Aiming to further strengthen and empower the local entrepreneurship scene, the Information Technology Industry Development Agency (ITIDA) participated in the “Towards Creating an Enabling Environment for Venture Capital and Start-ups in Egypt” symposium.

Inaugurating the event was ITIDA’s CEO, Amr Mahfouz, stating “Entrepreneurship has become the key engine in different economies for the investments it attracts and the jobs opportunities it creates”.

“This year, we are foreseeing significant growth rate in the number of investments and number of deals on the Egyptian startups where they have already collected 26% of deals in the MENA region, amounting to nearly USD194 million in the first half of 2021,” Mahfouz added. 

Jointly arranged by arranged by USAID, The American Chamber of Commerce in Egypt (AmCham) and ITIDA, the symposium’s aim is to scale the already thriving startup business environment in Egypt by shedding light on the best practices and the governance of venture capital.

According to the ITIDA CEO, Egypt has recorded the highest venture investment, worth USD190 million, up 30% YoY in 2020, with a CAGR of 100% from 2015-2020.

The number of Venture Capitals in Egypt jumped more than double in the past 3 years, according to MAGNiTT, and is expected to continue to double in terms of investments and the number of deals.

In their 2020 Egypt Venture Investment report, MAGNiTT writes that the total funding deals grew by 30% YoY in Egypt, higher than the 13% growth in venture investment recorded across the entire MENA region. 

The numbers showcase the Egyptian government’s accelerated entrepreneurial activities and efforts, making the country one the fastest growing ecosystems in the Middle East and North Africa (Mena).

“International VCs represent 32% of all investors supporting Egyptian startups in 2020, compared to 21% in UAE and 18% in KSA”, Mahfouz added.

The symposium was attended by Ms. Leslie Reed, Mission Director of USAID Egypt, and Dr. Hossam Osman, ITIDA’s VP, Mr. Hermann Thiel, Chief of Party of the Economic Governance Activity, and Mr. Tarek Tawfik - President of AmCham Egypt.

Several prominent startups and local and international VCs have also attended the symposium including, Flat6Labs, Algebra Ventures, 500 startups, Shorooq, FinBi, and Nile Capital, and several more entrepreneurs and tech startup founders.

Sessions included topics on best practices for attracting more venture capital firms to Egypt, advancing regulatory reforms to create a prosperous ecosystem, and availing a roadmap for entrepreneurs and tech-enabled Startups.

“Egypt didn't get this far by luck as the government has been giving unprecedented support to further boost the Startup ecosystem and help its 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”, Mahfouz noted.

In collaboration with USAID and an unnamed global consultancy firm, ITIDA is working on a 5-year strategy to enhance Egypt’s startup and entrepreneurship scene, bringing it to a more advanced stage particularly in terms of policy and regulations domains and finance capital, market penetration elements.

“We are investing heavily to spread digital innovation hubs ‘Creativa’ to act as a one-stop-shop for tech entrepreneurs, and we’re also upskilling talent with an investment that exceeds EGP 400m to help 115k Egyptian youth to excel in future jobs and acquire the digital and freelancing skills” ITIDA CEO added.