Egypt: Agency commits $7.5m to private capital funds
MSMEDA has allocated $7.5 million across three regional private capital funds.
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Egypt’s Micro, Small, and Medium Enterprise Development Agency (MSMEDA), a government body focused on empowering small businesses, has allocated $7.5 million across three regional private capital funds.
Among MSMEDA’s key investments is a $2 million contribution to P1 Ventures, a pan-African early-stage venture capital fund founded in 2020 by Mikael Hajjar and Hisham Halbouny. P1 Ventures aims to address the capital gap that limits African entrepreneurs’ potential to scale. With a pan-African approach, the fund targets startups that can expand across the continent, directly aligning with MSMEDA’s goals to leverage regional opportunities for Egypt’s youth. In March 2024, the fund closed its second round at $35 million, aiming for a final close of $50 million by the end of the year.
In the month prior, MSMEDA also formalised a $3 million investment in Foundation Ventures, a Cairo-based early-stage venture capital fund. The firm has backed ventures like NowPay, Capiter and Rabbit.
Meanwhile, in November 2024, MSMEDA committed $2.5 million to Tanmiya Capital Ventures 2 (TCV II), an Egypt-focused private equity fund targeting $150 million to support mid-cap companies in sectors like food and beverage, logistics, pharmaceuticals, and education. TCV II aims to institutionalise family businesses and provide growth capital to companies with expansion potential, aligning with MSMEDA’s goals to attract foreign capital and diversify financing options for Egyptian startups.
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