The Information Technology Industry Development Agency (ITIDA) co-organized a symposium titled “Towards Creating an Enabling Environment for Venture Capital and Startups in Egypt,” on July 28, in collaboration with the United States Agency for International Development (USAID) and the American Chamber of Commerce in Egypt (AmCham).
The Symposium aimed at empowering and scaling up the thriving startup business environment in Egypt by shedding light on the best practices and the governance of Venture Capital (VC). Several prominent startups and local and international VCs attended the symposium, including Flat6Labs, Algebra Ventures, 500 startups, in addition to some entrepreneurs and tech startup founders.
The Symposium comprised a number of interactive sessions, which were chaired by field experts and specialists. The sessions discussed the best practices for attracting more VC firms to Egypt, advancing regulatory reforms to create a prosperous ecosystem, and availing a roadmap for entrepreneurs and tech-enabled startups.
The Symposium highlighted the important role played by startups and entrepreneurs as key engines in different economies for the investments they attract and the job opportunities they help create.
It was also highlighted that Egypt is foreseeing a significant growth rate in the number of startup investments and deals in 2021, where Egyptian startups collected 26% of the deals in the Middle East and North Africa (MENA) region, amounting to over USD190 million in the first half of 2021. Egyptian startups also recorded the highest venture investment, up to 30% YoY in 2020, with a compound annual growth rate (CAGR) of 100%, in 2015-2020. Moreover, international VCs represent 32% of all investors supporting Egyptian startups in 2020, compared to 21% in UAE and 18% in KSA.
Furthermore, the Symposium pointed out that the Egyptian government, over the past few years, has ramped up its entrepreneurial activities, making the country one the fastest growing ecosystems in the MENA region. The government has been giving unprecedented support to further boost the startup ecosystem and help the youth kickstart their technology and innovation-driven entrepreneurship and accelerate their growth, capitalizing on many advantages and the right mix of strengths the country enjoys. ITIDA is also working to establish Creativa Innovation Hubs nationwide to help a large number of young Egyptians excel in future jobs and acquire digital and freelancing skills.
It is worth mentioning that ITIDA is working on a five-year strategy, in collaboration with USAID and a global consultancy firm, with the aim to take the Egyptian startup and entrepreneurship ecosystem to a more advanced stage from where it currently stands, especially in policy and regulation domains, finance capital, and market penetration elements.
