Egypt’s Ministry of Communications and Information Technology (MCIT), through its newly established Technology Innovation and Entrepreneurship Center (TIEC), pledged to support $80 million Egypt Growth Capital Fund (EGCF) managed by private equity group Abraaj Capital.
According to a press statement, the EGCF is part of Riyada Enterprise Development (RED), Abraaj Capital’s small and medium enterprises (SME) investment platform.
SMEs account for over 90 percent of all businesses in Egypt, and the fund will have a specific allocation of $30 million dedicated to information and communications technology (ICT) and ICT-enabled businesses.
Egypt’s MCIT partners and affiliates will invest $12 million into the EGCF alongside a matching $12 million from the US government’s Overseas Private Investment Corporation (OPIC) commitment to RED.
OPIC’s board recently approved up to $150 million to RED as part of OPIC’s Global Technology and Innovation Fund (GTIF), and is now negotiating that commitment.
Abraaj Capital will invest at least another $10 million in the EGCF.
Out of the $30 million technology allocation, the EGCF will be investing at least $6 million in fostering startups and early stage companies that are nurtured by the TIEC incubation and other support programs, the statement read.
