Ahmed El-Zaher, CEO of Egypt’s Information Technology Industry Development Agency (ITIDA), declared that startups have become a pivotal component of the nation’s information technology sector. Speaking at the launch of the “Startup Egypt” foundation, El-Zaher emphasized that these companies are not just innovation hubs but also critical engines for creating specialized jobs, attracting millions in investment, and boosting the competitiveness of the Egyptian economy.
Quick Facts
- Startups are a cornerstone of Egypt’s IT sector.
- “Startup Egypt” foundation launched to support the ecosystem.
- Demand for support programs far exceeds current capacity.
A Sign of a Maturing Ecosystem
The launch of Startup Egypt was attended by key figures including Dr. Mohamed Farid Saleh, Minister of Investment and Foreign Trade, and Bassel Rahmy, CEO of the Micro, Small, and Medium Enterprises Development Agency (MSMEDA). El-Zaher welcomed the new foundation, viewing its establishment as a sign of advanced maturity and flexibility within Egypt’s startup landscape.
“The launch of Startup Egypt reflects the maturity and resilience that Egypt’s startup ecosystem has reached,” El-Zaher stated. He added that the presence of specialized support institutions is now a necessity, given the expanding scale and diverse needs of the ecosystem. He sees the initiative as a significant step towards a more organized and integrated collaboration between various support entities.
Beyond a Niche: Startups as the IT Mainstay
El-Zaher argued that startups are no longer a separate segment but an integral part of the information technology industry itself. He explained that ITIDA, one of the earliest strategic backers of innovation in Egypt, views startups as fundamentally tech-driven companies.
“The majority of startups today rely directly on information technology in their business models, whether in service delivery, operations management, expansion, or product development,” he noted. This deep integration means that supporting startups is a direct investment in the broader IT industry.
He added, “Startups create jobs and attract millions of dollars in investment for the country. Today, they are an essential part of the IT sector… this creates job opportunities for IT specialists and contributes to the growth of the sector as a whole.”
Addressing the Overwhelming Demand for Support
Highlighting the massive demand for startup support, El-Zaher revealed striking figures from ITIDA’s programs. A recent cycle at the agency’s “Creativa” innovation hubs across the governorates attracted around 570 applications from startups and projects, but only 30 could be accepted.
“In our last cycle within the Creativa centers, about 570 companies and startup projects applied, and we were able to select only about 30,” El-Zaher said. “The important question here is: what about the rest? These companies need institutions and entities to work with them, develop their ideas, and support them until they become competitive.”
He pointed to a similar trend in the “Start IT” program, one of Egypt’s first incubators, which saw 270 companies apply for 30 spots in one of its cohorts. This gap, he stressed, underscores the need for more players like Startup Egypt, asserting that multiple support organizations are essential, not redundant, to accommodate the ecosystem’s large volume of ideas and projects.
ITIDA’s Blueprint for Collaboration
El-Zaher outlined ITIDA’s readiness to collaborate with Startup Egypt, building on its existing portfolio of programs that offer incubation, capacity building, and expansion support. He emphasized that most of ITIDA’s programs rely on strategic partnerships with major corporations and local entities to ensure support reaches the largest possible number of companies, particularly outside the capital.
The agency’s programs and innovation centers currently span over 19 governorates, reflecting a national strategy to broaden the base of entrepreneurship beyond Cairo. El-Zaher confirmed that ITIDA’s goal is to build an integrated system that can absorb and develop a high volume of startups, turning promising ideas into competitive companies that drive Egypt’s digital economy.
About ITIDA
The Information Technology Industry Development Agency (ITIDA) is the executive IT arm of the Egyptian Ministry of Communications and Information Technology. It is responsible for developing and promoting the country’s information and communications technology industry.
About Startup Egypt
Startup Egypt is a newly launched foundation dedicated to supporting, developing, and integrating the entrepreneurial and startup ecosystem in Egypt. It aims to work alongside existing entities to provide startups with necessary resources and guidance.
Source: Fintech Gate
