E-finance to acquire Tamweely for as much as EGP 5 bn

More action in Egypt’s MSME push: E-finance is looking to fully acquire local microfinance provider Tamweely Financial Services for EGP 4.5-5 bn, according to two unnamed sources. An agreement is set to be signed this month, and the transaction is subject to a green light from the Financial Regulatory Authority (FRA) and the Egyptian Competition Authority.

Footing the bill: E-finance, roughly 25% owned by Saudi Arabia’s Public Investment Fund, will pay around EGP 1 bn in upfront funds from its own reserves, while the remainder of the transaction will be paid via a share swap representing 4% of the company’s equity, the sources said. The value of the swap will be determined after an independent advisor assesses E-finance’s value.

We knew this was coming: The fintech player submitted a non-binding indicative offer to fully acquire an unnamed non-banking financial services company earlier this year, after getting the go-ahead from the target firm’s shareholders.

An early privatization darling: Back in 2024, Tamweely’s state-owned shareholders exited after a EGP 2.8 bn buyout by a consortium of international investors, comprising SPE Capital-run equity fund SPE PEF III, European Bank for Reconstruction and Development, local private equity firm Tanmiya Capital Ventures, and the UK government’s British International Investment.

The 2024 acquisition marked a strategic shift for Tamweely, which has since moved beyond its microfinance-only model and branched out to SME lending, leasing, and micro-ins., with plans to introduce Islamic finance and consumer finance products.

Tamweely’s goals for 2026: After raising its paid-up capital to EGP 225 mn last year, up from EGP 150 mn, Tamweely seeks to open 50 new branches across 19 governorates in 2026, bringing its total network to 280. The lender allocated EGP 150 mn to SMEs and EGP 75 mn to microloans.

MSME lending on the rise: The acquisition follows steady growth in Egypt’s MSME scene, with financing balances for those enterprises reaching EGP 97.4 bn by the end of last February, up from EGP 83.3 bn last year, according to the FRA. The authority also raised the maximum financing limit for microenterprises to EGP 292k, up 8.9% from EGP 266k.