The International Finance Corporation (IFC) announced on Monday that it will invest in a private equity fund managed by Ezdehar — a leading Egypt-focused private equity fund — to help Egypt’s medium enterprises obtain the funding and tools they need to achieve growth, generate jobs, and overcome pandemic-related challenges.
According to a statement, the IFC’s investment of $20m in the second Ezdehar Fund for Medium Enterprises raises the fund’s total capital to $168m in its first closing.
The second fund will invest in companies operating in important growth sectors in Egypt, including consumer and retail goods, business services, education, healthcare, and manufacturing.
In addition to capital, the fund will provide companies with operational and administrative support to help them implement the best environmental, social, and governance standards, and develop them into market leaders.
“With this fund, Ezdehar has been able to significantly expand its investor base to include a unique group of reputable regional and global institutions. This fund puts Ezdehar in a leading rank as the preferred partner for employing development capital to build local support for the private sector in Egypt,” said Emad Barsoum, the Founder and Managing Director of Ezdehar.
“The COVID-19 pandemic has resulted in unprecedented challenges for businesses. The IFC, however, remains committed to providing financing and support to companies that need this funding. Our investments will help generate jobs, ensure their continuity, and encourage entrepreneurship in Egypt,” said Shruti Chandrasekhar, the IFC’s Senior Regional Expert for Private Equity Funds and Ventures in Africa.
Other international investors supporting this fund include the Belgian Investment Company for Developing Countries, CDC group, the Egyptian American Enterprise Fund, the European Bank for Reconstruction and Development, the European Investment Bank, and the Dutch Entrepreneurial Development Bank.
