With a mobile phone penetration rate of about 95%, accounting for more than 100 million subscriptions, and an internet penetration rate of 49%, Egypt is positioning itself as the ICT giant of Africa. As part of its "Vision 2030" strategy, the government has adopted a proactive stance by introducing a new component titled "Digital Egypt."
The number of startups in Egypt has multiplied by more than 5 in 5 years
Launched in 2020 under the auspices of ICT Minister Amr Talaat, this new digital doctrine is based on three pillars: improving digital infrastructure, regulatory environment, and enhancing innovation capabilities. The government, in partnership with Telecom Egypt (a company 80% owned by the state and holding a near-monopoly on fixed-line telephony and broadband internet distribution), has allocated nearly 17 billion Egyptian pounds (approximately 502 million euros) to capacity building.
This initiative has led to a significant increase in internet speeds, from 6.63 Mbps in February 2019 to 27.09 Mbps in February 2020. In August 2020, the Egyptian government also launched an electronic services portal offering nearly a hundred different services, from online appointment scheduling to requesting official documents, and online payment.
As a result, the number of startups in Egypt has multiplied by more than 5 in 5 years, reaching over 177 startups operating in more than 14 sub-sectors. Egypt is considered the leading North African country in terms of startup acquisition agreements, with approximately $340 million in funding obtained by Egyptian startups in the first 10 months of 2023.
This growth is attributed to several factors, including the availability of advanced technological infrastructure, which has helped Egyptian startups expand and offer their services to clients worldwide.
Among the top startups in Egypt in 2023 is Yalla Super App. It is an application designed for sending and receiving money, managing online payments, and handling all your daily needs and requests. Currently available in Egypt and the United Arab Emirates, it will soon expand to Saudi Arabia and Pakistan. The Yalla Super App, owned by Bayan Sky, a leading company in the field of financial technology and electronic payment solutions, won the Best Startup Award at the world's largest startup competition, WMF – We Make Future.
Paymob is also notable. This electronic payment service aims to facilitate electronic payments and enable many businesses to accept payments through suitable means. Paymob's growth in the region has been fueled by the funding it received in its Series B investment round in 2022 led by PayPal Ventures. This resulted in the company's expansion to the United Arab Emirates in the same year and obtaining a Payment Technology Service Provider (PTSP) license from Saudi Payments in the second quarter of 2023, allowing it to operate at full capacity in the Saudi market.
Telda, a financial app that issues prepaid cards linked to the mobile app available on smartphones. It caters to customers in general, especially young people, to control and track their daily expenses. Users can use the card and app to transfer from one Telda card to another quickly and securely. The announced investment value of the company is $25 million.
Objective: To become a major technological hub in Africa
With the significant increase in the number of startups in Egypt, the influx of funding and international accolades, coupled with the efforts of the Egyptian government and its collaboration with specialized companies, Egypt is confidently moving towards its ambition to become a major technological hub in Africa.
However, despite this progress, a number of challenges hinder the implementation of "Digital Egypt." The transition to digital faces a society where the illiteracy rate exceeds 25%, the informal sector accounts for nearly 60% of employment, national infrastructures are insufficient, and the investment climate is unfavorable.
