Egypt’s startup ecosystem tests its resilience amid economic turbulence

Al-Monitor Pro Members

Marc Español 

Journalist covering Egypt and Sudan

July 10, 2023

During an event in mid-April organized by the Egyptian Ministry of Communications and Information Technology to mark Startup Day, Minister Amr Talaat stated that despite the economic challenges facing the country and a global decline in investments in the startup sector, Egypt ranked first in the Middle East and North Africa (MENA) region in the number of VC deals closed in 2022, and that during Q1 2023 it ranked second in terms of investment size. The figures cited by Talaat reflect the resilience of Egypt’s startup scene amid severe economic woes. Yet his statements also veil a more nuanced and complex picture: that of an ecosystem that is having to refocus on its fundamentals and sustainability in order to weather the downturn, and of many startups scrambling to find alternative ways to cope with the headwinds and uncertainty.