Several Egyptian state-owned banks will join forces next month to launch a $63.6 million fund to encourage fintech startups, as part of a new push to strengthen the local sector and bring more people into the formal economy, an official statement has stated.
The fund will be founded on President Abdel Fattah El Sisi’s orders by the National Bank of Egypt, Banque Misr, and Banque du Caire, with a minimum capital of EGP 1 billion ($63.6m), according to the release. The fund is open to participation from other financial institutions.
The fund will support both Egyptian fintech startups and international companies looking to enter the Egyptian market. It will also aim to enable new fintech applications that will make the process of offering and delivering financial services easier.
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The fund is timed to coincide with new regulations aimed at growing Egypt’s fintech sector: Last year’s Banking Act and draft laws drafted by the Financial Regulatory Authority aim to solidify Egypt’s position as a fintech hub in the MENA region, while also promoting financial inclusion among the general public, which is a significant driver of investor interest in the sector.
The Banking Act addressed some of the industry’s regulatory concerns by establishing a process for the licensing of e-payments and fintech companies, as well as providing a framework for the licensing of digital banks for the first time. The FRA bill, which is currently being debated by parliamentarians, will establish new licensing and supervisory authorities for nanofinance, crowdfunding, robo-advisory, and insurtech enterprises.
Egyptian banks fund fintech Egyptian banks fund fintech
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer