• Proptech sector accounts for 33% of total funding, fintech leads in deal volume

• Government pushes reform and support through Ministerial Group for Entrepreneurship

• Major acquisitions and debt deals highlight ecosystem’s resilience

Egypt's start-up ecosystem is witnessing rapid growth, despite macroeconomic challenges and limited access to financing. The government is stepping in with initiatives such as the Ministerial Group for Entrepreneurship and an assortment of incentives.

On Sunday, June 1, the Egyptian government announced that Egyptian start-ups attracted $228 million in venture capital and debt financing from January to May 2025. "The surge in investments reflects increased confidence in Egypt's business environment," stated Rania Al-Mashat, Egypt's Minister of Planning, Economic Development, and International Cooperation, who also heads the Ministerial Group for Entrepreneurship.

During this period, a total of 16 deals were completed, with 11 disclosed amounts amounting to $156 million, a 130% increase compared to the same period in 2024. Among the debt financings, $49 million was raised by fintech MNT-Halan, and $23 million by proptech firm Nawy, specializing in real estate.

The proptech sector accounted for 33% of total investment, while fintech led in terms of transaction volume, with 32%. The market also witnessed several significant acquisitions, such as car trading platform Hatla2ee's purchase by Dubizzle, and MaxAB-Wasoko's acquisition of Fatora.

Al-Mashat explained that efforts are underway to establish a national charter for start-ups and expand financing initiatives, including tax reliefs for small businesses earning less than 20 million Egyptian pounds ($403,000) yearly.

Despite its challenges, including a complex macroeconomic situation, shortage of skilled labor, cumbersome custom procedures, limited access to financing, and lack of a tax policy conducive to small businesses, the business sector in Egypt is witnessing reforms. Among them is the establishment of the Ministerial Group for Entrepreneurship in September 2024.

This group aims to invigorate Egyptian start-ups through better policy coordination, financing initiatives, and new support proposals for start-ups. Simultaneously, the country continues its macroeconomic stabilization and structural reforms endeavors, with support from the IMF, World Bank, and other development partners.