The news:
- Bpifrance, France’s largest venture capital (VC) firm, has opened a new base in Egypt as part of its expansion strategy into Africa and the Middle East (AME).
- The company has partnered with Egyptian venture capital firm Sawari Ventures to ease its entry into the region and enhance cross-continental collaboration. Flat6Labs, another key player in Egypt’s startup scene, will be actively involved in this new venture.
- Together, they aim to support growth-stage companies and entrepreneurs by providing crucial access to funding, resources, and networks.
This partnership is consistent with Bpifrance’s desire to strengthen ties between Europe, Africa, and the Middle East.
The partnership comes as African entrepreneurship continues to garner global attention. Startups across the continent are flourishing, and this collaboration will tap into this momentum by offering critical financial support and guidance to innovative businesses.
This development provides better access to financing for French companies expanding into African markets and offers African startups opportunities to establish research and development (R&D) operations in France.
A primary objective of this alliance is to accelerate co-investment opportunities between European and African venture capital firms.
By fostering knowledge exchange and collaboration, Bpifrance and Sawari Ventures expect the venture to stimulate commercial and technological partnerships, benefiting startups on both continents.
Hany El Sonbaty, Co-Founder and Managing Partner at Sawari Ventures, highlighted the importance of this collaboration, noting that the firm’s partnership with Bpifrance shows a shared commitment to strengthening the connections between Africa, Europe, and the Middle East.
“Entrepreneurs from these regions often have pan-African and trans-regional ambitions but lack the networks to scale effectively,” she added. “This platform will help them achieve expansion.”
Bpifrance’s move into Egypt is part of a larger French effort to solidify economic ties with North Africa.
Earlier this year, President Emmanuel Macron announced the “Fonds Maghreb,” a €100 million ($109.6 million) fund managed by Bpifrance to support French businesses investing in North Africa, particularly in Tunisia, Algeria, and Morocco.
The fund provides financial support to small and medium-sized enterprises (SMEs) and very small enterprises (VSEs) to encourage French companies to establish a presence in the region.
The initiative is designed to foster mutually beneficial partnerships that promote economic growth on both sides of the Mediterranean through equity investments, loans, and export credits.
Bpifrance’s expansion into Egypt complements this strategy, positioning the firm to play a key role in facilitating French investments across North Africa. Simultaneously, it opens new opportunities for African companies to grow, contributing to the region’s venture capital landscape.
