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.”