The Sovereign Fund of Egypt (TSFE) will prioritise creating massive investment opportunities through cooperation with the public and private sectors, according to the fund’s CEO Ayman Soliman.
Soliman added that the fund is looking to support the country’s economy against the crisis caused by the novel coronavirus (COVID-19) pandemic.
During a speech at the Egypt Economic Summit, he said that Egypt is establishing a sovereign fund that is uniquely different to what has been conducted in other countries. TSFE is a smaller fund in comparison to global funds, but is set to grow into one of the strongest global economies.
He said that the fund focuses on four sectors, for which several sub-funds have been established, namely: financial inclusion; infrastructure; digital transformation; technology; health and food investment; and education.
Soliman added that TSFE has prioritised the maximising of Egypt’s untapped assets, and noted that the fund’s first goal is to create opportunities in partnership with local investors. This will primarily be to attract foreign investors. He also said that the fund currently faces major challenges in light of the global health crisis.
He said that global sovereign funds have been created and placed on the investment map, but that TSFE had devised a different strategy, looking first at cooperation with Africa.
Soliman noted that Egypt’s sound infrastructure currently supports investment with the fund, and that the country has promising projects, including digital transformation and financial inclusion, which the fund is looking to support and invest in.
Additionally, the fund seeks long-term investment to create investment opportunities, and maximise the use of assets.
Soliman noted that the fund has resorted to partnerships with similar funds to take advantage of the challenges posed by the coronavirus crisis.