Endeavor MENA will work with the Egyptian Exchange to create a clearer path for fast-growing startups to access Egypt’s capital markets, according to Amr El Abd, the organisation’s regional director and an adviser to the prime minister on entrepreneurship.
Writing on Facebook, El Abd said the strength of a country’s stock market is closely linked to its ability to produce high-growth technology companies. He identified exits as the key connection between public markets and venture capital.
Venture investors need a way to sell their stakes and return capital to their backers, he explained. A liquid exchange with regular initial public offerings can provide that route, allowing investors to recycle proceeds into a new generation of startups.
El Abd said the Egyptian Exchange’s market capitalisation currently represents only around 15% to 20% of Egypt’s gross domestic product, compared with significantly higher levels in markets such as the United States, India and China. He added that market size alone is not enough, pointing to liquidity, consistent listings and easier admission processes for high-growth companies as critical factors.
If Egypt wants to build a new generation of major technology companies, El Abd said, the stock exchange should be treated as part of the entrepreneurship ecosystem rather than as a separate institution.
Source: Fintech Gate
