Over the last few years, Egypt has slowly started to build its reputation as a fintech hotspot in the MENA region. The country is now home to nearly 75 fintech startups, and Startup Genome recently ranked Egypt as Africa’s leading fintech ecosystem. With a favourable business environment and a federal government that wants to digitise the finance sector, it’s leading to a boom in the number of fintech startups operating in Egypt.
This article will explore the growth behind fintech in Egypt and discuss some of the new and exciting fintechs emerging from the region.
Egyptian Government Initiatives Are Proving Key to Fintech Growth
The main reason why fintech is booming in Egypt is down to government initiatives. In 2019 the government announced the set up of a $57 million fund via the Central Bank of Egypt (CBE) to ensure the development of financial technology in Egypt. The CBE has also created a strategy to help connect investors with entrepreneurs and establish a regulatory sandbox that will allow fintechs to test their products and services safely. Similarly, initiatives like startup incubators from Algebra and Flat6Labs help foster and invest in fintech entrepreneurs.
Some of The Exciting New Fintech Egyptian Leaders
Here are five of the hottest fintech companies that are growing in popularity in Egypt right now.
Fawry is a digital transformation and e-payments platform. Since being founded in 2008, they have gone on to become the leading e-payment solution in Egypt. Over 20 million consumers and businesses now use their services to send and receive money. In 2020, they became the first tech company in Egypt to achieve a 1 billion-dollar valuation.
Founded in 2014 by Sahar Salama, this fintech company is a leading mobile payments provider in Egypt, connecting underbanked consumers with merchants worldwide. Over 14M people use their services every month, and the company processes $1.5 billion in monthly transactions.
Dopay offer payroll services for the unbanked. Their service aims to help the two billion people worldwide who lack access to a bank account. By automating the payroll process for employers and providing unbanked employees with a debit card and mobile app, they are helping create a more financially inclusive world. The company has received backing from the investors behind Twilio and Transferwise, as well as leading bankers.
Money Fellows is a group lending and savings platform founded in 2016. Through a social network, users can access saving achievements and interest-free credit. The platform now has over 150,000 active users. In 2020, they raised $4 million in a Series A round from Paris-headquartered global VC Partech and Egypt’s Sawari Ventures.
Masary serves the unbanked population in Egypt by building e-payment gateways and e-wallets. The company offers various services from paying utility bills and using governmental services, to even donating to charities. The company is one of the leading payment facilitators in Egypt with a market share of 30%.
The Future Looks Bright
The fintech ecosystem in Egypt is rapidly growing with new startups continually cropping up. Despite the challenges and setbacks many fintech startups are facing because of COVID-19, we think the long-term future is very bright for Egypt’s fintech industry.