The Egyptian start-up ecosystem has greatly flourished in recent years. To help its actors achieve better results, the government has committed to supporting it. This pledge has renewed investors’ interest in the ecosystem. 

The Egyptian Information Technology Industry Development Agency (ITIDA) announced, Friday (Nov 25), a memorandum of understanding with 500 Global, one of the world's most active venture capital firms. The three-year agreement will allow the company to open an office in Egypt- its first ever in Africa, build the capacity of 200 start-ups and create an investment fund to support Egyptian startups. 

"We are thrilled to partner with ITIDA to bring 500 Global’s world-class programs, which have produced eight of our 49 unicorns, and a venture education program tailored for accelerator managers. [...]  As long-time investors in the country, we have the utmost confidence in the potential of the Egyptian market and look to be a key enabler of its fast-growing ecosystem," said Courtney Powell (photo, left), COO and Managing Partner of 500 Global.

Indeed, in a very short time, Egypt's startup ecosystem has emerged as one of the four largest in Africa. In 2021, its startups attracted nearly US$500 million in venture capital funding, more than double the amount raised in 2020. They also enabled the development of key sectors such as public transport, alternative, and renewable energy, agribusiness, and e-commerce.

The agreement signed aims to provide the country’s promising startups with the tools they need to succeed, and to train managers of budding accelerators, creating the conditions necessary to foster a regional community of innovators.

According to Amr Talaat (photo, center), Egypt's Minister of Communications and Information Technology, the partnership is part of the ministry's commitment to establishing cooperation with key global players. This commitment aims to create an inclusive and robust network of experts and investors, to accelerate the growth of the local start-up ecosystem, and encourage innovation and entrepreneurship. 

Samira Njoya