In recent years, North Africa has witnessed a notable shift in its entrepreneurial landscape, largely driven by the emergence of national startup funds. These state-backed investment vehicles are reshaping the region’s startup ecosystem, providing critical capital and infrastructure to fuel innovation across a range of industries. Tunisia, Algeria, and Egypt have all spearheaded initiatives aimed at fostering entrepreneurship, with flagship programs like Tunisia’s Anava Fund of Funds, Algeria’s Algeria Venture, and Egypt Ventures leading the way. As these funds grow in size and influence, they are helping to position North Africa as a hub for innovation, attracting local talent and global investors alike.
Egypt Ventures: A Model for State-backed Venture Capital
Among the earliest players in this movement is Egypt Ventures, a venture capital firm established by the Egyptian government in 2017. The firm has been a driving force behind Egypt’s growing startup ecosystem, providing both direct investments and ecosystem support through partnerships with accelerators such as Flat6Labs and Falak Startups. With over EGP 383.5 million (around $7.9 million) invested in more than 200 startups, Egypt Ventures has quickly become a cornerstone of Egypt’s innovation strategy.
The firm operates on a blended finance model, combining public funds with private capital and contributions from international development partners. This diversified approach allows Egypt Ventures to invest across a broad range of sectors, from fintech and healthcare to agritech and logistics. By focusing on scalable, tech-enabled startups, Egypt Ventures has played a key role in driving job creation and economic diversification in the country.
As Mohamed Metwally, CEO of Egypt Ventures, explained, “We aim to back entrepreneurs who are tackling real-world problems and have the potential to create meaningful economic value. Our goal is to empower local startups to scale, both locally and internationally, and to play a central role in Egypt’s economic future.”
The success of Egypt Ventures is closely linked to broader government efforts to stimulate entrepreneurship. Dr. Rania Al-Mashat, Egypt’s Minister of Planning and Economic Development, has championed the role of venture capital in promoting economic growth, noting that initiatives like Egypt Ventures are key to driving innovation and addressing structural challenges within the economy.
Algeria Venture: An Accelerator on the Rise
In Algeria, the national startup accelerator Algeria Venture has rapidly become a key player in the country’s entrepreneurial ecosystem. Established in 2021, the accelerator is part of a broader government push to foster innovation, in line with President Abdelmadjid Tebboune’s call for a comprehensive startup support program. The creation of Algeria Venture was followed by the launch of the Algeria Innovation Fund, a partnership with the Small Enterprise Assistance Funds (SEAF) worth $80 million (11 billion dinars), aimed at accelerating the development of local startups.
Algeria Venture’s impact has been swift. By the end of 2022, the accelerator had supported more than 800 startups across various sectors, from technology and logistics to healthcare. Its partnership with global players like Google for Startups MENA has further bolstered its credibility on the international stage, offering Algerian startups access to global expertise and networks.
In addition to direct investment, the Algerian government has introduced a range of tax incentives aimed at encouraging entrepreneurship. Under the 2021 Finance Act, companies with a “startup” label are exempt from several taxes, including the tax on professional activity (TAP) and the tax on corporate profits (IBS), for two years. These measures, coupled with the support of Algeria Venture, have helped create a more conducive environment for innovation in the country.
Tunisia’s Anava Fund of Funds: A Platform for Regional Growth
Tunisia’s approach to fostering its startup ecosystem has been equally ambitious. Launched as part of the national Startup Tunisia program, the Anava Fund of Funds has quickly emerged as a key pillar of the country’s strategy to support entrepreneurs. With a target size of €100 million, Anava aims to invest in over 13 venture capital funds that focus on startups at various stages of development, from seed to late stage.
Managed by Smart Capital, the fund operates as part of a broader investment framework that includes the Startup Act and Startup Invest, two initiatives designed to incentivize startup creation and growth. Since its inception, Anava has committed millions to local funds, including the Badia Impact Squared Fund (BIF2), which invests in technology firms across North Africa, as well as the GO LIVE FUND, managed by GO BIG Partners, and Flat6Labs’ Seed Fund, even extending to neighboring regional funds, as it recently did with the Ivory Coast-based venture capital firm, Janngo Capital. Its portfolio spans multiple sectors, from fintech and education to health tech and agritech.
One of Anava’s early successes was its investment in Expensya, a Tunisian fintech company that raised $20 million in a Series B funding round. The fund has also attracted international investors, including the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), the International Finance Corporation (IFC) signaling growing interest in Tunisia’s burgeoning startup scene.
According to Smart Capital’s CEO, Alaya Bettaieb, “Anava is a crucial element in creating a better investment framework in Tunisia. By providing much-needed capital, we are enabling startups to scale beyond national borders and attract international investors who are eager to tap into North Africa’s growing market.”
A New Wave of National Funds
The rise of these national startup funds marks a new chapter in North Africa’s economic development. While access to capital has traditionally been a challenge for startups in the region, state-backed initiatives like Egypt Ventures, Algeria Venture, and the Anava Fund of Funds are helping to close that gap. By offering a mix of financial investment, mentorship, and ecosystem support, these funds are not only fueling the growth of individual startups but also contributing to broader economic transformation.
As North Africa continues to build on this momentum, the region is increasingly being viewed as an attractive destination for global investors, and it is backing this surging enthusiasm up with national startup funds. With its young, tech-savvy population and a growing pool of entrepreneurial talent, North Africa is well-positioned to become a major hub for innovation in the years to come.
“We believe that North Africa has all the ingredients to become a leading player in the global startup scene,” said Ramez El-Serafy, CEO of Flat6Labs, one of the region’s prominent early-stage VC firms. “With the support of these national funds, we are seeing a new wave of startups that are not only solving local challenges but also positioning themselves to compete on a global scale.”
The Bottom Line
The rise of national startup funds across North Africa reflects a broader recognition of the critical role that entrepreneurship plays in driving economic growth and innovation. As countries like Egypt, Algeria, and Tunisia continue to invest in their startup ecosystems, the region is poised to become a significant player in the global innovation economy.
By providing the financial backing, expertise, and infrastructure that startups need to succeed, these funds are helping to unlock the full potential of North Africa’s entrepreneurial talent. In doing so, they are laying the foundation for a more vibrant, diversified, and resilient economy — one that can thrive in an increasingly interconnected and competitive world.