Paper on Challenges and Way Forward in the FinTech Sector in Egypt

Cairo 9 October 2023

 ElRehla LLC. is pleased to announce the release of its first paper on challenges and recommendations in the field of financial technology (Fintech) in Egypt. Titled “ElRehla Fintech Retreat: Outcomes & Way Forward” this paper summarizes the results and ideas gathered during the camps held in previous years, particularly the recent third annual Fintech industry retreat, which took place in June 2023.

The community of practice retreat gathered more than 170 participants representing almost a hundred organizations in the technology and finance communities in Egypt, including regulatory bodies such as the Central Bank of Egypt (CBE), the Financial Regulatory Authority (FRA), and the National Telecommunications Regulatory Authority (NTRA). Also in attendance were representatives from the Egyptian Post, Fintech startups, banks, financial institutions, and investors. This collaborative retreat allowed key stakeholders to establish a shared vision of challenges, opportunities, and available possibilities, fostering several discussions and open sessions between participants and regulatory bodies in preparation for a comprehensive financial technology framework.

The paper reflects the collective vision of Fintech enthusiasts who engaged in constructive discussions to identify obstacles hindering the sector’s growth and propose solutions to overcome them. Its publication marks an important milestone in fostering cooperation and development within the Fintech sector. The recommendations and analyses presented in the paper are expected to contribute to the enhancement of financial technology, stimulate innovation, and promote growth in the Egyptian Fintech industry. Furthermore, it paves the way for future industry meetings and forums, ensuring continued dialogue among all Fintech stakeholders.

The release of this paper is a culmination of the activities undertaken by ElRehla Company over the past three years, including three unconventional work camps designed to facilitate effective communication and build partnerships between Fintech stakeholders and entrepreneurs.

During the meeting, ElRehla company provided an overview of the paper’s content, highlighting key findings and recommendations. It also offered simplified and clarified regulatory and other recommendations that were essential requirements for emerging Fintech companies. Some of the recommendations discussed include:

Increase the frequency of dialogue among stakeholders to discuss and decide on ways to achieve business results and regulatory ambitions.

Simplify and provide clarity on regulatory requirements for fintech startups, in collaboration between regulators (CBE and FRA) and startups.

Improve connectivity and accessibility between fintechs and bank and financial institutions while maintaining data and system security.

Upgrade and upscale existing local data centers or establish new datacenter infrastructure operated by international players to meet the service level needs of fintech operations.

Reform incorporation regulations, accounting, and tax regulations to support fintech startups, considering factors such as initial technology investment, changes in shareholder structure, valuation based on income forecast, cross-border taxation compliance, and allowance for new financing modalities.

Establish dedicated education and skills development programs for fintech, including within educational curricula and additional certifications, to address the skill and knowledge gap and increase financial learning across the population.

The meeting also included an open discussion session, providing participants with the opportunity to ask questions, exchange ideas, and share experiences in the field of financial technology.

These activities align with ElRehla’s commitment as a primary supporter of entrepreneurship, innovation, and important industries that drive economic growth. The outcomes paper and future discussions are expected to serve as a starting point for developing new strategies and directions in the field of financial technology, promoting sustainable development and financial innovation in Egypt.

To access the outcomes paper of the ElRehla Financial Technology Industry Retreat, please visit (https://www.elre7la.com/fintech-industry-retreat-2023).

About ERehla:

ElRehla is an industry and community enabler. Our mission is building collaborative communities towards social and economic growth; For the past 10 years, we have been working within different industries and ecosystems to deeply connect the key players and the value chains of a certain industry to help build a mutual understanding of the challenges, opportunities, and capabilities, thus advancing the sustainable development of the industry. Our work also gives a big focus on enabling founders by helping build their capacities and networks. Through our unconventional format, we host sector-specific retreats and conventions, and hackathons, and work to generate shared understandings, build trust and reciprocity, define challenges and policy recommendations, underpin collaboration opportunities, through a connective, reflective, and habit-changing experience.

https://www.elre7la.com/