The European Commission, German Ministry for Economic Cooperation and Development (BMZ) and KfW Development Bank have today launched the equity fund under the Social Entrepreneurship Fund (SEF), a landmark initiative of the Pact for the Mediterranean. With a total fund size of €80 million, the SEF will aim to support socially and environmentally driven innovation, create sustainable jobs, and foster economic inclusion across the Middle East and North Africa (MENA).

With the respective contributions of €15 million and €39 million,the European Commission and BMZ are anchor investors in the first EU-backed fund in the region to support social entrepreneurs scale up their businesses. In addition to the equity fund of €45 million launched today, the SEF will include a debt fund of €35 million to be launched later in the year to support the needs of small social enterprises, along with a Technical Assistance Facility to provide specialised advice and expertise to the participating social enterprises.

Commissioner for the Mediterranean Dubravka Šuica said: “The European Union is committed to fostering inclusive growth and job creation across the Middle East and North Africa. By supporting financing mechanisms such as the Social Entrepreneurship Fund (SEF), the Commission takes a step forward towards implementing the priorities of the Pact for the Mediterranean—unlocking private-sector solutions and private finance to create jobs, foster skills, and accelerate the green and digital transitions that will define the Mediterranean’s future. We are not only unlocking private-sector solutions to pressing challenges in education, climate, and financial inclusion but also strengthening the entrepreneurial ecosystems that will drive jobs and prosperity for years to come. This partnership embodies our shared belief that sustainable development and economic opportunity must go hand in hand. Together, we can turn ambition into action—backing the founders and businesses that will shape a more resilient, equitable future for the region.”

Christiane Laibach, member of the Executive Board of KfW Group said: “The Middle East and North Africa are vibrant regions with strong potential, yet job creation remains a key challenge. SMEs are the backbone of employment, but those with a strong social mission face even greater barriers to accessing finance. Supporting these social enterprises means not only creating jobs, but also delivering lasting social impact for communities. This is the vision of the Social Entrepreneurship Funds. KfW is proud to act as a cornerstone investor on behalf of the European Commission and the German Government to foster inclusive and sustainable growth.”