Egypt: Tanmiya Capital Fund II closes at $130 million with EIB backing

what happened

Egypt's Micro, Small and Medium Enterprise Development Agency (MSMEDA) has taken part in Tanmiya Capital Fund II (TCVII), with the European Investment Bank (EIB) and several other international financial institutions also involved. Reuters reported the move, citing Arab Finance, which relied on a statement from the participants.

MSMEDA chief Mostafa Ismail Hassan said the fund should channel growth capital and expertise toward companies able to expand and create jobs, in line with Egypt's policy of backing the private sector and its Vision 2030 plan.

Through EIB Global, the bank put $37.5 million into the fund to widen access to financing for established small and medium-sized firms in Egypt. The final close reached $130 million, above a $120 million target. The fund is run by independent Egyptian investment firm Tanmiya Capital, which plans to back high-growth businesses in healthcare, education, fintech, consumer goods, logistics and transport.

why it matters

For global markets this is a local story: the amount is small next to large international funds, and a direct effect on prices is unlikely. Still, the deal shows that European development lenders keep directing money into growth funds in emerging markets beyond the usual financial hubs.

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