In an exclusive interview, Fathy Kamal, Deputy Chairman of Hayat Co for environmental consultancy, told MEO that the company will establish a new solar panels factory in the industrial area in Beni Suef, with investments worth EGP 50m.
The factory will take one year until its establishment is over. Furthermore, Kamal said that a feasibility study was conducted to build an industrial compound of solar power in Beni Suef. The compound is expected to cost EGP 600m and the company aims at making it a centre of exports in the Middle East that exports to different countries around the world. Industrial Development Authority had allocated a piece land for the first factory of the company within the compound; all the fees, including contracting fees, have been paid. Establishing such a factory is certainly a positive step, especially with the current economic situation and dollar crisis that is burdening all investors.
Can you tell us more about Hayat Co and its latest updates?
Hayat Co for environmental consultancy was established one year ago; its shareholders are Egyptian businessmen. The company is to establish a factory that operates as a solar panels manufacturer in the industrial area in Beni Suef. The project will cost EGP 50m and will be finished in a year.
Do you think your company will face manufacturing problems due to imports?
I do not think we would face such problems because we have already conducted a consistent feasibility study. It is true that manufacturing solar panels will require some materials to be imported but we are working on establishing a factory later on to serve as a provider for such materials.
Are you planning to expand your investments in solar energy?
Yes, we are planning to invest in a compound of solar energy in the industrial area in Beni Suef; therefore, we conducted a feasibility study on this compound. The expected cost of such a compound is estimated at EGP 600m. Furthermore, we aim at making the compound a centre of exports in the Middle East that exports its products to all the world’s countries.
Can you tell us more about the company’s first factory that will be established in the industrial area?
The land has been allocated for the first factory in the compound by the Industrial Development Authority and all the fees, including contracting fees, have been paid. Establishing such factory is certainly a positive step, especially with the current economic situation and dollar crisis that burden all investors.
How would you get the production materials during the first stages of manufacturing?
We received some offers from British, German and Italian importers to provide the company with its production requirements. We had offers from China but we are not going to import materials from China. Currently, we are trying to find the best offers.
Can you brief us about the financial resources that will help in establishing the factory?
We are negotiating with local banks that operate in the Egyptian markets including public sector banks and private sector banks, along with international institutions, which can finance the factory.
What is your opinion about El-Sisi’s EGP 200bn initiative for SMEs?
The initiative is not easy to be applied because it is not meant for new investments. When a small project investor goes to the bank to obtain a loan, he submits a feasibility study by which he obtained the land for his project; the bank asks him to bring 3 balance sheets for his project/factory. This indicates that this initiative is only for existing small and medium-sized projects, not for new investments.
What do you think of the new expected entity which will be responsible for SMEs?
The new expected entity responsible for small SMEs that President El-Sisi called for finishing its establishment by next October, is a significant step to support these projects. We have been calling for the establishment of an entity that would be responsible for supporting SMEs. This entity should help investors and will put an end to bureaucratic procedures when issuing a factory license, establishing a new company or in case of facing any problems.
