Egypt is one of the most dynamic and innovative markets for fintech in the Middle East and Africa. According to FinTech Egypt, a platform that connects startups, investors, mentors and financial corporations, there are more than 200 fintech startups operating in the country, offering solutions for payments, lending, insurance, personal finance, remittances and more.
One of the main drivers of fintech growth in Egypt is the government’s vision to promote financial inclusion and digital transformation. The Central Bank of Egypt (CBE) has launched several initiatives to support fintech development, such as the regulatory sandbox, the fintech innovation hub and the fintech fund. The CBE has also issued licenses for non-bank entities to provide electronic payment services and mobile wallets.
Another factor that contributes to fintech innovation in Egypt is the large and young population, with more than 100 million people and a median age of 25. Many Egyptians are underserved or unbanked by traditional financial institutions, creating a huge demand for alternative and accessible financial solutions. According to a report by EFG Hermes, only 32% of adults in Egypt have a bank account, while 86% have a mobile phone.
Some of the most successful and promising fintech startups in Egypt include:
– Fawry: The leading electronic payment network in Egypt, with more than 30 million users and 250,000 service points. Fawry offers a range of services, such as bill payments, e-commerce payments, money transfers and cash deposits. Fawry was ranked first on Forbes Middle East’s list of 30 fintechs in 2023, with a market value of $2.5 billion.
– MNT-Halan: A digital banking platform that provides financial services for consumers and merchants in underserved segments. MNT-Halan offers mobile wallets, micro-loans, nano-insurance and ride-hailing services. MNT-Halan became the latest unicorn from Egypt after raising $200 million from Chimera Abu Dhabi in February 2023.
– Paymob: A payment service provider that enables merchants to accept online and offline payments through various channels, such as cards, mobile wallets, QR codes and cash. Paymob also offers payment infrastructure and APIs for banks and fintechs. Paymob raised $18.5 million in a Series A round led by Global Ventures in July 2022.
These are just some examples of the vibrant and diverse fintech activities in Egypt. As the country continues to embrace digital transformation and financial inclusion, we can expect to see more innovation and opportunities in the fintech sector.