Bpifrance, the leading venture capital entity in France, has strategically established a new outpost in Egypt, marking a significant step in its expansion endeavors across Africa and the Middle East (AME). The French firm has forged a partnership with Sawari Ventures, an Egyptian venture capital company, to facilitate its entry into the regional market and to foster cross-continental collaboration. Additionally, Flat6Labs, a pivotal figure in Egypt’s burgeoning startup ecosystem, will play an integral role in this new initiative.
The collaboration is set to bolster support for growth-stage companies and entrepreneurs in the region by providing them with essential access to capital, resources, and expansive networks. This move aligns with Bpifrance’s ambition to reinforce connections between Europe, Africa, and the Middle East, building a bridge for entrepreneurial and investment activities.
Amidst the rising global interest in African entrepreneurship, this partnership is poised to capitalize on the continent’s startup boom by offering vital financial backing and mentorship to inventive enterprises. The venture also aims to improve financing avenues for French firms looking to penetrate African markets, while simultaneously presenting African startups with opportunities to establish research and development (R&D) operations in France.
A key goal of this alliance is to catalyze co-investment prospects between European and African venture capital entities. Bpifrance and Sawari Ventures anticipate that their joint efforts will spark commercial and technological partnerships, which will be advantageous for startups across both continents.
Hany El Sonbaty, Co-Founder and Managing Partner at Sawari Ventures, emphasized the significance of this collaboration, acknowledging the mutual commitment with Bpifrance to fortify the links among Africa, Europe, and the Middle East. He pointed out that entrepreneurs in these regions often aspire to expand pan-African and trans-regional operations but are hindered by limited networks. This new platform is envisioned to facilitate their scaling efforts.
Bpifrance’s venture into Egypt is part of a broader French initiative to consolidate economic relationships with North Africa. Earlier in the year, French President Emmanuel Macron unveiled the “Fonds Maghreb,” a fund managed by Bpifrance and valued at €100 million ($109.6 million), aimed at backing French businesses investing in North Africa, with a focus on Tunisia, Algeria, and Morocco.
The fund is designed to support small and medium-sized enterprises (SMEs) and very small enterprises (VSEs), encouraging French corporate expansion into the region through equity investments, loans, and export credits. This expansion into Egypt is a complementary facet of Bpifrance’s strategy, positioning the firm as a pivotal player in facilitating French investments throughout North Africa. Concurrently, it paves the way for African companies to thrive, thereby enriching the venture capital ecosystem in the region.
