The Sovereign Fund of Egypt and the National Service Projects Organization Sign a Cooperation Agreement to Co-Invest with Private Investors in NSPO Companies

Agreement is in line with President’s call for an expansion in ownership base and with parties’ agreement on the Fund’s role as a catalyst to increasing PPP and FDI, creating more jobs for Egypt’s youth

The Sovereign Fund of Egypt and the National Service Projects Organization (NSPO) signed today a cooperation agreement to help attract private investors to the Organization’s assets and companies, in accordance with President Abdel Fatah El Sisi’s call to expand the ownership base of some assets owned by Organization.

The agreement was signed by the Sovereign Fund of Egypt’s CEO, Ayman Soliman, and General Nader Zaki, Head of the Financial and Commercial Department at the NSPO. The signing was witnessed by His Excellency the Prime Minister Dr Mostafa Madbouly, General Mohamed Amin, the President’s Advisor for Financial Affairs, Dr Hala El Said, the Minister of Planning and Economic Development and Chairperson of the Sovereign Fund of Egypt and General Mostafa Amin, the Head of the NSPO.

The agreement will see the Fund promoting and co-investing with private investors in agreed on, investable, assets and companies owned by the NSPO to increase private sector participation in the NSPO’s asset base, in line with the Fund’s mandate as a catalyst to public-private partnerships and foreign direct investment. The process will target expanding the ownership base of the agreed companies, in line with the President’s initiative to help boost economic growth and create more jobs for Egypt’s youth.

Dr. Hala El Said, the Minister of Planning and Economic Development and Chairperson of the Sovereign Fund of Egypt’s board stated that this agreement supports the economic reforms implemented by the government to increase returns on Egypt’s resources, applauding the NSPO’s supportive role in the economy in extraordinary times, adding that the time is right to open the way to a bigger role for the private sector in the economy to increase growth and employment. El Said further commented that the Sovereign Fund of Egypt is taking concrete steps in attracting private investments, in light with the Sustainable Development Strategy, Egypt Vision 2030.

Ayman Soliman, the Sovereign Fund of Egypt’s Chief Executive Officer, affirmed that this agreement reflects the Fund’s role in building partnerships with the private sector and in acting as a catalyst to attract investments to important sectors of the economy and creating unique investment opportunities in new fields, previously unavailable to the private sector. Soliman added that the Fund will manage the preparation of investment opportunities, in cooperation with advisors, to determine the best utilization of the agreed on investable assets, with the possibility of the Fund co-investing with private investors in these opportunities, to own up to a 100% of the companies, or supporting the NSPO to create direct partnerships to better utilize the assets and increase their returns.

About The Sovereign Fund of Egypt (TSFE):

The Sovereign Fund of Egypt (TSFE) was established in 2018 to attract private investments to Egypt and promote and co-invest in state-owned assets to maximize their value and efficiency for future generations in partnership with the domestic and international private sector. It operates through unique legislation that allows it to operate with a private-sector mindset and according to private-sector laws and regulations. Its goals include investing in transactions that create jobs and increase the private sector’s contribution in the Egyptian economy. TSFE operates in accordance with global best practices in investment and ESG. The fund is overseen by an independent board of directors and general assembly. TSFE is a member of the International Forum of Sovereign wealth Funds (IFSWF) and One Planet Sovereign Wealth Funds (OPSWF).