Our mission is to provide people and businesses with the financing they need to live better lives, build bigger companies, and enhance the communities in which they live and work.

EFG Finance, the fastest-growing NBFI platform in Egypt and a growth engine for financial inclusion, the vertical that is led by myself, is home to numerous brands, including leasing and factoring platform EFG Hermes Corp-Solutions, microfinance player Tanmeyah, mortgage finance provider Bedaya, insurance provider Kaf, and e-payment platform PayTabs Egypt. On the other hand, valU, the leading fintech lifestyle-enabling solution in Egypt and a sub-brand of the group, is independently led by CEO Walid Hassouna.

2022 was a solid year for our flagship NBFI platform, as it continues to be a holistic ecosystem of complementary businesses that join forces to provide end-to-end financial solutions at every stage of people’s lives and the growth of their businesses. Our relentless efforts and strong performance during the year serve as a testament to how we honor our longstanding mission at the Firm — to provide people from all walks of life and businesses of all sizes with access to the financing and tools they need to live better lives, build bigger companies, and enhance the communities in which they live and work.

The year saw our leasing and factoring arm, EFG Hermes Corp-Solutions, record strong results across its core operations. Total bookings hit a record high of EGP 9.6 billion, compared to the EGP 8 billion booked in 2021, as it continued to offer its clients innovative and comprehensive leasing and factoring offerings, in addition to expanding its operations into new, value-accretive sectors. In the logistics space, the company partnered with a globally renowned logistics company, TruKKer, supporting it in developing the operations of its Egyptian arm by ramping up shipments and facilitating swifter payments. In the maritime sector, EFG Hermes Corp-Solutions forged a partnership with Egypt-based shipping company Transmar to finance the purchase of the cargo vessel Transmar Legacy. The company also partnered with PICO Energy in a structured transaction worth USD 15 million, marking its entry into the oil and gas sector.

EFG Hermes Corp-Solutions also concluded the year having issued an EGP 2 billion securitized bond — its largest to date — in addition to a bond offering worth EGP 500 million as part of a more expansive EGP 3 billion program to monetize its receivables portfolio and, in turn, expand the business.

On the microfinance front, Tanmeyah continued to grow its client base and sales by ramping up resources across its branches and streamlining operations, focusing on boosting efficiency through investment in digital infrastructure. By that same token, the company partnered with prominent players in the e-payment space, including Fawry, OPay, Bee, and Masary, to enable customers to make online payments through various points of sale — a key plank in its strategy to promote nationwide financial inclusion through digital intermediation. Tanmeyah continued to build on the success of its partnership with Banque Misr, rolling out cobranded, prepaid “Meeza” cards to its customers, enabling them to make deposits, withdrawals, and transfers swiftly and seamlessly through Banque Misr’s ATMs and points of sale. By the end of the year, Tanmeyah had recorded an outstanding portfolio value of EGP 4.3 billion and a total client base of 378,645 active borrowers.

Parallel to its digital transformation efforts, the microfinance leader acquired Fatura, a tech-enabled business-to-business (B2B) marketplace with a presence spanning 22 governorates in Egypt. Through this strategic acquisition, Fatura will grant Tanmeyah access to its fast-growing network of merchants, enabling the company to bridge the gap in the ever-growing B2B credit market.

Another milestone for the year was the success of our e-payment solutions platform PayTabs Egypt, which continued to capitalize on the demand and need for digital payments to fuel the drive toward a cashless society. Throughout 2022, the company invested in diversifying its network of partners, forming a multitude of strategic collaborations with leading local and regional brands and expanding its range of innovative and tailored payment solutions through its world-class platform. In alignment with this, in Egypt, PayTabs Egypt successfully launched Paymes — a one-of-a-kind social commerce marketplace and a leading platform in Central Asia. Paymes is slated to serve as PayTabs Egypt’s social commerce platform in the MENA region, enabling freelancers, artisans, consultants, home-based business owners, personal trainers, food truck vendors, and members of the gig economy to make payment collections across social media platforms swiftly and seamlessly. At year-end 2022, PayTabs Egypt registered a base of over 2,000 merchants and over 1.5 million transactions completed through the platform.

In the insurance space, our tech-enabled microinsurance brand, Kaf, concluded the year with solid performance across its core operations and breaking ground in the market, having recorded the tremendous achievement of 2 million lives insured. Alongside its operational growth, Kaf focused on forging partnerships with other entities within the Firm’s NBFI platform. 2022 saw the company extend its insurance plans to Tanmeyah’s customers, mitigating the default risks of Tanmeyah’s borrowers and ensuring stability and progress of people’s small and micro businesses as part of its focus to drive financial inclusion across Egypt’s governorates.

Bedaya, our mortgage finance venture and Egypt’s first non-bank online mortgage provider, ended 2022 having exceeded its operational and financial targets and facing macroeconomic challenges head-on. The company’s extensive efforts throughout the year resulted in a substantial hike in portfolio value and the number of clients served — a Y-o-Y increase of 206% and 379% versus the end of 2021, respectively. As a result of this growth, Bedaya ranked second by market share in the Egyptian mortgage space in 2022. The year also saw Bedaya issue its first securitized bond, worth EGP 651.2 million, in collaboration with the Firm’s Investment Banking division, marking the first-ever securitization for a mortgage player in Egypt’s debt capital market.

Gearing up for 2023, and as the macroeconomic environment continues to pose challenges for regional and global markets, we aim to continue enhancing the operational capacities of the businesses within the platform as they expand their offerings to new markets. Additionally, as the NBFI platform continues to witness rapid growth Y-o-Y, it is of utmost importance for us to continue capitalizing on our most valuable asset, our people, the leaders who steer this ship forward, even during the most testing times. We remain confident in our ability to continue providing compelling and fundamentally necessary products for the people and businesses in our community, and we look forward to another year of remarkable achievements.

Aladdin ElAfifi

Chief Executive Officer

EFG Finance

Overview

Tanmeyah for Microenterprise Services, a subsidiary of EFG Hermes Holding, is the leading company in providing a range of microfinance solutions in Egypt. Tanmeyah was established in 2009 and, since inception, has grown to become one of the leading entities in the field of working capital financing for owners of low-income generating projects. The financing programs support owners of microenterprises in developing their businesses and projects, which contributes to the improvement of surrounding communities. Tanmeyah facilitates access to finance in underprivileged areas through its on-ground presence in many governorates across Egypt. It continuously seeks to expand geographically by opening new branches in rural and urban areas in Upper Egypt and Delta governorates.

Tanmeyah’s financing programs start from EGP 1,000 and cater to low-income businesses while driving economic growth throughout Egypt and improving standards of living. Tanmeyah has been actively promoting digitalization as part of Egypt’s strategy toward achieving increased financial inclusion and has launched several applications offering digital services and online payment solutions to customers, enabling the company to serve a wider customer base. Today, Tanmeyah has issued over 2 million financing facilities of various types and sizes to low-income generating projects across Egypt.

Operational Highlights of 2022

2022 was an exceptional year for Tanmeyah, with the company achieving substantial growth across metrics, particularly on the productivity and efficiency fronts. By the end of the year, Tanmeyah had recorded an outstanding portfolio value of EGP 4.3 billion, reflecting a Y-o-Y increase of 18% from EGP 3.7 billion at year-end 2021. The company also recorded a total client base of 378,645 active borrowers, down 0.5% from 380,555 borrowers in the previous year. Additionally, Tanmeyah’s total number of loans issued amounted to 371,107 by the end of 2022 compared to the 367,294 loans booked in 2021, with the company issuing loans worth EGP 6.1 billion compared to the EGP 5.2 billion issued the previous year. While the number of loans issued remained relatively flat during the year, Tanmeyah focused on increasing its ticket sizes, with its MEL average ticket size increasing by 23 % Y-o-Y to record EGP 17,928.

During the year, Tanmeyah proceeded with its strategy to aggressively broaden its client base and increase sales by ramping up resources across its branches and restructuring operations to cater to a wider segment of clients. As a result, the company achieved record-high issuances during the year, particularly in March when sales reached EGP 605 million.

As a cornerstone of its wider strategy to promote financial inclusion and digital transformation, and building on its partnership with Damen in 2021, the year saw Tanmeyah partner with electronic payment networks Masary and Bee to broaden its digital collection capacities by enabling customers to make online payments through various points of sale. The company also partnered with Fawry and O-pay during the year, two of the region’s most prominent digital payment platforms, unlocking access for customers to make payments through both platforms at any of Tanmeyah’s branches, in addition to retail outlets within Tanmeyah’s network. Following its partnership with Banque Misr in 2021, Tanmeyah began rolling out co-branded prepaid “Meeza” cards to its customers in collaboration with the bank, enabling customers to make deposits, withdrawals, and transfers through Banque Misr’s ATMs and points of sale. By the end of 2022, Tanmeyah had successfully issued 28 Meeza cards.

By the end of the year, Tanmeyah had recorded an outstanding portfolio value of EGP 4.3 billion, reflecting a Y-o-Y increase of 18% from EGP 3.7 billion at year-end 2021.

Capitalizing on the synergies across EFG Hermes Holding’s NBFI platform, Tanmeyah forged a strategic, one-of-a-kind partnership with PayTabs Egypt to digitize its payment collections and disbursements through PayTabs Egypt’s secure payment gateway. This partnership offers the microfinance leader direct access to PayTabs Egypt’s microbusinesses and freelancers and enables Tanmeyah’s businesses and individuals to make payments securely and smoothly. Additionally, the microfinance leader concluded its first acquisition during the year, having acquired Fatura, a techenabled B2B marketplace with a presence spanning 22 governorates in Egypt. Prior to the acquisition, Fatura was backed by prominent shareholders in the fintech field, with EFG EV Fintech being one of the primary investors since 2020. The strategic acquisition of Fatura aims to grant Tanmeyah access to Fatura’s fast-growing network of merchants, enabling the company to bridge the gap in the key B2B credit market.

In addition to its relentless efforts to digitally transform its infrastructure and broaden its client base, Tanmeyah focused on diversifying its product offerings during the year. In 2022, the microfinance player’s previously established Women in Business (WIB) program was rebranded to the Individual Lending program, catering to a wider stratum of the Egyptian population. By the end of the year, the program had registered over 47,673 loans, an increase of 65% from the 28,902 loans issued across the WIB program in 2021.

At present, Tanmeyah’s team comprises of 4,375 employees, of which over 3,585 are field loan officers. 2022 saw the company focus heavily on enhancing its operational efficiency and expanding its caliber outreach across Egypt’s governorates. Simultaneously, Tanmeyah concluded the refurbishment of its head office and the establishment of its customer-focused headquarters during the year, with the aim to effectively identify, reach, and capture a wider share of customers in the microfinance space.

Key Financial Highlights

On the back of the substantial increase in sales, enhanced margins, and a record portfolio growth, Tanmeyah recorded a revenue increase of around 7% Y-o-Y to EGP 1.5 billion in 2022, up from EGP 1.4 billion recorded at year-end 2021.

Forward-Looking Strategy

Looking ahead, Tanmeyah aims to continue on its trajectory to ramp up its operations and bolster efficiency across its footprint. To do so, the microfinance leader will continue to digitally transform its operations by investing in technology and data science, in addition to capitalizing on its acquisition of Fatura and the synergies inherent in both companies’ business models. Additionally, Tanmeyah plans to continue rolling out campaigns and launching new products with prominent players that drive progression in the microfinance space, ultimately enabling the company to continue growing across all its performance metrics.

Overview

Launched at the end of 2017 as a Buy-Now, Pay-Later (BNPL) provider, valU is the MENA region’s leading lifestyle-enabling fintech platform. A fundamental element of EFG Hermes Holding’s wider strategy to diversify its product base and provide nationwide financial solutions through digital intermediation, valU has transformed throughout the years to become a pillar in the regional fintech ecosystem and promoter of financial inclusion. Its foundations as a BNPL provider saw valU offer convenient and inclusive 3–60-month financing plans through over 3,600 retail partners and service providers, as well as over 1,000 e-commerce platforms covering various categories, such as home appliances, electronics, home finishing, furniture, residential solar solutions, healthcare, education, travel, F&B, oil and gas, fashion, used cars, and more. Having continued to launch a continuous stream of disruptive but fundamentally integrated solutions and partnerships to the market, the company has become a full-fledged lifestyle-enabling platform that meets consumers’ ever-expanding financial needs.

3,600 +

Retail partners

1,000 +

online partners

568K

valU app customers

1 MN+

transactions

5.8EG
BN+

gross merchandise value

Operational Highlights of 2022

2022 was marked by tremendous accomplishments for valU, as the fintech leader continued to bring to market innovative financing products and venture into more promising sectors. By the end of the year, valU had registered remarkable growth across all metrics, with over 930,000 app customers and over 1 million transactions completed through the app. With an average ticket size of EGP 5,000, valU concluded the year with a total gross merchandise value of EGP 5.8 billion — a twofold increase from the EGP 2.4 billion booked in 2021.

Growth and Expansion

The company’s incredible success drew the attention of global investors looking to capitalize on its growth prospects in Egypt and the region. In May, Amazon acquired USD 10 million in EFG Hermes GDRs with the option to place that investment into valU in the future, translating to 4.255% of valU’s issued share capital based on a post-money valuation of USD 235 million at the time. The acquisition was followed by announcing the Alhokair family’s intent to purchase a 4.99% stake in the platform through a USD 12.4 million capital increase.

The agreement with the Alhokair family, a powerhouse in the Saudi retail market, came on the heels of valU’s announcement of the intention to purchase a 35% stake in Saudi consumer finance player Fas Finance, marking its strategic entry into the Saudi market.

valU also closed 2022, having concluded several acquisitions itself. The fintech player fully acquired Paynas — a full-fledged employee management and benefits company that offers services to MSMEs, including a cloud-based platform to mannage attendance and payroll; financial products, such as payroll cards in collaboration with Banque Misr and Visa; affordable health insurance; as well as financial wellness products, such as earned-wage payouts and salary advances.

The synergies between Paynas’s B2B and valU’s B2C offerings perfectly position valU to capture more opportunities and become a holistic lifestyle-enabling platform that serves the needs of multiple segments with progressive and convenient financial solutions. During the year, valU also acquired a minority stake in Kiwe — the first social payment app for youth that facilitates onboarding of the unbanked segment in Egypt — and invested in Hoods, the live e-commerce platform.

Working with EFG Hermes' Investment Banking, valU issued its second and third securitized bond offerings in 2022, worth EGP 532.6 million and EGP 854.5 million, respectively. Both issuances came as part of a broader EGP 2 billion program to support the company’s expansion plans.

valU was named Fintech Company of the Year at the Gulf Business Tech Awards 2022 for the second consecutive year.

Strategic Partnerships

On the partnership front, the year saw valU welcome more homegrown and international brands aboard its merchant network. By doing so, valU successfully extended its customizable BNPL plans to new products and sectors, ultimately growing its client base and creating higher brand awareness. By the end of 2022, valU had registered over 4,500 merchants across its network.

As a cornerstone of its efforts to enhance affordability that positively impacts many Egyptians’ lives, valU forged a first-of-its-kind partnership with energy solutions provider, TotalEnergies, to offer convenient payment plans across its petrol stations. On the e-commerce front, valU partnered with the region’s leading digital marketplaces, Noon, Jumia, and Amazon Egypt, unlocking customers’ access to various products offered on all three platforms. 2022 also saw valU venture into food commerce, collaborating with online platforms, Rabbit and Voo, to allow shoppers to purchase groceries using its BNPL solutions.

Another milestone partnership for the year was with Al-Ahly Sporting Club, which saw valU provide people with more affordable financing plans on new memberships. The collaboration is part of the fintech player’s strategic alliances with other sporting clubs, including SODIC’s Club S, signed in 2021.

During the year, valU expanded into more significant ticket transactions, joining forces with real estate developers in the market, such as Arab Developers Holding, Makadi Heights, Almaza Bay, and Palm Hills, as well as hospitality player Travco, to offer residents convenient financing solutions for home maintenance and finishing fees. valU also partnered with Rentak, the first platform in Egypt combining fintech and proptech solutions, to facilitate rent transactions between tenants and landlords. It also forged a unique partnership with Egypt’s homegrown used-car platform, Sylndr, unlocking more affordable payment options for those looking to buy high-quality used cars conveniently, transparently, and reliably.

2022 also saw valU forge unconventional, three-party partnerships. These collaborations included multinational retail and wholesaling international brand, Carrefour, and home-appliance and electronics manufacturer, Braun, to offer shoppers at Carrefour exclusive promotions on Braun’s wide selection of products.

The company additionally signed a partnership agreement with Geidea, a Saudi-based digital payments provider, to integrate the company’s seamless and intuitive payment aggregation solutions into the valU ecosystem.

valU continued to broaden the outreach of its existing product offerings during the year to target new audiences. It amplified its efforts to grow the landmark cash redemption program, Sha2labaz, allowing customers to reclaim any amount spent when purchasing from any product or service provider inside or outside valU’s vendor network. The amount reclaimed in cash is then paid on flexible tenors from 6 to 60 months through valU. In 2022, valU worked on creating saving and investment products that align with its strategy to promote financial empowerment and inclusion and expand beyond solely being a BNPL player. It also opened new brick-and-mortar branches to serve more customers and expand its on-the-ground presence in the market.

Operational Synergies

Another critical factor to valU’s success this year was its ability to capitalize on the synergies inherent in EFG Hermes Holding’s business model. The fintech player partnered with several of the Group’s lines of business, including PayTabs Egypt, aiBANK, and the Investment Banking division. Partnerships for the year included collaborating with aiBANK and Synldr to unlock more affordable payment options for those looking to buy and sell used cars seamlessly and reliably. valU joined forces with PayTabs Egypt to partner with The Knowledge Hub (TKH) — a multidisciplinary educational hub of worldclass universities — enabling parents to pay for their children’s academic fees, books, and other educational materials. Another partnership between both businesses included that with notchnco — a homegrown independent software vendor (ISV) for meta products — to unlock unique shopping experiences through WhatsApp for valU’s clients.

Awards

In 2022, valU was named Fintech Company of the Year at the Gulf Business Tech Awards 2022 for the second consecutive year.

Technological Infrastructure

As valU expands its product universe and prioritizes customer satisfaction, it continues to invest in the UX and UI of its app to provide customers with a remarkable customer experience through seamless navigation.

Forward-Looking Strategy

Looking ahead, valU aims to continue enriching its product base, expanding its operational footprint across new geographies, onboarding new merchants, and empowering people to achieve their desired lifestyle needs. In 2023, valU plans to expand to Saudi Arabia, following the Alhokair family’s intent to purchase a 4.99% stake in the platform and partnership with Geidea, with an eye toward potential growth into other regional markets.

Additionally, as part and parcel of its strategy to become an end-to-end fintech platform, valU will leverage its acquisition of Paynas to offer B2B programs and HR services to its merchants.

Following the success of its unconventional partnerships in 2022, the year ahead will also see valU continue to forge more value-accretive three-way partnerships to foster innovation within the fintech space. Additionally, as part and parcel of its strategy to become an end-to-end fintech platform, valU will leverage its acquisition of Paynas to offer B2B programs and HR services to its merchants. Following the success of its unconventional partnerships in 2022, the year ahead will also see valU continue to forge more value-accretive three-way partnerships to foster innovation within the fintech space.

Overview

EFG Hermes Corp-Solutions was established in 2020 to consolidate the Group’s factoring and leasing arms, EFG Hermes Leasing and EFG Hermes Factoring, into one bundled entity. An integral part of EFG Hermes Holding’s NBFI platform, the company provides its clients of various sizes and in numerous industries with leasing and factoring services that give them critical access to capital and liquidity. Leveraging the Group’s investment banking and NBFI platforms and the inherent synergies on a Firm-wide level, EFG Hermes Corp-Solutions is able to provide regional market insights and intelligence, as well as tailored advisory and capital access solutions that upscale the non-bank corporate financing landscape in Egypt and promote financial inclusion across the country. Today, the company boasts a diverse client mix of SMEs and midcap to large corporations that operate across a myriad of sectors including real estate development, logistics and maritime, oil and gas, printing and packaging, education, healthcare, trading and distribution, among others.

Operational Highlights of 2022

2022 was a strong year for EFG Hermes Corp-Solutions. The company was able to expand its service offerings in Egypt, penetrate new sectors, conclude landmark crossborder executions, and deliver exceptional results across its core operations. By the end of the year, EFG Hermes Corp-Solutions recorded aggregate bookings amounting to EGP 9.6 billion, up 19.4% Y-o-Y from the EGP 8 billion recorded at year-end 2021. The company also registered a base of 218 clients utilizing both leasing and factoring services, reflecting a slight decline of 6% from the previous year in light of the securitization of 19 clients, 10 of which have been completely removed from EFG Hermes Corp-Solutions’ portfolio.

On the leasing side, 2022 saw the company register new bookings amounting to EGP 4.4 billion — an increase of 12% Y-o-Y from the EGP 3.9 billion recorded in 2021. Operationally, the division signed a USD 25 million deal with Transmar, a wholly owned subsidiary of IACC Holdings and Egypt’s only container shipping line, to finance the purchase of a cargo vessel, Transmar Legacy. The landmark transaction, which saw a collaboration between EFG Hermes Holding’s Investment Banking division and EFG Hermes Corp-Solutions, marked the leasing player’s strategic entry into the high-potential maritime sector. Following the completion of the transaction, Transmar was 70% acquired by Dubai-based AD Ports later in the year

Capitalizing on the success of its sale-and-leaseback agreements with real estate powerhouses Madinet Masr and Misr Italia Properties in 2021, EFG Hermes Corp-Solutions collaborated with the Firm’s Investment Banking division on the EGP 1.1 billion sale-and-leaseback package for MARAKEZ, one of the largest mixed-use developers in Egypt. EFG Hermes’ investment banking division acted as the financial advisor and arranger on the transaction, with EFG Hermes Corp-Solutions acting as the leasing partner, and aiBANK — the commercial bank acquired by the Firm in 2021 — acting as underwriter. The proceeds were used toward spending on Mall of Arabia, MARAKEZ’s flagship retail and lifestyle complex located in 6th of October. Additionally, the company signed a sale-and-leaseback agreement worth EGP 600 million for LMD Visionary Real Estate Development (LMD) to finance its all-in-one, state of-the-art leisure and business complex, 3’Sixty

on the factoring side, EFG Hermes Corp-Solutions successfully grew the portfolio by 36%, recording a total value of bookings amounting to EGP 5.3 billion versus the EGP 4.2 billion booked one year previously.

Operationally, the division extended its factoring services to leading MENA logistics and transportation player TruKKer in a debt facility worth EGP 38 million. The partnership — which garnered significant traction — is slated to enable TruKKer to expand its operations in the Egypt branch by ramping up shipments and facilitating swifter payments.

Additionally, the factoring player signed an agreement with oil and gas leader PICO Energy in a structured trans-action worth USD 15 million, marking its entry into the oil and gas sector. These landmark agreements not only serve as testament to EFG Hermes Corp-Solutions’ ability to unlock access to funding that best serves its clients’ needs, but also its efforts to broaden its outreach into more value-accretive sectors.

Another key milestone for the year was EFG Hermes Corp-Solutions’ partnership with Klickit, a payment management and digital collection platform for tuition fees, to provide education service providers with a holistic set of financial solutions that aim to drive the sector’s growth and development. Through this one-of-a-kind partnership, Klickit’s network of education providers can now leverage EFG Hermes Corp-Solutions’ leasing and factoring services to finance their capital expenditures.

2022 also saw EFG Hermes Corp-Solutions issue its second securitized bond offering, worth EGP 2.0 billion, in collaboration with the Firm’s flagship Investment Banking division. The bond was backed by a receivables portfolio of EGP 2.9 million, representing 24 lease contracts, and marked the second issuance in the bond program worth EGP 3 billion.

Key Financial Highlights

In 2022, EFG Hermes Corp-Solutions recorded 1,194 new bookings compared to the 1,285 bookings recorded in 2021. The company registered a value of new bookings amounting to EGP 9.6 billion, up from the EGP 8 billion booked in the previous year, and recorded a net profit of EGP 182 million at year-end 2022, reflecting a Y-o-Y increase of 73% from the EGP 105 million booked one year previously.

Forward-Looking Strategy

Looking ahead, and while the macroeconomic environment remains relatively challenging, EFG Hermes Corp-Solutions continues to work relentlessly to broaden its client base and target unserved sectors across its port-folio. As such, the company aims to continue exploring expansion prospects in new, value-accretive markets, branching out beyond Egyptian borders and breaking ground with new financing offerings and structures. The year will also see EFG Hermes Corp-Solutions capitalize on the solid cross-selling capacities with EFG Hermes Holding’s other divisions, leveraging the Firm’s expansive track record and unrivalled capabilities to further accelerate its operational growth and cement its leading position both in the leasing and factoring spaces.

Overview

Established in Saudi Arabia in 2014, PayTabs is an award-winning payment processing powerhouse with an expansive presence spanning 10 markets. In 2019, EFG Hermes Holding partnered with the fintech player to launch PayTabs Egypt — a formidable digital payments platform and integral part of the Firm’s NBFI platform. Over the years, PayTabs Egypt has significantly contributed to the nation’s directives for financial inclusion and digital transformation by becoming the leading online payment gateway for a wide range of consumer segments and businesses across key industries. Today, PayTabs Egypt offers seamless digital payment solutions for corporates, SMEs, startups, and freelancers.

Operational Highlights of 2022

Despite ongoing inflationary pressures that hampered consumer purchasing power, 2022 was a year of exceptional growth for PayTabs Egypt. The company successfully achieved its operational targets prior to the end of the year, primarily driven by the rapidly growing demand for e-payment solutions and market dynamics shifting more rapidly toward digital solutions that offer cashless transactions. PayTabs Egypt capitalized on this demand by providing the market with unique and value-accretive offerings, broadening its client outreach, and tapping into high-potential sectors in Egypt. As a result, the digital payments powerhouse ended the year having registered a base of over 2,000 merchants, a remarkable growth of 65% Y-o-Y, and over 1.5 million transactions completed through the platform.

Throughout the year, PayTabs Egypt heavily invested in diversifying its network of partners, forging a multitude of strategic collaborations with leading local and regional brands, and offering a wider range of innovative and tailored payment solutions through its world-class payments platform. Partnerships for the year included that with Egypt’s chief digital savings platform Waffarha, which leveraged PayTabs Egypt’s cutting-edge technology and seamless payment processes to offer the Egyptian market exclusive coupon deals on a myriad of products and services at affordable price points.

Another major milestone for the year included the introduction of Paymes (a PayTabs company) — a one-of-a-kind social commerce marketplace and a leading platform in Central Asia. Through this landmark deal, Paymes will serve as PayTabs Egypt’s social commerce platform in the MENA region, carving the path for a multitude of freelancers, artisans, consultants, home-based business owners, personal trainers, food truck vendors, and members of the gig economy to collect payments across social media platforms for any services they render, swiftly and seamlessly.

2022 also saw PayTabs Egypt home in on the high-value synergies inherent in EFG Hermes Holding’s business model, forging partnerships alongside its sister companies in the NBFI platform. valU, the MENA region’s leading fintech, lifestyle-enabling platform, has been a strong contributor to PayTabs Egypt’s growth for the year, unlocking access to a wider number of merchants and enabling the company to onboard and activate a larger number of clients. On the hospitality front, PayTabs Egypt partnered with Jaz Hotels Group and Steinberger Hotels, supporting both iconic entities in streamlining bookings and ensuring swift and secure payment processing.

Through these partnerships, guests are now able to pay their expenses and booking fees through bank cards via PayTabs Egypt, in addition to valU’s convenient payment solutions. PayTabs Egypt also came together with valU to tap into the education sector by partnering with The Knowledge Hub (TKH) — a multidisciplinary educational hub of world-class universities — enabling parents to pay for their children’s tuition and academic fees, books, and other educational materials seamlessly via PayTabs Egypt’s payment gateway and valU’s customizable payment plans. Additionally, PayTabs Egypt joined forces with valU to partner with the MENA region’s first X2C online-offline auctioning and e-commerce marketplace, Mazadat, to unlock access for users to benefit from valU’s BNPL services for C2C and B2C e-commerce and process online payments via PayTabs Egypt’s digital payment gateway.

As part of PayTabs Egypt’s strategy to further build on the cross-selling capabilities across the group’s lines of business, the company partnered with the NBFI platform’s leading microfinance arm, Tanmeyah for Microfinance Services, to digitize its payment collection processes for its network of businesses and individuals, ultimately playing a pivotal role in Tanmeyah’s digital transformation strategy.

Forward-Looking Strategy

Going forward, PayTabs Egypt plans to continue infusing the market with disruptive digital products and payment methods, which will significantly benefit the company’s onboarded merchants and attract new merchants to its network. Shifting its focus from Cairo, 2023 will see PayTabs expand beyond Egypt’s capital, by venturing into more underserved governorates. To do so, the company will deploy on-the-ground teams of experienced professionals to onboard and activate more merchants, as part of its wider strategy to promote financial inclusion and contribute to the move toward a cashless society on a country-wide scale.

Alongside growing its merchant network, PayTabs Egypt aims to focus and invest in bolstering the customer experience on its bespoke platform. As such, the digital payments solution provider is in the process of establishing a local call center which is slated to receive inbound and outbound customer calls and technical support inquiries. Additionally, PayTabs Egypt plans to onboard a dedicated quality assurance team, which will be responsible for monitoring and evaluating the efficiency and reliability of merchant onboarding processes, and effectively addressing any related issues and concerns.

Overview

Bedaya Mortgage Finance (Bedaya) is one of Egypt’s leading providers of non-bank digitalized mortgage financing solutions, with its offerings spanning residential, commercial, and administrative real estate properties. Its innovative mortgage financing solutions are powered by disruptive technologies and a well-rounded industry acumen, ensuring the fastest turnaround and the best quality of service in the market.

Established in 2019 as a joint venture between Talaat Mostafa Group (TMG), Ghabbour Auto’s NBFI arm GB Capital, and EFG Hermes’ NBFI platform, Bedaya offers its client base a comprehensive range of cut-to-fit mortgage financing plans with 10-year repayment periods and convenient interest rates through its seamless integrated digital platform. The mortgage financing leader leverages its mortgage finance and Ijarah programs to enable clients to purchase and renovate properties.

2022 was a year rife with macroeconomic challenges, primarily driven by rising interest rates and inflationary pressures. Despite these volatilities, Bedaya managed to end the year on a high note, exceeding operational and financial targets and successfully navigating the challenging environment. By the end of the year, the company had registered a twofold increase from the facilities recorded last year.

Bedaya’s extensive efforts to expand and bolster its operations throughout the year resulted in a substantial hike in portfolio value and number of clients served — a Y-o-Y increase of 206% and 379% versus the end of 2021, respectively. As a result of this growth, Bedaya ranked second in the Egyptian mortgage market, according to the FRA — a testament to the mortgage finance player’s comprehensive service offerings and the strong demand surrounding the company’s affordable and inclusive mortgage financing programs.

Above and beyond the exceptional performance delivered across the leading mortgage finance player’s core operations, 2022 saw Bedaya capitalize on the synergies inherent in the Firm’s business model, coming together with EFG Hermes’ Investment Banking division to issue its first securitized bond offering worth EGP 651.2 million — the first ever securitization issuance for a mortgage financing company in the Egyptian debt capital market space. The issuance, which featured a historic tenor of 10 years, was met with substantial interest from investors and played a pivotal role in expanding Bedaya’s operational footprint and diversifying its offerings.

2022 also saw Bedaya establish a dedicated sales hub, as part and parcel of its efforts to enhance operational systems and processes. Additionally, the company focused on upscaling its digital mortgage application, which was launched in 2021, deploying efforts to better manage traffic and inquiries. These achievement allowed Bedaya to effectively manage outbound calls and generate higher leads during the year.

Bedaya also continues to be an employer of choice in Egypt’s mortgage landscape, attracting the highest caliber talent in the region.

Bedaya’s extensive efforts to expand and bolster its operations throughout the year resulted in a substantial hike in portfolio value and number of clients served.

Forward-Looking Strategy

In 2023, Bedaya aims to continue its upward trajectory by expanding its operations and presence in the ever-growing mortgage market and introducing innovative financing products that provide the best mortgage experiences for Egyptians locally and abroad, as well as non-Egyptians living and working in Egypt. The company will focus heavily on growing its portfolio, with an equal split between returns from portfolio acquisitions and the retail profile. On the retail side, the interest rate environment remains challenging, significantly impacting the retail portfolio. Nonetheless, Bedaya continues to work toward capturing value-accretive retail prospects and catering to changing dynamics to expand its outreach in the Egyptian mortgage space. On the portfolio acquisition side, Bedaya continues to leverage its expansive network of prominent and highly reputable developers to deliver more real estate units to the market, ultimately capitalizing on the significant demand in the market and cementing its leading position as the provider of choice for mortgage facilities.

Overview

Founded in 2020 following the acquisition of Tokio Marine Egypt Family Takaful by EFG Finance and GB Capital, Kaf has grown to become a tech-enabled insurance brand in Egypt delivering innovative and impactful insurance solutions that drive value for individuals and businesses in the life and savings arenas. Kaf aims to make insurance products more accessible to the wider Egyptian population, creating social and community value through insurance products backed by a trusted digital platform.

Operational Highlights of 2022

The year saw Kaf become the first Egyptian company to officially transition from takaful insurance to commercial insurance. A journey that began in 2020 in an effort to expand its customer base and shift focus to more disruptive solutions that upscale the insurance sector. The conversion process, governed by the 2019 FRA issued guidelines for takaful transition, mandates three stages of licensing conversion: the initial approval stage, the business plan approval stage, and the product and governance approval stage.

During the year, Kaf delivered an exceptional performance across its life and savings insurance offerings, reaching 2 million lives insured by year-end compared to 78,000 lives recorded in 2020 pre-acquisition. The growth was largely attributed to the synergies inherent in the EFG Hermes Holding business model that allowed Kaf to extend insurance plans to customers of the Firm’s leading microfinance arm, Tanmeyah for Microenterprise Services (Tanmeyah), in addition to other NBFIs. By doing so, Kaf mitigated the default risks of Tanmeyah’s borrowers, ensuring stability and progress of people’s small and micro businesses as part of both NBFI platform companies’ focus to drive financial inclusion across Egypt’s governorates.

Alongside the conversion and microinsurance successes, 2022 also saw Kaf focus on enhancing the customer journey experience across its platform by partnering with world-class IT and consulting firm DXC Technology to launch a dedicated IT system, which will enable the company to take its operations to the digital sphere and strengthen its technological infrastructure to deliver unrivaled tech-led services to its customers. Additionally, the company partnered up with the digital insurance broker Estafsar. Kaf also partnered with e-health platform Esteshara to enable customers to undergo medical examinations smoothly and seamlessly.

Forward-Looking Strategy

Going into 2023, Kaf aims to venture into the retail space, launch new digital insurance products, and continue building its operational and distribution capabilities. The company also aspires to continue broadening its online presence by investing in advanced technologies. Additionally, and following the completion of its conversion process, Kaf plans to continue raising the bar by leveraging the success of its partnerships with key entities from within its shareholding groups, such as EFG Finance and GB Auto, to launch a myriad of new strategic and revolutionary insurance products in the market.

2022 saw Kaf become the first Egyptian company to officially transition from takaful insurance to commercial insurance.

Overview

Established in 2017 as a joint venture between EFG Hermes Holding’s wholly owned subsidiary, EFG Finance, and government-backed venture capital fund, Egypt Ventures, EFG EV Fintech is Egypt’s flagship boutique micro- VC arm that seeks out and supports strategic fintech companies backed by innovative concepts and entrepreneurs from start-to-finish. Leveraging over three decades of investment and regional expertise, EFG EV Fintech boasts the country’s largest fintech portfolio of the most prominent companies operating in key sectors within the fintech space, including insurance-tech, regulatory-tech, agri fintech, digital and open banking, and SME lending. The company not only provides the necessary funds to enable business growth but also offers legal advisory, commercial mentorship, and other support services with an eye for fostering progression and agility in Egypt’s fintech ecosystem.

2022 Operational Highlights

In 2022, EFG EV Fintech successfully managed to carry out several landmark transactions during the year, capitalizing on the synergistic prospects between its own entity and other arms within the Firm’s NBFI platform.

Throughout the year, the company successfully concluded its exit from Fatura Netherlands B.V. (Fatura) —a tech-driven B2B platform with a presence in 22 Egyptian governorates — in which it had been a primary investor since 2020. Fatura brings together retailers, manufacturers, and wholesalers under one roof, offering users a multitude of innovative services that include a marketplace with live product viewing and price transparency, B2B BNPL services, and additional marketing support services. Following EFG EV Fintech’s exit, Fatura was acquired by EFG Hermes Holding’s leading microfinance arm, Tanmeyah.

Another milestone for EFG EV Fintech during 2022 was its exit from HR platform, Paynas. The platform offers a roster of employee management and payment services to MSMEs, including a cloud-based platform to manage time, attendance, payroll, and financial products, such as payroll cards and affordable health insurance. Paynas also offers financial wellness products, such as earned wage payouts and salary advances. Following EFG EV Fintech’s strategic exit from the platform, Paynas was acquired by EFG Hermes Holding’s leading lifestyle-enabling fintech platform, valU.

2022 also saw EFG EV Fintech add Fintech Galaxy to its well-rounded portfolio, a global platform that fosters innovation and synergies in the financial services ecosystem. As the first ever Central Bank-regulated open financing platform, Fintech Galaxy focuses on facilitating open banking API integration between financial institutions and fintech-focused companies.

Forward-Looking Strategy

Shedding light on 2023, EFG EV Fintech plans to continue focusing on enhancing the capacities across its portfolio, leveraging its decades of business expertise to support its portfolio companies from the very start of their journey up until the exit stage. EFG EV Fintech’s team of industry experts continues to proactively support the innovators in Egypt’s fintech landscape, offering day-to-day assistance, advisory, and mentorship services, with an eye for upscaling the market and fueling digital transformation in Egypt. In terms of new investments, EFG EV Fintech continues to focus on fintech companies that not only have high potential for growth but also employ disruptive technologies to create meaningful impact.

EFG EV Fintech successfully managed to carry out several landmark transactions during the year, capitalizing on the synergistic prospects between its own entity and other arms within the Firm’s NBFI platform.