Citadel Capital to expand operations into East Africa following new appointment

Massoud, a former senior analyst at AT Kearney’s energy, mining and process industries advisory unit, will head the firm’s East Africa office, the location of which has yet to be selected.              

Citadel is looking to leverage East Africa’s abundant resources and natural advantages to achieve compelling risk-adjusted returns and kick-start economic growth.  

“Citadel Capital is uniquely positioned to apply the industry development model it honed in North African economies to markets in Kenya, Uganda and Ethiopia,” said Citadel chairman and founder Ahmed Heikal. “East Africa’s appealing natural advantages — agricultural productivity, mineral resources and untapped consumer market — and proximity to Citadel Capital’s core North African investment footprint make it a natural fit with the firm’s present portfolio and for its continued regional growth.”

“At a broad macro level we have found the main prerequisites for development to be benign government and solid regulatory frameworks, human resources and investment capital,” added Massoud, associate at Citadel and general manager for Ethiopia and South Sudan. “Today, the East African countries in which we are looking to invest have the requisite legal and, more importantly, institutional infrastructure to support investments. We find the lack of investment capital and managerial capabilities remain as the main impediments to development, and these are two things we can bring into the equation.”

The firm has already invested in East Africa: ASCOM, the firm’s platform for regional geological and mining services, has established two joint ventures in Ethiopia and has been engaged in gold and other metal exploration activities.

Reports indicate that Citadel, as part of a consortium, intends to invest $1bn in a second-stage petrochemicals refinery near Cairo.

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