This article is published in association with European Investment Bank.
At the EU-Egypt Investment Conference in Cairo the European Investment Bank today confirmed support for a new USD 350 million regional private sector investment fund managed by SPE Capital.
The fund is expected to unlock large-scale equity investments in high-growth private companies operating in sectors such as healthcare, pharmaceuticals, education, manufacturing, financial services, logistics and consumer goods across Egypt, Tunisia, and Morocco.
The new business investment is expected to help create over 10,000 new skilled jobs, contributing to sustainable economic development across Egypt and the broader North African region.
“SPE Capital is pleased to once again get the anchor support of the EIB and backing for this vital and timely investment initiative. Egypt and North Africa is home to a skilled workforce and a wealth of innovative companies ready to scale. By combining long-term equity investment with strategic experience and advisory support, we can help businesses overcome challenges, accelerate growth, and contribute to the region’s economic advancement. Our commitment is to enable these companies to reach their full potential and drive substantial economic impact. We are excited to leverage the combined expertise and resources of our development finance partners to drive significant growth and innovation in the region.” said Nabil Triki, CEO of SPE Capital.
The fund will provide critical risk capital and managerial expertise to support the growth and internationalisation of local companies. The fund will help portfolio companies identify and pursue growth opportunities, enhance their operational efficiency and professionalise processes and management procedures, while offering much-needed equity risk capital amid challenging economic conditions.
The agreement was signed at the EU Egypt Investment Conference by EIB Vice President Gelsomina Vigliotti and Cairo based Investment Partner of SPE Capital Tarek Lababidi, and witnessed by H.E. Dr. Rania A. Al-Mashat, Minister of International Cooperation of the Arab Republic of Egypt.
EIB Global is committing USD 9.3 million to the first closing of this new fund, in line with the EU’s Global Gateway strategy, alongside other European and international development partners, including the European Bank for Reconstruction and Development (EBRD), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), British International Investment (BII), Dutch Entrepreneurial Development Bank (FMO), BPI France, International Finance Corporation (IFC), amongst others.
The EIB has played an important role in the history of SPE Capital, since the team’s formation in 2010. Over the years, the EIB has been instrumental in the fund manager’s institutionalisation and supported its predecessor funds to provide much needed equity risk capital to local companies despite difficult economic conditions.
“The EIB’s support for this fund underscores our dedication to fostering economic growth and job creation in Egypt and the region. By supporting local businesses, we aim to enhance their capacity to expand regionally and improve operational efficiencies, which is crucial for sustainable development. The European Investment Bank is committed to fostering sustainable economic growth and job creation in North Africa. By supporting high-growth businesses in Egypt, Tunisia, and Morocco, we are helping to unlock the region’s potential and drive long-term prosperity. This investment underscores our dedication to improving healthcare, education, and financial services, which are critical for the region’s development. The creation of over 10,000 skilled jobs will have a transformative impact on local communities and economies,” said Gelsomina Vigliotti, EIB Vice President.
“Equity investments are a game changer in building long-term wealth by providing the potential for substantial return. This contributes to private sector development by increasing access to companies, ranging from SMEs to large corporations. Today, I witnessed the EIB’s signing to support a new regional private sector investment fund managed by SPE Capital, dedicating finance to support companies in North Africa, including Egypt, thus creating new job opportunities, and tapping into the expertise of private sector companies in diverse sectors. Our partnership reflects a long-standing cooperation with the EIB as our top development partner in securing financing for the private sector in the last 4 years.” said H.E. Dr. Rania A. Al-Mashat, Minister of International Cooperation of the Arab Republic of Egypt.
EIB Global’s support will enable the fund to target companies with significant growth potential, providing them with the capital and strategic expertise needed to expand their operations and reach new markets. The investment team, which has a proven track record of supporting the growth of businesses across the region, has already identified a diverse pipeline of promising companies.
The new support is set to help regional companies to expand, create skilled jobs and bolster private sector economic in Egypt and other countries across the region. By empowering businesses with the necessary capital and expertise, this investment will pave the way for a more robust and resilient regional economy.
Background information
About the European Investment Bank
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner in Global Gateway. We aim to support €100 billion of investment by the end of 2027, around one third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices around the world.
About SPE Capital
SPE PEF III, LP is a private equity investment vehicle established to make investments in companies poised for promising growth across Africa, with a specific focus on North Africa and the possibility to invest up to 25% in Sub-Saharan Africa, with the goal of contributing to sustainable economic growth in the region. The Fund has a clear strategic focus on control transactions in a defined set of sectors such as manufacturing (FMCG, food, packaging, etc.), B2B services (logistics, B2B distribution, offshoring, non-banking financial institutions, etc.), education and healthcare.
The fund reached initial close in May 2024 with a target size of USD 350m and a hard cap of USD 400m.
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