EIB invests $37.5 million in Egyptian SME fund that closes at $130 million

what happened

The European Investment Bank, working through its development arm EIB Global, has committed $37.5 million to Tanmiya Capital Fund II. The money is intended to widen access to growth financing for established small and medium-sized companies in Egypt. Reuters reports that the announcement was made at an event in Cairo.

The contribution lifted the fund's final close to $130 million, above its $120 million goal. Other backers include the Egyptian-American Enterprise Fund, the EBRD, the IFC and Egypt's MSMEDA. Egyptian firm Tanmiya Capital will manage the vehicle, directing capital toward healthcare, training, fintech, consumer goods, logistics and transport.

Managers expect at least 30% of holdings to satisfy one or more EIB standards for gender-focused financing. The planned portfolio comprises six to eight companies, which together should support thousands of jobs.

why it matters

For global markets the deal is small and niche, involving private equity rather than listed assets. It does, however, signal that European and multilateral capital keeps flowing into Egypt's private sector, which could deepen trade ties with European equipment and service suppliers.

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