How Egyptian Unicorns are Instrumental to the Country's Economic Growth
In today's increasingly tech centered global economy, digital transformation has become a significant indicator of a nation's economic sustainability as countries leading in digital advancements have dominated economically for decades. Over the past decade, Egypt has emerged as a formidable contender in the MENA region, shifting from its traditional economic pillars such as agriculture, media, petroleum imports, natural gas, and tourism to develop a robust digital infrastructure and a flourishing tech sector.
Infobye: GDP Distribution by Economic Activity 2022 (%)
The Egyptian government launched its Vision 2030 in 2016, aiming to achieve sustainable development through science and innovation with entrepreneurship at the core. Currently, small and medium enterprises (SMEs) make up 40% of Egypt’s GDP and provide 75% of employment, underscoring their pivotal role in the Egyptian economy.
Employment rates in Egypt have been a crucial metric for assessing the effectiveness of these transformative efforts in the economy. Historically challenged by high unemployment, which was a catalyst for significant social movements like the Arab Spring in 2011, the Egyptian government has focused on creating hundreds of thousands of new jobs to ensure social stability and economic growth.
Infobyte: Egypt’s Unemployment Rate
As such, Egypt’s unemployment rate successfully decreased from 13.2% in 2013 to 7.3% in 2022. The push towards nurturing the startup ecosystem and digital infrastructure is expected to further generate additional job opportunities and continue this trajectory. The focus on entrepreneurship, particularly in technology and digital businesses, is more than a necessity—it's a strategic move to harness the potential of Egypt's young workforce. As of 2022, Egypt's universities teem with 3.6 million students, all of whom will be eagerly looking to join the workforce, looking for opportunities that burgeoning tech startups are expected to provide.
Egypt's fintech sector, in particular, is showing signs of a success sub-sector in tech. In 2023, eight Egyptian fintech startups were listed on Forbes Middle East's top 30 fintech companies, surpassing Saudi Arabia, the UAE, and Kuwait on the list. Egypt has also birthed the second most unicorns in all of Africa, coming second only to Nigeria.
Fintech's growth in Egypt is evidenced by the rise of unicorns like MNT HALAN, which secured US $400 million in funding in 2023, and Fawry, which was the first startup to achieve a billion-dollar valuation in 2020, after its successful IPO in 2019.
