EIB’s $37.5 Million Investment Helps Egypt’s Tanmiya Fund II Close at $130 Million

At least 30% of the portfolio companies are expected to meet one or more of the EIB’s criteria for financing that supports gender equality.

The European Investment Bank, through its development arm EIB Global, has invested $37.5 million in Tanmiya Capital Fund II, which will provide growth capital to established Egyptian companies. Announced at a Cairo ceremony attended by EIB Vice-President Gelsomina Vigliotti and Tanmiya Capital Ventures' managing partners, the commitment helped bring the fund to a $130 million final close, above its $120 million target.

The fund is managed by Egyptian investment firm Tanmiya Capital and backed by local and international investors, including the Egyptian-American Enterprise Fund, the European Bank for Reconstruction and Development, the International Finance Corporation and Egypt's Micro, Small and Medium Enterprise Development Agency. Together, they are backing a fund focused on businesses with room to grow and a need for long-term capital and strategic support.

Growth capital for established businesses

Egyptian small and medium-sized companies have limited access to long-term equity finance. Tanmiya Capital Fund II will invest in a diversified portfolio of established, high-growth businesses that want to expand, professionalise their operations and strengthen their competitiveness. The fund expects to invest in healthcare, training, financial technology, consumer goods, logistics and transport. Alongside capital, portfolio companies can receive strategic and managerial support to scale their operations, improve governance and create jobs.

At least 30% of the portfolio companies are expected to meet one or more of the EIB's criteria for financing that supports gender equality. The investment is part of the EIB's wider effort to back a more inclusive and resilient Egyptian economy, Vigliotti said, and supports the EU's Global Gateway and its new Agenda for the Mediterranean.

Linking Egyptian companies with Europe

The operation follows a Team Europe approach and forms part of the EU-Africa Global Gateway Investment Package. Portfolio companies may buy equipment, technology or services from European suppliers, or build partnerships with European businesses, creating potential commercial links between Egypt and Europe.

Tanmiya Capital Managing Partner Ahmed El Guindy said the fund's close above target reflected investor confidence in the strategy and the prospects of Egypt's private sector. The EIB's participation brings capital and international expertise, including experience with environmental, social and governance standards and private equity practices through its seat on the fund's advisory committee.

Six to eight companies, thousands of jobs

At its target scale, the fund is expected to invest in six to eight companies and support thousands of jobs across Egypt. IFC, EAEF and MSMEDA described their participation as part of a broader effort to help local businesses grow, become more competitive and attract private and international investment.

MSMEDA's investment supports its Fund of Funds programme, which partners with private equity and venture capital managers to channel capital and expertise into promising Egyptian companies. EAEF emphasized its longstanding partnership with Tanmiya Capital and confidence in the role of the private sector in Egypt's growth.