INVESTMENT WATCH- Sawari Ventures to deploy c.USD 70 mn across North Africa over four years: Egyptian venture capital firm Sawari Ventures plans to invest close to USD 70 mn in high-growth tech and tech-enabled companies in Egypt, Tunisia and Morocco over the next four years, partner Wael Amin tells Disrupt Africa. Sawari raised its latest fund, which closed with commitments of USD 35 mn in December, from institutions including the European Investment Bank, the UK’s CDC, the French Development Agency’s private-sector financing arm Proparco, the Dutch Good Growth Fund (DGGF), the National Bank of Egypt, Banque Misr and Banque du Caire.

Amin sees strong investment prospects for the region, with governments beginning to see the economic value of startups in driving job creation. While the startups themselves are powered by talented entrepreneurs and the promise of digital transformation looms large across the region, he says that what is really lacking is the capital that allows startups to innovate and grow. Sawari likes: finance, education, healthcare, energy and logistics.

Funding for startups in Egypt is growing at a notable rate, even when compared with regional leaders Kenya, Nigeria and South Africa, according to Partech Africa’s 2018 report. Total startup funding in Egypt in 2018 rang in at USD 67 mn, up from USD 36.9 mn in 2017. Last year saw 19 funding rounds close, up from 14 in 2017. Both the 2017 and 2018 reports note that Egypt is closing the funding gap with the regional leaders, which collectively have attracted 78% of startup funding invested in Africa in both years.

Everybody loves fintech, the report suggests — specifically plays on financial inclusion.

You can read the full report here (pdf).