MICROCAPITAL BRIEF: Qalaa Holdings of Egypt Increases Stake in Microlender Tanmeyah from 50% to 70% for $2.1m

Qalaa Holdings, an Egypt-based private equity firm previously named Citadel Capital, reportedly has finalized an EGP 15 million (USD 2.1 million) increase in its equity holding in Tanmeyah, an Egypt-based provider of loans and microinsurance that focuses on low-income individuals and micro- and small enterprises (MSEs). The Egyptian Financial Supervisory Authority (EFSA) has given its approval for the deal, which is scheduled to close in July 2014. With this increase in financing, Tanmeyah will have total paid-in capital of EGP 50 million (USD 7.0 million), and Qalaa’s ownership stake in Tanmeyah will increase in size from 51 percent to 70 percent.

According to a statement attributed to Ahmed Heikal, the chairman and founder of Qalaa Holdings, Tanmeyah “will play an important role in the development of Egypt by providing growth, working capital and other financial solutions to companies and individuals that would otherwise effectively be cut off from the financial system” [1].

As of 2014, Tanmeyah has an outstanding loan portfolio of EGP 330 million (USD 46.1 million), 95 branches and approximately 1000 employees in Egypt [1][2]. Tanmeyah does not accept deposits. As of December 2011, Qalaa Holdings (then known as Citadel Capital) reported total assets under management of USD 4.3 billion and total invested assets under management of USD 3.3 billion [3]. More recent financial information for the company is unavailable.

By Benjamin Krupp, Research Associate

About Tanmeyah

Tanmeyah is an Egyptian financial services provider that focuses on serving low-income individuals and micro- and small enterprises. As of 2014, Tanmeyah has an outstanding loan portfolio of EGP 330 million (USD 46.1 million), 95 branches and approximately 1000 employees in Egypt. Tanmeyah does not accept deposits. Qalaa Holdings, an Egyptian private equity firm, owns a 70 percent share in the company.

Sources and Additional Resources

[1] CPI Financial: Qalaa Holdings Increases Stake in Tanmeyah form 51 Per Cent to 70 Per Cent

[2] Tanmeyah: Home

[3] Citadel Capital: Annual Report 2011

MicroCapital, June 19, 2014: Egypt Approves Microfinance Law in Effort to Expand Access to Microcredit, Bring Microenterprises into Formal Economy

MicroCapital, March 25, 2014: European Union, European Bank for Reconstruction and Development (EBRD) Support 100 Small, Medium-sized Enterprises (SMEs) in Egypt

MicroCapital, September 21, 2009: Newly Launched Tanmeyah Provides Microfinance Loans in Egypt

MicroCapital Universe Profile: Tanmeyah

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