Back to the complete issue
Wednesday, 10 March 2021

NBE pushing into non-bank financial services

Al Ahly Capital has wrapped up its acquisition of a 75% stake in e-payments player Momken, National Bank of Egypt Chairman Hisham Okasha said at a press release (pdf). (NBE is parent company of Al Ahly.) The acquisition brings Momken under Tamkeen, a platform for a host of non-banking financial services companies that will operate as subsidiaries of a new holding company, Al Ahly Capital Holding Financial Services. Reports last week suggested Al Ahly was on board to pay EGP 100 mn for the stake, while Al Mal reports in its print edition this morning that the transaction was worth EGP 140 mn.

Advisors: On the buy-side, ALC Alieldean Weshahi & Partners acted as counsel for Al Ahly and PwC was financial advisor. Zilla Capital and Zaki Hashem & Partners, meanwhile, were the sell-side financial and counsel to Momken.

There’s more where that came from: State-owned NBE is looking to create one of the biggest NBFS players in Egypt and support the government’s bid to promote digitization and financial inclusion, Okasha said. There are more acquisitions in the pipeline, including potential stakes in several existing fintech and NBFS companies over the next three years and partnerships with startups in the field, NBE Vice Chairman Dalia El Baz said. While no potential targets were named, Al Ahly Capital was previously said to be in talks to acquire payments platform Sadad. The expansion plan also involves greenfield investments and setting up new companies, Al Ahly CEO Karim Saada said yesterday.

Beginning with microfinance: Al Ahly is aiming to set up 150 branches for microfinance clients over the next three years, all of which will rely on electronic services, NBE microfinance division head Magdy Moussa said. Some 50 branches will be added in the first year, with an eye to reach over 30k clients, starting with Upper Egyptian cities including Beni Suef, Luxor, Aswan, and Sohag, he added.

Further down the line: Tamkeen will be the umbrella for (and public face of) a full range of NBFS services — including consumer finance, leasing, micro-ins., and factoring, Moussa told us.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.