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Wednesday, 24 July 2019

Egypt’s first EGP 1 bn fintech fund to launch early 2020

Egypt’s first fintech fund to launch early 2020: The Central Bank of Egypt’s (CBE) EGP 1 bn fund to back fintech startups will be up and running at the start of next year, banking sources tell Al Mal. Several unnamed international and local institutions will invest alongside the CBE in the fund, which will focus its investment strategy on financing “both directly and indirectly” fintech venture capitalist funds and startup incubators and accelerators, the sources say. The fund will see its size increase within five years to c.USD 500 mn from an original USD 50-100 mn, the sources expect. The CBE is expected to announce soon types of businesses it will be looking to prioritize.

Background: CBE Governor TarekAmer first announced the fund during the 2018 Seamless North Africa digital and fintech conference, which saw former Prime Minister Sherif Ismail speak of plans to make Egypt a regional hub for fintech innovation. Advisory firm Ernst and Young has already finalized the fund’s bylaws and internal structure, according to sources with whom Al Mal spoke recently.

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