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December 19, 2024

Dear Stakeholders:

The Egyptian-American Enterprise Fund (“EAEF”) is a private investment fund established in 2011 by the U.S. Congress to promote the development of Egypt’s private sector. To date, the EAEF has supported seven, first-time Egyptian fund managers and invested in 133 companies, which today support 55,000 jobs. Since inception, EAEF and its fund managers have created 26,000 full-time jobs in Egypt.

On a financial basis, EAEF has made significant returns on its investments. We estimate the current market value of EAEF’s assets to exceed $500 million, almost double our $300 million in funding from Congress. Moreover, we have helped to attract $1.4 billion in foreign investment to Egypt.

How have we achieved these returns despite Egypt’s currency losing more than 50% of its value since 2022? The answer is Egyptian talent. Unlike earlier enterprise funds that relied on Americans to manage investments, EAEF empowered local investment partners who invested in private equity.

This model incentivizes talented fund managers to find quality companies and raise capital with our assistance in order to build their own investment firms. After EAEF liquidates, these local fund managers will continue to invest in Egypt’s private sector and attract foreign capital.

In 2024, EAEF executed three major commitments for Egyptian fund-managers. First, we committed a $50 million anchor investment to help our long-time partner, Tanmiya Capital Ventures (“TCV”), close its second fund. TCV is one of Egypt’s top private equity firms. In October, TCV and an international consortium of investors acquired a stake in leading microfinance player, Tamweely, from its state-owned shareholders as part of the Egyptian government’s privatization program.

In the first quarter of 2024, TCV also finalized the sale of Abu Auf, a leading healthy foods company, to an Abu Dhabi-based food and beverage company. This successful exit paved the way for TCV to raise its second fund.

Second, EAEF committed to East Lane Partners, a first-time, mid-cap focused private equity fund. East Lane targets companies with the potential to expand and become regional leaders.

Lastly, EAEF committed to Foundation Ventures, an early-stage venture capital fund. Foundation backs founders building industry-defining companies through early-stage investments.

We are pleased to report that EAEF hosted an investor roundtable in New York City in October for Egypt’s Minister of Investment and Foreign Trade. The event was well-attended by over 25 senior investment executives, including representatives from BlackRock, Goldman Sachs, JPMorgan and UBS. The roundtable focused on how to mobilize foreign investment for Egypt and ensure the private sector becomes the country’s leading engine of economic growth.

Strengthening the private sector is key to bolstering Egypt’s stability and delivering broad-based prosperity for its citizens. We look forward to continuing to invest in Egypt and developing new relationships that strengthen the US-Egypt partnership.

We want to extend our deep appreciation to our long-time vice chair, Hythem El-Nazer, and Hala El-Mohandes who recently stepped down from the board after more than a decade of service. Their counsel and investment experience have been invaluable to EAEF. We are pleased to announce that current board member, Mona Aboelnaga Kanaan, will join Nada Shousha as our second vice-chair of the board.

Happy holidays and please do not hesitate to reach out if you have any questions.

Sincerely,

James A. Harmon
Chairman

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