Sign In
Sign In

News

Share Article On

05 Sep 2021

PM Follows up on Efforts of "Egypt" Company for Entrepreneurship and Investment (Egypt Ventures) to Boost Entrepreneurship, Innovation, and Support Startups

PM Follows up on Efforts of "Egypt" Company for Entrepreneurship and Investment (Egypt Ventures) to Boost Entrepreneurship, Innovation, and Support Startups Madbouly: We are keen to encourage the Egyptian youth who have turned into success stories and become a role model for their peers Representatives of startups praise the government for its support: we can improve during the coming phase Al-Mashat: The State aims to lead the innovation revolution during the coming phase in such field, thanks to the abundance of young cadres We succeeded in financing 174 companies, worth EGP 275 million… encouraging investments of EGP 1.03 billion worth from the private sector and foreigners in startups. Today, Prime Minister Dr. Mustafa Madbouly held a meeting with Minister of International Cooperation Dr. Rania Al-Mashat to follow up on the efforts undertaken by "Egypt" company for entrepreneurship and investment (Egypt Ventures) – the first venture capital company with government investments – to boost entrepreneurship and innovation, and support startups. The meeting was held in the presence of GAFI CEO Counselor Mohamed Abdel Wahab, the Chairman of the Egyptian Exchange (EGX) Dr. Mohamed Farid, Egypt Ventures CEO Mr. Ahmed Gomaa, and a number of young representatives of startups; among which: Swvl CEO Mostafa Kandil; Swvl Finance Director Youssef Fathy; Garment IO CEO Ahmed Sobhi; PayNas CEO Mohamed Mounir Al Hashemi; Bypass CEO Andrew Iskandar; Fatura CEO Hossam El Din Ali; and officials from the Ministry of International Cooperation and GAFI. The Prime Minister began the meeting by welcoming the representatives of the startups, stressing the government's interest and personal keenness to support the Egyptian youth who have turned into success stories, not only in Egypt, but also in the whole world, to become a role model for their Egyptian peers. "With perseverance and effort, the youth can achieve their dreams", he stressed. Dr. Mustafa Madbouly reiterated the government's readiness to provide full support to startups, to remove any impediments that may face their work, as well as to create a favorable climate for these companies to work and succeed. Moreover, Madbouly stressed the importance of entrepreneurship and startups in supporting the competitiveness and diversification of the Egyptian economy, as well as promoting innovation in various fields of development, increasing employment rates, and providing decent job opportunities. He noted that Egypt directs all aspects of support to the youth and pioneering ideas, which are a major factor to achieve "Egypt Vision 2030". GAFI Translation Department The General Authority for Investment and Free Zones Page 2 of 3 GAFI Translation Department–Tel. + 2026736900-5. Ext: 2745 - 2748 Fax: 2745. -Mob. 201114650550 Email: m.fayez@gafinet.org.eg The representatives of startups, in turn, expressed their happiness at attending the meeting, stressing that they sensed a great willingness on the part of the government to support their companies, which is an encouraging matter for the growth and progress of the activity of these companies. Given the government’s investment in high-risk projects through Egypt Ventures, more companies are encouraged to work and grow, and the private sector is driven to enter this area. In addition to providing a supportive environment for these startups that could develop during the coming phase. The representatives of startups praised the support their companies received from Egypt Ventures and the Ministry of International Cooperation, as one of the main pillars that supported the growth of their business. They presented the activity of their companies during the last period. During the meeting, the Minister of International Cooperation gave a presentation on the support and development of startups (technology) sector, which is based on presenting a road map for decision makers in the government and international financial institutions regarding possible areas of cooperation with Egypt Ventures to achieve its mission in enhancing the Egyptian entrepreneurship; promoting sustainable development; and providing decent job opportunities. Dr. Rania Al-Mashat also spoke that the state aims to lead the innovation revolution during the next stage taking advantage of the large numbers of young cadres, scientists, and engineers that Egypt have. The Minister said: Investment and the support provided to the field of emerging technology companies have many benefits, which places the government at the forefront in terms of access to the latest technological developments, and brings innovative ideas to improve government performance by cooperating with emerging technology companies. The Minister reviewed the results of the work of Egypt Ventures, noting that the company was able, since its establishment in September 2017, to become a major player in the market for emerging companies. Through capabilities, professional management, and government support Egypt Ventures succeeded to finance 174 companies directly and indirectly, with a value of EGP 275 million, and stimulated investments from the private sector and foreigners to the emerging companies, with a value of EGP 1.03 billion. At the same time, the Minister indicated that the company aims in the short term to provide financing opportunities for Egyptian entrepreneurs and emerging companies, while the company seeks in the long term to strengthen Egypt position as a regional center for investment in emerging companies.​ The Minister pointed out that the efforts of Egypt Ventures did not stop during the Covid-19 pandemic; as its investments in startups doubled to record EGP 109 million in 2020 compared to EGP 54 million in 2019. Moreover, the company began forming a committee of experts to propose legislative reforms and discuss ways to enhance the environment for startups in the field of technology. During the meeting, Dr. Al-Mashat presented the company's efforts to support some emerging companies, including Garment IO, which received technical support in governance and investment provision, enhancing market access opportunities, dealing with major companies and government agencies, enhancing the company’s access to finance to fund its growth, and received facilitation on communication with experts matters. As for Paynas that operates in the field of managing human resources operations, including salaries through technological systems and cards, the company received a support that was reflected in achieving business growth, and issuing the first joint card after obtaining a license from CBE. PayNas was able to launch a cloud computing platform to digitize basic human resource functions and enable small and medium-sized companies to manage human resources effectively and efficiently. Egypt Ventures has provided technical and financial support to Fatoura company that works in the field of e-commerce to connect wholesalers and retailers in Egypt through its electronic application, with a focus on the trade of fast-moving consumer goods, which prompted the company’s business to grow by 30% since receiving investments of Egypt Ventures. While Bypass, which works in the field of technology solutions for healthcare services for doctors and patients, was able to obtain fund from Egypt Ventures, to enhance its strategy of providing digital solutions for clinic management and health information exchange by strengthening the technological infrastructure of the medical sector. It is worth noting that Egypt Ventures was established in 2017, with a capital of EGP 451 million, with the participation of Ministry of International Cooperation, General Authority for Investment and Free Zones, and NI Capital, and is considered as the first venture capital company with government investments.​