Germany has offered Egypt $500 million to support its economic program and medium-sized and small businesses (SMEs).
The Egyptian ministry of investment and international cooperation said that it is agreed with the German side (that they would) provide $250 million to support the economic program…as well as $250 million to support several other sectors, including micro-enterprises and small and medium-sized enterprises.
The German offer came during a visit to Egypt by German Chancellor Angela Merkel. The support will come in the form of grants and concessional funds.
The SME and startup ecosystem in Egypt has been gaining momentum of late.
Recently, Egyptian incubator Flat6labs raised $1 million from World Bank’s investment arm International Finance Corporation (IFC).
The accelerator raised funds through IFC’s $30 million Startup Catalyst initiative. It will use the money to close a $5.6 million fund which aims to launch around 100 startups over five years.
This is one of the first investments through IFC’s Startup Catalyst program.
The initiative aims to back accelerators in emerging markets. It is part of a broader IFC Venture Capital program to increase the corporation’s investments in tech startups in emerging market to $1 billion.
The program will make over 20 investments in accelerators and seed funds in emerging markets including Nigeria, Ukraine, and Mexico in 18 months.
Of late, many global firms have also been stepping up operations in the country.
Recently, ride-hailing major Uber recently said it plans to make Cairo a regional hub with an investment of more than $50 million in two years.
It will invest $250 million over five years in the Middle East, Anthony Khoury, general manager, Egypt, for Uber, told Reuters.
Cairo, a city of 20 million people, is seen at the center of Uber’s growth strategy for the region.
Uber is also building a support center in Cairo that will serve the Middle East and parts of Africa.