Egyptian multinational electrical company Elsewedy Electric is set to build a $40-million electrical tools factory in Tanzania, a strategic move that will see the leading electrical company deepen its operations in East Africa.
Elsewedy Electric is an Egypt-based multinational electrical company founded by the Elsewedy family in 1938 as a joint-stock company. It manufactures and sells integrated energy products and services, including electrical cables, telecommunications products and transformers.
Since the company’s founding, it has grown into a regional and international provider of energy, digital and infrastructure solutions, with total assets amounting to $3.6 billion (EGP56.49 billion) spread across 15 countries under the leadership of CEO Ahmed El Sewedy.
The multimillion-dollar factory, which will be constructed in Kigamboni, a district in Dar es Salaam, will have the capacity to produce 15,000 kilometers of wire, 1,500 transformers, and 100,000 electric meters per year. The project will come at a cost of TSZ92 billion ($40 million).
The electrical instrument factory will be the first in Sub-Saharan Africa when completed. It will come on stream with the aim of stimulating the country’s economy, creating employment opportunities and improving the standard of living in the East African country.
The launch of the facility comes after bilateral talks held in Egypt with prospective investors during Tanzanian President Samia Suluhu Hassan’s three-day official visit in early November.
El Sewedy unveiled plans to invest TZS460 billion ($200 million) in the first phase of its expansion plans in the country, leading to the construction of 100 manufacturing industries in the Kigamboni industrial space.
Tanzanian President Samia Suluhu Hassan said the strategic investment reflects investor interest in the country.
“The partnership with Elsewedy Electric and other investors shows how they have been attracted to invest in Tanzania. Be assured of your own and your businesses’ safety and security,” she said.
“I’m also sure that you are going to learn a lot during the investment forum in Zanzibar,” she added.
As of press time, Dec. 8, shares in Elsewedy Electric were trading at EGP8.75 ($0.5562), 11 basis points higher than their opening price on the Egyptian bourse this morning.
At the current price, its market capitalization is EGP19.1 billion ($1.21 billion)
The Elsewedy family holds a 68-percent stake in the integrated cable and electrical product manufacturer through members such as Sadek, Ahmed and Mohammed Elsewedy.
The family’s joint stake is valued at EGP13 billion ($826.4 million).
