Egypt’s fintech sector grew 5.5 times in 5 years driven by youthful population-report 

Egypt’s fintech sector recorded a 5.5 times growth in the past five years. This is according to a recently released report by Entlaq, launched in collaboration with the Netherlands Enterprise Agency (RVO) and the Embassy of the Netherlands in Egypt. 

This growth, fuelled by digital payments, lending, and B2B marketplaces, has positioned Egypt as a fintech powerhouse in the Middle East and North Africa (MENA) region. While the report outlines market trends, growth opportunities, and challenges, one phenomenon stands out as particularly interesting, the role of Egypt’s youth in driving this transformation. 

With a median age of just 24 and a population of over 104 million, Egypt’s young, tech-savvy generation is not only adopting fintech solutions at an unprecedented rate but also building them. Ushering in a grassroots financial revolution that could redefine the country’s economic future.

MNT-Haalan founders

The youthful engine powering Egypt’s fintech

At the heart of Egypt’s fintech surge is its demographic advantage. The Entlaq report highlights that the sector’s growth aligns with a 5.5-fold increase in fintech companies over five years. Rising from a modest 32 in 2017 to 177 by 2022, a figure that is likely higher by early 2025. 

The report underscores that the majority of fintech startups were founded by individuals aged 25 to 35. They make up a cohort that blends digital nativity with an acute understanding of Egypt’s financial pain points, limited access to traditional banking, a cash-heavy economy, and a growing demand for convenient, tech-driven solutions.

Take digital payments for instance, which dominate the fintech landscape at 36% of the sector. Companies like Fawry, a pioneer in e-payments, and Paymob, an omnichannel merchant platform, have tapped into a growing consumer appetite for cashless solutions. 

Nearly nine in ten Egyptians reported using an emerging payment method in 2022, with mobile wallets and QR codes gaining traction. This is not just a trend driven by convenience; it is a cultural shift led by a generation comfortable with smartphones and impatient with the limitations of cash-based systems. The Central Bank of Egypt (CBE) notes that 13.2 million people use mobile banking, a penetration rate of over 10%, and this number is climbing as young Egyptians integrate digital tools into their daily lives.

Lending, another key driver at 11% of the sector, showcases the youth’s innovative spirit. Startups like MNT-Halan, now a unicorn valued at over $1 billion, target the unbanked and underbanked segments that traditional banks have long overlooked. 

Founded by young entrepreneurs, MNT-Halan’s ecosystem spans micro-lending, consumer finance, and e-commerce, serving over 5 million customers. This is not just business; it’s a mission to bridge Egypt’s financial inclusion gap, where only 14% of adults have bank accounts. The youth behind these ventures see fintech as a tool to empower their peers, offering credit to small businesses and individuals who fuel Egypt’s informal economy.

B2B marketplaces, comprising a significant slice of the sector further illustrate this trend. Platforms like Yomken connects micro and small enterprises with funding and innovation, often spearheaded by young founders who understand the pain points of Egypt’s fragmented business landscape. 

Government support

The Entlaq report credits government initiatives like the CBE’s Financial Inclusion Strategy 2022–2025, for creating a fertile ground for fintech growth. Policies promoting digital transformation, such as mobile payment interoperability and the upcoming digital banking framework, have lowered barriers for startups. Yet, while the state provides the scaffolding, it is the youth who are building the structure. 

The report notes that venture capital investments soared from $1 million across three deals in 2017 to over $159 million in 32 deals by 2021—a 300% jump in the last year alone. Much of this capital flows to startups led by young founders, backed by a government keen to harness their energy.

This synergy is no accident. The CBE’s Fintech Egypt initiative and the $1.3 billion fintech fund from major banks like the National Bank of Egypt signal a top-down commitment to innovation. But the real momentum comes from below. 

Despite the optimism, the Entlaq report does not shy away from the hurdles. Regulatory complexities, digital literacy gaps, and cybersecurity risks loom large. 

For Egypt’s young fintech pioneers, these challenges are both a barrier and a call to action. Navigating a maze of regulations requires creativity and persistence, qualities this generation has in spades. Digital literacy, while improving, remains uneven, particularly in rural areas where post offices still dominate financial transactions. Here, youth-led startups like Fawry deploy kiosks to bridge the gap, turning a challenge into an opportunity.

Cybersecurity is perhaps the most pressing concern. As digital payments and lending platforms scale, so do the risks of breaches. The report calls for robust safeguards, a task that falls partly on young tech talent. Egypt’s pool of software developers, concentrated in cities like Cairo, is in high demand globally, yet many choose to stay and tackle these issues head-on. Their solutions, whether AI-driven fraud detection or blockchain-based security, could set a precedent for fintech resilience worldwide.

The Entlaq report paints a picture of a sector brimming with potential. Rising consumer adoption, international partnerships and increased funding create a runway for growth. Egypt’s strategic location, bridging the Arab world and Africa, positions it as a fintech gateway. Young entrepreneurs are already eyeing expansion. 24 startups have gone regional or global, thriving in MENA, the Gulf, and even Europe.

Egyptian fintech startups

This outward ambition reflects a generation unafraid to dream big. The report’s strategic recommendations; collaboration between policymakers, investors, and startups, align with their ethos of collective impact. Social inclusion initiatives targeting youth and women, highlighted in parallel Entlaq studies, further amplify this momentum. By digitizing finance, these innovators are not just building businesses; they are reshaping society.

Ultimately, Egypt’s fintech sector, as illuminated by the Entlaq report, is more than a story of growth, it is a testament to what happens when a young, restless generation seizes technology to rewrite the rules. These 25-to-35-year-olds are not just building companies; they’re building a new economic identity for Egypt, one that’s digital, inclusive, and globally competitive. 

The 5.5-fold expansion over five years is impressive, but the real headline is the human capital driving it. As challenges like regulation and literacy persist, the resilience and creativity of Egypt’s youth suggest that this is only the beginning. In a nation long defined by its ancient past, the future belongs to its young fintech pioneers, and they’re just getting started.