The European Investment Bank (EIB), the financial institution that supports strategic and policy objectives of the European Union, will invest up to $15m in a new private equity fund based in Cairo.
The MENA Joint Investment Fund, set up by Citadel Capital, a private equity firm based in Cairo, will invest in private companies, mainly in Egypt but also in other countries in the Middle East and North Africa (MENA).
The fund will provide equity to a variety of companies in diverse industries such as packaging, waste management and recycling, textiles, agribusiness, and renewable energy. It aims to create regional market leaders by helping companies expand beyond their local markets.
The fund is expected to create up to 12,000 jobs through its portfolio of investee companies.
The initial capital is $150m and is expected to be raised to up to $500m by 2010.
Co-investors include international financial institutions such as the EIB, the International Finance Corporation and AfDB as well private investors.