Rasha Negm, the assistant sub-governor of CBE for Financial Technology (FinTech) and Innovation, has said that work is underway with international institutions to launch a project to digitize supply and supply chains, which includes adopting innovative methods for data collection, integration and analysis.
During her participation in a discussion session on the role of financial technology in promoting sustainability and green financing, as part of the African Development Bank meetings held in Sharm El-Sheikh on 22-26 May, Negm explained that Egypt has witnessed a huge expansion in the field of financial technology. The number of projects in this field has increased to 177, compared to only three projects in 2012. The field was able to attract a lot of capital and achieve great returns.
She confirmed that 60% of financial technology projects in Egypt are run by young people between the ages of 16 and 25.
Negm added that achieving the sustainable development goals requires governments to focus on supporting financial technology tools and new innovations, which in turn raise the efficiency of regulatory frameworks for new financing tools such as digital lending.
She emphasized that CBE played a major role in supporting financial technology. It launched the regulatory laboratory for new projects and ideas in the sector, and provided a fund to finance them in partnership with local banks. It is also supporting a digital savings and lending project in cooperation with the government.
She explained that measures to support sustainability through financial technology tools included issuing a new law to regulate alternative financing services, such as digital lending, in cooperation with the Financial Regulatory Authority (FRA).
Negm also indicated that CBE issued mandatory instructions to establish an independent department for sustainability and sustainable financing in all banks.
She added that CBE obligated banks to allocate 25% of their loan portfolios for small and medium enterprises (SMEs), with 10% of them allocated to direct investment in the shares of these companies.
She pointed out that agricultural technology is a top priority. Cooperation is underway with five banks to enhance sustainability within the agricultural sector, which is one of the areas of development in Egypt, in light of the dependence of more than 50% of households on agriculture.
The session discussed the role of financial technology in rapidly reshaping the financial sector on a global scale, by changing the methods of payment, lending and investment, and how financial technology can affect the strategic priorities of developing countries.