EIB Proposes $38 Million for TCV II
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EIB Proposes $38 Million for TCV II to Boost Egypt's SMEs

Proposed stake targets a $150 million fund and stronger EU and Egypt trade links

10/15/2025
Ali Abounasr El Alaoui
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The European Investment Bank has proposed a $38 million equity commitment to Tanmiya Capital Ventures Fund II, a vehicle focused on accelerating private sector growth in Egypt and tightening trade and investment links with the European Union. The fund targets a total size of USD 150 million to support growth-stage and mid-cap companies with risk capital, operational upgrades, and governance improvements. The proposal is moving through internal approvals, and its scale signals a notable vote of confidence in Egypt’s evolving investment landscape.


About Tanmiya Capital Ventures

Founded in 2016, Tanmiya Capital Ventures specializes in growth equity for Egyptian enterprises with an impact-oriented strategy that institutionalizes businesses as they scale. Its portfolio spans industrial processing, healthcare, and financial services, reflecting a focus on resilient, real-economy segments. The firm combines capital with hands-on operational support to help companies formalize processes and prepare for larger pools of domestic and international capital.

Proposed EIB Investment

The EIB’s USD 38 million participation is positioned to anchor TCV II’s strategy while catalyzing additional private investors toward the fund’s USD 150 million target. Capital will be deployed into SMEs and mid-caps to expand capacity, strengthen governance, and enable follow-on financing by global institutions. By pairing equity with operational discipline, the fund intends to accelerate scale and competitiveness across priority sectors.

Strategic Alignment with EU-Egypt Ties

The initiative aligns with broader EU frameworks such as Global Gateway and Team Europe that channel development finance into sustainable infrastructure, private enterprise, and greener economies. The EIB has been a long-standing partner to Egypt, having deployed more than EUR 15 billion into public and private initiatives since 1979. TCV II is expected to catalyze cross-border trade, reinforce supply chains, and create structured exposure for European investors to Egyptian growth.

Track Record and Portfolio Signals

TCV recently joined an international consortium to invest in Tamweely, a leading microfinance institution, alongside the EBRD and British International Investment. That transaction underscored the firm’s role as a bridge between local operators and global institutional capital, a capability central to its thesis for Fund II. Its first vehicle, closed around 2017, targeted mid-caps in energy, industrials, and healthcare with ticket sizes typically in the USD 2 to 5 million range, applying ESG frameworks that have bolstered credibility with impact-oriented backers.

Market Context in Egypt

The proposal lands as Egypt manages macroeconomic headwinds and foreign exchange pressures that heighten the need for private investment to drive job creation and resilience. Growth equity combined with governance upgrades can help companies expand responsibly, professionalize management, and secure diversified funding sources. A well-capitalized fund focused on execution can also support supply-chain stability and export readiness, improving linkages with EU markets.

Expected Impact and Next Steps

Subject to Board approval, TCV II would begin deploying capital into growth-stage and mid-cap companies across a diversified set of sectors. Portfolio companies are expected to benefit from scale-up financing, operational tooling, and governance enhancements that attract subsequent institutional investors. The EIB proposal is advancing through internal processes, and a successful close would enable a staged ramp-up aligned with the fund’s mandate.


If approved, the EIB’s commitment would position TCV II as a significant channel for EU-linked equity into Egypt’s private sector. The strategy pairs risk capital with institutional rigor to strengthen SMEs and mid-caps while deepening trade and investment ties between Egypt and Europe. Execution will determine outcomes, but the fund’s design aims to translate development intent into measurable enterprise growth and ecosystem resilience.