A consortium of worldwide buyers, together with SPE Capital, the European Financial institution for Reconstruction and Improvement (EBRD), Tanmiya Capital Ventures (TCV), and British Worldwide Funding (BII), has acquired Tamweely Microfinance S.A.E. in a transaction valued at over EGP 2.5 billion (~USD 57 million). The acquisition marks a major shift in Egypt’s non-banking monetary providers sector because the consortium takes management of Tamweely from its former shareholders Ayady for Funding & Improvement, NI Capital Holding, and Submit for Funding Firm.
Established in 2017, Tamweely has grown into a number one participant in Egypt’s monetary sector, specializing in micro, small, and medium enterprises (MSMEs). The corporate, which operates throughout 24 governorates with 230 branches and over 3,950 mortgage officers, has served greater than 500,000 shoppers and disbursed over EGP 17 billion.
The consortium plans to work carefully with Tamweely’s CEO and Managing Director, Ahmed Khorched, to increase the corporate’s operations and product choices. The aim is to reinforce Tamweely’s infrastructure and proceed its mission to offer seamless monetary providers to underserved populations throughout Egypt.
The acquisition additionally aligns with Egypt’s broader financial objectives, notably its State Possession Coverage. Commenting on the transaction, Rania Al-Mashat, Minister of Planning, Financial Improvement and Worldwide Cooperation, praised the divestment of presidency entities from Tamweely. “This deal exemplifies the federal government’s dedication to empowering the personal sector and attracting native and overseas investments,”
Hassan El-Khatib, Minister of Funding and International Commerce, echoed these sentiments, emphasizing the significance of the transaction in fostering worldwide investor confidence in Egypt’s economic system. “This acquisition is a testomony to the progress Egypt has made in making a sustainable funding surroundings,” he mentioned.
The EBRD’s involvement within the acquisition underscores its dedication to Egypt’s privatization agenda and boosting the competitiveness of the personal sector. Alongside its co-investors, the EBRD goals to assist Tamweely scale domestically and turn out to be one in every of Egypt’s high microfinance suppliers. Moreover, the EBRD is selling women-led MSMEs by means of Tamweely, offering technical help funded by the Girls Entrepreneurs Finance Initiative (We-Fi). Tamweely may even be part of the nationwide coalition led by the Central Financial institution of Egypt to extend funding and construct the ecosystem for women-led enterprises.
The acquisition displays Egypt’s ongoing efforts to optimize returns on state belongings and encourage personal sector participation. The State Possession Coverage (IPO) program, launched in 2023, targets vital investments in state-owned corporations to generate as much as USD 2.5 billion in income by FY2024/2025.
