SPE Capital, EBRD, TCV, BII acquire Egypt’s Tamweely
A consortium of investors, including SPE Capital, the European Bank for Reconstruction and Development (EBRD), Tanmiya Capital Ventures (TCV), and British International Investment (BII), acquired Egyptian microfinance firm, Tamweely Microfinance, according to a joint statement on Sunday.
The deal, valued at over 2.5 billion Egyptian pounds ($51.6 million), involved the purchase of Tamweely from its previous shareholders: Ayady for Investment and Development, NI Capital Holding for Financial Investments, and Post for Investment Company.
Founded in 2017, Tamweely has emerged as a key player in Egypt’s non-banking financial services sector. The company offers financing and other services to micro, small, and medium enterprises (MSMEs). Tamweely has served over 500,000 clients and disbursed more than 17 billion pounds since its inception.
The consortium will partner with Tamweely’s management team to expand the company’s infrastructure, products, and reach. The aim is to serve more unbanked and underserved populations in Egypt.
The Egyptian government has praised the transaction as a positive step towards empowering the private sector and attracting foreign investment.
Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat highlighted Tamweely as a successful example of a government-backed initiative that has contributed to economic growth and financial inclusion.
“The divestment of government entities from Tamweely for Microfinance in favor of a consortium of international investors exemplifies the government’s vision to empower the private sector, attract both local and foreign investments, and gradually withdraw from certain sectors.” Minister Al-Mashat said.
She further said that Tamweely’s achievements showcase “the potential of public-private partnerships to drive economic growth and promote financial inclusion.”
For his part, Minister of Investment and Foreign Trade Hassan El-Khatib said: “This transaction serves as a strong testament to international institutions’ confidence in the future growth of Egypt’s economy and its investment environment.”
Minister El-Khatib expects the transaction to have a positive impact on Egypt’s economy by creating jobs, supporting businesses, and promoting financial inclusion. It reflects the growing interest of international investors in Egypt’s market and the country’s potential for economic growth.
“The Ministry of Investment is dedicated to enhancing the investment environment to attract more direct investments, and we stand ready to provide the necessary support to this investment consortium as well as any local or foreign investors interested in investing in Egypt.”
MF Strategy, Mediterranean Corporate Finance (MCF), Helmy, Hamza and Partners (a member firm of Baker & McKenzie International), and BLC Robert & Associates were legal advisors to the consortium. PricewaterhouseCoopers served as the financial advisor, while IBIS Consulting provided expertise in environmental, social, and governance (ESG) matters.
The sellers, Ayady for Investment & Development, NI Capital Holding, and Post for Investment, were advised by ADSERO – Ragy Soliman & Partners.
The completion of the transaction remains subject to regulatory approval and the fulfilment of certain agreed-upon conditions.
Attribution: Emailed Ministry of Planning, Economic Development, and International Cooperation statement
