Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA) has invested $50 million into the local startup ecosystem through a venture capital program run in partnership with the World Bank. The announcement was made by MSMEDA’s CEO, Bassel Rahmy, during the SME Summit organized by Business Bel Araby, highlighting a significant push to support innovative companies in the country.
Quick Facts
- $50 million deployed through venture capital.
- 170 Egyptian startups received funding.
- Nearly 48,000 jobs created through the initiative.
A VC Approach to Government Funding
Speaking at the summit, Rahmy detailed that the $50 million was channeled through 15 different investment funds. This approach allowed the government agency to leverage the expertise of private fund managers to identify and back high-potential startups.
Rahmy emphasized that the MSME sector is a primary driver of the Egyptian economy and that supporting it is crucial for sustainable development, especially with the global shift towards financial inclusion and digital transformation. This initiative represents a strategic move to provide startups with risk capital, a critical component for growth that often falls outside traditional financing mechanisms.
Integrating Startups into National Policy
The agency’s role in the ecosystem is being further solidified. Rahmy noted that MSMEDA, under the direction of Prime Minister Dr. Mostafa Madbouly, has joined the ministerial group for entrepreneurship.
A key function of MSMEDA within this group is to issue classification certificates to startups. These certificates will qualify companies to benefit from the incentives outlined in Egypt’s new Startup Charter, which was launched in February to create a more supportive regulatory environment for new and innovative businesses.
Expanding Support Beyond Capital
Beyond direct funding, MSMEDA is working to create a comprehensive support environment for businesses across industrial, agricultural, commercial, and service sectors. Rahmy confirmed the agency’s focus on helping export-oriented projects by providing market access and international trade opportunities.
He also announced that MSMEDA will participate in the upcoming Egyptian-Saudi International Franchise Exhibition in July. The move aims to open new investment channels for local entrepreneurs and help them learn from successful global franchise models to scale their businesses.
About MSMEDA
The Micro, Small, and Medium Enterprises Development Agency (MSMEDA) is an Egyptian governmental body responsible for developing and supporting the MSME sector. It provides a wide range of financial and non-financial services to foster entrepreneurship, create jobs, and contribute to the national economy.
Source: El Watan News
