CAIRO: Egypt's energy sector gradually opened up to private investment in the last 10 years, which is emblematic of a fate touching more and more segments of the country's economy. At a workshop organized by the private equity firm Citadel Capital, two energy leaders, National Petroleum Company (NPC) and distributor Taqa, shared the lessons learned during their success stories that started in 2006. With the assistance of the Citadel Capital, both consolidated through cumulative mergers and acquisitions (M&As) their position on the Egyptian market, currently aspiring for regional roles. M&As, however, are only successful in one third of all cases, Khaled Abu Bakr of Taqa warns. He explains that it's not about simply buying up companies, it's about investing in the right people and entrepreneurs. He added that management is crucial with the people of the appropriate caliber once a company is growing in size. Salah Hafez of NPC advises investment in economically sound sectors, which will remain vital despite the current global economic slowdown. People will continue eating, going out and using fuel, he argues. He sees the current slump in oil prices as temporary. Advocating the peak oil theory, he points out that seeing no real energy alternatives in the near future, rising demand for oil in face of dwindling reserves will drive prices up again.
