Egyptian companies are increasingly looking beyond their borders for growth, with new opportunities emerging across Africa, the Gulf, and Europe. Joining me is Nadim Samna, Managing Partner at Stratexis. Nadeem, welcome back to the show.
Thank you for having me.
When an Egyptian company tells you they want to go abroad, what is the first test you apply?
Why should a customer in that market buy from you? Not why from Egypt, not why now — why from you? Over the local partner already established, over the global player with a strong brand. It is about whether your domestic advantage works abroad or not. Value creation is when expansion multiplies the strengths you already have domestically. An expensive adventure is when a random decision is made to go abroad without relying on any solid advantage.
Let’s talk about the MMT Highland deal — investors are buying the Egyptian arm but the parent that owns Turkey, Pakistan, and the UAE stays private. Are investors buying the global growth story or the domestic engine?
The investor is buying the Egyptian arm, not the global story. It is the biggest chunk of the group — consumer finance with millions of customers still underserved. Pakistan, Turkey, and the UAE remain private. Investors are not directly exposed to their returns or risks. But the parent sells the shares, stays the controlling shareholder, decides how cash moves within the group. Smart investors ask three questions: what is the dividend policy, how was the transaction priced, and what is really ring-fenced in Egypt? It is a pure Egyptian play, but with a global story behind it. Any investor should buy in with an open eye on what is happening in the global group.
Should Egyptian investors want foreign exposure as a hard currency hedge?
We all learned this lesson between 2022 and 2024 — the Egyptian pound lost roughly two thirds of its value. A company that protects its dollar value is a natural hedge. That includes exporters but also companies with strong pricing power who can raise prices when the dollar rises and protect their margins. What matters is the net protection — hard currency revenue or ability to reprice minus hard currency costs.
Buy, partner, or build from scratch — which entry model has destroyed the least capital?
Partnering is the safest strategy. It consumes the least capital but you do not have full control — every decision is consensus. Buying is the fastest route but comes with a premium and integration risk. Building from scratch means waiting several years before any profit emerges. I like to think of partnering as a first step, just to confirm the market opportunity, and then commit more capital — whether building or buying.
Rank the destinations by return on capital, not market size.
Gulf is the safest — close to home, shared culture and language, currencies strong and linked to the dollar. Return at a low level of risk is the best. Europe has lower margins and tougher competition, but it is predictable and got more attractive with the new private rail corridor to the Balkans, which reduces logistics costs and opens central and eastern Europe. Africa offers the highest upside but the highest risk — hard currency shortages, payment delays, logistics challenges. The patient company that partners with the right local partner wins there. Gulf for safety, Europe for predictability, Africa for the upside. Each company decides based on its own risk appetite.
Nadeem, it is always great to have you back. Thank you very much.
Thank you.
