Egypt’s Sovereign Fund (TSFE) has officially been placed under the Ministry of Investment and External Trade, following a decree issued by Prime Minister Mostafa Madbouly. The Egyptian Gazette reported the move as part of ongoing government efforts to strengthen the nation’s investment infrastructure.
The decree, ratified by President Abdel Fattah Al-Sisi, also renamed the fund to the “Egyptian Sovereign Fund for Investment and Development,” reflecting a broader mandate to drive sustainable growth across multiple sectors.
TSFE was originally created in 2018 as a private investment entity designed to foster partnerships with local and foreign investors, managing state assets to generate long-term financial returns. By optimizing risk/return profiles, the fund has played a pivotal role in attracting foreign direct investment (FDI) into Egypt. The latest move comes after calls from the Minister of Planning, Economic Development, and International Cooperation, Rania A. Al-Mashat, to enhance its operational capacity by affiliating it with the cabinet earlier this month.
According to the Sovereign Wealth Fund Institute, TSFE holds assets valued at USD 12 billion, making it the 47th largest sovereign fund globally. Since its inception, the fund has attracted 43 percent of Egypt’s total FDI, equivalent to EGP 37 billion. TSFE is also responsible for driving Egypt’s ambitious Initial Public Offering (IPO) program, which has raised USD 3.5 billion since February 2023.
Additionally, in September 2022, TSFE launched the Egypt Sub-Fund for Asset Management and Restructuring, enabling institutional investors to purchase shares in state-owned enterprises before they are offered publicly. This sub-fund is part of a broader initiative to boost the privatization process, contributing to Egypt’s goal of raising USD 2-2.5 billion in the fiscal year 2024/2025 through its IPO program.
CEO of TSFE, Ayman Soliman, has indicated that the IPO program will relaunch in October, continuing its vital role in economic reform efforts. Egypt’s government sees the IPO program as a key tool for enhancing the country’s investment climate, particularly in state-owned sectors.
The decision to bring TSFE under the Ministry of Investment aligns with Egypt’s broader strategy to streamline investment policies and attract international interest in its developmental projects.
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