NBE acquires 20% of Egyptian Alliance for Education in broader equity pivot

The National Bank of Egypt (NBE) acquired a 20% stake in the Egyptian Alliance for Education, injecting EGP 250 mn that has raised the platform’s issued capital to EGP 1.25 bn, according to a statement.

Grassroots education: Founded by CIRA Chairman Hassan El Kalla, the alliance seeks to establish more than 100 new schools across the country’s governorates, “bringing quality education at a grassroots level with affordable fees,” CIRA CEO Mohamed El Kalla tells EnterpriseAM, which balances “outreach, development targets, and return on investment.” The first four schools are slated to open this year in Qena, Kafr El Zayyat, and Alexandria, he adds.

Why it matters: The investment is the latest in a string of moves that saw the state-owned commercial bank deploy capital to secure direct equity stakes across non-banking sectors — spanning renewables, facility management, and fintech — while simultaneously lining up a regional expansion.

NBE has been busy

NBE has been stretching its reach across a number of sectors beyond education, from green energy to non-banking financial services (NBFS). To tap into the booming non-banking financial services sector, Al Ahly Capital Holding — the NBE’s investment arm with over USD 2.5 bn in assets under management — led a strategic investment round last week that raised the valuation of local fintech unicorn MNT-Halan to USD 1.4 bn.

The bank snapped up a 20% stake in Norwegian developer Scatec’s 1.1 GW Obelisk solar project in Nagaa Hammadi last month, becoming a co-owner of the USD 600 mn solar-plus-storage plant. The transaction brought Scatec’s economic interest down to 40%, with the remaining 40% distributed equally between two co-investors, French state-owned utility EDF and the Norwegian state investment fund Norfund.

Regional expansion: NBE opened its first Saudi branch in Riyadh last October to target corporate trade finance and is eyeing a new outpost in Iraq. Simultaneously, the bank is laying the groundwork for a tech-forward investment banking hub in Dubai, tapping former Onebank chief Sherif Elbehery to upgrade its DIFC license to a full Category 1 authorization.

Two acquisitions left? Al Ahly Capital, the investment arm of NBE, was reportedly planning on pulling off four acquisitions in FY 2025/26, with a focus across NBFS, private equity, and education, CEO Karim Saada said last year. The bank has new stakes in the Scatec project and in Egyptian Alliance for Education, which leaves two acquisitions.