By Abdel Razek Al-Shuwekhi
Egyptian businessman Nassef Sawiris announced Wednesday his intention to contribute 25% to a new investment fund, with an investment of approximately EGP 500m ($75m).
The announcement comes just days after younger brother, billionaire Naguib Sawiris, announced his purchase offer for 20% of the shares in EFG Hermes.
CI Capital Holding, a top Egyptian investment bank, and Duet Group, one of the world’s largest investment management firms, recently announced they are forming a strategic alliance, establishing an investment fund worth $2.2bn.
“The establishment of the fund at this time means there is great confidence in the Egyptian economy and that consumer industries are among the attractive sectors,” said Mohamed Maher, Managing Director of Prime Holding.
The move comes several weeks after Nassef Sawiris told Bloomberg News he intends to pump large investments into the Egyptian market during the coming period.
Naguib Sawiris submitted a bid through a consortium last Thursday for the purchase of 20% of the shares of EFG-Hermes.
Following the ouster of former president Mohamed Morsi last July, the Sawiris family announced its intention to inject large investments into Egypt to support the economy.
According to a statement from CI Capital on Tuesday, “the fund will focus on consumer-related industries.”
The alliance between the two companies allows them to grant an opportunity for foreign capital and domestic capital to grant financial and administrative support to projects to achieve growth.
The alliance will bring together the expertise of the two companies, according to Mahmoud Atallah, Vice Chairman and CEO of CI Capital. Duet’s expertise lies in the field of investment management in leading and developing markets. CI Capital’s experience is primarily in deal-making and execution skills.
The two companies are aiming to establish the fund, according to Attalah, to create an investment platform that can keep pace with the growth of the Egyptian market. It will create channels for the flow of capital into the economy.
The stock exchange market capitalization recorded for listed stocks rose by EGP 2.8bn, recording EGP 491.5bn compared to EGP 488.7bn the week before.
Egypt has passed the second step in its political roadmap with the completion of the presidential elections won by Al-Sisi.
“Egypt’s demographics and its positioning for investment provide a strong foundation for attracting investments,” according to Henry Gabay, CEO of Duet Group.
“Egypt is in a position that allows it to achieve extraordinary economic growth in the coming years and direct investments in key sectors that still offer great investment opportunities,” said Nassef Sawiris, who announced the intention of his company to contribute to the fund.