Egypt's government and private sector representatives announced on Tuesday the creation of a start-up incubator to promote economic growth and create jobs.
With LE10 billion ($1.4 billion) in capital, Ayady for Investment and Development will be 20 percent state-owned and 80 percent private, planning minister Ashraf El-Araby said at the launch.
The company will provide training, feasibility studies, funding and export opportunities to young entrepreneurs, said the minister, acting as an "incubator" for nascent projects, with an on-the-ground presence in Egypt's 27 governorates, said El-Araby.
The Egyptian economy has been suffering from weak growth, high inflation and unemployment since a 2011 popular uprising toppled Hosni Mubarak. The government introduced a series of reforms this year to shore-up its finances, including raising taxes and cutting energy subsidies.
Ayady will own a 25 to 40 percent stake in the projects it takes on, for a period of three to five years, said Assem Ragab, Executive Partner of Investment Banking and Corporate Finance Advisory firm FACT, and former chairman state-run General Authority for Investment (GAFI).
Stakeholders in Ayady include among others Faisal Islamic Bank, Tahya Misr Fund, and civil society organisation Misr El Kheir Foundation. Private backers include the Federation of Egyptian Industries (FEI), and the Federation of Egyptian Chambers of Commerce, said the minister.
Unemployment reached 13.1 percent in September. The Egyptian economy grew by 2.2 percent in the fiscal year ending in June.
