GAFI studying possible “Silver Licenses” for startups

The General Authority for Investment and Free Zones (GAFI) is looking into issuing new “Silver Licenses” for emerging companies/startups, with a possible launch before the end of 2023, GAFI head Hossam Heiba revealed in statements to regional media.

The new silver license will facilitate these companies’ business activities, explained Heiba.

While Heiba did not disclose further details, the GAFI CEO stated that the authority will submit the silver licenses’ details to Egypt’s Cabinet of Ministers within the upcoming 2 months.

In recent months, Egypt announced various measures to facilitate businesses’ needs and attract more investments including the launch of the “Golden Licenses” earlier this year. The golden licenses were developed to fast-track approvals for establishing, operating, and managing projects. Since its launch, Egypt has issued 24 golden licenses, with several studies underway for new issuances.

Egypt was named as the top country in terms of funding in Africa, receiving a total of $305 million driven by a $260 million deal by FinTech company Halan during the first half of 2023, according to a report by MAGNiTT in July.

In a separate report by Doha-based strategic communications agency BLJ Worldwide, Egypt was noted as among the region’s top tech hotspots and was named one of the top 5 in terms of startups in MENA.

Over the weekend, Heiba revealed that the authority was considering establishing a financial hub in the New Administrative Capital in partnership with an Emirati-South African alliance. The center would focus on supporting companies with activities within insurance, investment funds, financial consulting, holding and family companies, and tourism fields.

Three financial hubs are also expected to be built in New Alamein and the Red Sea Governorate, Heiba added during a meeting with members of the Egyptian Lebanese Businessmen Association (ELBA) on Saturday.