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Inflation in Egypt (%)
Inflation in Egypt was under control for many years after the currency was floated in 2016, however things took a turn for the worst in early 2022. Egypt has been experiencing runaway inflation since then, which was further exacerbated when the Russia-Ukraine war started. The war brought food security concerns and further unsettled global markets.
As a nation relying on fuel and food imports, the war in Ukraine – a country that was termed 'the bread-basket' for many nations, including Egypt –spelled trouble for Egypt. Egypt has been doing its best to manage the situation, but having taken place after the pandemic under the backdrop of a depressed global economy has led economists to declare an economic crisis. This further destabilized exchange rates and has negatively impacted investor confidence.
That said, inflation seems to have peaked, and saw a much-welcome drop to 29.8% in January 2024, compared to 33.7% in December 2023.
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Investing in Egypt’s Startup Ecosystem
Micro, Small and Medium Enterprises contribute over 40% to Egypt’s economy, and account for over 75% of the country’s total employment. Entrepreneurship is critical to Egypt’s future. Today, Egypt consistently ranks as a top 3 tech startup ecosystem in both the MENA and Africa regions, based on funds raised by local startups. In this special report, we speak to the most active investors in Egypt and cover some of the country’s most successful startups to give you an inside scoop on how they are navigating the current VC winter, inflationary pressures and currency devaluation woes.
