The fund’s activity is to invest in private companies, mainly in Egypt but also in other countries in the Middle East and North Africa
The European Investment Bank (EIB) will invest in a new private equity fund based in Cairo called the MENA Joint Investment Fund. The fund was set up by Citadel Capital, a Cairo-based private equity firm. The initial capital is $150 million and is expected to be raised up to $500 million by 2010. The co-investors include international financial institutions such as the EIB, the International Finance Corporation and AfDB as well private investors.
Reportedly, the core activity of the fund will be to provide equity to a variety of companies in diverse industries such as packaging, waste management and recycling, textiles, agribusiness, and renewable energy. It aims to create regional market leaders by helping companies expand beyond their local markets.
The fund is expected to create up to 12 000 jobs through its portfolio of investee companies. Citadel Capital’s approach to investment is fully in line with the aims of the EIB, the bank of the European Union, which seeks to promote private companies and in turn foster employment and economic growth in the region, in accordance with the European Neighbourhood Policy.