Egyptian Prime Minister Hisham Kandil has witnessed the launch of the mutual fund directed towards making investments in SMEs ‘Bedaya I’ in which Al Ahly Development and Investments (ADI) has signed a protocol with the fund issuer the Mutual Fund Company For SMEs Development.
The minister of investment and of Insurance and Social Affairs have also attended the event.
Bedaya I’s capital amounts to EGP 134 million and expected to reach EGP one billion by the end of 2013. A group of financial institutions; the General Authority for Investment & Free Zones (GAFI), Mutual Fund Company, National Investment Bank (NIB) and National Organization for Social Insurance will contribute to the mutual fund Bedaya I.
The Fund will directly invest in the SMEs through buying shares in existing firms or co-founding new ones.
For the investment policy of Fund, Bedaya I shall not make investments in insolvent companies in which the solvency volume amounts to 50% of the company’s capital. 60% of Bedaya I’s investments shall be directed towards the SMEs located outside Greater Cairo; while 15% shall be for co-founding new firms to support the innovation and entrepreneurship.
Moreover, Bedaya I shall invest in SMEs that comply with the country’s regulations with a capital of not more than EGP 50 million and less than EGP 2 million.
