Government must finalise new bankruptcy law to attract entrepreneurs: LACI

Nihal Mounir
3 Min Read
CEO of Los Angeles Cleantech Incubator (LACI) Fred H. Walti

CEO of Los Angeles Cleantech Incubator (LACI) Fred H. Walti determined three key factors to attracting American startups to Egypt.

He said that cooperation between the government and private sector is considered very important for economic revival and attracting more entrepreneurial companies to invest in Egypt. During the roundtable meeting held by the US Embassy on Tuesday, Walti added that the government has to complete the new bankruptcy law, so as to facilitate the secure exit of companies from markets.

He further added that one of the most serious problems facing startups in Egypt and the world is financing. As such, many companies do not have a clear financial structure, so the state should develop financing tools for entrepreneurial projects.

LACI was founded in 2011 and specialised in clean technology in different sectors, including energy, transport and agriculture. It provides three main services: a place for entrepreneurs and start-ups to work in, training services, and facilitate communication with investors.

Walti predicted that most of industrial activities will replace the currently used technologies with cleaner alternatives within the next five years.

He added that clean technology is used in most industries, such as the automotive industry, agriculture and other activities.

Walti pointed out that LACI has offered its services to entrepreneurial companies in Egypt to facilitate the use of clean energy. In this regard, LACI held meetings with the World Bank, the Social Fund for Development (SFD) and the US agency for international development (USAID) to discuss forming an institutional structure to facilitate the work of entrepreneurial companies in Egypt.

Most countries now move to replace the current technologies with cleaner alternatives in order to achieve a growth rate of 25-35%.

Walti added that most of the developing countries like India and Egypt tend to rely on alternative energy, noting that Egypt has turned into an importer of energy during the last five years because of the population growth.

He added that the government’s subsidy of electricity increases the burden on the macro-economy, which relies on the use of natural resources such as wind and solar power.

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