Business

Investors seek $100 million Samsung Egypt deal, avoid Yemen

National Yemen

Investors seek $100 million Samsung Egypt deal, avoid Yemen

By NY Staff

The Hayel Saeed Anam Group of Companies, which invests in Egyptian electricity, has announced a $100 million deal with Samsung Electronics in Egypt, a statement from the Ministry of Industry and Foreign Trade said.

The announcement was made Thursday during meetings between the Minister of Foreign Trade, Industry, and Investment Mounir Fakhry Abdel Nour, Samsung officials, Pirelli and HAS group, and European Union ambassador to Cairo James Moran to discuss potential investment opportunities.

Abdel Nour said i the statement that Samsung plans to pump $60 million in new investments into its Beni Suef factory, its first in the Middle East and North Africa.

Although Yemen desperately needs investment, many Yemeni companies prefer to invest abroad due to many failures in government negotiations. This has been especially damaging in the fields of electricity and energy, leading to power failures. Negotiations were set to begin between Ethiopia and Yemen in February 2014 that could see power exports to Yemen, however, they have been muted. The agreement stipulated that Ethiopia would sell 100 MW of power for a year through a power cable on the floor of the Red Sea.

Another potential project was a World Bank rant of $20 million to finance a wind power plant in Mocha, however, the future of this investment is also uncertain.

Critics charge that Yemen’s electricity shortage is a financial catastrophe, devastating small and medium-sized businesses. Many analysts blame a rapidly growing urban population which has outstripped the capacity of steam and diesel power plants. They have provoked a string of regular protests throughout the country.