(Ecofin Agency) - The National Bank of Egypt, Banque du Caire, and Banque Misr announced this week they have launched a joint fund -NClude- to support the fintech industry in Egypt. The public banks say they seek to raise $85 million under this initiative, which has already received approval from the Central Bank (CBE).
NClude will be managed by Abu Dhabi-based Global Ventures. It will focus on fintech startups in the Middle East and Africa, an official statement revealed. Tarek Amer (pictured), CBE Governor, explained that this new initiative is spurred by President Abdel Fattah Al-Sisi’s directives to “support and sponsor innovative youth in the emerging financial technology fields and the technology sectors that feed them.”
“The CBE’s strategy for financial technology and innovation aims to create a supportive environment for the financial technology industry, as well as enable more innovative financial technology applications to provide and deliver banking and financial services to all segments of society more easily and at less cost,” he said.
The fund has received several commitments including $30 million from the National Bank of Egypt and $25 million from Banque du Caire. E-finance Investment Group Holding, a firm that has as strategic partners the three public banks, said it will invest $10 million in NClude: 33% of the amount will be available immediately and the remainder will be provided quarterly over the next 4 years.
NClude's portfolio already includes 4 companies, the most recent of which, Lucky- an Egyptian fintech that offers various financial facilitation services, has received a $25 million commitment. The fund expects to be fully invested within the next 5 years, with an average duration of 10 years in each investment.