Ministerial Group for Entrepreneurship: Egyptian Startups Attract $228 Million in Funding from January to May 2025

Dr. Rania Al-Mashat: The Government Places Great Importance to Supporting the Startup Sector and Improving the Business Environment to Attract More Venture Capital Investments

 

The Ministerial Group for Entrepreneurship announced that Egypt's startup structure witnessed significant development in attracting venture capital investments and debt financing during the first five months of this year, reaching $228 million, based on deals monitored since the beginning of the year.

 

A statement issued by the Ministerial Group for Entrepreneurship clarified that 16 deals were executed from January to May 2025, including 11 deals with announced investment volumes totaling $156 million.

These investments represent a 130% increase compared to the investment volume during the same period last year (2024).

Additionally, "Nawy" and "MNT-Halan" successfully secured debt financing of $23 million and $49 million, respectively.

 

In this context, H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, and head of the Ministerial Group for Entrepreneurship, affirmed that these indicators reflect the continuous activity in Egypt's startup market, particularly with the measures taken by the state to improve the investment climate and business environment, making it more conducive and attractive for companies of all types. This is in addition to ongoing endeavors to implement structural reforms to ensure sustainable macroeconomic stability.

 

H.E. Dr. Al-Mashat pointed out that startups and the investment climate, in general, receive paramount attention from the Egyptian state, led by H.E. President Abdel Fattah El-Sisi, President of the Republic of Egypt, and various relevant authorities. She highlighted that the Ministerial Group for Entrepreneurship is working on finalizing the Startup Charter, as well as funding initiatives and facilities that stimulate efforts to attract venture capital investments.

 

H.E. Dr. Rania Al-Mashat also reiterated that the Egyptian government has taken significant steps to empower startups and enhance their ability to attract larger investments, notably including tax incentives for companies with revenues less than EGP 20 million.

 

H.E. Minister Al-Mashat noted that the Ministerial Group for Entrepreneurship adopts a comprehensive and integrated approach to support Egyptian youth in the field of entrepreneurship. The Ministerial Group’s main objective is to strengthen the ability of startups and the entrepreneurial environment to achieve sustainable and accelerated economic growth based on competitiveness and knowledge, as part of the state's plan to put Egypt on the global map of entrepreneurship.

 

In a related context, Egypt's startup market underwent a series of exit and acquisition deals, most notably Dubizzle's acquisition of the online car trading platform "Hatla2ee," and MaxAB-Wasoko's acquisition of "Fatora."

 

The PropTech (property technology) sector led in terms of venture capital investment volume, accounting for 33% of total investments, while the FinTech (financial technology) sector led in the number of deals with 5 transactions, representing 32% of the total investment volume during the same period.

 

It is worth noting that the government launched the Ministerial Group for Entrepreneurship with the aim of fostering the entrepreneurial environment and promoting startups through launching new initiatives and proposals, aiding startups, coordinating efforts among government entities, and formulating supportive policies for entrepreneurship.