By The Sovereign Fund of Egypt (TSFE) plans to launch a new investment vehicle dedicated to Africa, targeting sectors including financial services, tourism, health and education, Investment and Foreign Trade Minister Mohamed Farid Saleh said.
Saleh disclosed the plan during a meeting with Prime Minister Mostafa Madbouly to review TSFE’s efforts to boost returns on state-owned assets.
No details have been released on the new fund’s size, launch date, funding structure or which African markets it will prioritize.
Saleh also said TSFE was preparing to set up a separate fund focused on industrial investment, though he gave no further specifics on that vehicle either.
The minister said TSFE’s strategy for the coming period would move beyond simple management of state assets toward extracting greater value from them and turning them into instruments that can draw both domestic and foreign capital.
The government is working to modernize the fund’s operating mechanisms with new business models suited to changing market conditions, Saleh said. He added that consultations were under way to identify partnerships that could improve returns on TSFE’s assets while supporting the broader economy.
Officials at the meeting also reviewed TSFE’s holdings, including its land and real estate portfolio, along with updates on ongoing projects, the statement said. The fund intends to develop more flexible investment instruments that can adapt to market shifts, prioritizing sectors that combine strong returns with development impact.
Madbouly said maximizing returns on state assets remained a government priority, describing TSFE as an investment arm capable of turning underused resources into development opportunities. He said partnerships with the private sector could help attract foreign investment, strengthen the economy and preserve value for future generations, according to the statement.
TSFE was established in 2018 as a vehicle to structure, manage and unlock value from Egyptian state-owned assets through partnerships and co-investments with private investors. The Cairo-based fund reports about $12 billion in assets under management and was originally seeded with roughly 3,000 underutilized state-owned units.
In early 2025, the Egyptian government announced plans to transfer state-owned enterprises to TSFE, with a first phase covering 370 companies. The fund is organized into sector-focused sub-funds spanning tourism, real estate and antiquities, healthcare and pharmaceuticals, and infrastructure and utilities.
Egypt has pursued asset sales and privatizations in recent years as part of efforts to reduce state involvement in the economy and attract foreign currency, under a program supported by the International Monetary Fund.
