Arab Finance: Minister of Investment and Foreign Trade Mohamed Farid and the Sovereign Fund of Egypt (TSFE) followed up on the procedures for establishing a special purpose acquisition company (SPAC) seeking to invest in venture capital (VC), as per a statement.
The SPAC will operate in VC investments through the acquisition of Egyptian startups, serving the country’s development priorities.
It also aims to provide startups with the necessary financing to expand their businesses by leveraging regulatory and legislative developments approved by the Financial Regulatory Authority (FRA) during the minister's tenure.
These developments were mainly designed to allow innovators and entrepreneurs to benefit from the financing advantages available in the capital market.
During the meeting, Farid reviewed a detailed presentation by the TSFE official on the initial structure of the proposed company.
The minister directed them to finalize all technical details and identify ready-to-implement investment opportunities, focusing on key sectors that serve the national economy.
He underlined a set of priority sectors that the new company should target and finance, including export services, commodity export, trade-tech, insurance brokerage, and agricultural technology (agtech).
Furthermore, the minister ordered the establishment of channels of cooperation and integration with key players in the entrepreneurship ecosystem, including the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), the African Export-Import Bank (Afreximbank), and the Technology Innovation and Entrepreneurship Center (TIEC).
These partnerships will offer a supportive environment for the growth of Egyptian startups on the local as well as global levels.
The VC is a strategic move to back innovation and empower startups to expand and grow, in line with the state's development priorities, Farid noted.
He added that the government aims to create a stimulating investment environment that provides these companies with financing and technical expertise, enabling them to drive economic growth and expand job opportunities.
