Egyptian-American Enterprise Fund (EAEF)
The Egyptian American Enterprise Fund (EAEF) is a U.S. government seeded investment fund with a mandate to strengthen Egypt’s private sector. EAEF invests in private enterprises in Egypt that contribute to long-term, inclusive and sustainable economic growth. EAEF deploys capital with the dual mandate to deliver financial returns and promote socioeconomic development in Egypt.EAEF aims to boost private sector development and attract foreign capital into Egypt to create a sustainable investment climate that will continue to fuel economic growth in Egypt long after EAEF liquidates in 2028.
The Egyptian-American Enterprise Fund addresses gaps in financing for entrepreneurs and small and medium-sized enterprises (SMEs), and demonstrates to investors the potential for profit by creating opportunity for the private sector to flourish. In addition to investing capital profitably, EAEF promotes and disseminates international commercial best practices in Egypt among its investees and fund managers. This is a model that was pioneered in Eastern and Central Europe in 1990s with considerable success.
The United States efforts to promote a stronger business climate for SMEs in Egypt are best achieved in cooperation with strong partners. Just as prior enterprise funds successfully created parallel private investment funds to co-invest in investment opportunities, EAEF has seeded new private equity firms in Egypt that act as investment advisors and asset managers, and will outlive EAEF. Sovereign governments can play a critical role in facilitating co-investment by offering to match U.S. Government funds and by making introductions to local private investment pools that may also be interested in co-investment opportunities.See more