{"id":568446,"date":"2020-12-30T03:27:38","date_gmt":"2020-12-30T03:27:38","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/30\/now-imagine-what-no-rona-and-low-interest-rates-will-do\/"},"modified":"2020-12-30T03:27:38","modified_gmt":"2020-12-30T03:27:38","slug":"now-imagine-what-no-rona-and-low-interest-rates-will-do","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/30\/now-imagine-what-no-rona-and-low-interest-rates-will-do\/","title":{"rendered":"Now imagine what no \u2018rona and low interest rates will do\u2026"},"content":{"rendered":"

<\/a> Let\u2019s get three things taken care of right off the bat<\/strong>, shall we, and make sure we\u2019re all speaking the same language?<\/p>\n

#1- This report is drawn from data in our Enterprise Investment Tracker<\/strong>, wherein we chronicle salient data points from all of the stories we cover under this theme. By definition, it\u2019s not complete \u2014 plenty of companies make investments without announcing them, particularly (a) smaller and mid-sized companies and (b) companies that like to fly under the radar and are not publicly traded. But after six years of doing this, we\u2019re convinced it captures the trend and direction year-on-year. <\/strong><\/p>\n

#2- None of the figures you\u2019re reading here cover spending on opex. <\/strong>What you pay to run your plant or drill a hole or move stuff around isn\u2019t a balance sheet item \u2014 it goes on your income statement as an operating expense. Our tracker covers capital expenditures \u2014 announced or executed. Stuff that involves companies financing things from their cashflows, by raising debt or equity, or through retained earnings.<\/p>\n

#3- Plenty of companies choose not to disclose a value<\/strong> on their investment, as is the case with M&A (above)<\/p>\n

So, with those caveats, how did we fare on the investment front in 2020?<\/strong> Not as badly as you might have thought.<\/p>\n

We captured 92 investments worth a combined EGP 403 bn in 2020<\/strong> \u2014 again, keep in mind that figure isn\u2019t complete and you can\u2019t use it to calculate an average: 16 of the investments on which we reported did not put a value on the transactions.<\/p>\n

In 2019, we chronicled 97 investments worth a combined EGP 690.5 bn. <\/strong>Sounds grim when you look at the value figure, right? Take a breath: Well over EGP 200 bn of the investments on which we reported last year have since been scrapped, including two \u201cclean coal\u201d<\/a> (what a concept\u2026) powerplants<\/a> worth nearly USD 9 bn together.<\/p>\n

Top three industries for investment in 2020, by value: <\/strong><\/p>\n