The European Investment Bank (EIB) has inked an agreement to invest $15 million in Egypt Mid-Cap, a generalist private equity fund that targets capital investments in private small and medium-sized enterprises (SMEs) in Egypt.
Egypt Mid-Cap has attracted $85 million of commitments, including $70 million from international investors such as EBRD, CDC, UK, FMO and local investors. It has a target size of $100 million with a hard cap of $120 million.
With the EIB investment, the fund will target capital investments in companies seeking to grow at above average rates with expectations to create between 1, 200 and 1, 600 direct new jobs.
This is the first EIB operation in Egypt under the Risk Capital Facility for the Southern Neighbourhood Countries, a comprehensive programme to help MSMEs in the southern and eastern Mediterranean region to grow and become more competitive by providing finance and know-how to boost development and create jobs and in turn spur economic growth.
The Risk Capital Facility is part of the EU Initiative for Financial Inclusion, jointly developed by the European Commission and several European Financial Institutions among them the EIB.