The U.S. - Egypt Enterprise Fund: Help for Small and Medium Sized Firms

July 16, 2012

During her visit to Egypt, U.S. Secretary of State Hillary Clinton announced the launch of the U.S. - Egypt Enterprise Fund.  Egypt needs sustained economic growth of incomes and employment during its transition to democracy.  The best potential to respond to these needs quickly comes from Egypt’s small and medium sized businesses.

The Egypt Enterprise Fund is part of the U.S. government’s attempt to respond to these needs.  The Fund will begin with $60 million, although additional investments from the U.S. government are anticipated in future years, to invest in equity shares of promising new firms that lack financing.  Moreover, the Fund will act as a catalyst, attracting others to invest with it to increase the amount of available capital for promising small or medium enterprises.

The Fund will have a Board of Directors composed of Egyptians and Americans familiar with international finance and with Egypt’s private sector.  They will make independent decisions based on the size and quality of the Fund’s investments.  James Harmon will be the Chairman of the Board of the Fund; he is currently Chairman of Caravel Management, an investment advisory firm in New York and formerly served as Chairman of the Export-Import Bank of the United States.  The Fund will be formally created in the next month with a target of full operations with an initial pool of $60 million in September.