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The European Investment Bank (EIB), through its development arm EIB Global, invested $37.5 million in Tanmiya Capital Fund II to expand access to growth capital for small and medium-sized companies in Egypt.
The EIB commitment helped Tanmiya Capital Fund II reach a final close of $130 million, exceeding its $120 million target. The fund is supported by a diversified group of international and local investors, including the Egyptian-American Enterprise Fund (EAEF), the European Bank for Reconstruction and Development, the International Finance Corporation (IFC), and Egypt’s Micro, Small and Medium Enterprise Development Agency (MSMEDA).
Managed by Tanmiya Capital, an independent Egyptian investment firm, the fund will invest in a diversified portfolio of established, high-growth companies in Egypt. It will focus on businesses seeking strategic capital to expand, professionalise their operations and strengthen their competitiveness. Investments are expected across healthcare, training, financial technology, consumer goods, logistics and transport.
“Egypt’s private sector has enormous potential to drive sustainable growth, create quality jobs and deepen economic ties with Europe. Our investment in Tanmiya Capital Fund II will provide ambitious local companies with the growth capital and expertise they need to expand. It also reflects the European Union’s commitment, through Global Gateway and the new Agenda for the Mediterranean, to supporting a more competitive, inclusive and resilient Egyptian economy,” said EIB vice-president Gelsomina Vigliotti.
“The successful closing of Tanmiya Capital Fund II above its target reflects strong investor confidence in our strategy and in the potential of Egypt’s private sector. The EIB’s commitment brings not only capital, but also valuable international expertise and a shared focus on sustainable growth, strong governance and long-term value creation. Together, we will support ambitious Egyptian companies as they scale up, become more competitive and expand their links with regional and European markets,” said Tanmiya Capital managing partner Ahmed El Guindy.
“Our investment in Tanmiya Capital Ventures Fund II reflects IFC’s commitment to strengthening Egypt’s private sector by expanding access to the long-term growth capital businesses need to grow and create jobs,” said Ary Naïm, IFC’s division director for North Africa and the Horn of Africa. “By partnering with experienced local fund managers, we can help promising Egyptian companies, including family-owned businesses, strengthen their operations, become more competitive, and scale. This is an important part of our broader work to mobilise private investment and support sustainable, inclusive growth in Egypt.”
“Our investment in Tanmiya Capital Fund II reinforces MSMEDA’s Fund of Funds programme mandate, through which we partner with experienced private equity and venture capital managers and support emerging ones to crowd in private and international capital into promising Egyptian companies. We believe TCVII will channel much-needed growth capital and expertise to businesses with real potential to expand and create jobs, in line with Egypt’s strategy to empower the private sector and Vision 2030,” said Mostafa Ismail Hassan, chief executive officer of MSMEDA.
“We are proud to continue our long-standing partnership with TCV, a team that has consistently demonstrated its ability to invest in and build growing businesses in Egypt. The fund’s oversubscribed close is a strong signal of investor confidence, and our commitment reflects our firm belief in the long-term fundamentals of the Egyptian economy and the central role of its private sector in driving growth and job creation,” said Yasmine Ghobrial, chief investment officer of the EAEF.
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