Egyptian fintech funding set to increase 919% to $ 296 million in 2021: Citi

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Egyptian fintech funding is expected to increase 919% year-on-year in 2021, to around $ 296 million, from $ 29 million recorded in 2020, according to Citi’s latest report titled “Africa & Middle East FinTech & e-Commerce” .

The report examines why fintech is booming globally and why the industry has taken off in Africa and the Middle East (AME) this year.

According to the report, FinTech companies from countries like Egypt and Pakistan are poised to gain traction / adoption. Meanwhile, Nigeria and Kenya are seeing growing interest beyond digital payments for new forms of credit, open financing, and cryptocurrencies.

“Lack of access to basic financial services and the increasing accessibility of mobile phones / data have created structural opportunities for new startups to serve the underbanked through internet-enabled business models,” Citi says .

He also mentioned that the availability of venture capital and a favorable regulatory environment further fuel the FinTech agenda in the region.

The report showed fintech is booming globally, noting that 2021 annualized venture capital investments are up 164% year-on-year, hitting escape speed in the AME.

Additionally, he mentioned that AME 2021 fintech investments are up sixfold year-on-year.

“The AME region is also home to leading examples of new business models, such as mobile money and P2P cryptocurrencies,” according to Citi.

In addition, the report found that Africa was a pioneer in the adoption of mobile money, the GCC is experimenting with new technologies such as blockchain and new products such as BNPL, but in much of the region AME, money is king.

The report adds that AME is the region with the highest cash use in the world. According to Worldpay, cash accounted for over 50% of AME’s point-of-sale (PoS) transactions; 2.5 times the world average.

According to MasterCard, cash accounts for over 90% of transactions in Africa.

Citi expects AME’s growth in digital payment to continue at a high double-digit rate, especially in Africa, adding that among the regional markets, the UAE is the most developed.

Regarding the current popularity of cryptocurrencies, the report mentions that the MENA / Sub-Saharan Africa region had the highest growth rates for P2P crypto transaction volume in 2021 by region – 62% and 51%, respectively – and four of the top ten countries with the highest crypto adoption rates were from Africa.

Citi noted that the availability of capital and an enabling policy environment is being met by a growing supply of fintech founders and tech talent – many of whom were trained overseas – returning home to build a digital future for their country.



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