Key Stakeholders Promoting Tech Ecosytem in Egypt
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Egypt Vision 2030 was launched in February 2016. The country’s long-term strategic plan was launched to achieve the principles and goals of sustainable development in all areas, and to mainstream them into the different state agencies for implementation.
Traditionally, Egypt has relied on tourism to buoy its economy, but as the pandemic showed – a strong economy is a diversified one – and this is precisely what Vision 2030 sets out to do for the Egyptian economy. The North African nation witnessed 11.7 million tourists in 2022, up from 8 million tourists the year before – a hard year due to global travel restrictions in place due to the Covid19 pandemic. In the first 10 months of 2023, the country attracted a record 10 million tourists, however the recent Israel-Hamas war poses significant risk to tourism through the short term.
Related: 4 Graphs to Understand Tourism in Egypt
With Vision 2030, the focus is on the development of new industries like technology and renewable energy, hoping that the country will be able to build a more resilient and dynamic economy. The plan is focused on the multiple pillars as outlined below.
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1st Pillar: ECONOMIC DEVELOPMENT |
l resources and support efficient use & investment, while ensuring next generations’ rights 1st Pillar ECONOMIC DEVELOPMENT Integrated in all economic sectors to preserve natural resources and support efficient use & investment, while ensuring next generations’ rights |
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2nd Pillar: ENERGY |
A renewable energy and efficient resource management leader, capable of forecasting and adapting to local, regional and international developments |
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3rd Pillar: KNOWLEDGE, INNOVATION & SCIENTIFIC RESEARCH |
Ensure the developmental value of knowledge and innovation using their outputs to face challenges and meet national objectives |
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4th Pillar: TRANSPARENCY & EFFICIENT GOV’T INSTITUTIONS |
Efficient and effective public administration sector managing State resources with transparency, fairness and flexibility |
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5th Pillar: JUSTICE |
A society that supports citizens' right in participation and according to law and and that provides protection, and support to marginalized and vulnerable groups |
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6th Pillar: HEALTH |
To provide an integrated, accessible, high quality, and universal healthcare system |
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7th Pillar: EDUCATING & TRAINING |
Providing the necessary skills to students and trainees to think creatively, and empower them technically and technologically |
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8th Pillar: CULTURE |
To enable citizens to access knowledge, build their capacity to interact with modern developments |
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9th Pillar: ENVIRONMENT |
Integrated in all economic sectors to preserve natural resources and support efficient use & investment, while ensuring next generations’ rights |
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10th Pillar: URBAN DEVELOPMENT |
A balanced spatial development management of land and resources to accommodate its population and improve the quality of their lives |
Sample of Some of the Key Targets within Vision 2030
- 700,000 business ideas generated from youth and supported through innovation & entrepreneurship promotion.
- 600 Startups supported directly by UNDP (of which 25% shall be women-led startups).
- Facilitate over 64,500 loans, valued at over EGP 8.87 million
- Train 750,000 Egyptians each year to improve digital skills
- Launch 15 new innovative initiatives enabling MSMEs to be formalized and get access to funding
Why Entrepreneurship?
A key focus area for Vision 2030 is to promote entrepreneurship, improve digital skills acquisition across Egypt’s people, and build a strong tech ecosystem that contributes to Egypt’s economy. Egypt has traditionally relied on agriculture, media, petroleum imports, natural gas, and tourism thus far. Egypt has ambitious plans to reduce the percentage of its population who live below the extreme poverty line to zero, from a baseline of 4.5% in 2020. As entrepreneurs will boost economic output and create numerous employment opportunities, Egypt has set a target to achieve stable inflation rates by 2030 at anywhere between 3% to 5%. This looks like a tall order today, as inflation sits at 30% in early 2024, but it is lowering month on month.
Egypt recognizes that digital transformation is a key component to economic sustainability. Some of its initiatives include the launch of a digital services portal (providing more than 70 online services), promotion of e-commerce and supporting SMEs to adopt digital solutions and platforms and enhance digital literacy and skills.
Key Stakeholders Promoting Entrepreneurship in Egypt & Sample of Initiatives
There are several ministries and government bodies, which are involved in fostering entrepreneurship and supporting small and medium-sized enterprises (SMEs) in Egypt. There’s the MSMEs which are important for the economy, as they contribute over 40% of GDP and account for over 75% of total employment. The government is actively trying to promote the local information & communications technology (ICT) and is quite proactive.
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Stakeholder |
Initiative |
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Ministry of Communications and Information Technology (MCIT) |
The Ministry of Communications and Information Technology (MCIT), was among the first to focus on entrepreneurship and the tech ecosystem. MCIT launched both the IT Industry Development Agency (ITIDA) which are responsible for innovation hubs across the country, as well as the Technology Innovation and Entrepreneurship Center (TIEC), one of the first incubators in the country. |
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The IT Industry Development Agency (ITIDA), was established by MCIT in 2004, and is the executive IT arm of the Ministry, tasked with building capacity of local tech companies, attracting and servicing multinational IT companies, and growing a qualified, sustainable and deployable talent pool to serve the local tech sector. It is responsible for driving more foreign investment into the local IT sector, and supports multinationals like Vodafone, Atos, Capgemini, and PwC build Global IT development hubs in Egypt. A five year strategy has been mapped out in ITIDA’s Digital Egypt’s Strategy for Offshoring 2022-2026. | |
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The Technology Innovation and Entrepreneurship Center (TIEC) |
The Technology Innovation and Entrepreneurship Center (TIEC), established by MCIT in 2010, acts as a technology startup incubator and was one of the first ever established in the country. TIEC drives economic growth by providing knowledge and financial support to startups and entrepreneurs in Egypt. TIEC’s mission is to stimulate a knowledge-based society by developing strategies, providing facilities, and optimizing promotions of innovation and entrepreneurship. They are also responsible for providing an intellectual property framework to foster ICT innovation and growth. |
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The Central Bank of Egypt (CBE) launched an initiative to mandate all commercial banks to lend 25% of their portfolio to SMEs at a subsidized interest rate. Microenterprises operate in an informal manner across sectors such as agri-business, retail or manufacturing. The government has relaxed the lending regulations to allow for the creation of microfinance institutions, whether for-profit or not-for profit. More than 850 companies and NGOs provide microfinance services in Egypt. | |
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The MSME Development Agency (MSMEDA) was established in 1991 and is responsible for development of medium, small and micro enterprises and entrepreneurship. The agency has provided EGP 48.3bn in funding for 1.9 million small and micro projects, creating and maintaining more than 3 million jobs, 45% of the funds supporting female entrepreneurs, since 2014. MSMEDA has launched a US$ 50 million fund, in cooperation with the World Bank, aimed at supporting entrepreneurs and innovators. | |
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Egypt’s General Authority for Investment and Free Zones (GAFI) |
Egypt’s General Authority for Investment and Free Zones promotes Egypt as a safe environment for investment. It works with both the Financial Regulatory Authority and ITIDA to facilitate VC investment in the country. The Authority launched a large-scale initiative to support entrepreneurship under Egypt Ventures. Subsequently Falak Startups was eventually launched, in 2018, providing support and acceleration services and seed investments |
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The Academy for Scientific Research and Technology (ASRT), under Ministry of Higher Education is responsible for creating awareness among youth on entrepreneurship and innovation as well as supporting incubators and accelerators. | |
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Rowad 2030 program, which was launched in 2017, is an initiative by the Ministry of Planning and Economic Development (MoPED) that supports capacity building in youth and skill development. MoPED also launched the “One Million Entrepreneurs” campaign, which aims to qualify one million entrepreneurs by 2030 within the framework of the sustainable development strategy Egypt’s Vision 2030 |
Next Read: 10 Graphs You need to see to understand Egypt’s Startup Ecosystem
Read more in the Special Report, ‘Investing in Egypt’s Startup Ecosystem’.
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