Egypt April, 2020 Table of Contents

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Market Review | Egypt April, 2020 Table of Contents

Country Profile Developer Population Technology Ecosystem

Economic Indicators Demographics Innovators

Technology Infrastructure Education Investors

Government Policy Employment Educators

Experience Enablers

Technology Infrastructure

Government Involvement Country Overview

3 Egypt’s tech ecosystem hold great growth potential as it’s Africa’s third largest country by GDP and population

General Population Gender Distribution Median Age Labor Force by Sector5 (2019) 50% | 50% 102.3M Female (7.7% of African Pop.) 24.6 | 19.7 +1.9% | +2.5% Years 1 50% | 50% YoY Growth Male

Egypt’s population trails only Nigeria and Ethiopia as the third largest country in Africa by national population

Development Figures High-Skilled Population

$12K | $5K 43% | 40%2 35% | 9%3 3% | 18%4 GDP Per Capita Urbanization Tertiary Enrollment High-Skilled (2020 PPP$) Rate Rate (2018) Migrant Outflow Despite higher than average Services and Industry sector penetration, Egypt’s unemployment is above A high rate of tertiary enrollment and more than 2x GDP per capita relative to African African and global averages (6% and 5%) m averages facilitates the development of coders

Legend Local Statistic | Africa Average Copyright © 2020 Accenture | Google Confidential & Proprietary 4 Sources: Statista, World Bank, IDC, Expert Interviews, Accenture Analysis Notes: 1. Growth rate from FY18 to FY19, 2. As of 2015, 3. Sub-Saharan Africa, 4. As of 2015, 5. Calculated unemployment Egypt’s reliable and affordable connectivity enables tech ecosystem expansion

Infrastructure Indicators Population Covered by at Least 3G (2018) Above / Below Global Average | Global Average (90% global average) 58% | 59% 95 | 69 Mobile Phone Subscriptions Internet Penetration (FY20E) per 100 People 16.1 | 30.5 $1.49 | $8.53 Mobile Internet Download Cost of 1GB Mobile Internet Speed (Mbps) (PPP$) 17.2 | 74.3 $46 | $50 Fixed Internet Download Monthly Cost of Speed (Mbps) 5GB Fixed Internet (PPP$)

60% 64% 68% 71% 75% 78% 81% 204 | 1,620 100% | 89% Population with Access to Servers shipped (FY20E) Official Electric Grid

Egypt’s mobile first users drive demand for new software Egypt’s 3G coverage has increased steadily and is higher than the global average products and technology consumption

Copyright © 2020 Accenture | Google Confidential & Proprietary Sources: Statista, World Bank, IDC, ITU, Cable.co.uk, Expert Interviews, Accenture Analysis 5 The Egyptian government has taken measures to growth the tech ecosystem despite poor governance

Notable Government Policies Governance Indicator Percentiles Low Global Median High The Egyptian Ministry of Investment & International Quality of Public 31st Cooperation runs programs to help founders Services & Policy develop skills and start new businesses Control of 31st Corruption Egypt’s General Authority for Investment and Free Zones provides favorable financing Stability of Political 12th opportunities for startups in specific sectors Establishment

Quality of Private The government-led Technology Innovation & 18th Entrepreneurship Center funds IT startups to Sector Regulation develop Egypt’s communication infrastructure Perception of the th Legal System 38 The Egyptian government established Fintech Cairo, the largest fintech accelerator in the Egypt is on the path to recovering from recent political instability and is world, to increase financial inclusion developing a reputation as a business-friendly environment

Copyright © 2020 Accenture | Google Confidential & Proprietary 6 Sources: Statista, World Bank, IDC, TechCrunch, Expert Interviews, Accenture Analysis, Morocco World News Notes: 1. Global Median represents median of percentile rank of countries (0 to 100 rank system) Demographics

Education

Employment

Developer Population Experience

7 Cairo and Giza are home to a large, primarily male software developer pool

Developer Population (FY20E) Gender Breakdown1,2 Age Distribution1,2 Developer Pop | Egypt General Pop

85,000 Male

0.46% 14% | 50% 86% | 50% Female of Non-Agricultural Labor Force Female Male

Top Cities for Developers Activities1 Technical Education

1 Cairo 28% Of all coders 2 Giza code as a hobby in their free time 3 Mansoura

Copyright © 2020 Accenture | Google Confidential & Proprietary 8 Sources: Statista, Accenture Surveys, Accenture Analysis Notes: Source data is directional due to small sample (N/A used when fidelity of data is too low), Survey was partially distributed by GDGs; 1. n=29; 2. Does not include those who refrain from answering, Percentages may not sum to 100% due to rounding Formally educated Egyptian developers represent roughly half of the population and earn 2X more than informally educated coders

FORMAL EDUCATION 1 LANGUAGE PROFICIENCY University3 41%

2 Gender Financial Top Software & 1 2 Telecom 3 Services Industries Hardware

Median Age Avg. Monthly Salary Full-Time 83% 17% 18-24 $1,000 58%

INFORMAL EDUCATION 1 Bootcamp, online courses, on-the-job, self-taught 59% Gender2 Top Software & Financial Formal Education 1 2 Telecom 3 Industries Hardware Services n=12 Informal Education n=17 Median Age Avg. Monthly Salary Full-Time 88% 12% “Many young coders will go abroad for work and return to take on more senior positions.” 18-24 $500 35% -Investor, Cairo

Question: How did you primarily learn to program or code?

Copyright © 2020 Accenture | Google Confidential & Proprietary 9 Sources: Accenture Surveys, Accenture Analysis Notes: Source data directional due to small N (N/A used if fidelity of data is too low), Survey was partially distributed by GDGs; 1. n=29; 2. Does not include those who refrain from answering, 3. Only universities with ICT programs are included in this analysis Egyptian coders are nearly equally split between full and part-time roles m

FULL-TIME ROLE 43%1 MONTHLY BASE SALARY FROM CODING

Gender2 Hours Coding 30% 40% 10% 20% per Week 5-10 11-20 21-30 > 30 Hours Hours Hours Hours Avg. Years of Top Industries Avg. Monthly Salary 80% 20% Experience Comms/Media/Tech, Average Monthly 4.1 $500 Salary ($700 USD) Financial Services

PART-TIME or FREELANCE ROLE 57%1

Gender2 Hours Coding 8% 8% 61% 23% Full-Time & Part-Time per Week 5-10 11-20 21-30 > 30 n=23 Hours Hours Hours Hours Avg. Years of Top Industries Avg. Monthly Salary N/A N/A Experience Comms/Media/Tech, 3.3 $600 Telecom

Question: How do you spend your time coding or programming?

Copyright © 2020 Accenture | Google Confidential & Proprietary 10 Sources: Accenture Surveys, Accenture Analysis, Trading Economics Notes: Source data directional due to small N (N/A used if fidelity of data is too low), Survey was partially distributed by GDGs; 1. n=23, 3 answered both full-time and part-time and are not included; 2. Does not include those who refrain from answering Egypt has above average percentage of senior developers compared to African peers

JUNIOR DEVELOPER 1 DEVELOPER PLATFORMS OF CHOICE Less than 6 years of coding experience 21% Open Repository Usage Top Languages Gender2 4% Once a year 26% Once every 6 months 1 Python 9% Once a month 2. JavaScript 30% Once a week 31% Have never contributed 3. CSS 83% 17% Top Industry Avg. Monthly Salary Full Time Comms/Media/Tech $500 35%

SENIOR DEVELOPER 1 Over 6 years of coding experience 79% Open Repository Usage Top Languages Gender2 17% Once a year 0% Once every 6 months 1 Python 17% Once a month 2. JavaScript 17% Once a week 50% Have never contributed 3. CSS, HTML5 Senior & Junior N/A N/A Top Industry Avg. Monthly Salary Full Time Developers Comms/Media/Tech $1,400 83% n=29

Question: How many years of professional coding or programming experience do you have?

Copyright © 2020 Accenture | Google Confidential & Proprietary 11 Sources: Accenture Surveys, Accenture Analysis Notes: Source data directional due to small N (N/A used if fidelity of data is too low), Survey was partially distributed by GDGs; 1. n=29; 2. Does not include those who refrain from answering Innovators (focus areas)

Innovators (fundraising)

Investors

Educators Technology Ecosystem Enablers

12 The Egyptian tech ecosystem is fragmented: e-commerce represents nearly 1/4 of total startups with a long tail of other segments Breakdown by Top Verticals Alexandria

Giza 22% 9% 8% 7% 7% E-Commerce Fintech Adtech/ SaaS Healthtech Mediatech

Sharm El-Sheikh

6% 6% 5% 5% 25% Foodtech AI, Big Data, Cleantech HRtech Other Cairo Governorate Cloud Major City: Cairo Top Verticals:E-commerce (22%), Fintech (10%), Healthtech (8%) Headcount & Founder Demographics (2020)

Concentration of Startups 13% Low High Startups withat least one woman founder; of “Compared to other countries, startups in Egypt are seeing more which e-commerce, Series A and B funding, but there is also a huge over-valuation of larger startups.” mediatech & healthtech - Investor, Cairo are leading verticals

Copyright © 2020 Accenture | Google Confidential & Proprietary 13 Sources: Accenture Surveys, Accenture Analysis, Expert Interviews Notes: Calculations based on startups headquartered domestically and with an active website Egyptian startups have flourished since 2015 with high investor interest: nearly a third of startups received funding from multiple investor groups Investor Count by Company Age (2020) Distribution of Startups by Stage (2020)

Egyptian startups have flourished since the 2011 revolution as a result of increasing political and economic stabilization

Innovator Characteristics 9%1 of the startups operating in Egypt are headquartered 39% internationally of the startups primarily focus on 17% of of the startups arepart the B2B market More than 4 of every 5 startups are young companies and still in the of the software & IT sector seed round, pointing to the high growth potential for the ecosystem

Copyright © 2020 Accenture | Google Confidential & Proprietary 14 Sources: Accenture Surveys, Accenture Analysis, Expert Interviews Notes: Calculations based on startups headquartered domestically and with an active website 1. Calculated based on startups operating in-country, headquartered domestically or internationally International investors play a prominent role in Egypt, while the local investment pool is still developing Type of Investors (2020) Investors

Egypt (18%) Middle East USA (22%) (24%) EU (15%) UK (11%) Rest of Africa (6%)

Other (4%) Leading Egyptian Investors Cairo Angels is Egypt’s first formal angel network; has Invested $2.4 million in 25 startups across 6 cities, focusing on Egypt and North African countries Sawari Ventures is a Cairo-based fund providing seed Areas of Focus capital to entrepreneurs based in North Africa and the Middle East 22% of foreign investors only invest in seed or early Flat6Labs invests $30-50K in seed funding with the stage vs 53% of local investors possibility for follow-up funding, with active seed and accelerator programs in two North African cities ~61% of investors active in Egypt invest in the software sector “The largest Egyptian VCs get money from development funds such as CDC, USAID, EBRD and increasingly local Egyptian banks’ venture arms.” 10% of investors active in Egypt solely invest in - Investor, Cairo/SF e-commerce startups

Copyright © 2020 Accenture | Google Confidential & Proprietary 15 Sources: VC4A, Disrupt Africa, Accenture Surveys, Accenture Analysis, Expert Interviews Notes: 1. Other includes foundations, corporate venture capital, social impact investors and crowdfunding platforms The university system in Egypt is well established while informal education channels, such as bootcamps, have yet to take off outside of Cairo Educator Type Breakdown LEGEND Concentration of Educators Coding Bootcamps 2 Average Universities 41% Public month Duration Alexandria Cairo 19 5 Cairo 11% Uktubar 79% Coding 1 1 Median Universities Giza Alexandria 3 - Bootcamps 20 Cohort Private learners 59% Size Asyut Giza 4 - Case Study: CLS Learning

Uktubar 3 - Overview: Founded in 1995, CLS Learning leverages an international network of partners, trainers and instructors to deliver thousands of courses to individuals and corporations, serving as Size of bubble indicates level of concentration Egypt’s leading professional training market.

“Most developers come from universities including government-backed Partners (sample): universities with strong engineering programs.” - Investor, Cairo

Copyright © 2020 Accenture | Google Confidential & Proprietary 16 Sources: Accenture Surveys, Accenture Analysis, Expert Interviews Notes: Calculations based on educators with a physical presence in-country. 1. 10% of Educators are Online Schools Cairo and Giza, separated by less than 10 miles, combine to form an attractive hub for entrepreneurs LEGEND Concentration of Enablers Incubators/Accelerators vs Hubs Accelerators Incubators Cairo 9 14 11 Hubs Alexandria 23% Cairo Government or 60% 23% 17% University Backed 3 4 2 Giza Giza

Asyut Alexandria 1 3 1 Incubators/Accelerators Hubs (Co-working spaces)

Case Study: Falak Startups Asyut - 1 - Overview: The Cairo-based 6-month acceleration program provides equity investment (1M EGP) with networking and training opportunities. It is sector agnostic but looks for scalable, tech driven startupswith logistics, cleantech, healthtech & e-commerce as focus areas. Size of bubble indicates level of concentration Partners(sample) : “Many of the seed rounds of funding are led by accelerators and incubators, and startups leverage the networks they develop through the program(s) to gain additional funding from angels or VCs." - Enabler/Investor, Cairo

Copyright © 2020 Accenture | Google Confidential & Proprietary 17 Sources: Accenture Surveys, Accenture Analysis, Expert Interviews Notes: Calculations based on enablers with a physical presence in-country Supporting Materials

Countries Analyzed South Africa, Egypt, Morocco, Nigeria, Kenya, Ghana, Rwanda, Ethiopia, Uganda, Tanzania, Ivory Coast A company that meets the following criteria: ● In growth stage of funding (e.g., seed round, series A - F) African Startup ● Technology-focused ● Headquartered in Africa or driving the majority of its revenue in Africa Tech Ecosystem The network of people, organizations and institutions that enable innovation

Innovator African startup (see definition above)

Investor Provides funding in the tech ecosystem (e.g. venture capital, corporate venture capital, angel investors, government funding, private equity)

Educator Provides technical training or education (e.g. university, bootcamps, online courses, on-the-job training)

Enabler Provides support in the form of work space, training, education, mentorship or funding (e.g. accelerators, incubators, work hubs)

Professional Developer An individual that is employed in a job that involves coding and spends 5 or more hours per week coding

Junior Developer An individual with less than six years of coding experience

Senior Developer An individual with six or more than six years of coding experience

Formal Education Universities or secondary schools that provide information communication technology (ICT) curriculum

Informal Education Bootcamps, online course, self-taught or on-the-job curriculum to teach coding skills