Egypt’s Government-Backed Ergo to Acquire 49% Stake in Film Clinic
Famed producer Mohamed Hefzy’s Film Clinic will channel the equity investment from Ergo into the development, production and distribution of Egyptian films for regional and international audiences.
Egyptian investment firm, Ergo Media Ventures, has announced that it has agreed to make an undisclosed equity investment in prolific production company, Film Clinic, which will result in the former owning a 49% stake in the latter.
Founded in 2005 by famed producer and screenwriter, Mohamed Hefzy, Film Clinic stands as one of the biggest production companies in MENA, its most recently acclaimed and celebrated work coming in the form of Netflix original series, Paranormal Activity, and award-winning indie film, Yomeddine.
On the part of Ergo, the investment falls in line with its efforts to trigger what it sees as a the potential for another renaissance renaissance in Egyptian film industry and the media industry in general. Founded in 2018, the company falls under the umbrella of AYADY for Investment & Development, a government-backed private investment firm that promotes and backs development in a number of different fields in Egypt.
The investment marks Ergo’s very first and will be channelled into expanding the development, production and distribution of Egyptian films for regional and international audiences. For Hala Said, Minister of Planning and Economic Development and Chairperson of the National Investment Bank (NIB) - which manages AYADY - this first investment paves the way for more commitment to sectors that have often gone under the radar of a local entrepreneurial ecosystem whose focus has largely been on fintech, ecommerce and other similarly booming fields over the last few years.
“Through this deal, we seek to enhance the contribution of the artistic production industry to economic growth, increase Egyptian exports of content, and enhance investment in the Egyptian state’s soft powers,” she said at the official signing. [They] carry many investment opportunities and possess all the ingredients for success.”
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