Egyptian VC, Sawari Ventures, has announced a first closing of USD 35 Mn for its latest fund called Sawari Ventures North Africa Fund I (SVNFI). This development is coming in the wake of reports from earlier this year which suggested that the company will be launching a fund worth USD 70 Mn, and this latest investment is coming as a first tranche.
Technology and knowledge-driven companies in Egypt, Tunisia, and Morocco, are expected to benefit from this latest fund from Sawari Ventures.
A number of global financial institutions including the European Investment Bank (EIB), UK-based CDC, Proparco; the private sector financing arm of the French Development Agency, as well as Dutch Good Growth Fund (DGGF); a fund managed by Triple Jump, are all listed as investors in the fund.
Plans to announce the closing of another ‘Egypt-only’ fund by Sawari Ventures is also believed to be actively in progress. When launched, this fund will run simultaneously with the SVNFI so as to boost the company’s investments in Egyptian startups.
Some of the largest public sector banks, as well as governmental bodies such as National Bank of Egypt, Banque du Caire, and Egypt’s Information Technology Industry Development Agency (ITIDA), are believed to be the lead investors in this fund which will be exclusive to Egyptian companies.
“We are creating the first of a kind VC vehicle to combine top-tier international and local institutional investors to cement VC as an asset class in Egypt; we are initiating a sustainable Egyptian VC industry to ensure availability of funding for future entrepreneurs,” said Wael Amin, Partner at Sawari Ventures.
Such areas ICT, deep technology, fintech, education technologies, healthtech, and renewable/green energy, are expected to form the list of sectors targeted by the fund which aimed at making investments in 25 growth stage companies across those sectors with an average ticket size of USD 1.5 Mn.
“Investment appetite in Africa is growing aggressively, with an abundance of high-growth opportunities waiting for the right funding, and the right partners,” said Amin. “At Sawari Ventures, we have been building knowledge economy companies in this part of the world for years, and our role today will be to channel the available capital to the right entrepreneurs.
Sawari Ventures Partners, Ahmed El Alfi, Wael Amin, and Hany Al-Sonbaty, were all present at the signing ceremony which took place on the sidelines of the 2018 Africa Business Forum which was held at the Sharm El Sheikh International Congress Center. Representatives from both the local and international investors in the fund were also in attendance.
According to one of such investor representatives – Milena Messori; Head of Intermediated Finance for MSMEs at EIB, SVNFI will be used to assist early and growth stage innovative SMEs that have the potential to scale rapidly and grow regionally.
She also expressed her confidence in the ability of the fund to boost the local tech ecosystem, while also stressing that the support to local SMEs and dynamic startups afforded by the new fund will do a solid to economic growth, private sector development and job creation for the young generation.
Image Courtesy: Wamda