Fintech Startups to Require LE 15 Million Capital to Operate in Egypt
The decision aims to improve regulations for fintech startups while still promoting entrepreneurship.
The Financial Regulatory Authority (FRA) in Egypt has increased the minimum capital requirement for fintech startups seeking to operate in non-banking finance activities to a minimum of EGP 15 million in capital.
Covered activities include real estate, SME, microfinance, leasing and consumer financing. Startups must take the legal structure of an Egyptian joint-stock company and focus their operations on one or more of these areas. Additionally, specialists in technology must hold at least 25% of company shares. The FRA also stipulated that operations must commence within two months of licensing and licenses will be valid for a two-year testing period.
This move supports the Egyptian government's push to boost the local tech sector through regulatory changes that ease processes while also protecting customers and investors. In June, Egypt's Prime Minister formed a special unit tasked with proposing policies to foster startup growth and success with increased access to funding and a more conducive environment.
