If there were a leaderboard for African governments experimenting with capital markets reform, Egypt would be the bold, if slightly erratic, frontrunner. In a rapid series of policy shifts, Cairo has accelerated efforts to rewire its financial system, overhauling capital gains tax structures and pioneering a more startup-friendly approach to public markets.

At the heart of this transformation is a pivotal appointment: Dr. Islam Azzam as the new Chairman of the Egyptian Exchange (EGX). His selection by Prime Minister Dr. Mostafa Madbouly is more than a simple change of leadership; it signals a deliberate strategy. Azzam’s background places him uniquely at the intersection of two critical worlds: financial regulation and startup investment, a combination that could be the catalyst for a new wave of public listings.

A Regulator with Startup DNA

The choice of Dr. Azzam for the top job at the EGX is particularly telling. From August 2025, he will be responsible for leading a market that is finally opening its arms to tech firms, a significant shift from its traditional focus on brick-and-mortar industries.

Azzam’s resume is a roadmap of this strategic intent. Prior to his appointment, he served as the Vice Chairman of the Financial Supervisory Authority (FRA), Egypt’s primary non-bank financial regulator. During his tenure, he was a key figure in drafting and implementing the new capital market rules designed to attract startups. This included the crucial Special Purpose Acquisition Company (SPAC) regulations and amendments to the Capital Market Law.

Perhaps even more significant is his past role as the managing director of the Small and Medium Enterprises Investment Fund Company, known as Bedaya. This entity is part of the state-backed “Fund of Funds” initiative managed by the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), which strategically deploys capital into venture funds across Africa. This hands-on experience in the startup ecosystem means he intimately understands the challenges founders face, particularly the perennial struggle for viable exit routes.

The Regulatory Overhaul

The push by Egypt’s exchange to make its public markets more accessible for startup IPOs isn’t just theoretical. The reforms are already in motion and have been a major focus of Dr. Azzam’s recent work.

First, there was a quietly explosive policy shift on taxation. The Egyptian government announced it would replace the much-maligned capital gains tax on listed securities with a flat stamp tax on transactions. This move is aimed at stimulating liquidity and making Initial Public Offerings (IPOs) a less terrifying proposition for founders and early investors. The old capital gains tax was widely seen as a deterrent, especially for startups whose high valuations often struggle to align with the expectations of traditional institutional investors.

Second, and most relevant to Dr. Azzam’s background, is the dramatic revamp of the country’s SPAC rules. The FRA recently issued a decree to upgrade its framework, moving beyond the “awkward shells” of the past. The new rules, dubbed “SPACs 2.0,” allow for share swaps and trading of shares post-acquisition, making the process far more flexible. Crucially, founder lock-ups have been eased, requiring sponsors to retain only 51% of their shares instead of 100%, a change that could make SPACs far more palatable for fast-moving, exit-hungry founders.

These policies, which Dr. Azzam himself publicly championed, have already produced tangible results. In May, Catalyst Partners completed Egypt’s first-ever SPAC merger, acquiring fintech startup Qardy in a deal worth approximately $23.15 million. Qardy, a digital lending platform for small businesses, became the test case for the new framework, with the transaction executed as a full share swap, a structure only recently made possible by the FRA’s updated regulations. If successful, this deal could pave the way for a more serious SPAC market in Egypt. Another major fintech, ValU, a consumer finance brand founded by EFG Hermes, is also in the pipeline for a high-profile listing, further solidifying the momentum.

What Egypt’s Experiment Means for Africa

Here’s the reality: while major African markets like Nigeria, Kenya, and South Africa have flirted with tech listings, they have yet to build a robust, predictable pipeline for startup exits. Many founders still look to overseas listings or private acquisitions as their primary exit routes.

Egypt, despite its macroeconomic challenges — including inflation and foreign exchange bottlenecks — is an exception. It is actively experimenting with new models, streamlining IPO regulations, and, perhaps most importantly, installing a leader at its stock exchange who has a deep understanding of the very problems the new policies are designed to solve.

The appointment of a seasoned regulator with a track record of shaping pro-startup policies — and who previously led a state-backed startup investment fund — signals a serious, long-term commitment by Egypt. The goal is to not only build a new public market for its homegrown startups but also to establish itself as a leader in creating viable capital market exits for a new generation of digital companies across the continent.