INTERVIEW: Investing in Egyptians key to success, says Egyptian-American Enterprise Fund chair
EAEF Chairman James A. Harmon spoke to Ahram Online about the fund's support for Egypt over the past 10 years, especially amid the severe impacts of the war in Ukraine on the Egyptian economy.
Since the inception of the EAEF, over $1.1 billion has been invested directly in Egypt, in addition to $6.9 billion invested by private parallel funds.
With a capital of $300 million, the EAEF is committed to promoting financial inclusion, job creation, and increasing foreign and domestic investment in Egypt for long-term sustainable economic development. The fund is meant to stimulate the Egyptian private sector by providing access to finance, human capital, modern technologies as well as best business practices, while also achieving financial profitability.
Ahram Online: How has the fund been supporting the Egyptian economy, particularly the private sector, over the past 10 years?
James Harmon: Since our creation in 2011 by the US Congress, the EAEF has played a critical role in rebuilding Egypt’s private sector after the revolution. We have seeded what are today the leading private equity and venture capital funds in the Middle East, expanded access to financial services for close to 50 million Egyptians via our investment in Fawry, and supported over 500,000 Egyptians with quality, affordable healthcare through our investments in Dawi Clinics and Al-Tayseer Healthcare Group in the Nile Delta.
We have invested close to $300 million in Egypt and attracted over $1 billion in foreign investment. Our investments have generated over $100 million in proceeds and we have reinvested all of this back into the country.
Today, our portfolio of companies supports nearly 40,000 jobs.
AO: How has the war in Ukraine affected Egypt's private sector?
Jh: The Russian invasion of Ukraine has had a negative impact on tourism revenues and food prices, with Egypt being one of the largest importers of wheat in the world.
While tourism has rebounded, Egyptians continue to struggle with higher food prices due to rising inflation and the loss of half of the value of the Egyptian pound against the dollar throughout the last year.