Arab Finance: The Micro, Small, and Medium Enterprise Development Agency (MSMEDA) has participated in Tanmiya Capital Fund II (TCVII), alongside the European Investment Bank (EIB) and other global financial institutions, according to a statement.

Mostafa Ismail Hassan, CEO of MSMEDA, commented: “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."

He added that the agency is implementing a ‘Fund of Funds’ venture capital program as part of a strategic initiative to expand investment across Egypt’s entrepreneurship ecosystem, strengthen the capabilities of investment funds operating in the local market, and encourage greater private capital participation. The initiative aims to develop a more diversified and sustainable financing market for startups and small and medium-sized enterprises (SMEs).

Through its development arm, EIB Global, the EIB invested $37.5 million in TCVII to expand access to growth capital for established small and medium-sized companies in Egypt. Its commitment helped the fund reach a final close of $130 million, exceeding its initial target of $120 million.

“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 EU’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.

Managed by independent Egyptian investment firm Tanmiya Capital, TCVII will invest in a diversified portfolio of established, high-growth Egyptian companies seeking strategic capital to scale up, professionalize their operations, and enhance their competitiveness.

The fund is expected to target several sectors, including healthcare, training, financial technology, consumer goods, logistics, and transport.