Egypt sets its sights on USD 5 bn in funding and five unicorns by 2031 under newly unveiled Startup Charter – EnterpriseAM Egypt

Egypt is sharpening its toolkit to accelerate private investment and green growth. A centralized EGP 250 bn concessional lending vehicle is being prepared to cut red tape and speed up credit to productive sectors, while a newly launched Startup Charter targets USD 5 bn in venture investment and five homegrown unicorns by 2031. Together, these moves signal a bid to anchor industrial expansion, digitalization, and the energy transition with more predictable finance and clearer rules.

Startup Charter: Bigger tickets, fewer silos, faster scale

The government’s Startup Charter sets ambitious targets and pairs them with new mechanisms to move capital. The plan aims to attract USD 5 bn in VC over the next five years and nurture five billion-dollar startups by 2031. Beyond headline goals, the charter introduces a roughly USD 1 bn initiative to consolidate fragmented, state-backed funding programs into a single window—reducing duplication and helping founders navigate public co-investment, guarantees, and technical assistance through one channel.

A fresh emphasis on growth-stage support is also in the mix. Scale-up programs are expected to help maturing companies access larger checks, including blended finance and non-dilutive instruments. Recent ecosystem data suggest Cairo’s venture scene is widening its toolkit beyond traditional equity, with more sophisticated debt and quasi-equity products emerging—an evolution that can help capital-intensive climate technologies, grid software, and advanced manufacturing reach commercial scale.

EGP 250 bn concessional finance: Unblocking credit for real economy

A planned EGP 250 bn centralized fund for concessional lending is designed to overcome long-standing bottlenecks in government-supported credit programs, particularly for industry and tourism. Streamlined approval pathways and unified governance could accelerate upgrades that matter for productivity and sustainability—think energy-efficient machinery, rooftop solar and storage in hotels and factories, wastewater treatment, and electrified logistics. If executed well, this facility could become a cornerstone of Egypt’s push to localize green value chains and drive down operating costs.

IMF decision in view, with monetary policy implications

The IMF Executive Board is expected to convene at month’s end to consider the combined fifth and sixth reviews of Egypt’s extended fund facility. Subject to approval, around USD 2.3 bn could be disbursed—USD 2 bn under the EFF and USD 300 mn from the resilience and sustainability facility—reflecting progress on reforms amid a challenging backdrop. The timing intersects with the central bank’s upcoming policy meeting. With inflation easing, a stable external support signal may reinforce confidence and sustain a gradual, data-driven easing cycle—lowering borrowing costs for climate-smart infrastructure and private sector expansion.

Localizing battery tech: Sodium-ion on the horizon

In a notable pivot toward cleaner storage solutions, Draschem’s planned sodium cyanide complex—now valued at about USD 200 mn—will explore doubling output and expanding derivative lines before moving into sodium-ion battery components in a later phase, according to investment authorities. Sodium-ion batteries are gaining traction as a cost-effective alternative to lithium-based systems. They rely on abundant salt rather than scarce lithium, which can cut costs and reduce supply risk for battery energy storage systems that balance grids rich in solar and wind. If delivered at scale, local sodium-ion component production could support utility-scale storage, C&I microgrids, and eventually electric mobility—while creating skilled jobs in electrochemistry and materials engineering.

Digital backbone expands: More spectrum, smarter networks

Egypt’s four mobile operators have agreed to acquire 410 MHz of new spectrum for a combined USD 3.5 bn—reportedly the largest spectrum transaction in the country’s telecom history and effectively doubling total capacity made available over the past three decades. The move builds on last year’s 5G licensing and the start of commercial rollout in mid-2025. Robust spectrum holdings should underpin high-speed connectivity for industry, fintech, telemedicine, and education, while enabling IoT platforms for smart grids, building management, precision agriculture, and EV charging orchestration. The net climate effect depends on how efficiently networks are operated, but next-gen systems typically deliver more data per unit of energy—an important lever as digital demand grows.

Development finance tilts green and digital

The European Bank for Reconstruction and Development invested EUR 1.3 bn in Egypt in 2025, making the country its largest destination in the SEMED region that year. Roughly 70% of the funds went to private-sector projects, with about 60% channeled through green finance instruments. Highlights include EUR 200 mn to upgrade the national grid for higher renewables penetration under the country’s flagship climate platform, and a syndicated package to support 5G rollout—underscoring how low-carbon power and high-speed connectivity are increasingly treated as complementary pillars of competitiveness.

Egyptian expertise, exported

Egyptian companies continue to win mandates abroad, with Elsewedy Electric and CIB engaged in a major power plant project in Hungary. Such cross-border ventures can catalyze technology transfer and position local firms to compete in global energy markets—from grid hardware and EPC services to financing structures for complex infrastructure.

The bottom line

Egypt is tightening the weave between finance, technology, and policy to unlock growth. The Startup Charter’s single-window funding, the EGP 250 bn concessional lending vehicle, and fresh multilateral support could collectively compress timelines for projects that matter—clean power integration, efficient industry, and digital infrastructure. Execution will be the real test, but the direction is clear: mobilize larger pools of capital, crowd in private investors, and build the green and digital foundations of the next growth cycle.