During the Signing of the Sale Agreement of "Tamweely" to an International Investor Consortium Strategic Divestment of a Group of Government Companies, NI Capital & Ayady, Subsidiaries of the NIB, as well as Post for Investment, from "Tamweely" Microfinance in Favor of a Consortium of International Investors: -Al-Mashat: The "Tamweely" Agreement Represents a Strategic Exit for Government Companies in Line with the State's Direction to Attract Foreign Direct Investments

$11 Billion in Investments and Financing from International Partners for the Private Sector Since 2020

 H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, stated that the exit of government companies from "Tamweely" Microfinance Company to an international consortium of investors represents a practical application of efforts to govern economic activities and implement the State Ownership Policy Document.

 

This was announced during the signing ceremony of the agreement to sell 100% of the shares of “Tamweely” Microfinance Company, owned by NI Capital and Ayadi, subsidiaries of the National Investment Bank and the Post for Investment, to a prominent international consortium of investors. The event was attended by Eng. Hassan Al-Khateeb, Minister of Investment and Foreign Trade, along with representatives from the private sector, the business community, and international partners.

 

The Minister explained that the exit agreement aligns with the Egyptian government's three-year program, which aims to build a competitive economy attractive to investments, increase the annual growth rate of foreign direct investments, maximize returns on government investments, and shift towards sustainable growth while increasing the contribution of private sector investments to the gross domestic product.

 

H.E. Minister Al-Mashat continued: "Today, we witness a significant step towards developing the microfinance sector and increasing financial inclusion, as micro-enterprises play a crucial role in achieving comprehensive development by supporting economic growth and providing job opportunities. With approximately 3.4 million private sector enterprises in Egypt, about 98% of which are micro, small, and medium-sized businesses, according to the Central Agency for Public Mobilization and Statistics."

 

H.E. Dr. Al-Mashat noted that Tamweely's journey since its inception reflects the effectiveness of government investment managed with a private sector mindset to maximize the benefit from available resources. Over seven years, the company provided financing of EGP 17 billion to approximately 500,000 financially excluded enterprises. The company also supports women entrepreneurs, who received 47% of the total financing, as international studies indicate that women’s work and ownership in micro-enterprises reach their peak, supporting gender equality.

 

H.E. Dr. Al-Mashat added: "Today, we are witnessing a strategic divestment of a group of government companies, NI Capital and Ayady, subsidiaries of the National Investment Bank, as well as Post For Investment, from "Tamweely" Microfinance in favor of a consortium of international investors, including like the European Bank for Reconstruction and Development (EBRD) and the British International Investment (BII), as well as indirect contributors through private equity funds involved in the consortium, namely SPE Capital and Tamweely Capital Ventures (TCV). These funds were financed by a group of international development partners, such as the Egyptian-American Enterprise Fund (EAEF), the International Finance Corporation (IFC), the European Investment Bank (EIB), the Dutch Entrepreneurial Development Bank (FMO), among others."

 

The Minister emphasized that this transaction strengthens the role of development partners in supporting and developing the private sector in Egypt, with total investments and financing by partners amounting to $11 billion since 2020.

 

H.E. Dr. Al-Mashat highlighted that in light of the State's vision to encourage private sector contribution to development and maximize its benefits from development partners by bridging information gaps, the Ministry launched the Hub for Advisory, Finance & Investment for Enterprises platform. This electronic platform provides comprehensive information on financing tools offered by development partners, such as direct investment, commercial financing, credit, or risk guarantees, which directly contribute to increasing the competitiveness of Egyptian companies and their expansion capabilities. The platform offers more than 85 financial or technical support services, in addition to hundreds of tenders and initiatives funded by development partners.

 

H.E. Minister Al-Mashat also noted that the Ministry implements the "Development Policy Financing" program in collaboration with international partners including the World Bank, the European Union, and the African Development Bank. The program aims to provide financing to support the budget and implement structural reforms that stimulate the private sector across various sectors through three main areas: macroeconomic stability and resilience enhancement, improving competitiveness and the business environment, and promoting green transformation.

 

In conclusion, H.E. Dr. Al-Mashat reaffirmed the Ministry's role in governing investment spending and setting priorities in collaboration with different governorates, aiming to increase investment effectiveness, pave the way for private investments, and continue efforts to maximize the efficiency of government investments, and develop the National Investment Bank and its subsidiaries to support the State's overarching vision for private sector-driven economic growth.