Egypt’s startup ecosystem is among the most vibrant in Africa and has been experiencing rapid growth in recent years. In its third quarter 2021 Africa Funding Report, Digest Africa reported that Egypt had the highest number of deals in Africa and third highest total funding. The Egyptian ecosystem saw a 168% year-on-year increase in capital investment in 2021 to reach a new record of $491 million, according to Magnitt’s 2021 Egypt Venture Investment Report.

In 2020, an investment law designated areas in need of development. Companies in these areas can deduct 50% of investment costs, and firms in certain industries, such as renewable energy, will not be subject to taxes or customs duties on equipment purchases. In April 2022, the General Authority for Investment and Freezones, the Financial Regulatory Authority, and the Information Technology Industry Development Agency signed a cooperation protocol to make it easier for local and international VCs to invest in Egyptian startups.

In September 2021, Plug and Play and ITIDA announced the opening of an accelerator and incubator to develop Egyptian startups. The three-year agreement outlined an accelerator program that will run two cycles each year, targeting a total of 60 companies. The incubator will provide support to 60 early-stage startups each year, split into two cycles.

Four major tech funds launched in 2021: Algebra Ventures’ $90 million fund, Sawari Ventures’ $28 million fund, Benya and Openner’s $50 million fund, and Sequence Ventures’ EGP 500 million ($2.7 million) Deep Tech fund.Cairo Angels also announced the first close of its $5 million micro-VC fund.