Egypt: GIZ and Enpact Launch Venture Debt Programme in Egypt

GIZ Egypt and enpact have launched a new initiative to develop venture debt financing in Egypt, targeting both financial institutions and startup founders.

The programme, called Scale It Forward, aims to address gaps in the country's funding landscape, where capital is largely driven by equity investments. Egypt's startup ecosystem raised about $614 million in 2025, but structured debt options remain limited.

Under the initiative, five financial institutions will be selected to pilot venture debt products. These institutions will receive technical support and access to a pipeline of startups seeking growth capital.

The programme will also support 30 scaleups with training and €5000 in non-repayable funding to improve financial readiness and access debt financing. Participating institutions will be able to deploy loans starting from about €30000.

Organizers said the initiative is designed to connect capital supply with demand while reducing risk for lenders entering the venture debt space.

Key Takeaways

The launch of Scale It Forward highlights a shift in how startup ecosystems in emerging markets are evolving beyond equity-only financing models. Venture capital has been the dominant funding source in Egypt, but it often requires founders to give up ownership, which can limit long-term value retention. Venture debt offers an alternative by providing growth capital without immediate dilution, making it attractive for companies that have reached a certain level of maturity. However, the market for venture debt in Egypt remains underdeveloped due to limited expertise among financial institutions and perceived risk. By targeting both lenders and startups, the programme addresses both sides of the market. Financial institutions receive support to design and deploy debt products, while startups are prepared to meet credit requirements. This dual approach increases the likelihood of successful transactions. For the broader ecosystem, the development of venture debt could improve capital efficiency, allowing equity to fund early-stage risk while debt supports scaling. Over time, this can lead to more balanced financing structures and stronger company growth trajectories.

Read the original article on Daba Finance.