EIB Invests $37.5 Million in Egypt’s Tanmiya Capital Fund II

The European Investment Bank (EIB) has announced a $37.5 million investment into Tanmiya Capital Fund II. The funding, provided through the bank’s development arm EIB Global, aims to increase capital access for small and medium-sized enterprises (SMEs) operating in Egypt.

Final Close Reached

The EIB’s contribution enabled the fund to reach a final close of $130 million, surpassing its initial target of $120 million. This milestone was confirmed during a ceremony in Cairo attended by EIB Vice-President Gelsomina Vigliotti and managing partners from the investment firm Tanmiya Capital Ventures.

Investment Strategy and Focus

Managed by the independent firm Tanmiya Capital, the fund targets established, high-growth companies. It intends to provide strategic capital to businesses across several sectors, including healthcare, logistics, transport, consumer goods, financial technology, and training. The fund aims to help these firms professionalize operations and improve governance, with a requirement that at least 30% of portfolio companies meet specific criteria supporting gender equality.

Backing and Support

The fund is supported by a group of international and local investors, including the European Bank for Reconstruction and Development, the International Finance Corporation, the Egyptian-American Enterprise Fund, and Egypt’s Micro, Small and Medium Enterprise Development Agency. EIB representatives stated that the initiative is part of the European Union’s broader efforts to foster a resilient Egyptian economy through the Global Gateway and the Agenda for the Mediterranean.

Current Status

Tanmiya Capital Fund II is now positioned to deploy capital to Egyptian SMEs seeking to scale operations and expand market links. The fund combines financial resources with managerial support to assist businesses in job creation and competitiveness.

Why it matters: This investment addresses a significant shortage of long-term equity finance for Egypt’s private sector. By supporting SMEs, the fund aims to stimulate sustainable economic growth and job creation, strengthening the country’s business ties with European markets.