Egypt private equity fund opens office in Nairobi

Citadel Capital will deploy significant capital across East Africa in 2010 in sectors spanning from agriculture to consumer foods. Photo/FILE

Business Daily | Tuesday, December 29 2009

By STEVE MBOGO

A private equity fund with roots in Egypt has announced plans to set up its East Africa regional office in Nairobi starting January 2010.

The move by Citadel Capital, which has invested in energy, transport, agriculture and financial services, will provide a new source of funding for local companies planning expansion or those seeking strategic partners.

In Kenya, the entry of the private equity fund that buys 10 per cent to 20 per cent stake in the company it invests in will provide opportunities for agro-processers and financial services companies like the insurance sector that is seeking to increase its penetration.

Citadel Capital said in a statement that will deploy “significant capital” across East Africa in 2010 in sectors spanning from agriculture and consumer foods to transportation, financial services including microfinance, mining and cement industries.

Controlling stake

The company will also come in handy in helping to professionalise solid waste management in a city like Nairiobi, which is battling with the problem despite opportunities its presents in generation of electricity and manufacture of organic fertilisers.

Citadel Capital recently acquired a controlling stake in two Egypt companies dealing with solid waste management.

“There is ample room for geographic expansion and vertical integration, including expansion into waste-based industries,” said the company in a statement.

However, official did not name the companies they planned to invest in.

The company first showed its interest in the region in October this year when it appointed Hassan Massoud to head the firm’s efforts to scout for opportunities in East African and the Horn of Africa.

The closest Citadel Capital has come to the East Africa region is its investments in Sudan where the firm has invested in a range of sectors.

In February, the company for example bought 250,000 acres of land along the Nile in Sudan on a 99- year lease basis to grow crops such as maize, sorghum and sugar, said Hisham El-Khazindar, managing director and co-founder.

He said by the end of 2010, the company expects to have invested more than $900 million in Sudan.

The company hinted that its regional investment strategy could see it sink up to Sh29.6 billion in East Africa in the coming years.
  • Sign the petition to stop Industria Chiquibul's violence against communities in Guatemala!
  • Who's involved?

    Whos Involved?


  • 13 May 2024 - Washington DC
    World Bank Land Conference 2024
  • Languages



    Special content



    Archives


    Latest posts