Mubasher: The European Investment Bank (EIB) has signed an agreement valued at $15 million with the SPE Africa Industrialization I Fund (AIF I) to endorse the growth of capital investments in the Middle East and North Africa (MENA) region.

SPE Africa Industrialization I Fund is a generalist private equity fund that mainly targets raising capital investments in small and medium entrepreneurs (SMEs) and mid-market companies that are located mainly in North Africa, according to a recent press release.

Focusing mainly on Egypt, Morocco, and Tunisia, the fund’s first closing reached $80 million.

SPE Capital Partners, the fund manager will adopt a proactive value-adding investment strategy as well as seeking an acquisition of equity stakes in enterprises with strong growth potential in various important sectors including, education, healthcare, manufacturing, and services to meet their investment needs.

“The fund seeks to contribute to the development of the private sector in North Africa by increasing access to capital for local SMEs and mid-market companies. Additionally, the fund’s portfolio companies are anticipated to grow regionally and contribute to strengthening trade between northern and sub-Saharan African countries,” the press release said.

This new fund is expected to create more than 1,000 direct new jobs

Furthermore, this EIB commitment was signed under the Southern Neighbourhood Private Equity Risk Capital Facility, a EUR 71.3 million worth of facility that has a main goal of supporting private equity fund investments in the Southern Neighbourhood countries.

“The facility blends the EIB’s own resources with European Commission resources under the Neighbourhood Investment Facility,” the press release added.