Back to the complete issue
Tuesday, 26 February 2019

The Egyptian startup scene looks to Africa

The Egyptian startup scene looks to Africa: Egyptian startups and venture capital funds are eager to expand into other African countries, Yasmeen Nabil writes for Wamda. Transportation startup Halan has begun operating in Sudan, smartphone manufacturer Silicon Industries Corporation is looking at multiple sub-Saharan countries, and Cairo-based incubator Flat6Labs is looking to expand in the coming years. “I thought it would be a great pilot to test our implementation skills across the border,” Halan CEO Mounir Nakhla said. “Sudan really is an extension of Egypt, so it was a normal progression.”

Technology the enabler: Continental expansion is being driven by technology, which is making it increasingly easy for businesses to adapt their models to different countries and cultures. “Technology is enabling entrepreneurs to develop local solutions for local problems and to quickly grow their presence beyond their initial core market,” Tarek Assaad, managing partner at Algebra Ventures, said.

But diversity still presents challenges: The huge diversity of language and culture on the continent can present considerable challenges for startups expanding south. “[Startups] need to have strategies that can be adjusted to each country,” Sergio Pimenta, VP at the International Finance Corporation, said. “Sometimes they don’t know these countries or sometimes can feel less comfortable because of the diversity of the country.”

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.