Egypt is developing its startup financing ecosystem by updating regulations for convertible securities and improving company valuation methodologies, while the Sovereign Fund of Egypt studies a new investment mechanism to support late-stage startups, the country’s investment and foreign trade minister said.
Mohamed Farid made the remarks during the 2026 annual investors meeting of Development Partners International (DPI), an Africa-focused private equity firm that manages over $3.5bn in assets and co-investments. The meeting, which discussed investment and growth opportunities in emerging markets, was attended by DPI Managing Director Ismail Talaat, CEO Sofiane Lahmar, and various representatives of international investment institutions and funds.
Farid noted that while Egypt’s entrepreneurship ecosystem has developed significantly, securing funding during growth and expansion stages remains a challenge. The proposed sovereign fund mechanism aims to bridge this financing gap, enabling promising companies to expand their operations. To support these efforts, the state is also developing an integrated data system for investments, funding, and corporate activities to inform data-driven policy decisions.
Addressing broader economic policies, the minister emphasised that investment reforms are not achieved through isolated decisions, but via a cumulative process of institutional, legislative, and procedural changes. He stressed that the success of these reforms relies on their actual implementation by executive and regulatory bodies, rather than just the issuance of legislation. Government agencies, including customs authorities, have maintained regular services, with some extending their operating hours to support investors and the business sector.
On the trade front, Farid outlined a strategy to increase exports by leveraging technology and data. The ministry plans to provide technical support and direct access to foreign market data, aiming to expand the base of exporting companies, particularly small and medium-sized factories. Efforts are underway to link Egyptian products to global value chains by enhancing production efficiency and ensuring compliance with international standards.
To upgrade foreign trade infrastructure, the ministry is developing inspection laboratories, qualifying more factories for export, and enhancing the role of commercial representation offices to open new markets. Farid highlighted promising opportunities in financial technology, insurance technology, and trade technology, noting the importance of connecting export-related entities to help companies identify overseas opportunities.
The minister additionally highlighted the industrial models present in the Banha and Mit Ghamr investment zones, stating the government is working to promote these areas locally and globally to attract further investments and boost exports.
Farid concluded that ongoing cooperation between the government, international investment institutions, entrepreneurs, and the broader business community remains a fundamental pillar for achieving sustainable economic growth and enhancing the competitiveness of the Egyptian economy.
