Individuals
Businesses
Company
Intelligence
News
African Capital Markets
EnglishEnglish

Investors update: Egypt sells 9.5% stake in state-owned telecom firm for $121 million

3 min Read May 17, 2023 at 2:40 PM UTC

Daba finance invest in Africa

Egypt sells 9.5% stake in state-owned telecom firm for $121 million

Highlights

  • Egypt sold a 9.5% stake in state-run Telecom Egypt Co., raising more than 3.7 billion Egyptian pounds ($121 million) in a signal to investors that the country is serious about implementing a sweeping economic reform program.
  • The government sold 162 million shares in the telecommunications company, representing about a 9.5% stake in the firm, according to a filing to the Egyptian stock exchange reported by Bloomberg. 
  • The shares were priced at 23.11 Egyptian pounds each, according to a separate filing. Egypt plans to offer a further 0.5% for company employees to buy.

Source: Bloomberg


Our Takeaway

Egypt is urgently seeking revenue by privatizing state-owned companies to fulfill upcoming foreign debt obligations that are due in a matter of months. This initiative is a component of a 46-month financial support package worth $3 billion, which was agreed upon in December – Egypt made a commitment to the IMF to reduce its presence in the economy and grant private enterprises a significantly larger role. Broadly, this move signals the North African country’s commitment to reducing government involvement and promoting private-sector participation, which could attract potential investors.


Tiger Global-backed Axis launches digital payments platform for Egypt SMEs

Highlights

  • Egyptian fintech Axis has launched its digital payments platform to the North African market after securing a license from the apex bank, the Central Bank of Egypt (CBE).
  • The startup offers an open-loop mobile wallet, axisPay, which offers a digital banking alternative for small businesses and their employees.
  • This is coming almost 18 months after the startup received an $8.25 million seed investment co-led by Tiger Global, Sawari Ventures, and Raba, with participation from Firstminute Capital and RaliCap; founders of Venmo, Rho Banking and Cred; and executives from Revolut and Plaid.

Source: Zawya


Our Takeaway

Across Africa, merchant acquisition is proving to be the “new” scramble for digital payments and services on the continent, which has an estimated $800 billion informal trade economy comprising more than 56 million micro, small, and medium-sized businesses. In Egypt, there are 8 million of those and they contribute to 80% of the nation’s $400 billion+ GDP, employing over 20 million people. These small businesses are heavily cash-based, with little access to online banking services, payroll processing, and working capital financing. To address this, a number of startups have sprung up, the latest in the news being Axis. 


Jia raises $4.3m seed to boost small businesses financing in emerging markets

Highlights

  • Jia has raised $4.3 million in seed funding, and an additional $1 million commitment for on-chain liquidity, in a round led by early-stage backer TCG Crypto.
  • A blockchain-based fintech providing loans to micro and small businesses in emerging markets, the startup offers loans to borrowers, who receive tokens after repayment, that they can later redeem at a rate agreed upon based on Jia’s profits. 
  • The fintech plans to use the funding to double down on its operations in Kenya, and the Philippines, before exploring new markets in West Africa, Latin America, and Asia.

Source: TechCrunch


Our Takeaway

Jia, along with other fintech companies, is dedicated to addressing the access-to-finance gap that hinders business growth in markets such as Africa. Current data reveals that small enterprises constitute 90% of Africa’s businesses, yet they encounter a significant financing deficit of $330 billion. These businesses are burdened with the need for collateral and must fulfill various time-consuming requirements to secure loans from traditional lenders. Fintech startups like Jia are taking proactive measures to fill this financial void and provide the necessary support.

This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.

Share this post
share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram
Stay informed with our newsletters read by 25,000+ professionals worldwide
Newsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companies

Next Frontier

Stay up to date on major news and events in African markets. Delivered weekly.

Pulse54

UDeep-dives into what’s old and new in Africa’s investment landscape. Delivered twice monthly.

Events

Sign up to stay informed about our regular webinars, product launches, and exhibitions.

+25k investors have already subscribed

Take action.

Download app

Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.

Partner with us

Unlock exciting business opportunities and growth potential.

Join Daba

Become a part of our vibrant community and enjoy exclusive benefits.

Contact us

Reach out to us for inquiries, support, or collaboration.
For Investor
StrategiesPortfolio ManagementAfrican Capital MarketsNews
Daba Pro Intelligence
For Capital Seekers
For StartupsFor Fund ManagersFor Private CompaniesFor Lenders
For Partners
Commercial BanksBroker DealersAsset ManagersInvestment BanksInvestment Advisors and ConsultantsLenders and Microfinance
Company
About UsMarket UpdatesEventsBlog and PodcastNewsletterCase StudiesAffiliate ProgramInvesting GlossaryOfficial ContactsTrust, Compliance and SecurityFrequently Asked Questions

Terms & ConditionsPrivacy Policy
EnglishEnglish

Owned by Daba Markets Inc. By using this site, you accept our Terms and Conditions and Privacy Policy. © 2024 All rights reserved. 2025 All rights reserved