CAIRO: A new initiative launched by American Secretary of State Hillary Clinton while in Egypt over the last weekend aims to assist small and medium companies to sustain growth and entrepreneurship. “Egypt needs sustained economic growth of incomes and employment during its transition to democracy,” said a statement from the US Embassy in Cairo on Tuesday in announcing the Fund's launch. “The best potential to respond to these needs quickly comes from Egypt's small and medium sized businesses,” it added. Part of the White House's continued efforts to promote smaller business in Egypt, the initiative will start with $60 million “to invest in equity shares of promising new firms that lack financing.” “Moreover, the Fund will act as a catalyst, attracting others to invest with it to increase the amount of available capital for promising small or medium enterprises,” the statement said. The Fund hopes to be able to build bridges between the US and Egypt via smaller, on the ground companies, who are lacking the large investments of other conglomerations. “The Fund will have a Board of Directors composed of Egyptians and Americans familiar with international finance and with Egypt's private sector. They will make independent decisions based on the size and quality of the Fund's investments,” the embassy said. According to the statement, James Harmon will be the Chairman of the Board. Harron is currently Chairman of Caravel Management, an investment advisory firm in New York and formerly served as Chairman of the Export-Import Bank of the United States. “The Fund will be formally created in the next month with a target of full operations with an initial pool of $60 million in September,” it added.
