Key Takeaways
- • African startups account for just 0.6% of global venture capital funding, according to Egyptian investor and entrepreneur Mohamed Abou El-Naga Nagaty, speaking at the 2026 Global Entrepreneurship Festival (GEF) in Cairo.
- • Nagaty announced plans to launch three investment funds in 2027 targeting AI, export-oriented businesses and real estate.
- • Orange Egypt's executive vice president for business, Mohamed Shibl, announced a €25 million commitment to support local companies and startups, and plans to expand its Orange Digital Centres network with a new site in Alexandria.
- • Nagaty estimates around 80 percent of worldwide venture capital is now directed toward AI, while he cited limited access to international investors and difficulty obtaining growth-reflective valuations as constraints on African startups.
- • Estimates presented at the panel indicated AI and technological change could create 170 million new jobs globally by 2030 while displacing around 92 million positions.
Summary
African startups account for just 0.6 percent of global venture capital funding, highlighting a financing gap for entrepreneurs on the continent despite growing investor interest in technology and artificial intelligence, according to Mohamed Abou El-Naga Nagaty. Speaking on the third day of the 2026 Global Entrepreneurship Festival, Nagaty said limited access to international investors and difficulties in securing valuations that reflect growth potential are among the obstacles constraining African startups.
Nagaty announced plans to launch three investment funds in 2027 targeting AI, export-oriented businesses and real estate. He also referenced his involvement in a fintech-focused fund that invests between $10,000 and $50,000 in early-stage companies, allowing startups to develop products and test business models before pursuing larger rounds. He estimated that around 80 percent of worldwide venture capital is now directed toward AI, reflecting businesses' growing adoption of AI to develop new business models and improve operational efficiency.
Nagaty argued that the continent's small share of global venture capital is not simply a function of insufficient capital. Limited visibility of African startups among international investors and difficulty obtaining realistic valuations also contribute to the gap. He urged entrepreneurs to build viable business models and institutional structures capable of supporting growth, and cited Halan, backed by the Ghabbour family, and Fawry, supported by Raya Holding, as examples of companies benefiting from institutional backing.
Orange Egypt's executive vice president for business, Mohamed Shibl, announced a €25 million commitment to support local companies and startups in Egypt. Orange, which said it has five to six years of experience developing AI models, plans to expand its digital centres, currently operating in Cairo and Aswan, with a new centre in Alexandria. Shibl said the value of AI depends on addressing practical problems, pointing to healthcare and transport as sectors where applications could improve services.
Participants also highlighted difficulties in cross-border expansion. Wael El-Desouky, Secretary General of the Saleh Kamel Sustainable Entrepreneurship & Enterprise Development Organization (SKSEED), called for stronger investment networks linking entrepreneurs to international markets, including OIC member states, citing access to markets such as Nigeria, Indonesia and Saudi Arabia. On employment, estimates presented at the panel suggested AI could create 170 million new jobs globally by 2030 while displacing around 92 million positions. Islam Wagih of the Arab Academy for Science, Technology and Maritime Transport stressed the need to develop the technical workforce required to build and manage AI systems.
Nagaty announced plans to launch three investment funds in 2027 targeting AI, export-oriented businesses and real estate. He also referenced his involvement in a fintech-focused fund that invests between $10,000 and $50,000 in early-stage companies, allowing startups to develop products and test business models before pursuing larger rounds. He estimated that around 80 percent of worldwide venture capital is now directed toward AI, reflecting businesses' growing adoption of AI to develop new business models and improve operational efficiency.
Nagaty argued that the continent's small share of global venture capital is not simply a function of insufficient capital. Limited visibility of African startups among international investors and difficulty obtaining realistic valuations also contribute to the gap. He urged entrepreneurs to build viable business models and institutional structures capable of supporting growth, and cited Halan, backed by the Ghabbour family, and Fawry, supported by Raya Holding, as examples of companies benefiting from institutional backing.
Orange Egypt's executive vice president for business, Mohamed Shibl, announced a €25 million commitment to support local companies and startups in Egypt. Orange, which said it has five to six years of experience developing AI models, plans to expand its digital centres, currently operating in Cairo and Aswan, with a new centre in Alexandria. Shibl said the value of AI depends on addressing practical problems, pointing to healthcare and transport as sectors where applications could improve services.
Participants also highlighted difficulties in cross-border expansion. Wael El-Desouky, Secretary General of the Saleh Kamel Sustainable Entrepreneurship & Enterprise Development Organization (SKSEED), called for stronger investment networks linking entrepreneurs to international markets, including OIC member states, citing access to markets such as Nigeria, Indonesia and Saudi Arabia. On employment, estimates presented at the panel suggested AI could create 170 million new jobs globally by 2030 while displacing around 92 million positions. Islam Wagih of the Arab Academy for Science, Technology and Maritime Transport stressed the need to develop the technical workforce required to build and manage AI systems.
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