Egypt Launches the “Startup Charter” to Attract $5 Billion in Investments Over Five Years
Egypt’s Ministerial Group for Entrepreneurship has launched the Startup Charter as part of its efforts to attract $5 billion in venture capital investments over the next five years and support the growth of 5,000 startups within the local market.
The Charter aims to generate nearly 500,000 direct and indirect job opportunities while facilitating the international expansion of Egyptian startups through a comprehensive set of regulatory and financial measures.
The Charter was announced in the presence of Prime Minister Dr. Mostafa Madbouly and Minister of Planning Dr. Rania Al-Mashat, marking Egypt’s first unified framework for defining startups, alongside the introduction of a Startup Classification Certificate as a prerequisite for accessing incentives.
Under the Charter, startups can be established electronically within one business day, with the option to liquidate operations within a maximum of 90 days in the event of failure, in addition to reduced penalties and regulatory exemptions.
The incentive package includes a simplified tax system for startups with annual revenues not exceeding EGP 20 million, subject to a flat tax ranging from 0.4% to 1.5%. It also provides exemptions from stamp duty, notarization fees, and capital gains tax on asset sales, as well as a unified 2% customs duty on imported equipment and machinery, with an option to pay in installments over six months. Dedicated tax offices will also be made available to address the specific needs of startups.
On the financing side, the government has launched a unified initiative that includes the establishment of a government-backed fund investing in venture capital funds, 1:1 matching of angel investor contributions, and the provision of bank-backed loan guarantees for startups.
The Charter further introduces measures to attract international talent, including five-year residency visas for founders and investors, and allowing the employment of foreign professionals beyond standard legal limits.
In addition, the government commits to prioritizing startups in public procurement, granting a 15% preferential advantage in tenders, allocating at least 40% of government procurement to startups, and officially affirming that the state will not compete with startups in technology-driven sectors.
