TAQA Arabia wants half its revenues from outside Egypt within five years, CEO Pakinam Kafafi says

Coffee with Pakinam Kafafi, part two: In part one, TAQA Arabia CEO Pakinam Kafafi (LinkedIn) walked us through the grid’s pace, what the private sector should own, and direct power sales. This week she takes us through the Wataniya transaction, the virtual pipeline model TAQA is exporting to new markets, water desalination, and the plan to earn half the group’s revenues outside Egypt.

EnterpriseAM: You have a virtual pipeline model you’re taking into new markets. What is it?

PK: In remote places like the New Valley Governorate and Marsa Alam, a pipeline would cost bns of EGP and initial consumption is too low to justify it. That’s where mobile CNG comes in: trucks carry compressed natural gas to feed a local network. In the New Valley, we connected more than 14k customers, small and medium industries, and commercial clients via local CNG storage tank that are continually filled and swapped out rather than building a pipeline from the nearest connection point.

This matters because diesel has become very expensive. Even with transportation costs, CNG is cheaper, and customers save around 10% to 30% depending on distance, volume, and seasonality. When consumption grows enough to justify a physical pipeline — Hurghada and Safaga, for example — one gets built, and we relocate the mobile equipment to newer, more remote areas. It’s plug-and-play, with lower cost, lower emissions, and a much more suitable solution.

EnterpriseAM: What has changed in how Egyptian businesses think about securing their energy?

PK: Energy is now a business priority. Businesses have to think about how they will secure their energy from day one — it’s the first thing you think about when you’re building a factory, in parallel with acquiring land — and optimizing efficiency, technology, and cost comes next. TAQA has evolved to meet those client needs. We used to be just gas and power, then we added petroleum products, renewables, water desalination, and other tailor-made solutions serving a broad range of clients. Offering the full package gives you flexibility and agility and lets you provide clients with the most efficient, sustainable solutions at the lowest possible cost.

EnterpriseAM: Wataniya is one of the first partial sales of a military-linked asset to the private sector. You’re taking 10% of Quick Fuel while managing the whole operation — what changes, and will the stations be rebranded?

PK: This agreement carries several positive implications. It signals the state’s genuine commitment to empowering the private sector and opening up state assets, and it demonstrates flexibility in transaction structuring. We will manage 100% of the operation, starting with a 10% equity stake and an option to scale up to 25%, ahead of an expected IPO within 36 months.

The network was managed well, but we bring added value through private management, operational efficiencies, and customer-centric strategies. We’re finalizing execution across the 172 stations, which involves complex regulatory, real estate, and operational transfers, and both teams are working to close the transaction, hopefully by year-end. We plan to retain the Quick Fuel brand rather than branding them as TAQA, though management will be entirely ours — we already run 72 TAQA-branded stations along with more than 92 Master Gas stations and 23 conversion centers.

EnterpriseAM: You’ve recently secured a USD 14.8 mn pipeline contract in Jordan, and you’re expanding into Mozambique with an LNG project. What’s the strategy abroad?

PK: TAQA Arabia has always been an integrated gas player — from design and EPC to operations, maintenance, and emergency response — but we ultimately view ourselves as long-term developers and investors. Jordan is developing its gas grid and has issued a pre-qualification tender for distribution in Zarqa and Amman. We applied because distribution is our bread and butter, and we want to leverage our Egyptian experience, where we serve nearly 2 mn customers. Fuel prices in Jordan are unsubsidized, so natural gas delivers significant savings to industry, and building the gas network would be a significant added value.

In East Africa, we started in Mozambique and Tanzania with retail fuel stations. Mozambique has the third-largest gas reserves in Africa, yet domestic utilization is minimal, so there’s enormous potential. We’ve introduced mobile CNG for local industries there and are developing a pilot LNG project to supply industrial parks built by international investors — we started with a pilot because clients in nascent markets need to see reliable execution before making long-term commitments. In 2027, we plan to explore small-scale renewable projects of 5 to 10 MW for industrial and mining offtakers, and beyond East Africa, our eyes are set on West Africa, particularly Senegal.

EnterpriseAM: How will the revenue mix look at the end of the next five-year cycle?

PK: Our target is for at least 50% of revenues to be generated outside Egypt, while continuing to expand our domestic base. International revenues currently account for roughly 10% to 15%. Budgeting for 2027 in certain foreign markets is challenging right now, but our fundamental belief in regional growth remains unchanged.

EnterpriseAM: Which business unit gets the largest share of investment over the next five years?

PK: All four core sectors — gas, power, petroleum products, and water — will grow in parallel. Water and renewables may show higher growth percentage simply because they started from a smaller base. But each vertical plays a vital role across different markets: advanced markets prioritize renewables and efficiency, while emerging African markets need gas infrastructure first to displace firewood and coal before integrating hybrid renewables. As long as an asset meets our risk and profitability criteria, delivers real value to the customer, and fits our long-term horizon, we invest. We don’t build businesses for a four-year exit — we build infrastructure designed to operate for 20 to 25 years.