Egyptian business funders are looking to empower local Fintech companies and tech start-ups.

Egyptian business funders are looking to empower local Fintech companies and tech start-ups to better respond to disruption caused by the Coronavirus (COVID-19) pandemic.

The North African country recorded 188 new COVID-19 infections over the weekend, bringing the tally in the country to 3032 with 239 deaths, according to Egypt’s health ministry.

However, experts at Oxford Business Group (OBG) believe tech start-ups can help.

An excerpt from a report released by the organisation on 20 April 2020 reads: “Egypt’s digital start-ups are in a good position to respond to the pandemic. According to a January 2020 report from data platform MAGNiTT, Egypt was responsible for the highest number of start-up financing deals in the MENA region last year, with 141 deals (25% of the total) attracting $98.6m in funds.”

According to OBG, funders are looking to leverage the country’s strong digital sector.

These include Falak, the country’s largest start-up accelerator, which is allocating US$63,510 to ensure firms are able to deal with the current crisis, and are provided with technical and strategic support to leverage business opportunities that may result from the pandemic.

“Falak is targeting start-ups in the fields of health and insurance technology, financial technology (Fintech), logistics, 3D printing, remote work solutions and e-learning. These have been identified as central services during the Covid-19 shutdown period,” the report adds.

Many businesses across Africa have adapted operations to accommodate virtual and remote platforms, creating a clear opportunity for internet and cloud service providers.

Earlier this month, Mohamed Okasha, co-founder of Egyptian Fintech firm Fawry, launched a US$25-million fund to strengthen the country’s finance-focused start-up ecosystem.

OBG quoted Mervat Soltan, chairperson of Export Development Bank of Egypt, as saying: “Technology is having a significant impact on how businesses operate. Fintech has disrupted Egypt’s banking sector, and will continue doing so despite Covid-19.”

According to Soltan, Egypt’s 100% mobile penetration - 60% of which is via smartphone - brings real opportunities for technology “to help address broader economic issues, such as the informal economy and challenges to financial inclusion”.