Advisory Board Portrait : Réda Boulos

Today with Reda Boulos (Egypt), Chief Executive Officer, Egyptian African Arab CO. For Development (EGGAD).

Egyptian African Arab Co. for Development (EGAAD)is a consortium of the largest companies in Egypt, how does the consortium contribute to the socio-economic development of Africa in the long term?

The socio-economic development of Africa in the long term is the priority mission of the EGAAD consortium. Its slogan «Building Africa by Africans», reflects this commitment which consists in basing itself mainly on the living forces of the continent. This idea stems from a simple observation: other continents have seen their level of development reach new heights as their companies have had the opportunity to seize great challenges and increase their financial and technical capacities. This, combined with international skills transfers, will allow Africa to develop socio-economically in the long term.

How do we put this into practice?

The EGAAD consortium is based in Egypt and is a consortium composed mainly of Egyptian companies among the largest on the market in the field of infrastructure development in a wide range of sectors, from construction to digitalization, from port management and logistics to mining, health, agricultural and energy processing.

EGAAD thus puts its expertise in business and financial engineering at the service of the consortium members to enable them to manage their investments in a profitable manner; this while allowing projects that are too complex for the public sector or for a single company to see the light of day, thanks to the coordination operated by EGAAD between the various stakeholders: government bodies, financiers and insurers, its member companies and local subcontractors, in a complementary dynamic. EGAAD makes a point of increasing local content by selecting local subcontractors to participate in creating local champions in each country of intervention. EGAAD’s action thus contributes to a virtuous circle, both of empowerment through the transfer of skills, and of sustainability by generating a growth momentum resulting from the development of attractive infrastructure for investment.

Infrastructure development is more than ever a priority on the African continent, can you tell us about the solutions you propose to overcome these challenges and the importance of investing in this area?

As water and air are essential to life, roads and energy are essential to the survival and economic development of countries. Infrastructure development in Africa is therefore more than ever a priority, if not THE priority given the pursuit of the sustainable development goals that now guides any public initiative. Investment in infrastructure is an essential premise for the socio-economic development of local populations. It is also true that infrastructure development in Africa does not come without overcoming a number of specific challenges. Here we can give two examples. First, and this is a major challenge, are the limits imposed by the IMF on African countries. These limits are a serious obstacle to the development of projects of general interest. This is why we are most successful with the PPP format under the EPC+F model, the F being always a combination of funding from local and multilateral funds. It is a model that is also more favourable to very large projects that involve several companies in synergy. However, we also work a lot under the format of concessions with sovereign guarantees. Second, corruption, poor governance, and lack of regional coordination are all impediments to achieving ambitious and transformative infrastructure. At EGAAD, we favour presidential projects deemed «priority» by local authorities. This allows us to ensure follow-up and detached coordination of possible service rivalries. Finally, EGAAD makes every effort to provide the keys to solve the challenges posed by the development of infrastructure on the African continent by positioning itself as an essential vector of collaboration.

In consideration of your commitment to sustainable development in Africa, how do you plan to align your infrastructure projects with the United Nations Sustainable Development Goals (SDGs), and which strategies focus-to ensure a truly sustainable approach to these initiatives?

EGAAD’s approach is based on a 3-pillar model of complementarity, triangulation and inclusion. This strategy allows us to foster sustainable economic and social development on the continent and, we are convinced, contributes to the achievement of the SDGs.

First of all, the EGAAD model is inspired by the Japanese Sogoshosha/ Kereitsu: EGAAD operates both as a general trading company, that is, a kind of intermediary that promotes the export of knowledge-and as a platform for coordinating alliances between the members of the EGAAD consortium. This model promotes collaboration, stability and equitable sharing of resources.

Secondly, EGAAD believes in the importance of triangulation with Europe in particular in terms of financing and technology. This type of partnership provides access to diversified financing and cutting-edge technologies while promoting knowledge and skills transfer.

Finally, EGAAD involves a local component of at least 30% in all its projects and ensures that all its initiatives provide training and employment opportunities. This inclusive approach helps strengthen the social and economic fabric of the communities affected by our projects.

As a member of the Advisory Board, what message do you want to send to young decision-makers from the continent?

To the young decision-makers of the African continent I want to say that they must commit themselves to a better future, not be afraid to take bold and creative positions, to be agents of positive change. Together, we can meet the challenges we face, Africa has all the keys to become the most prosperous continent in a sustainable way. It is up to them to ensure the sustainability of the initiatives launched today.