The International Finance Corporation has invested $15 million in Egypt’s Algebra Ventures’ Fund II.
Algebra Ventures is Egypt’s leading technology venture capital firm. According to its website, it has invested over $300 million in its portfolio companies.
The International Finance Corporation announced on 10 April 2022 that it has invested $15 million in Algebra Ventures’ Fund II, with a target value of $90 million. This is in addition to its $10 million investment in 2016 in the same venture capital firm’s Fund I – IFC.
This investment aligns with the IFC’s objective to support Egyptian startups and foster innovation while creating sustainable jobs. According to the Egyptian Ministry of Communications and Information Technology, in 2021, Egypt had about 562 technology startups, second only to South Africa, Nigeria and Kenya in Africa, but not for long.
An IMF report in July 2021 suggests that Foreign Direct Investment (FDI), as a per cent of GDP, will rise from 2 to 2.5 per cent between 2021/22 and 2022/23. In terms of dollar value, the report shows that Egypt will attract FDI of US$ 8.6 billion in Financial Year 2021/22 and US$ 11.7 billion in Financial Year 2022/23; and reach US$ 16.5 billion in Financial Year 2024/25, almost double the current year.
It is pertinent to note that this $15 million contribution would be targeted at Egyptian women-led startups, to improve the lives of people living in rural areas of the country (IFC). It aligns with the World Bank’s commitment to Sustainable Development Goal (SDG) #5 – achieve gender equality and empower all women and girls by 2030, SDG #9 – foster innovation, and SDG #11 – sustainable cities and communities.
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