When we take a look at the top 3 MENA startup ecosystems: UAE, Saudi Arabia and Egypt, and the top 3 African startup ecosystems: Nigeria, Egypt and South Africa - we see steady FDI growth year on year.
UAE has been the most consistent and fastest growing market in attracting FDI; the UAE attracted $8.6 billion in 2015 and has steadily reached $22.7 billion in 2022.
South Africa had a massive increase in FDI in 2021 with a $40.7 billion injection before leveling out again at $9.2 billion in 2022.
The Central Bank of South Africa attributed much of the 2021 FDI to technology investors acquiring 45% of Naspers.
Nigeria recorded a negative FDI in 2022, much of which has been attributed to ongoing insecurities, energy issues, and election uncertainties all contributing to poor ease of doing business.
Saudi Arabia had a record FDI year in 2021 bringing in $19.3 billion as a result of cross-border mergers and acquisitions and increased project financing.
Egypt has seen increasing FDI peaking at $11.4 billion in 2022, which was the highest volume of FDI into the continent, followed by South Africa.
Egypt’s FDI stood only second behind that of the United Arab Emirates’ $22.7 billion, and ahead of other leading tech markets such as South Africa, Saudi Arabia and Nigeria.
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.