Misr Company for Entrepreneurship pumps LE104M in investments during 2020

CAIRO – 5 January 2020: Misr Company for Entrepreneurship and Investment has pumped direct and indirect investments with a total value of LE 103.8 million during 2020, to enhance the environment for entrepreneurship and emerging companies in Egypt, Minister of International Cooperation, Rania Al-Mashat.

Al-Mashat explained in a statement, Tuesday, that these investments include LE 72.4 million direct investments in 6 companies and LE 31.4 million in indirect investments in a business accelerator, as part of the company's endeavor to support entrepreneurship at the local and regional levels, so that the total investments since the company was established in 2017, about LE 306.2 million in 150 companies, of which LE 139.9 million are direct investments and LE 166.3 million are indirect investments.

According to the statement, the board of directors of the Misr Company for Entrepreneurship and Investment convened, at the end of 2020.

She said that the meeting discussed the company's achievements for 2020 at the level of new companies that have been invested in, and the decisions of the investment committee were approved to contribute to three emerging and innovative companies in the fields of medical technology, research and industrial development, and electronic browsing software.

She explained that the company has established a model through which investments are directed to business accelerators, risk capital companies and emerging companies in the early and growth stages. 

The Company considers a unique model that combines government capital with the participation of the Saudi Fund for Development and the thinking of the private sector, as it aims to Developing and strengthening the culture of emerging companies in the Egyptian economy and stimulating the development of an entrepreneurial environment, and building the competitiveness of the economy, which drives the growth of GDP, the minister pointed.

She indicated that the government is interested in supporting the entrepreneurship environment in Egypt and emerging companies through the Egypt Entrepreneurship and Investment Company, especially since the development and sustainability of the entrepreneurship environment has a multiplier effect on creating job opportunities and achieving a circular economy, stressing that the company provides opportunities to enhance cooperation with interested international institutions. In the field of entrepreneurship, it also has a competitive advantage by targeting the observance of environmental standards and governance in the areas of investment in emerging companies.

For his part, Chairman of the company Ahmed Gomaa, stated that his company targets to invest in technology companies. 

“The company is seeking, through its short-term plan, to provide alternative financing opportunities for Egyptian entrepreneurs, to open local investment opportunities for Egyptians with expertise residing abroad, to establish links with them to transfer knowledge and experience and open doors for cooperation with entrepreneurs residing in Egypt, in addition to supporting companies for regional and global expansion. With the creation of added value in companies to achieve high returns for investment, supporting the gross domestic product,” he said.

He added that the long-term plan aims to make Egypt a center for innovation and entrepreneurship in the Middle East and North Africa, attract foreign and local investments in the technology companies and technology-supported companies, increase direct and indirect job opportunities and develop the Egyptian entrepreneurship environment.

Misr Company for Entrepreneurship and Investment established Falak Startups, a business accelerator for risk capital, in 2018, where it has supported 60 startups so far in various innovative fields that rely on all types of technology, such as the use of virtual reality in the tourism sector and the use of artificial intelligence in medical services and agriculture, while in 2020 only In Falak Startups, 12 startups have graduated from the third round of the company's risk capital accelerator, and the fourth round of the accelerator is currently being held with the participation of 15 new companies.

At the beginning of 2018, Misr Company for Entrepreneurship and Investment, in partnership with EFG Hermes Finance, established EFG EV Fintech as the first company in Egypt specialized in investing, supporting and encouraging entrepreneurship in the field of financial technology. 

By the end of 2020, the company's portfolio has reached 20 startups in various fields and applications of financial technology, including 13 from the Business Acceleration Program and 7 with direct investment.

Misr Company was established in September 2017, with a paid-up capital of LE 451 million, and its ownership is distributed by 48.75 percent to the Ministry of International Cooperation, 48.75 percent to the Saudi Fund for Development and 2.5 percent to NI Capital Holding Company, and the company focuses on investing in Technology and technology-supported companies because they do not receive sufficient attention in terms of available financing means, especially bank financing, which provides a great opportunity for expansion and achieving high investment returns.