COOPERATION PROTOCOL TO SUPPORT STARTUPS IN EGYPT

The Egyptian government has started moves at the level of regulatory bodies and agencies to support entrepreneurship and overcome the challenges of investing in small businesses. From a vision of the country's entrepreneurial scene, the challenges facing young entrepreneurs are divided into:

1. Challenges related to conventions, legislation and initiation of cooperation
2. Challenges related to financing and guaranteeing investors' rights.
3. Challenges related to operating and ensuring the rights of young entrepreneurs

In this context, a cooperation protocol was concluded between the General Authority for Investment and Free Zones, the Financial Regulatory Authority and the Information Technology Industry Development Agency (ITIDA), to support Egypt's startups.

The Protocol provided for the promotion of investment in Egyptian startups, the attraction of capital and funding, and the holding of more domestic, regional and international partnerships, thereby contributing to the added value of the Egyptian economy, making Egypt a regional and international center for innovation-based technology and entrepreneurship.

Within the framework of the Agreement, the General Authority for Investment and Free Zones will consolidate shareholder agreements to establish startups in such a way as to ensure the validity of the valuation of start-ups and the assessment of the investment required for operation and starting. The general framework of the Agreement also includes the determination of the timing and appropriate way to inject new investments through public subscription, merger or acquisition.

The Financial Regulatory Authority will regulate the sale, acquisition and transfer of ownership of companies and entities engaged in venture capital activity by investing in startups through available funding instruments such as shares, bonds and subscriptions. These controls also include all matters related to the exchange and the capital market.

ITIDA will support the establishment of startups investment funds, as well as the development of training and vocational programs to qualify cadres to meet the needs of startups to join them.

This Protocol Followed the Financial Regulatory Authority’s initiative to provide multiple means of funding to startups, especially in the field of technology and digital technologies, the Board of Directors of the Authority agreed last year to allow the establishment and licensing of acquisition-purpose companies known as SPAC- - The Authority's records within the activity of companies with venture capital in accordance with the provisions of the Capital Market Law. This will facilitate the access of investors and funds to SMEs.

These government moves will provide an opportunity for startups and promising companies, especially in the field of technology, to achieve the desired investment goals and will also provide many profit opportunities for investors.

After these moves, Egypt is expected improve its ranking in the list of countries with a promising investment climate, and be able to attract businessmen and international funds targeting entrepreneurs and small businesses, which will have a positive impact on Egypt's economic situation.