"Egypt’s digital transformation strategy had a direct impact on the betterment of the local entrepreneurship scene, making not only major cities economically competitive but local communities too."
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.
Ecosystem by the Numbers
Logistics & Transportation
Reasons to Move Your Startup to Cairo
Egypt’s strategic location and extensive international trade network make it an ideal platform for companies doing business in MENA and Africa. With a young population of 20 million tech savvy consumers, Cairo provides a perfect testbed for innovation and an attractive market for scalability.
Young, Skilled Talent
Entrepreneurs can draw talent from over 170 universities and institutes producing 500,000 annual graduates, as well as access a network of over 40 incubators and accelerators and 80 coworking spaces. The IT Industry Development Agency (ITIDA) is also on tap to support entrepreneurs.
Selected Startup Organizations
Startup Genome Members
Information Technology Industry Development Agency (ITIDA)
The IT Industry Development Agency (ITIDA) is the executive arm of the Egyptian Ministry of Communication and Information Technology. Established in 2004, ITIDA’s core mission is to spearhead the development of Egypt’s IT industry to increase its global competitiveness and make it a key contributor to the country’s economic growth.
Key Ecosystem Players
American University in Cairo - Venture Labs
Technology Innovation and Entrepreneurship Center (TIEC)
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