energy solutions that enhance regional energy infrastructure.

The company’s stock has soared 194.76 percent in local currency terms on the Egyptian Exchange in 2024, rising from EGP29 on January 1 to EGP85.48 at the time of writing. However, after accounting for the devaluation of the Egyptian pound, the gain in U.S. dollar terms stands at 79.11 percent, with the share price climbing from $0.57 to $1.68.

This surge has driven Elsewedy Electric’s market cap to nearly $3.6 billion, reflecting strong investor confidence and generating substantial returns for shareholders, including Sadek El-Sewedy.

His stake’s local currency value has risen by EGP30.87 billion, from EGP15.85 billion to EGP46.72 billion since the start of 2024. In dollar terms, despite the currency devaluation, the value of his holding has grown from $512.89 million to $918.65 million, marking a net gain of $405.77 million.

Elsewedy Electric delivers strong 2024 gains

Elsewedy Electric's strong 2024 performance, with a 195 percent gain for shareholders on the Egyptian Exchange, reflects its resilience amid volatile macroeconomic conditions.

However, the fluctuating Egyptian pound has dampened returns for foreign investors, reducing dollar-denominated gains to 79.11 percent.

Despite this, the company's growth and market position remain robust. For example, a $100,000 investment at the start of 2024 would now be worth $179,115, yielding a profit of $79,115.