Cabinet studying ideas for supporting Egyptian startups
Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat presented these proposals in a meeting of the Ministerial Group for Entrepreneurship, chaired by Prime Minister Mostafa Madbouly, and attended by Minister of Industry and Transport Kamel El-Wazir and Minister of Planning, according to a cabinet statement.
The proposal aims to unify efforts among various government and private entities to support entrepreneurs and startups, creating an environment conducive to economic growth and sustainable development.
The proposed initiative could support over 5,000 startups, some focusing on economically empowering women and enhancing social and environmental impact. It is also projected to provide 500,000 direct and indirect job opportunities.
Al-Mashat pointed out that 500 of these targeted companies attract over $1 million in investments, which can position Egypt as a leading centre for innovation and entrepreneurship in the Middle East and Africa.
She also reviewed the mechanism for managing and monitoring the initiative and its financing structure.
In January, reports tracking startup deals revealed that Egypt ranks among the top three economies attracting venture capital investments in the Middle East and Africa, according to Al-Mashat.
She also highlighted the efforts made to enhance the promotional mechanisms for the Egyptian entrepreneurship community, especially in international exhibitions.
Moreover, Al-Mashat emphasized the importance of providing opportunities for global investors and funding bodies to meet directly, attracting investments and enhancing the perception of innovation and entrepreneurship in Egypt.
According to Visa’s latest report, small- and medium-sized enterprises (SMEs) acquired 98 percent of the private sector landscape in Egypt, employing over 47 million Egyptians eligible to work.
Recent data by the Micro, Small, and Medium Enterprises Development Agency (MSMEDA) indicated that MSMEs drive Egypt’s economy, accounting for 90 percent of the private sector, 43 percent of GDP, and 75 percent of the workforce.
During the meeting, Al-Mashat presented recommendations from the Ministerial Group for Entrepreneurship’s working groups and introduced the Startup Community Charter.
This charter serves as a government action plan with a timeline to enhance startups' capabilities and support them in achieving sustainable economic growth.
The minister clarified that the working groups included representatives from the entrepreneurship community, startup companies, venture capital funds, academic experts, civil society representatives, and members of parliamentary councils.
She added that 100 participants from the working groups spent 15 consecutive meetings and consultative sessions to provide the recommendations for the charter.
According to the minister, the working groups identified 94 priority actions and policies after studying more than 480 recommendations from analyzed studies and reports and formulating a vision for their implementation through 19 government entities.
Meanwhile, PM Madbouly stressed the importance of following up on the implementation steps of the Ministerial Group for Entrepreneurship.