SPE PEF III (SPE Capital), the European Bank for Reconstruction and Development (EBRD), Tanmiya Capital Ventures (TCV) and British International Investment (BII) have agreed to acquire Tamweely Microfinance (Tamweely), a non-banking financial services company in Egypt specializing in serving micro, small and medium enterprises (MSMEs), from its current shareholders: Ayady for Investment & Development, NI Capital Holding for Financial Investments, and Post for Investment Company.

Ahmed El Oraby, Partner, and Nabil Triki, Managing Partner of SPE Capital, said: “Egypt’s non-banking financial services sector has demonstrated favorable fundamentals and presents a tremendous opportunity to extend digital financial services to the under-banked and under-served segments of society.” 

“We look forward to building on the success of the founding shareholders and supporting the company as it scales its operations, technology and digital infrastructure and organization and pursues its ambitious growth plans and impact agenda.”

Established in 2017, Tamweely Microfinance has emerged as a leading player in the Egyptian non-bank financial services sector, offering financing and ancillary services dedicated to empowering micro, small and medium enterprises (MSMEs). 

With its commitment to bringing innovative and seamless financial services to Egypt’s unbanked and under-served customers, Tamweely has served more than 500k clients and disbursed more than EGP 17bn since its inception and today operates a branch network of 230 branches and more than 3,950 loan officers, across 24 governorates.

The consortium will partner with CEO and Managing Director, Ahmed Khorched and Tamweely’s management on scaling up the company’s infrastructure, organization and operations and further expanding the company’s suite of products to serve Egypt’s unbanked and underserved populations.

In a statement regarding the transaction, H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, commented: "The divestment of government entities from Tamweely for Microfinance in favor of a consortium of international investors exemplifies the government's vision to empower the private sector, attract both local and foreign investments, and gradually withdraw from certain sectors. This aligns with the implementation of the State Ownership Policy and aims to maximize returns on state assets. 

“Tamweely serves as a model of successful government investments that have significantly contributed to the growth of the non-banking financial sector, enhanced financial inclusion, generated job opportunities, and supported social and economic development initiatives. Today, Tamweely's achievements showcase the potential of public-private partnerships to drive economic growth and promote financial inclusion."

Mohamed Metwally, CEO and Managing Director at NI Capital, said: “NI Capital and its partners launched Tamweely with a vision to empower micro and small business owners and foster financial inclusion across Egypt, and after seven years of operations, the Company has achieved remarkable milestones in terms of rolling out about EGP 17 billion of micro finance lending, creating direct and indirect jobs, and earning healthy returns to its shareholders.” 

“Our exit is a testament to the exceptional performance, dedication, and hard work of our private equity team, and an exemplary cooperation with our partners. I am confident that Tamweely has been well staged for greater prospects,” he said.

Ahmed Khorched, CEO & MD of Tamweely, said: “We are very happy to welcome our new partners to Tamweely. The backing of leading international financial institutions is a testimony to Tamweely’s success and unique profile in the market. We have ambitious plans for the company and look forward to combining our strengths to create value for all our stakeholders.”

Ahmed Ali, CEO and MD of Post for Investment Company, concluded: "This successful exit is a proud moment for us as founders. We have been committed to driving financial inclusion and supporting underserved communities in Egypt. It has been an incredible journey, and Tamweely's success reflects the innovative spirit and resilience of all stakeholders in the transaction. I look forward to seeing its continued positive impact and growth under its new shareholders."

The investment consortium was advised by MF Strategy, Mediterranean Corporate Finance (MCF), Helmy, Hamza and Partners – a member firm of Baker & McKenzie International, and BLC Robert & Associates (legal advisors), PricewaterhouseCoopers (financial advisor), IBIS Consulting (ESG and Impact), and various other consultants on commercial and technical matters. The sellers were advised by ADSERO - Ragy Soliman & Partners (legal advisor).