The news:
- Safari Ventures, a Cairo-based venture capital firm, has announced plans to launch a new $150 million investment fund to support Egyptian startups.
- According to Hani Al Sanbati, the CEO and co-founder of the North Africa-focused investment company, the fund will go to several sectors across the country, including education, healthcare, fintech, green tech solutions, and deep tech initiatives, bolstering sustainable growth in the startup ecosystem.
- Since its inception in 2010, the company claims to have funded approximately 500 startups, including 19 early and growth-stage companies in Egypt, Tunisia, and Morocco, advancing its vision to establish Egypt as an essential investment hub in Africa and beyond.
Fintech accounts for roughly 35% of the firm's portfolio, with a focus on digitising the Egyptian economy and improving regional financial inclusion.
In a statement released by the North Africa investment firm, Al Sanbati said he’s confident in the prevailing economic conditions, noting that they are optimal for continued investment in tech startups.
He also stated that any challenges tech companies have faced in the past will have no significant impact on their overall growth trajectory.
From all indications, Egyptian startups backed by Sawari Ventures could receive investments ranging from $350 million to $500 million over the next five years. Al Sanbati explained that this move underscores the investment company’s broader ambition to make Egypt a leading global investment hub.
Highlighting the company’s commitment to supporting entrepreneurs and their innovations in the Arab world, the CEO explains that the operational framework employed at Sawari Ventures is specifically designed to catalyse investments while positioning startups for future funding opportunities.
He also mentioned exiting as an integral part of the investment company’s strategy to fund other tech ventures.
Given the significant drop in funding for the African tech ecosystem in 2024, this proposed $150 million investment in Egypt's tech startups is timely.
In 2024, new and established players reaffirmed their commitment to the African tech ecosystem. For instance, several tech startups in Egypt, including FriendyM, Zeal, Bosta, DXwand, Yodawy, and Roboost, announced investments in January.
In the same month, Seedstars Africa Ventures received a $30 million capital commitment from EIB Global, a subsidiary of the European Investment Bank, to support African businesses. A week later, the African Development Bank (AfDB) announced an additional $10.5 million commitment to Seedstars.
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