Fawry Company for e-payment targets a growth rate between 35% and 50% in 2016.
The company aims to launch a new product, which will provide e-payment services for small traders during the second half (H2) of 2016.
The Egyptian market is full of investment potential, promising to attract foreign direct investments (FDI), according to Fawry CEO Ashraf Sabry.
The investment potential is supported by the large Egyptian population, at 90 million people, which creates a need for several services and products, as well as the government’s investment plan to establish large-scale projects, such as Suez Canal Area Development.
Sabry said Egypt is currently living in a relatively stable phase on different levels, which gives investors a positive signal for investing in the Egyptian market. Egypt is in need of investments after four years of recession in pumping investments, he said. He pointed to a $40bn to $50bn deficit in the trade balance, which creates an investment opportunity in manufacturing and exporting.
The Egyptian investment environment is facing a number of challenges, the most prominent of which is the instability of the Egyptian pound against the US dollar, despite overcoming the dollar shortage due to the recent Central Bank of Egypt (CBE) regulations.
He further noted that he believes the value of the Egyptian pound against the US dollar suffers from an unclear vision, which represents a challenge to foreign companies interested in investing in Egypt.
Regarding the electronic payments sector, Sabry said the market is still young and needs more products and services, noting that it suffers from a number of problems. The most important of these problems is the increase in the cost of electronic payment services, which discourages shop owners who do not wish to share their profits from online payment services.
This means the majority of financial transactions are done in cash. Sabry suggested putting forth financial incentives to encourage traders to make online payment services available.
He further revealed the expected launch of a new product to provide electronic payment solutions through small outlets, during the second quarter (Q2) of 2016.
Sabry said the electronic payments market is set to grow this year by 60% to 70% if the market sees the launch of new products and services by banks, in cooperation with electronic payment companies.
The company is targeting growth rates between 35% and 50% for its business size in the Egyptian market during 2016, depending on the introduction of new services and the growth of mobile payment services provided in cooperation with a number of banks.
The company seeks to increase the number of its payment outlets from 50,000 to 60,000 outlets by the end of 2016, through the expansion of its services in areas of Delta and Upper Egypt.
Regarding regional expansion, Sabry revealed that they are in talks with a number of entities in the Gulf and Africa to expand Fawry’s electronic payment in those countries.