The Sovereign Fund of Egypt (TSFE) intends to launch four sub-funds in sectors that present significant investment opportunities on the back of the ongoing coronavirus (COVID-19) pandemic.
These sectors are heath, infrastructure, food and agricultural processing, and fintech and financial services, according to the fund’s CEO, Ayman Soliman.
During an online press conference on Monday, Soliman said details of the new funds’ launch will be officially announced during the next meeting of the Fund’s Board of Directors. This will be to ensure that the available opportunities in these sectors can be taken.
The TSFE is currently re-prioritising following the coronavirus outbreak. It notes that priority is being given to health services, pharmaceutical and food manufacturing, agriculture, financial channels and inclusion, as well as logistics and infrastructure.
Soliman revealed the TSFE has received a number of offers from investors looking to invest in assets for the National Service Projects Organization (NSPO), affiliated to the Egyptian Armed Forces.
He added that the fund is currently studying investment opportunities in NSPO companies and plans for developing its assets to attract more private sector investments locally and internationally. It is also looking to expand its ownership base in the coming period.
The TSFE and the NSPO signed a cooperation agreement to attract investments to some of the organisation’s assets.
The fund will cooperate with consultants on the preparation of investment studies to determine the best investment exploitation mechanism for the organisation’s assets. Soliman noted that private investor contributions may reach 100%, with the possibility of the TSFE investing in these assets with potential investors.
“The TSFE is currently in negotiations with investors, and is looking to enter into new partnerships to exploit various state assets to achieve huge investment returns for the local economy,” Soliman said. “Sectors that attract attention of investors in the current circumstances after the spread of the coronavirus pandemic, centred on medical security, food and healthcare.”
He explained that the partnerships the fund seeks to implement would help remove huge debts and financial burdens from the state budget. This would occur in addition to pumping new investments into the local economy.
Soliman pointed out that the TSFE has already entered into healthcare sector partnerships in conjunction with the Concord International Investments Group.
In early May, the TSFE signed a memorandum of understanding (MoU) with the New York-based group to establish a joint venture management company specialising in the healthcare sector.
This will see investments mainly in Egypt, as well as the wider Middle East and Africa (MEA) region, with fund worth $300m.
The TSFE was established by Law No. 177/2018 to transfer ownership of unexploited government assets to the fund for development and management. The law creating the new fund gives the TSFE the right to establish subsidiary and sub-funds alone or in partnership with Arab funds.
