HSBC Egypt Plans a $31.5 Million Fund to Boost Egyptian Fintech SMEs

HSBC Egypt Plans a $31.5 Million Fund to Boost Egyptian Fintech SMEs

By Staff Writer, 14 June 2024

HSBC Egypt has announced plans to establish a fund valued at EGP 1.5 billion (approximately $31.5 million) to invest in small and medium-sized enterprises (SMEs) within Egypt. This initiative aims to boost the local fintech sector, with the fund slated for launch in the third quarter of this year.

The Egyptian Financial Group (EFG) Holding will manage the fund, targeting investments in fintech-focused SMEs. This move aligns with the Central Bank of Egypt's regulations, which permit 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.

A banking official confirmed that the Suez Canal Bank, among other financial institutions, is contributing to the new fund, with the Central Bank's approval already secured.

HSBC Egypt's CEO, Todd Wilcox, highlighted the bank's commitment to expanding its direct investments in the country. The bank is also actively promoting Egypt as an attractive destination for international investors, focusing on industrial, technological, and renewable energy projects, including opportunities within the Suez Canal Economic Zone.

Source: EntArabi

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