Egypt is the second most active FinTech startup hub in MENA
Monday, 10 28 2019, Category: Technology, Country: Egypt
Egypt is the second most active FinTech startup hub in MENA, but still receives little funding: Egypt’s share of 51 disclosed fintech startup funding agreements closed in the MENA region in the first nine months of the year grew to 27%, or about 13 agreements, from only 13% in the entire 2018, the latest MENA FinTech Venture Report by Magnitt shows. Despite this lively fintech scene, the value of funding received by Egyptian startups accounted for a disproportionate 7% of the MENA total for the segment. We trailed behind both Bahrain and Lebanon, which accounted for 9% fundraising on a lower volume of transactions.
The report suggests this discrepancy may be explained by differences in government involvement. The Central Bank of Egypt newly-launched EGP 1 bn (USD 57 mn) fund was dwarfed by three Emirati government-sponsored funds whose combined value is USD 1.2 bn. The CBE’s fund, a two-year program for fintech startups in partnership with the IIF, is also smaller than Bahrain’s USD 100 mn Al Waha Fund of Funds. We took note earlier this year of the potential of the booming sector to bring more Egyptians into the formal economy and drive financial inclusion.