The Sovereign Fund of Egypt (TSFE) and Actis – a UK-based emerging markets investor – signed a memorandum of understanding (MoU) for strategic cooperation across multiple sectors in Egypt, according to a statement from the TSFE on Monday.
The signing ceremony took place during the UK-Africa Investment Summit witnessed by Egypt’s Minister of Planning and Economic Development Hala El-Said, and Elizabeth Truss, Secretary of State for International Trade, President of the Board of Trade, and Minister for Women and Equalities in the UK.
The MoU enables the two leading financial institutions to partner in high–profile areas, in particular energy and infrastructure, and directly supports the TSFE’s objective to attract and steer private investment toward critical sectors for Egypt’s economy, through co-investment with foreign investors in value accretive opportunities serving to unlock the potential of Egypt’s assets and resources.
The UK-Africa Investment Summit, taking place in London this week, underscores the importance of future investment in Africa for the UK and Actis, which is uniquely positioned for a partnership with TSFE.
Actis has a very strong track record of investment in Egypt and is a leading international energy and infrastructure investor having invested in, built, owned and operated 116 power projects across Africa, Latin America, and Asia.
Al-Saeed stated that this agreement emphasises the Fund’s attractiveness as an investment partner in Egypt due to its flexible model and ability to engage government stakeholders to increase the value added of Egypt’s assets and resources and contribute to strategic sectors’ growth, supporting the implementation of the Egypt 2030 Vision for sustainable development.
“I am delighted at today’s agreement between Actis and TSFE. This important cooperation agreement will support energy transition and underscores a new chapter for sustainable, high-quality UK investment in key markets such as Egypt. Trade with countries across Africa has never been more exciting,” Truss mentioned.
“As opportunities there grow, it’s great to see so many British firms paving the way in trading and investing in the region to drive growth, create jobs and boost vital infrastructure,” she said.
“We are pleased to have entered into this cooperation protocol with Actis. This agreement reflects the mandate of the Fund to unlock and promote partnerships with investors in high priority sectors in Egypt, by forging partnerships with credible investors with long term experience, directing both know-how and investments to such sectors,” Ayman Soliman, TSFE’s CEO, said.
“We look forward to capitalising on this MoU and quickly progressing our cooperation with Actis. TSFE received a strong proposal from Actis, that manifested the growing appetite of leading global financing institutions to support investments into Egypt, endorsing Actis’ proposal to participate in the announced monetisation process of one of the three Siemens-built 4.8GW gas power plants. We consider Actis’ proposal to be a strong sign reflecting its underlying interest in expanding its investments in Egypt and we look forward to unlocking further appetite and value through such partnerships,” Soliman noted.
“Actis has a long history of investing across Africa in multiple sectors including energy, education, consumer, financial services, and healthcare. Our Energy business has completed 23 projects in Africa to date, delivering some 4GW of capacity and today has over $1bn committed to the continent,” Sherif Elkholy, Actis Partner and Head of the Middle East & North Africa, said.