CAIRO - 22 February 2022: The Minister of International Cooperation, Rania A. Al-Mashat emphasized that developing an entrepreneurial environment is an important, key element to ensure progress and achieve development at the local and global level. Al-Mashat also noted that the COVID-19 pandemic highlighted the role that technology and digitalization play in finding sustainable solutions.
These remarks came during the Minister’s participation in the Atlantic Council’s virtual event “Developing ecosystems: How Middle East governments drive entrepreneurship”, alongside UAE’s Minister of State for Entrepreneurship and SMEs Ahmad Belhoul Al Falasi; Jordan’s Minister of Digital Economy and Entrepreneurship Ahmad Al-Hanandeh; and Bahrain’s Minister of Industry, Commerce, and Tourism, Zayed R. Alzayani . As the Atlantic Council is one of the most prominent think tanks in the USA, this is part of the organization’s empowerME initiative to support entrepreneurs, startups and SMEs.
Al-Mashat shared that 60 percent of the Egyptian population is under the age of 35, confirming the importance of entrepreneurship, innovation and job opportunities created through SMEs, coupled with developing the capacity of youth, and the role of the private sector in achieving these goals.
The Minister noted that entrepreneurship and emerging startups can play a key role in promoting digitalization, and in achieving the green economy, as the development and sustainability of the entrepreneurial environment has a multiplier effect on creating job opportunities and in progressing towards a circular economy.
Al-Mashat also referred to the Government of Egypt’s keenness in supporting the entrepreneurial environment and startups in the country, through Egypt Ventures, the first venture capital company with government contribution aiming to develop an entrepreneurial, innovative environment, to enhance the skills of entrepreneurs, and to increase competitiveness for GDP growth.
By the end of 2021, Egypt Ventures direct and indirect investments amounted to LE 92 million to enhance the entrepreneurial environment and startup scene in the country, alongside supporting the transformation towards becoming a regional center for innovation and entrepreneurship in the Middle East and North Africa with LE 75 million worth of investments in startup companies, in addition to LE 17 million in indirect investments in business accelerators.
Al-Mashat pointed to the role that youth play as a potential force in the Egyptian economy through innovative ideas. She added the World Youth Forum (WYF), held in Sharm El-Sheikh last January, supports the youth in developing skills and in expanding their perceptions. The Government of Egypt is committed to empowering its youth, supporting them into leadership positions, and encouraging them to play a greater role in development efforts, noting that the WYF is an opportunity to create effective communication from youth around the world, and to inform them about the efforts of governments and decision-makers.
For his part, UAE’s Minister of State for Entrepreneurship and SMEs H.E. Ahmad Belhoul Al Falasi, said that their government is working to support entrepreneurship. As an example, he said that the UAE provides residence visas to attract young entrepreneurs, not only from the Gulf countries, but from around the world. He added that the UAE ranked first for 12 consecutive years in supporting youth at work.
Jordan’s Minister of Digital Economy and Entrepreneurship Ahmad Al-Hanandeh said that supporting the entrepreneurial environment requires enhancing the availability of financial support for startups, as well as intensifying access to a cooperative market, pointing to the importance of bridging the gap between education and the requirements of an entrepreneurial environment by launching programs and partnerships with various stakeholders.
Moreover, Bahrain’s Minister of Industry, Commerce, and Tourism, Zayed R. Alzayani referred to the growing population, especially of youth. He added that changing the mindset of youth from becoming job seekers to job creators is much needed, “we are moving towards achieving this; it will not change overnight but we are seeing positive signs.”
It is worth noting that the Ministry of International Cooperation launched its 2021 Annual Report under the title “Engaging For Impact Towards Our Common Future”, detailing that the secured development financing directed to the public and private sectors last year amounted to $10.2 billion. This includes $8.7 billion directed to the public sector and $1.5 billion directed to the private sector.
The ongoing portfolio of the Ministry of International Cooperation includes 36 projects in innovation, digitization and entrepreneurship, which contribute to achieving 11 sustainable development goals, with a total development funding of $1 billion, representing 3.8 percent of the ministry's development financing portfolio. This development financing was secured through partnerships by 16 bilateral and multilateral development partners, of which there were 12 beneficiaries.
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