Egyptian-American fund announces new pharmaceutical investment

CAIRO - 7 November 2017: The Egyptian-American Enterprise Fund (EAEF) signed an agreement to acquire a minority stake in Orchidia Pharmaceutical Industries, the company announced in a statement earlier this week.

Organized by EAEF’s investment manager Lorax Capital Partners, the fund will acquire stakes owned by Swicorp Private Equity and other minority shareholders.

"EAEF intends to provide all necessary resources to fully support Orchidia's future growth plans to cater to the growing Egyptian market as well as develop Egypt’s export potential,” said James A. Harmon, chairman of the EAEF.

In a report submitted to the U.S. House Committee on Foreign Affairs in June, the EAFF said that Egypt’s economy currently has the “right macroeconomic fundamentals” to attract foreign direct investment.

“Egypt’s private sector remains underdeveloped and it suffers from gaps in financing, infrastructure and talent which curbs its ability to expand and grow the economy, which would result in underserved markets, high unemployment rates and low financial inclusion,” Harmon stated in his report.

The EAEF was established by the Obama Administration following the uprising in Egypt in 2011 to address its economic issues. The fund had invested $98 million in Egypt over the past two years and attracted $110 million in foreign investment.

In 2015, the EAEF invested $21 million in electronic bill payments firm Fawry. It also invested $56 million in consumer finance provider Sarwa Capital. It also seeded Algebra Ventures and Tanmiya Capital to fund small and medium enterprises (SMEs), startups and entrepreneurs.