Earlier this year, Egypt captured global attention with a significant $35 billion funding deal from the UAE, with additional investments anticipated from Saudi Arabia and the IMF. This surge in foreign investment underscores the country’s immense potential for economic growth and highlights its burgeoning status as a regional powerhouse.
One of the highlights of Egypt’s economy is its thriving fintech ecosystem, with over 170 Fintech startups in Egypt, in various fields such as PFM, payments, remittances, and various other areas, ,which is a testament to its talent, innovation, and resilience. The sector has rapidly evolved, showcasing the North African nation’s capability to lead in financial technology and digital innovation. It also demonstrates the nation’s capacity to drive substantial economic progress.
By leveraging this dynamic industry, Egypt stands poised to not only achieve economic stability but also to elevate its status on the global stage. The country’s strategic focus on fostering innovation and attracting investments positions it to secure a prosperous future, setting it apart from regional competitors and ensuring long-term economic success for future generations.
The African Continental Free Trade Area
The African Continental Free Trade Area (AfCTA), which aims to create a unified market across Africa, represents a significant opportunity for Egypt to boost long-term revenue by expanding its market access and fostering economic integration. By participating in AfCTA, Egypt can tap into a vast market of over 1.3 billion people, rapidly increasing its export potential. This trade agreement reduces tariffs and non-tariff barriers, increasing the competitiveness of Egyptian goods and services among fellow African signatories.
Egypt’s established fintech industry is well placed to benefit from further integration with the African continent, boasting a deep talent pool and thriving startup ecosystem ready to drive fintech innovation with partners beyond its borders. Regulatory support is also abundant with pro-fintech policies at the centre of Egyptian National Vision 2030, leading to recent designations for non-banking financial services (NBFS), supporting companies at the cutting edge of fintech in Egypt. The result is a booming industry that attracted $797m in funding in 2022.
Advanced Fintech Infrastructure Can Boost Egypt Exports
Financial inclusion in Egypt has soared over the past decade, increasing from 25.8% in 2016 to 70.7 % in 2023 according to The Central Bank of Egypt. Mobile banking and digital wallets have proven key to expanding access to financial services, enabling consumers to access banking and payment services without traveling to bank branches, reaching underserved populations. The expansion of the AfCTA presents a crucial opportunity to utilise the country’s infrastructure and expertise to boost financial inclusion across the African continent; in Sub-Saharan Africa, only 49% of adults have a bank account (World Bank).
Egypt’s fintech industry is ready for the challenge: the country’s payment companies have developed payment solutions that facilitate cross-border transactions across Africa, Egypt’s ability to effect change throughout the continent.
Fawry, the first Egyptian unicorn, enabled a shift to card-based payments and supports over 35 million users – more than half of North African nation’s adult population. A new generation of fintechs is building on Fawry’s success, such as Taly, committed to raising the adoption of digital payments with an expansive ecosystem of financial infrastructure, and the explained partnership here reflects on how such fintechs are also helping increase financial inclusion in the country.
Usama Elsayed, COO for MEA at BPC
