Introduction
Bpifrance, France’s leading venture capital entity, has taken a significant step in its expansion across Africa and the Middle East (AME) by establishing a new outpost in Egypt. This strategic move is supported by a partnership with Sawari Ventures, an Egyptian venture capital firm, and Flat6Labs, a key player in Egypt’s startup ecosystem. Together, these entities aim to create a robust platform for entrepreneurial growth and cross-continental collaboration.
Empowering Growth-Stage Companies Across Africa and the Middle East
The collaboration between Bpifrance, Sawari Ventures, and Flat6Labs is designed to offer vital support to growth-stage companies and entrepreneurs in the region. This initiative will provide access to essential capital, resources, and expansive networks, enabling startups to scale their operations more effectively. The partnership aligns with Bpifrance’s broader ambition of connecting Europe, Africa, and the Middle East, creating a bridge for entrepreneurial and investment activities between these regions.
Seizing Africa’s Startup Boom
With the growing global interest in African entrepreneurship, Bpifrance’s move into Egypt is poised to capitalize on the continent’s startup boom. The partnership will offer financial backing and mentorship to innovative enterprises, fostering a more vibrant entrepreneurial ecosystem. At the same time, this initiative will improve financing opportunities for French companies looking to enter African markets, while offering African startups the chance to set up research and development (R&D) operations in France.
Co-Investment and Cross-Continental Partnerships
A key focus of this collaboration is to catalyze co-investment opportunities between European and African venture capital firms. Bpifrance and Sawari Ventures are aiming to spark commercial and technological partnerships that will benefit startups across both continents. This venture is expected to open doors for pan-African and trans-regional expansions for African entrepreneurs, addressing the common challenge of limited networks that often hinder their growth.
Hany El Sonbaty, Co-Founder and Managing Partner at Sawari Ventures, emphasized the importance of this collaboration, pointing out the mutual commitment with Bpifrance to strengthen the ties between Africa, Europe, and the Middle East. El Sonbaty highlighted that many entrepreneurs in these regions aim to scale across borders but face barriers due to fragmented networks—a gap this new platform is designed to bridge.
A Broader Initiative to Strengthen French-North African Economic Relations
Bpifrance’s entry into Egypt is part of a wider effort by France to consolidate its economic ties with North Africa. Earlier in the year, French President Emmanuel Macron launched the “Fonds Maghreb”, a €100 million ($109.6 million) fund managed by Bpifrance, aimed at supporting French businesses investing in Tunisia, Algeria, and Morocco.
The Fonds Maghreb provides equity investments, loans, and export credits to small and medium-sized enterprises (SMEs) and very small enterprises (VSEs), encouraging French companies to expand into North Africa. Bpifrance’s expansion into Egypt complements this initiative, positioning the firm as a key facilitator of French investment across the region while creating opportunities for African companies to flourish.
Enriching the Venture Capital Ecosystem
By establishing a presence in Egypt and partnering with regional powerhouses like Sawari Ventures, Bpifrance is not only facilitating French investments in North Africa but also enriching the venture capital ecosystem across Africa and the Middle East. This initiative will serve as a vital platform for fostering innovation, driving business growth, and strengthening economic ties across these regions.
