LG incurred losses last year, still set to invest locally

LG Egypt incurred losses in 2016 because of the EGP float, Managing Director Don Kwak said, according to Al Mal. Kwak says LG was not “compensated” for the FX losses the company made during the year. He also noted that the company’s topline also dropped by 50% y-o-y last year. However, LG is set to keep investing in Egypt, with current investments estimated at USD 170 mn, according to Kwak. He believes that the investment act contains incentives to draw in foreigners, but they do not help existing businesses enough. Kwak also noted that LG is trying to regain market share to reach the 35% level it recorded last year by issuing discounts of 11-13%. The company had said it wants to increase exports from Egypt to USD 250 mn in 2017 from USD 150 mn last year.