MSMEDA in talks with World Bank for second phase of Venture Capital financing

CAIRO - 26 August 2024:Hany Emad, Head of the Venture Capital Investment Sector at the Small and Medium Enterprises Development Agency (MSMEDA), revealed that the agency is currently negotiating with the World Bank for the second phase of venture capital funding.

 

Emad stated that MSMEDA had previously disbursed $50 million from the World Bank as the first phase of the venture capital program. Over the past three years, this amount has been invested in various investment funds.

 

He noted that the amount for the second phase will be determined based on data from the Entlaq report, which will help define the allocation for the program. The overall goal of the program is to support startups and enhance their growth opportunities.

 

Emad emphasized the importance of connecting the Egyptian market with the African market for startups, noting that it is a natural progression for Egyptian startups to expand into Africa. He also highlighted that Egypt has the potential to become the leading country in terms of the number of deals and the volume of investments in startups within a year.

 

He stated that the lack of information about the scale of investments in the startup sector leads to missed investment and funding opportunities from international entities like the World Bank. 

 

Emad emphasized that the primary goal of the program is to support and assist startups. 

 

"In my view, support programs are more important than investments themselves because successful investment opportunities will emerge from addressing the sector's shortcomings. There must be a connection between the Egyptian market and the African market at the level of startups due to the similar economic structure of Egypt and the continent,” Emad added.

 

He also highlighted that the startup sector in Egypt has significant opportunities and advantages for achieving top global and regional rankings, such as low operating costs and a strong base of startups and outstanding entrepreneurs. 

 

He concluded by stating, "The reports from MSMEDA are not just numbers and statistics; they are presented to global investment funds to affirm the strength of the Egyptian market and startups, thereby increasing investment opportunities in this leading sector."

Earlier on Monday, Entlaq Holding released its Egyptian Entrepreneurship Sector Diagnostics Report for the first half (H1) of 2024. 

 

The report unveils key recommendations that will contribute to the growth of the entrepreneurship sector.

 

Entlaq's Egyptian Entrepreneurship Sector Diagnostics Report delves into various government and public-private initiatives aimed at bolstering entrepreneurship across multiple sectors. 

 

Several significant efforts in the form of initiatives are highlighted such a educational hubs, fintech regulations, agricultural support programs, and ICT innovations which collectively

enhance capacity building, financial inclusion, and technological advancement. 

 

Additionally, social inclusion initiatives targeting youth and women, alongside significant venture capital investments and cross-border partnerships are emphasized.

 

These comprehensive efforts aim to create a more resilient and inclusive entrepreneurial ecosystem, complementing the overall strategy to drive sustained economic growth and foster a dynamic entrepreneurial culture in Egypt.