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Egypt’s start-ups grew by 26% in 1H 2021: ITIDA’s CEO

The symposium aims to empower and scale up the thriving start-up business environment in the Egyptian market by shedding light on the best practices and the governance of venture capital

Doaa A.Moneim , Thursday 29 Jul 2021
ITIDA
During the symposium inauguration on Thursday, July 29,2021.
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The number of investments and deals brokered in the Egyptian start-ups sector is witnessing a growth, collecting 26 percent of all deals in the Middle East and North Africa (MENA) region with a total value of $194 million in the first half (1H) of 2021, according to CEO of Egypt’s e-Information Technology Industry Development Agency (ITIDA) Amr Mahfouz.

Mahfouz made his comments during the symposium, held on Wednesday, under the title ‘Towards Creating an Enabling Environment for Venture Capital and Start-ups in Egypt’, which was jointly organised by USAID, The American Chamber of Commerce in Egypt (AmCham), and ITIDA.

The symposium aims to empower and scale up the thriving start-up business environment in the Egyptian market by shedding light on the best practices and the governance of venture capital.

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

“Entrepreneurship has become the key engine in different economies for the investments it attracts and the job opportunities it creates,” said Mahfouz.

He also added that Egyptian start-ups recorded the highest venture investment of $190 million, up by 30 percent (Y-o-Y) in 2020, with a compound annual growth rate (CAGR) of 100 percent over five years (2015-2020).

“International venture capitals (VCs) represent 32 percent of all investors supporting Egyptian start-ups in 2020, compared to 21 percent in the UAE and 18 percent in KSA,” Mahfouz noted.

The symposium included several interactive sessions chaired by many field experts and specialists discussing the 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 start-ups.

According to MAGNiTT, the number of VCs in Egypt more than doubled in the last three years and is expected to double again in terms of investments and the number of deals.

The total funding deals grew by 30 percent (Y-o-Y) in Egypt, higher than the 13 percent growth in venture investment recorded across the entire MENA region, according to MAGNiTT.

These figures marked that the Egyptian government, over the past few years, has ramped up its entrepreneurial activities, making the country one the fastest growing ecosystem in MENA, according to ITIDA. 

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