SFE officially launches financial services sub-fund
INVESTMENT WATCH- SFE officially launches its first sub-fund dedicated to financial services: Planning minister and chairperson of the Sovereign Fund of Egypt (SFE) Hala El Said issued a ministerial decree formally establishing the fund’s EGP 30 bn sub-fund dedicated to investing in the non-banking financial services sector, according to a cabinet statement. The sub-fund, which was announced by El Said last week, will focus on insurance, microlending, real estate finance and securitization. It will also be able to establish other funds and companies to develop, offer, and sell e-payment apps and services. The sub-fund will be managed by a five-member board of directors appointed by the SFE's board to serve for a renewable three-year term.
The SFE has been signalling interest in the sector for the past few months: The fund has been in talks with investors interested in fintech and services that further financial inclusion since at least May. It announced a joint bid with EFG Hermes to take a 76% stake in the Arab Investment Bank.
This isn’t the only sub-fund recently set up by the SFE: The fund announced last week that it has also set up funds covering healthcare, tourism and real estate, and infrastructure.