Arab Finance: The Sovereign Fund of Egypt (TSFE) plans to establish a specialized investment fund in Africa, focusing on banking and non-banking financial sectors, tourism, health, and education, as part of its international expansion strategy, Minister of Investment and Foreign Trade Mohamed Farid Saleh disclosed.

The plan was announced in a meeting with Prime Minister Mostafa Madbouly to review TSFE’s efforts to maximize returns on state-owned assets.

During the meeting, Farid also revealed TSFE's plans to establish a separate industrial investment fund.

The Africa-focused vehicle will invest in banking and non-banking financial services alongside the three other targeted sectors. However, no details were provided on its proposed size, launch date, funding structure, or geographic priorities within the continent.

Farid said TSFE’s strategy for the coming period would move beyond conventional inventory and asset management. Instead, the fund will seek to generate greater value from its holdings and turn them into vehicles capable of attracting domestic and foreign capital.

The government is also working to update TSFE’s operating mechanisms through new approaches and business models that reflect changing market conditions. Consultations are underway to identify partnerships that could improve returns from the fund’s assets while supporting the economy and addressing development needs.

Moreover, officials at the meeting reviewed TSFE’s principal holdings, including its land and real estate portfolio, as well as updates on ongoing projects and plans for the coming period.

The fund also plans to develop more flexible investment instruments that can respond to market changes. Its strategy will prioritize sectors offering strong returns and sustainable development impact, to build a balanced portfolio that supports financial stability.

Madbouly said maximizing returns from state-owned assets remains a government priority, with TSFE serving as an investment arm that can convert underused resources into development opportunities.

Furthermore, he added that partnerships with the private sector could help attract foreign investment, strengthen the economy, and preserve value for future generations.