In a recent announcement, the Central Bank of Egypt revealed that the “Nclude” Fund for Financial Technology has exceeded its initial target capital of $85 million, reaching an impressive $105 million in its latest round of funding. This achievement comes as a result of contributions from various banks operating in Egypt, including the National Bank of Egypt, Banque Misr, and Banque du Caire, along with several specialized companies in the financial technology sector.
The Central Bank had high hopes for the “Nclude” Fund, expecting it to attract prominent regional and international investors, solidifying its position as the largest financing fund in the technology sector with a targeted capital of $150 million. The Fund’s investment strategy has focused on supporting innovative startups, directing its resources to four new companies, thereby increasing its portfolio to include eight companies operating in the realm of financial technology.
This milestone reflects the Central Bank’s commitment to promoting and advancing the financial technology ecosystem within the Egyptian market. It aligns with the central bank’s overarching strategy to foster innovation and creativity in financial technology and contribute to Egypt’s emergence as a prominent hub for fintech in the Arab world and Africa.
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Back in March 2022, in response to the Central Bank’s approval, prominent national banks in Egypt, namely Banque Misr, the National Bank of Egypt, and Banque du Caire, along with Global Ventures, a leading venture capital firm focusing on the Middle East and Africa, jointly launched “Nclude by Global Ventures.” This fund’s primary objective is to stimulate fintech innovation and enhance financial inclusion.
The initial investment commitment, initially set at $85 million, was spearheaded by Banque Misr as the Anchor Investor, with the National Bank of Egypt and Banque du Caire acting as Strategic Investors. Additionally, the Fund garnered investments from the finance investment group and the Egyptian Banks Company. Furthermore, it is anticipated that the Fund will continue to attract substantial investments from regional and global investors.
In its early stages, the Fund has already made strategic investments in companies such as Khazna, a financial super app; Lucky, Egypt’s leading consumer fintech app; Mozare3, an agri-fintech platform; and Paymob, a prominent digital payment service provider. Additionally, the Fund will receive support from Shipyard Technology Ventures, a global venture builder, bringing their development capabilities to the Egyptian market to incubate fintech startups tailored to local and regional opportunities.
This development aligns with the vision of Mr. Tarek Amer, Governor of the Central Bank of Egypt, who expressed his commitment to supporting innovative youth in fintech, enhancing financial services accessibility, and making Egypt a central player in the fintech landscape. The endeavor is seen as a pivotal step towards digital transformation, financial inclusion, and the realization of Egypt’s Vision 2030.
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Chairpersons of major Egyptian banks, including Banque Misr, the National Bank of Egypt, and Banque du Caire, all emphasized the significance of the “Nclude” Fund in driving Egypt’s fintech future and fostering a thriving ecosystem for fintech talents and young entrepreneurs.
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