Silicon Africa? Egypt eyes prime spot in Africa’s startup ecosystem

This text was submitted to TechCabal by Conrad Onyango/chook.

It’s a silicon Cape to Cairo as Egypt’s fast-growing variety of startups and its potential to draw progress funds sees the north African state take its place in a north-south, east-west startup “axis”. Egypt’s arrival additionally brings new competitors for the better-known startup ecosystems of Nigeria, South Africa and Kenya.

Seemingly from nowhere, Egypt is out of the blue on the radar as a key African startup funding vacation spot, highlighting the prospects for continental progress of the nascent sector.

A brand new report monitoring the North African nation startup scene says Egypt now rivals – and even surpasses – extra established startup ecosystems like South Africa, Nigeria and Kenya for ranges of entrepreneurial innovation and funding.

Egyptian Startup Ecosystem Report 2021, ready by Disrupt Africa, reveals that during the last 5 years, Egypt has not solely rapidly grown the variety of start-ups however can also be attracting investments large enough to ship unicorns.

Picture by Omar Elsharawy on Unsplash

“And with one “unicorn” within the form of Fawry, quickly to be two as soon as Swvl lists publicly, Egypt is increase a powerful monitor document within the tech startup area,” says Co-Founders of Disrupt Africa within the report.

Since January 2015, greater than 791 million {dollars} has been raised by some 318 tech startups throughout 447 particular person rounds. Yearly Egypt has been including 114 tech startups to its ecosystem from a paltry 10 in 2015. Consequently, annual funding secured by the businesses has risen considerably from 8.6 million {dollars} to 156 million {dollars} in 2020.

Whereas the ecosystem was hit arduous by the pandemic final yr, the authors are optimistic 2021 will shatter all data, with 82 startups having up to now secured over 400 million {dollars} in funding funds.

“Solely Nigerian startups have secured extra funding up to now on this bumper yr,” quips the report.

Digest Africa in its Q3 2021 Africa Funding Report: File Funding Pattern Explodes ranks Egypt (29), second after Nigeria (46) amongst prime international locations that benefitted from the ten largest funding rounds of the yr to September wherein startups raised 1.2 billion {dollars}.

Whereas fintech dominates in Nigeria, South Africa and Kenya, Egypt’s race to the continent’s ecosystem summit is basically pushed by e-commerce and retail tech – accounting for 20.8 % of 562 lively startups available in the market.

“In relegating fintech to a distant second by way of startup exercise, Egypt stands in distinction to its fellow continental startup leaders South Africa, Nigeria and Kenya, the place fintech is the preferred sector for entrepreneurial exercise,” the Digest Africa report added.

As Egypt takes on better-known African startup ecosystems, competing for extra funding funds to focus on Africa’s rising financial system and related populace, the African Tech Ecosystems of the Future 2021/22 report reveals that the competitors has simply began.

In response to the report, Morocco, Senegal, Ghana, and Uganda have additionally began attracting extra early-stage progress funding – as they jostle for strategic spots within the rising start-up market. With increasingly funding flowing into African startups the sport is properly and actually on.


Leave A Reply

Your email address will not be published.