Egypt: controlling the variables
Economic headwinds are exerting pressure on Egyptian cement producers and end-users. The cement sector is now playing a game of controlling the variables having introduced a production quota system in 2021 that has helped companies return to profitability. However, the long-term sustainability of this strategy remains doubtful. By Abdelkhalek Mohammed, Prime Securities, Egypt.
Over the past two decades Egypt’s cement industry has gone from boom to bust to recovery (© givaga)
The Egyptian economy has seen some headwinds in the past few years, with the IMF’s GDP outlook for the country dimming, inflation skyrocketing and the Egyptian pound losing around half of its value in one year. This has exerted a lot of pressure on cement producers and the purchasing power of end consumers.
