Egypt state banks setting up $85 mln fintech innovation fund to boost sector

Egypt’s three biggest state-owned banks are setting up an $85 million financial technology fund that aims to accelerate innovation in the sector, venture capital firm Global Ventures, a partner in the fund, said on Sunday.

Legislative and regulatory changes in Egypt over the last two years have paved the way for a surge in fintech investments and a change in the way the country's largely unbanked citizens do business, industry players say.

For the latest headlines, follow our Google News channel online or via the apps.

Banque Misr will act as an anchor investor in the program, with National Bank of Egypt and Banque du Caire as strategic investors, said the statement by Global Ventures, which focuses on the Middle East and Africa.

eFinance Investment Group, a state-controlled payments firm, and Egyptian Banks Co, a payments operator led by the central bank, will also participate. The fund, called Nclude by Global Ventures, hopes to attract additional participation from regional and international investors, it added.

The statement quoted Egyptian central bank governor Tarek Amer as saying the fund's establishment was “a crucial step to transform Egypt into a regional center for the fintech industry in the Arab World and Africa.”

The fund has already made preliminary investments in four companies, it said.

These are Khazna, a financial app that provides products to underserved consumers; Lucky, which offers instalments, cashback rewards and credit to consumers; Mozare3, which provides small farmers with input financing, markets and technical support; and Paymob, a digital payment provider.

Read more:

Egypt displays recently discovered ancient tombs in Saqqara

Washington to provide Egypt with F-15 jets, US general says

Egypt in IMF talks on possible funding amid war pressures, looks at several options