|12 September, 2019

Egypt plans 7 technology parks in 2019, $50mln fintech fund

CBE aims to launch a fund to support fintech startups early next year with a capital of $50-100mln

Image used for illustrative purpose. A woman tests a mobile phone software at the mobile phone factory in Assuit, Egypt September 30, 2018.

Image used for illustrative purpose. A woman tests a mobile phone software at the mobile phone factory in Assuit, Egypt September 30, 2018.

REUTERS/Mohamed Abd El Ghany

Egypt will set up seven technological parks this year in various universities at an investment of EGP 1 billion ($60.8 million), in its drive to foster digital technology infrastructure.

Confirming the project at Euromoney Egypt Conference, the Minister of Communications and Information Technology, Amr Talaat, said the parks will be financed through the ministry’s resources in parallel with the beginning of the new academic year, Daily News Egypt reported.

He also said that the ministry is ready to contribute to the fintech fund, which the Central Bank of Egypt (CBE) plans to launch next year, if the latter requests it.

CBE aims to launch a fund to support fintech startups early next year with a capital of $50-100mln, the report said.

The country's ICT sector recorded 16 percent growth in fiscal year 2018/19 and the sector contributes 3.2 percent of the country's GDP, Daily News Egypt reported citing the minister.

Egypt aims to increase investments in its ICT sector and the ministry intends to increase the ICT contribution in the GDP to reach 8 percent, the report said.

Egypt is also developing a comprehensive legislation system and framework to regulate the ICT sector, through issuing the e-commerce bill and a personal data protection law, Talaat said. 

(Writing by Seban Scaria; editing by Daniel Luiz)

(seban.scaria@refinitiv.com)

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