Egypt and World Bank Explore Venture Capital Fund to Boost Startup Growth
Dr. Mohamed Farid, Egypt’s Minister of Investment and International Trade, revealed that the World Bank has expressed interest in participating in the establishment of a new investment fund in collaboration with the Egypt Sovereign Fund. The fund is aimed at supporting venture capital projects and enabling startups to access financing for their various expansion stages across Egypt.
Dr. Farid made the announcement during a panel discussion at the annual American Chamber of Commerce Iftar in Cairo, moderated by Omar El-Sahi, General Manager of Amazon Egypt, and Sally El-Gendy, General Manager of Mars Egypt. He emphasized that the Egyptian government is currently focusing on three urgent priorities designed to enhance investment and foster sustainable economic growth.
The minister highlighted that Egypt’s economy is at a pivotal moment, requiring genuine partnership between the government and the private sector to promote sustainable growth and strengthen confidence in the business environment. He stressed that the country possesses significant potential that must be utilized efficiently and rapidly.
The first priority is digitalization and streamlining administrative procedures, allowing existing businesses to overcome bureaucratic hurdles and accelerate institutional decision-making. Dr. Farid emphasized that addressing current challenges is essential before pursuing broader economic visions.
The second priority centers on accurate measurement of financial data. As he stated, “What cannot be measured cannot be managed.” He noted that Egypt’s current savings rate is approximately 10%, while the economy aims for an investment rate of 25% of GDP to achieve growth of 6–6.5%. Bridging this gap relies on foreign direct investment and innovative financing tools.
Investment Policies
The third priority involves minimizing human intervention in investment decisions, including mergers and acquisitions, while implementing methodologies aligned with international best practices, provided that accurate financial data is available to ensure flexible oversight.
Dr. Farid also stressed the importance of market awareness and localizing economic development across governorates, noting that investors are sometimes unaware of available reforms. He emphasized that investments should translate into tangible improvements in citizens’ daily lives.
Regarding foreign trade, he highlighted the need for targeted strategies rather than a “scattergun” approach. This includes stakeholder mapping, data analysis, digitalization of export support services, and customizing strategies for each market to enhance Egypt’s global competitiveness.
On the entrepreneurship front, the minister announced collaboration with the Egypt Sovereign Fund to establish a venture capital fund, noting the interest of Ajay Banga, President of the World Bank, in participating. This initiative is seen as key to facilitating financing for startups at various stages of expansion within Egypt.
Dr. Farid emphasized that the government’s goal is to tackle “cold bureaucracy,” which delays processes and constitutes a major challenge for entrepreneurs. He also noted that ongoing financial and insurance reforms now provide innovative tools, such as venture capital funds listed on the stock exchange.
Concluding his remarks, he underscored that Egypt does not aim to benefit from regional crises; the current focus is on practical, on-the-ground implementation, using measurable and trackable strategies to ensure citizens experience tangible daily improvements in their lives.