Cairo is Egypt’s buzzing capital city and a place where ancient history is combined with modern-day innovation. It’s easy to get drawn in to its vibrant energy with its colourful markets, towering skyscrapers and trendy restaurants. Millions of tourists visit each year to marvel at the Pyramids of Giza and the Sphinx. Others may prefer a leisurely cruise down the Nile River.
But Cairo offers something entirely different for those looking to break into the African and Middle Eastern markets. It holds untapped opportunities for entrepreneurs and investors who want to make their mark and now may be the perfect time to launch a startup there.
Why Start A Business In Cairo?
Cairo’s startup ecosystem is certainly thriving at the moment and there are a couple of different reasons for this. Its mix of affordability, consumer demand and, of course, its location make it an ideal spot for new businesses.
Location: If you have your eye on targeting multiple locations across Africa, the Middle East and even Europe, Cairo sits right in the middle of it all.
It’s affordable: Cairo is a more cost-effective option for starting a business compared to Western countries. Rent for housing and business spaces are generally cheaper and so are the expenses for running a startup.
Government support: The Egyptian government is making an active effort to foster the growth of new businesses through investment incentives and startup-friendly regulations.
Consumer demand: Cairo’s population is a young and tech-savvy one. So naturally, you have a huge demand for digital services like e-commerce and FinTech.
Industries With High-Growth Potential
If you have the right idea, you could build a successful business in almost any industry. But when you’re looking at foreign locations for new ventures, it does help to know which sectors are seeing the most rapid growth. In Cairo, there are a few of them.
FinTech: Cairo is leading Egypt’s FinTech sector with a high demand for digital payments and mobile wallets.
AgriTech: With Egypt’s focus on sustainability, startups focusing on food security and smart farming are welcomed.
E-commerce: Online shopping has taken off with a great need for e-commerce platforms and payment gateways.
CleanTech: Startups who are addressing climate issues through solar energy and recycling are gaining traction, especially with regards to international funding.
Accelerator And Incubator Programmes In Cairo
Joining an accelerator or incubator programme early on can go a long way in helping your startup to grow to where it needs to be. Fortunately for those wanting to start a business in Cairo, there are multiple options for support whether it be through mentorship, funding or access to investors.
AUC Venture Lab: This initiative is based at the American University in Cairo and offers workshops and guidance to early-stage startups.
Flat6Labs: A prominent accelerator throughout the MENA region that provides office space, training and financial support.
EGBANK Mint Incubator: An initiative that supports startups without taking equity which is great for early-stage founders.
Falak Startups: Offers funding, training and investor connections and is supported by the Egyptian government.
Funding Opportunities For Startups
Access to capital is starting to greatly improve in Cairo. As more venture capital firms, angel investors and government initiatives start to take shape, new ventures have a better chance of securing funding.
Venture Capital: VC firms like Sawari Ventures and Algebra Ventures invest in early and growth stage startups across Egypt.
Angel networks: Cairo Angels can connect startup founders with private investors who invest in new startups.
Government funds: The Micro, Small and Medium Enterprise Development Agency runs training and funding programmes for Egyptians and foreign entrepreneurs.
Visa And Residency Requirements For Foreign Entrepreneurs
If you are a foreigner wanting to start a business in Cairo, there are a few visa-related things that you will need to be aware of.
Business Visa: Egypt doesn’t have a dedicated startup visa just yet but this option will allow you to visit the country to explore potential opportunities.
Residency: After you have set up a legal entity in Egypt, you can apply for a residency permit. In this case, it’s always best to work with a local legal advisor who can guide you through the process.
How To Start A Business In Cairo
Setting up your business in Cairo as a foreigner is a fairly straightforward process, especially if you are working with a local consultant to help the process run smoothly. Here is a step-by-step guide on how you can get started.
Choose A Legal Structure
A Sole Proprietor or Joint Stock Company are possible options however, most startups tend to choose a Limited Liability Company. This is because its quite a flexible structure and can be 100% owned by foreigners.
Register The Business
The next step is to submit all of your documentation to the General Authority for Investment and Free Zones. You will need Articles of Association if you have more than one founder, proof of address, passport copies of each founder and the minimum capital deposit if relevant.
This process usually takes a few weeks for approval.
Obtain Tax And Social Insurance IDs
After your company has been registered, you can apply for a tax ID number and register with the Egyptian Tax Authority. If you intend to hire employees to work for you, you will also need to register for social insurance.
Should You Launch A Startup In Cairo?
Cairo is a fast-moving market full of opportunity and if this is what you are looking for, this city is definitely worth considering. Given its low cost of living and operations coupled with growing startup support, Cairo is one of the most exciting destinations to start a business in across Africa and the Middle East.
If you are ready to embrace a constantly evolving business environment, this city could be the one for you.
Good luck!
