Amid the unprecedented wave of digital transformation taking place across the Middle East, the world of finance in Egypt is showing great appetite to innovate and modernize. In recent years, Egypt’s nascent fintech ecosystem has been flourishing at a remarkable pace, witnessing a significant increase in the number of companies operating in the sector, a marked rise in venture capital (VC) investments and a growing international expansion.

Although it still has a long way to go before reaching its maturity, the numbers speak for themselves. Between 2014 and 2021, Egyptian fintech startups increased from only two to 112, according to a report released in February by FinTech Egypt, an initiative powered by the Central Bank of Egypt to promote and support the industry. VC investments in the sector rose from only $1 million in 2017 in three deals to $159 million raised in 2021 in 32 deals. And today, 24 Egyptian fintech companies already enjoy significant presence in the Middle East and North Africa, particularly in the Gulf countries, and in Europe.

A recent report analyzing the sector’s performance during the first half of 2022 published by FinTech Egypt June 21 reinforces this trend. Between January and June, fintech and fintech-enabled investments in the country reached an all-time high of almost $167 million in a total of 31 deals, the report found. The report also states that although the majority of investors are still headquartered in Egypt, an increasing number are from the Middle East and North Africa region (24%), the United States (19%) and even China (4%).

This growth has placed Egypt among the top four countries in Africa with the most dynamic fintech sector, although it is still far from other more consolidated markets such as Nigeria and South Africa, and the second in the region after the United Arab Emirates in terms of fintech funding deals and amounts raised. Last year, investments in the sector soared by 300%, and according to the platform on startups and venture investments Magnitt, fintech-led transactions activity among Egypt’s startups accounted for 17% of the total deals closed. Around 9 million Egyptians are already being served by fintech and fintech-enabled startups.