Officials and int’l orgs align on policy fixes to unlock more private investment: VCs, startups, investors, and high-ranking officials gathered at the two-day VC Summit in Cairo last week attended by EnterpriseAM to discuss how to unlock more funding for startups and make Egypt a more competitive hub for investment. International institutions like the World Bank and GIZ stressed the need for sustained policy reforms to attract private investment and stabilize Egypt’s business environment, while policymakers pledged clearer regulations, streamlined fund structures, and expanded digital infrastructure.

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MSMEDA and EPEA sign MoU to strengthen VC funding: The first day of the summit saw the Egyptian Private Equity Association (EPEA) and the Micro, Small, and Medium Enterprise Development Agency (MSMEDA) sign an MoU to expand funding for Egyptian startups and position the country as a regional venture capital hub. The agreement aims to streamline financing, attract global investors, and strengthen cross-border expansion between Africa and the GCC. “Our goal is to make Egypt a leading hub for venture capital in the MENA region,” MSMEDA CEO Bassel Rahmy said during the announcement, framing the move as key to boosting competition, innovation, and long-term economic resilience.

The MoU hopes to close a startup funding gap: The newly signed MoU aims to address the funding gap in Egypt’s startup ecosystem, EPEA Chairman Ayman Soliman told EnterpriseAM at the sidelines of the VC Summit. “The biggest challenge for this ecosystem has always been access to finance,” he said.

Pairing MSMEDA’s reach with EPEA’s investment expertise: Soliman highlighted the potential of combining MSMEDA’s extensive SME network — critical in a market where 80% of businesses are small and medium enterprises — with EPEA’s expertise in identifying high-potential ventures. “The scalability of their reach combined with the financing that they have access to and EPEA’s acumen in making sure we promote the right businesses, the right connections, the right access … will create a more effective reach and enablement” for Egypt’s VC landscape, he told us.

Remember: The Madbouly government is looking to introduce a unified financing initiative for startups, coordinating efforts between public and private entities to support some 5k startups.

WHAT INVESTORS AND FOUNDERS WERE SAYING OFF-STAGE-

Flat6Labs set to reach the first close of its USD 85 mn Africa Seed Fund by June, Chief Investment Officer Dina El Shenoufy told us on the sidelines of the event. “We’re planning to reach the first close of the fund before the first half, sort of by the end of June this year,” she said. The number of startups the firm will back in 2025 depends on the timing and size of the first close. “We already have a pipeline of very attractive investments,” El Shenoufy said. “Assuming the fund closes sometime within the first half of this year, we’re hoping we can make at least somewhere between 10 to 20 investments within 2025.”

Healthtech, fintech, and logistics are on Flat6Labs’ radar: The fund will prioritize sectors with high impact and scalability potential across the continent, including healthtech, edtech, financial inclusion, climate, and logistics. “We genuinely believe these are the sectors that require the most disruption,” El Shenoufy said. Agritech is also emerging as a key area of interest, according to El Shenoufy, echoing Sawari Ventures’ investment appetite for the sector.

Logistics investments are benefiting from Africa’s infrastructure push: El Shenoufy sees Africa’s expanding infrastructure as a launchpad for new logistics opportunities. “There’s been a lot of initiatives happening on the continent in terms of roadworks and connectivity,” she said, adding that Flat6Labs is looking to tap into these developments. The firm has already backed logistics players like AI-powered Roboost and Illa, which provides trucking and mid-mile delivery services.

Regional expansion was a common theme: Cairo-based venture capital firm Sawari Ventures is expanding into Sub-Saharan Africa and increasing its focus on agritech and healthtech, a company representative told EnterpriseAM. “It is an opportune time to add agritech because, for one of the first times, agriculture can actually be helped by technology,” the representative said. “Tech has advanced to the point where it can make a major impact in agri rather than just data sharing information.”

Agritech is moving beyond simple market updates: Sawari sees rapid advancements in agritech, with new solutions moving beyond simple market price updates for farmers to more sophisticated tools like drones and soil sensors. “Before, what they called agritech was farmers receiving an SMS about the price of tomatoes today … Now, companies are putting sensors on machines to measure crops, and eventually, they’ll be able to optimize soil mid-season,” the representative said.

DisrupTech Ventures backs startups integrating AI into existing operations: Local fintech- and tech-focused VC DisrupTech Ventures is prioritizing startups that integrate AI into their operations rather than positioning themselves solely as AI companies, Senior Analyst Fouad Rakha told us. “We’re focused on startups that leverage AI to enhance what they already do,” he said, adding that many of the firm’s portfolio companies are using AI extensively to optimize costs and improve efficiency. “Some of them have cut costs by almost 50% just through AI-driven efficiencies,” he noted.

Egypt is well positioned to house export-orientated startups: DisrupTech is backing startups that localize production while expanding regionally, a strategy Rakha sees as well-suited to Egypt’s economic climate. “We’re looking at companies with local operations that can sell into the region,” he said, citing Egypt’s cost-effective tech talent. The firm is also focused on embedded finance and startups running cost centers in Egypt while serving international markets. “This is the sweet spot for us,” he added.

DisrupTech is actively scouting fintech transactions: DisruptTech has a few fintech transactions up its sleeve and is actively evaluating new investment opportunities, Rakha told us when asked about reports that the VC planned to invest around USD 16 mn in fintech startups. While he did not disclose specifics, he confirmed that the firm is conducting follow-ups with high-performing portfolio companies and continues to see strong dealflow. “There’s no shortage of pipeline — we have a lot of things that we’re working on,” he said.

GIZ sees Egypt’s startup ecosystem as a key economic driver: Egypt’s startup ecosystem has the potential to drive economic growth and job creation, GIZ Egypt Private Sector Development head Andreas Ruepp, told EnterpriseAM. “I trust that the startup ecosystem in Egypt will generate amazing ideas that will transform certain industries and eventually lead to economic growth and the creation of lots of jobs,” he said. While he didn’t make specific forecasts, he pointed to the VC Summit as proof of investor confidence. “You see that the ecosystem is working and that investors are eager to invest. And that’s a very good signal,” he added.

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