Egypt's sovereign fund to invest EGP 250 mln in EFG Hermes Education Fund

Doaa A.Moneim , Tuesday 30 Mar 2021

TSFE and GEMS Egypt also inked a MoU to develop and operate two premium national schools in west Cairo, which will be built over 30,000 sq metres with a capacity of 2,500 students each

EFG Hermes
TSFE, EFG Hermes and GEMS representatives during the new investment announcement on Tuesday.

The Sovereign Fund of Egypt (TSFE) is to invest an EGP 250 million in the EFG Hermes Education Fund’s third close, the fund announced on Tuesday.

TSFE and GEMS Egypt also inked a memorandum of understanding (MoU) to develop and operate two premium national schools in west Cairo, which will be built over 30,000 sq metres with a capacity of 2,500 students each.

The schools will be constructed on TSFE-owned land, in line with its mandate, to create value out of previously unutilised assets.

According to the TSFE, the investment is the first for TSFE in Egypt’s education sector and is a testament to GEMS Egypt’s success in the local market over the last two years, deploying investments on the platform amounting to almost EGP 1.6 billion.

“These investments made by TSFE in the education sector serve to underscore the state’s strategic priorities, which are aligned with its political leadership’s vision to achieve the overarching sustainable development principles and goals outlined in Egypt’s Vision 2030,” said Minister of Planning and Economic Development and Chairperson of TSFE Hala El-Said.

She added that the TSFE seeks increasing returns and the creation of wealth for future generations across several axes, among which is creating sustainable returns from its existing and potential assets through investments in projects that tie closely to Egypt’s priorities.

This also falls in line with investing in human capital, which is considered a fundamental element of the comprehensive development process, as according to the minister.

“Egypt’s Vision 2030 emphasises education as central to the development of future generations, especially through the use of technology, which has become vital to the future of all economies," said El-Said. "TSFE’s focus on these investments will result in meeting multiple objectives represented in utilising idle assets and creating educational capacities, while generating sustainable returns on investment," she added.

CEO of the TSFE Ayman Soliman said that the resilient - yet growing - education sector in Egypt continues to provide attractive opportunities for local and global players, adding that the distinguished partnership between TSFE, EFG Hermes and GEMS Egypt will set a benchmark in the sector. It will also present the fund’s distinct national curricula through a school model that also focuses on the development, sports, interpersonal skills and technological integration, encompassing a plan for a modern curriculum that aligns with Egypt’s future vision for education.

“Part of TSFE’s current and potential assets will be used to provide a wide segment of Egyptians with high-quality education that is benchmarked against international standards at affordable tuition. This is intended to support the middle class against challenges like waiting lists for school entry and the burdens of private lessons. This partnership will also be followed by similar alliances with entities that possess technical know-hows and the necessary capital shortly," said Soliman.

CEO of EFG Hermes Karim Awad said that his company has committed itself to establishing the largest education investment fund in Egypt, adding that the partnership with TSFE confirms the dedication of EFG Hermes in investing in the education sector.

“We aspire to further fortify this agreement through continuous collaborations and concerted efforts of various entities across the Egyptian education sector, as we seek to guarantee the right to quality education for all Egyptians and upgrade competitive capabilities of the Egyptian education system in line with Vision 2030," said Awad.

“We are honored to be partnering with TSFE and recognise the valuable addition it brings to the EFG Hermes Education Fund," said Head of Assets Management & Private Equity at EFG Hermes Karim Moussa. "Our visions and goals are in direct alignment when it comes to unlocking potential and driving value in the Egyptian education sector by developing a strong institutional presence capable of offering educational services that follow the highest global standards,” Moussa added.

“This is the third close of our education fund, ranking as one of the largest specialised investment funds in the MENA region. Our fund’s capital currently amounts to $150 million, which perfectly positions us to continue expanding our scope in the Egyptian market," said Moussa. 


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