Dr. Farid: Six Strategic Pillars to Strengthen the Entrepreneurship Ecosystem and Support Startups
- Entrepreneurship is a key driver of economic growth and job creation
- We are exploring the activation of modern financing instruments to support startups across different growth stages
- Establishing the first regulatory sandbox in the foreign trade sector to support innovative solutions and boost exports
- Developing the entrepreneurship ecosystem requires integrated governmental and institutional coordination across entities
- The Sovereign Fund is working on establishing a listed venture capital company
- We aim to empower youth and innovators to transform their ideas into projects capable of competing regionally and globally
- Adopting evaluation standards tailored to the nature and growth of startups enhances investment attraction to the sector
Dr. Mohamed Farid, Minister of Investment and Foreign Trade, participated in the first meeting of the Ministerial Group for Entrepreneurship, chaired by Dr. Hussein Eissa, Deputy Prime Minister for Economic Affairs, with the participation of several ministers and representatives of relevant entities. The meeting discussed the group’s executive action plan for the upcoming period, as well as mechanisms to support the entrepreneurship ecosystem and startups in Egypt.
Dr. Hussein Eissa affirmed that entrepreneurship is a priority on the government’s agenda, given its critical role in supporting innovative ideas and transforming them into projects capable of achieving growth and creating job opportunities for youth. He noted that developing the entrepreneurship ecosystem requires coordination and integration among various ministries and relevant entities to enhance the competitiveness of the Egyptian economy.
For his part, Dr. Mohamed Farid emphasized that supporting and activating the entrepreneurship ecosystem requires comprehensive governmental and institutional integration across all relevant stakeholders, rather than relying on a single entity. This approach contributes to maximizing economic returns, enhancing developmental impact, and adding sustainable value to the national economy. He explained that this is particularly important given the interconnected nature of entrepreneurship and its strong linkages with various economic sectors and productive and service activities.
The Minister further affirmed that the state views entrepreneurship as one of the main drivers of economic growth, job creation, and innovation, in addition to strengthening the competitiveness of the Egyptian economy at both the regional and international levels.
Dr. Farid explained that the Ministry is currently implementing six strategic pillars aimed at creating a more attractive and flexible environment for startups and entrepreneurs. At the forefront of these pillars is a comprehensive transformation in the operational approach within the General Authority for Investment and Free Zones (GAFI), making it more supportive of innovation and entrepreneurship.
He added that the Ministry is also working on adopting financial evaluation standards tailored to startups, reflecting the nature of their business models based on rapid growth and future expansion. This includes organizing mechanisms for recognizing shareholders’ agreements, thereby enhancing clarity in legal frameworks and corporate governance within startups.
The Minister noted that the Ministry is studying mechanisms to activate modern financing tools, including convertible notes, as globally recognized instruments to support startups across different stages of growth. In parallel, efforts are underway to establish the first regulatory sandbox in the foreign trade sector, providing entrepreneurs and innovators with the opportunity to propose non-traditional solutions that contribute to boosting Egyptian exports—particularly through leveraging data, international trade agreements, and available export opportunities.
He also indicated that the Sovereign Fund is working on establishing a venture capital company listed on the stock exchange, which would provide sustainable and innovative financing channels for startups and contribute to attracting further investments into this promising sector. He stressed that the current phase requires building an integrated ecosystem that enables youth and innovators to transform their ideas into scalable and competitive ventures at both the regional and global levels.
During the meeting, Dr. Ahmed Rostom, Minister of Planning and Economic Development, presented the key features of the national executive framework for supporting entrepreneurship and innovation. The framework aims to position Egypt as a regional hub for innovation, support the growth of startups, and create job opportunities for youth. It also includes the launch of the National Entrepreneurship Forum and strengthening the role of the Entrepreneurship Unit under the Prime Minister in developing policies and programs that support startups and attract both domestic and international investments to the sector.
