Photos: Egypt's Entrepreneurs Try to Build a New Tech Hub Amid Unrest

As the country has undergone massive political shifts, a new startup culture has bloomed.
The offices of digital ad agency The Planet, decorated with graffiti by local artists in Cairo. (Jonathan Kalan)

Amid Egypt’s ongoing political turmoil, there is another, tech-ier revolution afoot: the birth of Cairo’s start-up culture.

Young entrepreneurs there have created everything from taxi calling services to portable solar water desalination companies, and everything in between.

Despite Egypt’s recent struggles, there is hope among those in the start-up crowd, says Muhammed Radwan, an Egyptian-American engineer and activist who is now community manager for icecairo, a co-working space, fabrication lab, and “pre-incubator” for green-tech startups. 

“Before the revolution, those who wanted to change things channeled their energy into the NGO scene,” he says. “Now, people are starting to look at the private sector. Entrepreneurs are trying to fix the same problems in a different way.”

Entrepreneurship itself is not a new concept here, although the term for it in Arabic, Reyada Al Amael (literally pioneer of business), was coined only a few years ago. But it is something that has recently taken on a new dimension.

 “We had entrepreneurship before the revolution,” says Ahmed Alfi, CEO of Sawari Ventures, a venture capital firm, who has personally invested over $5 million of his own fortune in growing Egypt’s tech startup scene. “The revolution accelerated it, by giving a sense of optimism.”

It also attracted the Egyptian diaspora around the globe -- and their money, skills, and experience -- back to Egypt, creating a supportive ecosystem.

"We have one of the greatest collections of engineering and mobile development talent in the world," claims Alfi, “but what's been missing is what goes around the engineer -- product, marketing, business people," he says.

That’s finally starting to change. The American University in Cairo’s business school has recently launched the Venture Labs Challenge, aimed at supporting university startups and filling their newly created business incubator at AUC’s New Cairo campus – the AUC Venture Lab.

Private tech start-up incubators like Flat6Labs, which has invested $10-$15,000 each in 36 early-stage Egyptian tech startups, are also growing companies in much the same way Y Combinator has done in Silicon Valley.

Co-working spaces and fabrication labs like icecairo are also providing places for young tech entrepreneurs to learn skills. Development initiatives, like the U.S. State Department’s Global Entrepreneurship Program, are pouring money in to help build a culture of entrepreneurship.

One of the biggest driving factors of this surge in startups is that there’s an enormous regional market waiting -- especially for technology.

Egypt is witnessing a 12.5 percent annual growth in information and communications companies, according to government statistics. There are 33 million internet users -- a number growing annually -- and 34 percent of them are accessing the internet from phones and other mobile devices.

Yet Egypt is still a long way from being the next Silicon Valley -- or even the leading regional startup hub of Tel Aviv -- and there are still plenty of challenges.

While the nation has talented engineers with great ideas, it takes entrepreneurial CEOs and managers to build successful companies -- something the already overburdened education system is slow on cultivating.

And while the list of investors in the region is slowly growing, most claim it’s still not enough. 

 “There are too many good ideas and good people here,” says Alfi. “One company can’t fund them all.”  

Funding a start-up in a politically stable country is hard enough -- but Egypt’s turbulent journey towards democracy compounds the financial risk. 

Despite the turmoil, Egypt’s ceaselessly optimistic entrepreneurs still see a silver lining.

“Bad news gives some investors the jitters,” says Hossam Allam, a successful Egyptian businessman and founder of Cairo Angels, a group of 40 angel investors committed to investing in Egyptian startups.

“But it also makes start-ups cheap to invest in,” Allam says. “For the same amount of money as one company in Dubai or Israel, you can invest in three to four companies in Egypt”

Presented by

Jonathan Kalan is a photojournalist based in Nairobi, Kenya. His work has appeared in The Guardian, The Financial Times and on NYTimes.com.

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