IFC plans $6m investment in Egypt firm
Cairo, February 6, 2013
IFC, a member of the World Bank Group, has announced $6 million investment in Fawry, Egypt’s leading electronic payment provider, in an effort to extend crucial financial services and encourage economic development across the country.
The key investment is aimed at helping Fawry, a local company, extend its network of payment terminals across Egypt, a country heavily reliant on cumbersome cash transactions. That is expected to help consumers pay bills and make it easier for businesses to receive payments, stoking commerce and economic growth.
“There are a lot of inefficiencies associated with cash, which is used in about 99 per cent of all household transactions in Egypt,” said Ashraf Sabry, Fawry CEO.
“Electronic payments make it easier to do business and, in a country with a large population and very low banking penetration, they are also a key driver of financial inclusion,” he noted.
The investment is also designed to help restore investor confidence in Egypt and create jobs in its burgeoning high-tech sector.
“Egypt’s economy has struggled during the last two years,” said Mouayed Makhlouf, IFC director for the Mena. “Companies like Fawry can help the economy by creating jobs and demonstrating to investors that there is a long-term potential in the country.”
Fawry offers Egyptians a convenient one-stop destination where they can make regular payments to telecoms companies, utilities, charities, financial services firms, and tour operators.
More than 10 million people use Fawry to make payments to 43 service providers. The company has more than 20,000 payment locations, including retail stores, post offices, and the ATMs of 10 commercial banks.
With IFC’s support, Fawry is planning to increase its number of payment locations to 35,000 by 2016. The investment is part of IFC’s efforts to catalyze foreign investment in Egypt, support the private sector, and drive job creation.-TradeArabia News Service
More Finance & Capital Market Stories
- Insurance House posts second year of profit
- ETF global assets hit record $2.44 trillion
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook
- GCC urged to set up onshore financial centres
- Consolidation push paying off for Bahrain banks
- Mubadala to focus more on US, Europe
- Six banks join plan for shared customer data register
- UAE economy grows 4pc in 2013
- Egypt foreign reserves up to $17.3bn
- StanChart opens second branch in Iraq
- Oil below $90 to hit GCC economies
- Payfort offers zero deposit scheme to SMEs