The report, issued by Entlaq, a Cairo-based research and consulting centre in partnership with the Netherlands Enterprise Agency (RVO) and the Dutch Embassy in Egypt, provides an overview of the unprecedented growth of fintech (financial technology) in the Egyptian market.
According to the report, Egypt ranked 10th among emerging markets worldwide and achieved a remarkable 12 percent growth rate.
The report was unveiled at an event hosted by the Dutch embassy. Influential leaders attended, including Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI); Mohamed Farid, chairman of the Financial Regulatory Authority (FRA); and international fintech leaders.
Breakthroughs in digital payments, lending platforms, and B2B marketplaces have powered the fintech surge. Proactive government policy interventions, including the monetary system inclusion and digitization, nurtured this surge further.
The report shows a 70.7 percent increase in financial inclusion rates, reflecting heightened adoption of prepaid debit cards and growing trust in digital services nationwide.
Youth at the forefront!
The report casts Egyptian youths as the architects of the fintech revolution, with just over 60 percent of the nation’s population under 30.
This vibrant, tech-native sector — led by Gen Z and millennials — rewrites the rules of engagement with financial services, seamlessly blending their digital fluency with a steep appetite for innovation. Their brisk embrace of mobile-first solutions and digital marketplaces has ignited a fintech breakthrough.
Gen Z’s influence extends beyond adoption, reshaping the financial ecosystem. From the meteoric rise of digital wallets to peer-to-peer lending platforms, Egypt’s youth have made fintech a cornerstone of their lives, driven by a desire for convenience, transparency, and control over their financial transactions.
This demographic edge is supported by government initiatives to foster digital transformation. Programmes such as the FRA’s sandbox framework and NilePreneurs empower young entrepreneurs to realize their dreams.
Egypt fintech evolution
Egypt’s fintech evolution reflects years of strategic planning and investment. The Central Bank of Egypt (CBE) has spearheaded initiatives like the FinYology programme, launched in 2020, to nurture young talent and drive innovation.
With over 7,400 students contributing to 600 fintech projects across 30 universities, these efforts have paid it forward. Recent and consecutive wins at the Dubai-based Arab FinTech Challenge, including Cairo University’s 2024 victory with EZRAALI, an agri-fintech application, stress the country’s deeply engaged budding pioneers and passion for fostering financial innovation and early entrepreneurial involvement.
The burgeoning startup culture, incubated by accelerators like AUC Venture Lab, reflects the aspirations of a generation determined to lead Egypt into a new financial era.
Egypt tech-savvy youth!
Dutch Ambassador Peter Mollema described the fintech ecosystem as a “catalyst for resilience and innovation,” emphasizing Egypt’s tech-savvy youth as its greatest asset.
For his part, FRA Chairman Mohamed Farid highlighted recent regulatory advancements, including the sandbox framework and SPAC initiatives, as further documentation of Egypt’s steadfast commitment to bolstering fintech innovation.
Gen Z’s role is greatly magnified by their inherent adaptability and tech-savviness, which has enabled them to leapfrog outdated financial systems and embrace cutting-edge tools.
Hurdles to Egypt's fintech growth
The report’s findings, however, also show the challenges that hurdle Egypt’s fintech growth. With growing threats over cybersecurity vulnerabilities, Egypt’s fintech ecosystem faces heightened risks tied to the rapid digitization of financial services. Regulatory gaps in data protection and privacy compliance, compounded by increased cyberattacks targeting financial platforms, affect consumer trust and sector stability.
Pervasive gaps in digital literacy underscore aggravated inequities in access. The uneven sprawl of broadband infrastructure, particularly in rural regions, only compounds the divide.
Meanwhile, the volatility of the Egyptian pound and a restrained influx of international capital weigh heavily on the ecosystem’s ambitions, threatening to dampen the momentum of the fintech sector.
Way out!
The report called for strategic broadband infrastructure development in underserved regions like Upper Egypt and Sinai. Another priority is encouraging collaboration between startups and banks and leveraging banks’ compliance structures to enable swift market entry for fintech.
With strong government support and steadily increasing international investment, Egypt’s fintech sector is aptly positioned to lead the region in financial inclusion and digital innovation.
The report provides a clear roadmap for overcoming challenges while harnessing the industry's immense potential, propelled by the visionary energy of a rising generation.
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