Al-Mashat: Ministerial Group for Entrepreneurship Is Working on Establishing Policies, Tools to Strengthen Egypt’s Position as Regional Hub for Startups

Dr. Rania A. Al-Mashat, Minister of Planning and Economic Development and International Cooperation, participated in the event organized by the American Chamber of Commerce in Cairo to announce the new formation of the Entrepreneurship and Innovation Committee of the Chamber.

The event was attended by Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority, Mr. Amr El-Abd, Advisor to the Prime Minister for Entrepreneurship, and other representatives of the startup and entrepreneurship community.

In H.E.’s speech, Dr. Al-Mashat highlighted the efforts of the American Chamber of Commerce in launching various initiatives aimed at advancing development efforts through effective discussions that enhance decision-making in Egypt. This is achieved through specialized committees such as the Banking Committee, or missions such as the "Tarq Al-abwab" mission organized annually by the American Chamber of Commerce in the United States. These are highly effective tools not only in conveying Egypt's message to the world but also in building a network of connections between Egyptian and international companies, as well as between these companies and the government, contributing to the creation of new opportunities for Egyptian companies.

H.E. Dr. Al-Mashat added that regarding entrepreneurship in Egypt, the current government shows a genuine openness to support this vital sector, as evidenced by the policies and initiatives implemented.

Despite the challenges, this openness represents a significant opportunity to stimulate innovation and enhance the role of the private sector in the economy.

H.E. Dr. Al-Mashat emphasized that entrepreneurship has become a fundamental tool not only for achieving economic growth but for accelerating this growth and making qualitative leaps in the Egyptian economy, a goal that all countries around the world seek to achieve. Therefore, focusing on supporting this sector is a crucial step towards achieving sustainable development.

H.E. Al-Mashat also highlighted the importance of having three specialized ministerial committees working on vital areas: industrial development, human capital development, and entrepreneurship. These committees are key channels for coordinating efforts between various ministries and government institutions, and for implementing integrated policies aimed at accelerating development.

H.E. Dr. Al-Mashat explained that the government adopts a bottom-up approach in the decision-making process, ensuring that all stakeholders in the entrepreneurship sector, whether from the private sector or government institutions, are heard.

H.E. Dr. Al-Mashat also pointed to the formation of four main working groups to address various issues related to entrepreneurship. One of these groups focuses on developing financing mechanisms, while another group aims to unify the numerous government initiatives that support entrepreneurship. There are currently significant efforts made by the government in this area, with large investments in incubators, awareness initiatives, and innovation support.

H.E. also pointed out the importance of achieving more coordination and focus to create a greater impact and formulating a comprehensive vision that unites efforts within a single, clear strategic framework.

The minister added that to achieve this, the working groups were tasked to prepare a "Startup Charter," a document that will include all the recommendations and insights the government will follow in this field. The aim of this charter is to serve as a roadmap for the future, outlining priorities of both the government and the private sector in supporting entrepreneurship. Efforts are being made to consolidate all the ideas and suggestions that have been presented in previous reports on how to improve the entrepreneurship ecosystem in Egypt. For instance, we collected 433 recommendations on this topic, many of which were implemented thanks to the efforts of national entities, although much work remains to implement the remaining recommendations.

H.E. Minister Al-Mashat reaffirmed that financing is one of the major challenges facing entrepreneurship in Egypt. Despite the significant support provided by international financial institutions such as the International Finance Corporation (IFC), the World Bank, and the European Bank for Reconstruction and Development (EBRD), there is a need to improve available financing mechanisms and provide more opportunities for startups. The funds invested by these institutions in Egypt show a great level of confidence in the opportunities offered by the Egyptian market. However, at the same time, we must be aware of the intense competition in the region and we need to find innovative ways to retain national and international talents, and ensure the continued flow of investments.

H.E. Dr. Al-Mashat also emphasized the need to be more cautious in utilizing available resources and directing them effectively to achieve the greatest possible value. Given the regional challenges, it is crucial to adopt a strategic approach that ensures every element of the entrepreneurship ecosystem contributes to achieving our economic goals.

The Minister stated that the challenges are significant, but the opportunities are also available if we manage to organize our efforts more effectively. H.E. also emphasized the importance of cooperation between the government and the private sector to develop effective strategies to stimulate growth and innovation, affirming that the private sector has extensive experience in this field, and the role of the government is to listen to it and work together to determine policies and tools that can enhance the entrepreneurship environment in Egypt.

H.E. Dr. Al-Mashat concluded her speech by emphasizing that innovation and entrepreneurship are the foundation for achieving sustainable economic development. If we want to achieve real progress, we must focus on fostering a culture of entrepreneurship and innovation. The World Bank's report on the "Middle-Income Trap" also highlighted the importance of innovation in achieving qualitative shifts in developing countries.