The European Investment Bank (EIB), through its development arm EIB Global, has invested $37.5m in Tanmiya Capital Fund II to expand access to growth capital for established small and medium-sized enterprises (SMEs) in Egypt.
The investment was announced at a ceremony in Cairo attended by EIB Vice-President Gelsomina Vigliotti and Tanmiya Capital Ventures Managing Partners Ahmed El Guindy, Youssef Ahmed Ayoub and Mohamed Mohsen Mahgoub.
The EIB’s commitment helped Tanmiya Capital Fund II reach a final close of $130m, exceeding its $120m target.
The fund is backed by a diversified group of international and local investors, including the Egyptian-American Enterprise Fund (EAEF), the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and Egypt’s Micro, Small and Medium Enterprise Development Agency (MSMEDA).
Managed by independent Egyptian investment firm Tanmiya Capital, the fund will invest in a diversified portfolio of established, high-growth companies in Egypt. It will focus on businesses seeking strategic capital to expand, professionalise their operations and strengthen their competitiveness, with investments expected across healthcare, training, financial technology, consumer goods, logistics and transport.
The investment aims to address the limited availability of long-term equity finance for SMEs in Egypt. By combining capital with strategic and managerial support, the fund is expected to help portfolio companies expand, improve governance and create jobs.
At least 30% of portfolio companies are expected to meet one or more of the EIB’s criteria for financing that supports gender equality.
“Egypt’s private sector has enormous potential to drive sustainable growth, create quality jobs and deepen economic ties with Europe. Our investment in Tanmiya Capital Fund II will provide ambitious local companies with the growth capital and expertise they need to expand. It also reflects the European Union’s commitment, through Global Gateway and the new Agenda for the Mediterranean, to supporting a more competitive, inclusive and resilient Egyptian economy,” said EIB Vice-President Gelsomina Vigliotti.
“The successful closing of Tanmiya Capital Fund II above its target reflects strong investor confidence in our strategy and in the potential of Egypt’s private sector,” said Tanmiya Capital Managing Partner Ahmed El Guindy.
“The EIB’s commitment brings not only capital, but also valuable international expertise and a shared focus on sustainable growth, strong governance and long-term value creation.
“Together, we will support ambitious Egyptian companies as they scale up, become more competitive and expand their links with regional and European markets,” he added.
“Our investment in Tanmiya Capital Ventures Fund II reflects IFC’s commitment to strengthening Egypt’s private sector by expanding access to the long-term growth capital businesses need to grow and create jobs,” said Ary Naïm, IFC’s Division Director for North Africa and the Horn of Africa.
“By partnering with experienced local fund managers, we can help promising Egyptian companies, including family-owned businesses, strengthen their operations, become more competitive, and scale. This is an important part of our broader work to mobilise private investment and support sustainable, inclusive growth in Egypt,” he added.
“Our investment in Tanmiya Capital Fund II reinforces MSMEDA’s Fund of Funds programme mandate, through which we partner with experienced private equity and venture capital managers and support emerging ones to crowd in private and international capital into promising Egyptian companies,” said Mostafa Ismail Hassan, CEO of MSMEDA.
“We believe TCVII will channel much-needed growth capital and expertise to businesses with real potential to expand and create jobs, in line with Egypt’s strategy to empower the private sector and Vision 2030,” he added.
“The fund’s oversubscribed close is a strong signal of investor confidence, and our commitment reflects our firm belief in the long-term fundamentals of the Egyptian economy and the central role of its private sector in driving growth and job creation,” said Yasmine Ghobrial, Chief Investment Officer of the EAEF.
The investment follows a Team Europe approach and supports the EU-Africa Global Gateway Investment Package. It is also expected to strengthen commercial links between Egypt and Europe, as portfolio companies may source equipment, technology and services from European suppliers or develop partnerships with European businesses.
At its target scale, the fund is expected to build a portfolio of six to eight companies and support thousands of jobs across Egypt. The EIB will also contribute its expertise in environmental, social and governance (ESG) standards and international private equity best practices through its participation in the fund’s advisory committee.