HSBC's Egypt unit launches $31.5m fund to back fintech SMEs
TLDR
- HSBC Egypt launches EGP 1.5 billion fund to boost fintech SMEs with support from EFG Holding and CBE.
- Fund managed by EFG Holding, backed by financial institutions like Suez Canal Bank.
- Initiative targets economic impact by promoting innovation and expansion in Egypt's vital SME market.
HSBC Egypt has launched a fund valued at EGP 1.5 billion (around $31.5 million) to support small and medium-sized enterprises (SMEs) in the fintech sector.
Expected to be operational by the third quarter of this year, EFG Holding will manage the fund and has garnered support from several financial institutions, including the Suez Canal Bank, along with approval from the Central Bank of Egypt (CBE).
This initiative aims to significantly impact the economy by fostering innovation and expansion among SMEs, which play a crucial role in the Egyptian market. This financial backing is anticipated to drive growth and enhance the fintech ecosystem in Egypt.
Key Takeaways
HSBC Egypt's launch of the fund to support SMEs in the fintech sector aligns with the CBE's regulations, which allow local banks to include their contributions to such investment funds within the 25% quota of their credit facilities portfolio dedicated to micro-enterprises. However, investments are capped at 10% of a bank’s core capital, and a bank's ownership in any given fund or company must remain below 50% to avoid reclassification as part of the banking group. This initiative follows the central bank's awarding of its first digital banking license, further energizing a market already buzzing with ambitious fintechs.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
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.