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Optimism from Egypt

23 February 2017

Optimism from Egypt

  • FX now flowing; optimism for an uptick in Egyptian M&A 
  • Hot sectors include consumer goods & retail and renewable energy
  • Clifford Chance grows Africa footprint

With the floating of the Egyptian pound, financial assistance from the IMF and the recent bond issuance, Clifford Chance sees optimism for an Egyptian M&A uptick in 2017.

The international law firm's recent publication of its annual Global M&A Trends report, "A Global Shift", helps dealmakers and companies navigate a new and shifting terrain for deals globally, including the Middle East and Africa.

Clifford Chance expects the consumer goods and retail sector to be particularly active given the demographics of the Egyptian economy. Other sectors will also benefit from private equity and strategic investors as the Egyptian pound trends towards a "new norm" in FX markets.

Speaking from the recent Clifford Chance, Africa Academy Cairo 2017, Jason Mendens, Clifford Chance Africa M&A Partner, said:

"The resurgent interest in emerging markets, coupled with the floating of the Egyptian pound, means the time is ripe for an uptick in Egyptian M&A. We are seeing renewed interest from the Middle East, Europe and Asia. The FX see-saw is reaching a balance, giving greater confidence to buyers and sellers."

Mohamed Hamra-Krouha, Clifford Chance Africa Projects & Finance Partner further commented:

"The power sector in Egypt will see increased interest, particularly in the renewable space given the recently announced renewable energy feed-in-tariff round two programme. We have already been approached by a number of critical players in that market."

Clifford Chance is responding to demand for more Africa-focused expertise from clients in the Middle East by strengthening its Middle Eastern presence in these business areas.