{"id":646643,"date":"2017-06-20T04:19:48","date_gmt":"2017-06-20T04:19:48","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/06\/20\/agriculture-companies-holding-back-on-capex-amid-high-interest-rates\/"},"modified":"2017-06-20T04:19:48","modified_gmt":"2017-06-20T04:19:48","slug":"agriculture-companies-holding-back-on-capex-amid-high-interest-rates","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/06\/20\/agriculture-companies-holding-back-on-capex-amid-high-interest-rates\/","title":{"rendered":"Agriculture companies holding back on capex amid high interest rates"},"content":{"rendered":"

<\/a> Until rates do come down, some business owners are feeling the pinch and are thinking <\/strong>twice about new investment<\/strong>, say players in the agriculture sector speaking with Al Bora<\/a>. They say the most recent rate hike (which sent rates up 200 bps) drove up their production costs by as much as 4%. Hesham El Naggar, Vice Chairman at Daltex, says his projected 15% annual rate of return on investment isn\u2019t high enough to justify new CAPEX. Given the interest rates, El Naggar says, businesses need to be returning \u201cat least\u201d 25% each year \u2014 rates unheard of in the sector. He says the expected cost increases from the pending hike in fuel prices will put the agriculture sector under even more pressure. Rival producer Belco expects investors in the sector to refrain from borrowing at the current rates for the time being. <\/strong>Belco Chairman Sherif El Beltagui says the added costs are eating away any export advantages the sector might have had following the EGP float. Their concerns mirror those of manufacturers, as we noted earlier this month<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Until rates do come down, some business owners are feeling the pinch and are thinking twice about new investment, say players in the agriculture sector speaking with Al Bora. They say the most recent rate hike (which sent rates up 200 bps) drove up their production costs by as much as 4%. Hesham El Naggar, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-646643","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"241d2afa-ab71-44c1-b7be-b77c3994e517","order":"0","is_powered_by":true,"section_story_id":"bfb6f80e-4f8a-4884-9ed1-6f111fc726fd","story_type":"1","photo_url":"","photo_position":"above","related_issue":[646636],"teaser":"","voice_url":""},"yoast_head":"\nAgriculture companies holding back on capex amid high interest rates - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2017\/06\/20\/agriculture-companies-holding-back-on-capex-amid-high-interest-rates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Agriculture companies holding back on capex amid high interest rates\" \/>\n<meta property=\"og:description\" content=\"Until rates do come down, some business owners are feeling the pinch and are thinking twice about new investment, say players in the agriculture sector speaking with Al Bora. 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Some manufacturers have reportedly put planned investments on hold after the central bank hiked key interest rates by 200 bps last month, Al Borsa says. 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Auto companies are unlikely to make new investments, as they deposit their money in banks, and expect consumers\u2026","rel":"","context":"In "Automotive + Transportation"","block_context":{"text":"Automotive + Transportation","link":"https:\/\/enterpriseam.com\/egypt\/category\/automotive-transportation\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":638612,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/10\/10\/etisalat-misr-considers-capital-increase-to-fund-capex-amid-high-interest-rates\/","url_meta":{"origin":646643,"position":2},"title":"Etisalat Misr considers capital increase to fund capex amid high interest rates","author":"enterpriseam admin","date":"10 October 2017","format":false,"excerpt":"Etisalat Misr considers capital increase to fund capex amid high interest rates, says MNOs weren\u2019t down with the scratch card price hike: Etisalat Misr is considering a capital increase in the next 3-6 months, said the company\u2019s CEO Hazem Metwally. 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