Absolute capital fund amounts to EGP 1 M. and we are currently re-structuring companies within the industrial sector
Our work expands over markets in Egypt, Morocco, Nigeria, Qatar, and Dubai
The Dollar crisis has hindered investment fundings needed for purchase of equipments and production lines
By Mahmoud Hammad
– Would you please tell us about the activity of the Absolute Financial Advisors?
The Company offers financial consultancy services to all small and medium–sized enterprises in order to help them to obtain the needed funds through banks, financial lease companies, the discount companies, or through the other funding sources. This, in fact, constitutes the main part of our activity. We also act within small and medium–sized enterprises for improving the run of their work through re-structuring and provision of technical and administrative support to the executive management board or the owners of such enterprises. This will inevitably give them the opportunity to apply the governing principles of the companies which facilitate development and help them improve their productivity in both production and sale terms.
We also work with the companies throughout their production cycles in order to improve their performance while providing them with the various funding sources that help them keep growing.
– How much is your capital fund? And what are the markets you are currently operating in?
We are an Egyptian joint stock Company with the share holders being entirely Egyptians and with its capital fund amounting to about EGP 1m. As a group, we undertake work in Egypt, Morocco, Nigeria, Qatar, and Dubai. Among these, Dubai markets are the most advanced, as they adopt the electronic systems which allow expedition of implementing work. The Egyptian markets are also promising and have a bright future, especially when considering that Egypt is the largest country in the region and has a number of small and medium–sized enterprises.
– What is the magnitude of the funds you provide to the enterprises?
We work with companies in different sectors having the sale level ranging from 10 to more than EGP 150m. In the first quarter of this year, we have provided our clients with funds ranging from 200 to EGP 300m. We have now over 1,500 clients and we work together in different phases of financial consultancy, funding, and re-structuring.
– Do you present any enterprises in the stock market?
Currently, we work with the General Authority for Financial Control to obtain the license needed for presenting the enterprises in the Nile Stock Market, and for obtaining an independent financial advisor license.
– Are you currently re-structuring some enterprises?
Yes, we are currently re-structuring some of the enterprises in various sectors, most of which fall within the industrial sector. These have different capital funds due to existence of individual and joint stock companies.
– Are you providing the funds only in local currency?
No, we have approvals for funding in dollars. However, because of the current situation and the dollar crisis, we are unable to undertake the funding process in dollars, except for the investment funding needed for importing equipments and production lines from abroad, which are essential for the support of local industries. We work with accredited funding organisations, namely banks or financial lease companies, the funding of which is directed mainly to purchase and import equipment or production, and these processes are currently facing problems due to the dollar crisis.
– Have you ever hesitated in providing funds under the current economies situation prevailing in this country?
We believe that our basic role is to have the small and medium-sized enterprises developed, simply because they will constitute economic entities within the coming 7 years. There may be some of our clients who are unable to get the fund from the banks for a variety of reasons related to administration, profitability, or re-structuring. As a company, we act on improving the internal situations of these clients before negotiating the matter with the different funding authorities.
– Do you expect that the government will succeed in achieving the target foreign investment?
The government works hard and has more than one entity seeking achievement of the targeted foreign investment. The investment companies, along with the International Docket Department are still targeting the Egyptian market, though they have some concerns about the role of the government in restoring the confidence of the investor. The tracing of the Egyptian market by the investor is still, existing and I have personally perceived this through my participation in an investment conference held in London last month.
– What are the major obstacles of concern to the foreign investors?
The foreign investors in Egypt are concerned about the cash flow of the dollar, as there is a gap between the dollar price in the banks and the price in the black market. In addition, there is the bureaucracy problem, with the fact that Egypt is still underdeveloped in the area of work development terms, besides the unemployment problem prevailing in the country which implies regression of the consumption rates.