Nestle plans to invest $127.71m to expand operations in Egypt

Nestle has plans to invest $127.71m over the next few years to expand its business in Egypt.

This move comes as the country is facing a foreign exchange deficit, thereby making it difficult for firms to finance imports and earn profits.

Despite this, the Swiss food company has been able to extend its business in the region by locally producing 70% of its products, Nestle North East Africa CEO and chairman Yasser Abdul Malak was quoted by Reuters as saying.

Abdul Malak was quoted by the new agency as saying: "It is a daily battle for foreign currency, it is day-in day-out an uphill battle but with all this and the business model that we have and the categories that we operate, in we have managed to continue to grow.

Even with political issues prevailing in the country since 2011, Nestle has been able to open a chocolate factory in mid-2014. The company has also doubled the count of its employees to 6,500.

Malak stated that the Libyan conflict had adversely affected the firm’s exports; however, the company is positive that it would touch double-digit growth in Egypt, Libya and Sudan in five to ten years.

Malak added: "We understand and appreciate the challenge the government has…with a trade imbalance and a shortage of forex.

"However, it is very important to also appreciate that the solution is not necessarily reducing imports. The solution is to increase exports."

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Image: Nestle aims to expand business in Egypt despite foreign exchange deficit in the country. Photo: courtesy of Dornum72 via Wikipedia.