CBE Works on a project to digitize supply chains with international institutions

Rasha Negm, Sub-governor of FinTech and Innovation for the Central Bank of Egypt, stated during the annual meetings of African Development Bank, that CBE is working with international institutions on launching a project to digitize supplies and supply chains that includes innovative methods of data collection, integration and analysis.

This came during a discussion session organized by Egypt under the title " The Role of Financial Technology in Promoting Sustainability and Green Finance", with the activities of the fourth day of the meetings, whose Board of Governors is chaired by Hassan Abdullah, Governor of the Central Bank of Egypt, hosted in Sharm El-Sheikh during the period from 22-22. May 26, 2023.

The session discussed the role of financial technology in rapidly reshaping the financial sector on a globally, by changing the methods of payment, lending and investment, and how financial technology can affect the strategic priorities of developing countries and help them achieve more development processes.

Rasha Negm explained that Egypt is witnessing a huge expansion in the field of financial technology, as the number of projects in this field has increased to 177 projects at this time, compared to only 3 projects in 2012, and it was able to attract a lot of capital and achieve large returns.

She pointed out that 60% of financial technology projects in Egypt are run by young people between 16 and 25 years old.

Negm pointed out that CBE played a major role in supporting financial technology by launching the regulatory laboratory for new projects and ideas in the sector and providing a fund to finance them in partnership with local banks. It also supports a digital savings and lending project in cooperation with the government.

She added that measures to support sustainability through financial technology tools included the issuance of a new law to regulate alternative financing services such as digital lending, in cooperation with Financial Regulatory Authority.

She highlighted that CBE obligated banks to direct 25% of their loan portfolios for MSEs, with 10% of them allocated to direct investment in the shares of those companies.

Negm stressed that agricultural technology comes at the top of the priorities, as cooperation is underway with 5 banks to enhance ways of sustainability within the agricultural sector, which is one of the areas of development in Egypt, in light of  more than 50% of households on agriculture.

She added that achieving the sustainable development goals requires countries to focus on supporting financial technology tools and new innovations, which raises the efficiency of regulatory frameworks for new financing tools such as digital lending.