Central Bank of Egypt (CBE) is set to establish ~$58 million fund (EGP 1 billion) to invest in FinTech startups of the country, CBE’s Sub Governor for Payment Systems and Information Technology Ayman Hussein revealed earlier this week, speaking at an event, according to a report by Daily News Egypt.
“Egypt has the success factors that qualify it to pioneer in the FinTech industry, including the huge demand for financial services, strong banking sector, telecommunications companies, electronic payment companies, insurance companies, regulatory institutions, incubators, business accelerators, investors, and small and medium-sized enterprises (SMEs) financiers,” said the CBE executive.
Following its peers in the Gulf, CBE also plans to establish a FinTech sandbox called Financial Technology Application Lab “that will balance innovation with risk reduction while ensuring customer protection,” added Ayman Hussein.
It is not clear when exactly the fund will become operational and start investing in the startups.
Late last year, Commercial International Bank (CIB), the largest private bank of the country had also announced the establishment of its corporate VC called CVentures to invest in FinTech startups of Middle East & Africa.