Fawry, the pioneering force in Egypt’s e-payment landscape, has announced a significant advancement in its strategic vision as its subsidiary, Fawry Microfinance, attains preliminary approval from the the country’s Financial Regulatory Authority (FRA) to introduce Small and Medium Enterprise (SME) financing to its extensive portfolio. The green light for this new initiative comes as a pivotal stride in Fawry’s overarching growth strategy, which encompasses broadening its service spectrum and forging new avenues for revenue diversification.
Fawry’s trailblazing journey has continuously carved out landmarks in the digital financial sector, and this latest feat underscores its commitment to fortify its presence as a leading digital finance facilitator in Egypt. As the economy evolves and digital transformation permeates every facet of business, Fawry Microfinance’s forthcoming SME financing offering is poised to synergize with its sibling subsidiaries, constituting an integrated ecosystem of financial services that cater both to individual and enterprise needs.
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Eng. Ashraf Sabry, Chief Executive Officer of Fawry, remarked, “The attainment of regulatory approval by Fawry Microfinance stands as a testament to the relentless dedication exhibited by the entire team. This milestone represents a new era for Fawry, one that has been diligently crafted over several months. Upon its official launch, this novel addition to our service repertoire will empower us to tap into untapped segments, underscoring Fawry’s pivotal role in advancing financial inclusivity across Egypt. We anticipate that this green signal, coupled with the forthcoming expansion of Fawry Microfinance’s suite of services, will not only bolster the company’s financial performance but will also foster a symbiotic environment that caters to both businesses and individuals.”
In a remarkable achievement unveiled in 2022, Fawry Microfinance’s cumulative loan issuance eclipsed EGP 1 billion ($63.6 million) since its inception. Established in 2018 with a core objective to proffer accessible and affordable financial solutions to Egypt’s burgeoning small businesses and entrepreneurs, Fawry Microfinance has harnessed the prowess of a comprehensive digital infrastructure to dispense loans and streamline repayments. The laudable endeavors of Fawry Microfinance stand as a vital contribution towards the nation’s drive for financial inclusion and the digitization of financial services.
CEO Eng. Ashraf Sabry reiterated the paramount importance of financial inclusion, stating, “The value of affordable financial services is becoming increasingly evident with each passing day. By granting access to such services, small- and medium-sized businesses, which constitute the backbone of Egypt’s labor force, can expand, invest, and foster inclusive economic progress. Fawry Microfinance takes pride in its track record of creating tangible opportunities for entrepreneurs and families, enabling them to invest in their futures and aligning with the government’s endeavor to achieve sustainable growth by extending marginalized groups’ reach to financial services.”
Amidst the echoes of the COVID-19 pandemic’s influence on global economies, Fawry Microfinance’s portfolio burgeoned remarkably in 2021. The year concluded with an outstanding portfolio of EGP 437 million, exhibiting a commendable growth of 67 percent over the EGP 267 million recorded at the end of 2020. Impressively, the subsidiary achieved a collection rate of 98.5 percent by the end of 2021, reaffirming its operational efficiency and resilience.
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With an impressive client base, nearly 40% of whom are under 30 years old, Fawry Microfinance substantiates Fawry’s unwavering dedication to sustainability and the overarching goal of fostering financial inclusivity. This commitment extends beyond urban centers, as Fawry Microfinance’s services span across 25 out of Egypt’s 27 governorates, encompassing a significant portion of rural and economically underserved communities.
The landscape is further illuminated by the revelation that a substantial portion of Fawry Microfinance’s clientele, nearly 60%, constitutes prior Fawry customers introduced to the Company’s merchant network through Fawry POS equipment. This network enabler allows the subsidiary to offer a range of services, spanning omnichannel acceptance to the establishment of e-commerce platforms, underpinning a holistic approach to financial service delivery.
Founded in 2008, Fawry has emerged as Egypt’s foremost e-payment platform, catering to both banked and unbanked populations. At its core, Fawry facilitates electronic bill payments, mobile top-ups, and a plethora of services, serving millions across Egypt. In tandem, Fawry’s peer-to-peer model empowers corporates and SMEs to embrace electronic payments through diverse channels, including websites, mobile devices, and POS systems. With an extensive network spanning 36 member banks, a dynamic mobile platform, and an expansive agent network exceeding 250,000, Fawry orchestrates approximately 3 million daily transactions, benefiting an estimated 35 million users each month.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard