Mr. Hossam Heiba, CEO of the General Authority for Investment and Free Zones, anticipates a very positive future for Egyptian startups. He expects that in the coming years, Egyptian companies will expand into Europe, fueled by the growing interest of European investors in risk capital investments in Egypt. This optimism comes as Egypt's entrepreneurial environment has become more flexible and robust.
These statements were made during the "Entrepreneurship" session at the Egyptian-EU Investment Conference. The session was attended by Dr. Amr Talaat, Minister of Communications and Information Technology; Dr. Ayman Ismail, Endowed Chair of Entrepreneurship and associate professor in American University in Cairo; Mr. Mathieu Bousquet, Director of the Unit in the European Commission Directorate General for the Neighbourhood and Enlargement Negotiations; Mr. Mounir Nakhleh, Founder and CEO Halan; Ms. Amal Anan, partner at 500 Global Venture Capital Fund; and Mr. Ibrahim Ramadan, partner at Sawari Ventures.
Mr. Heiba emphasized that startups represent the future of the Egyptian economy, offering sustainable opportunities for growth and development.
He also highlighted the efforts of the General Authority for Investment and Free Zones – GAFI to support entrepreneurship activities. These efforts include establishing an electronic platform that consolidates all services provided to entrepreneurs, hosting a permanent unit to support emerging companies under the Council of Ministers, and forming an advisory council from the private sector to propose initiatives in support of entrepreneurs. Additionally, initiatives have been launched to provide investment incentives for small and medium-sized enterprises in accordance with the Investment Law. Moreover, GAFI has facilitated the establishment of service companies in free zones to offer outsourcing, information technology services, innovation centers, and data centers.
Dr. Amr Talaat outlined the pillars of the state's strategy to bolster entrepreneurship, which include enhancing capabilities across diverse technological domains, equipping startups with essential digital skills, offering training programs for entrepreneurs, incubating entrepreneurial projects within Egypt's digital innovation centers, streamlining procedures for startups' incorporation, fostering a culture of entrepreneurship among youth, and implementing economic incentive packages to bolster emerging companies.
Dr. Talaat emphasized that the Egyptian startups have become more mature and are focused on adding real value to the Egyptian economy. He noted that there is still significant demand in the Egyptian market for electronic applications to develop education, health, and transportation services.
Mr. Mathieu Bousquet highlighted that EU countries are increasingly interested in investing in Egyptian startups due to their exponential growth and rising numbers. The EU aims to support entrepreneurial activities in Egypt through technical assistance and by encouraging European investors to invest in the Egyptian market, while providing them with adequate guarantees.
Dr. Ayman Ismail stated that entrepreneurship in Egypt has the potential to attract investments worth USD 5 billion annually, as startups possess all the necessary ingredients for success. He also noted that the entrepreneurial landscape in Egypt has become highly diversified, moving beyond its previous focus on the financial technology sector.
Mr. Mounir Nakhleh remarked that startups have become more resilient after overcoming the challenges of the Covid-19 pandemic. He expects them to thrive in the coming years, driven by the stability of the Egyptian pound's exchange rate and lower borrowing interest rates.
Mr. Ibrahim Ramadan, partner at Sawari Ventures, announced that his company has invested over USD 90 million in 16 Egyptian startups and confirmed that new investments will be injected in the coming period.
On her part, Ms. Amal Anan, partner at 500 Global Venture Capital Fund, stated that the fund has invested approximately USD 30 million in 65 Egyptian companies over the past decade. She highlighted the influx of young talent eager to take risks in establishing companies and the exceptional management skills of the Egyptian entrepreneurs. Anan noted a growing trend of recent graduates joining startups as a way to learn company management skills in preparation for launching their own businesses. This trend is contributing to the increasing the robustness and competitiveness of the entrepreneurial environment in Egypt.
