Egypt’s first digital factoring license secured by FinTech oliv

The Financial Regulatory Authority (FRA) approved the country’s first digital factoring license, secured by SME-focused FinTech firm oliv.

The license enables oliv to offer fully digital factoring and reverse factoring services to Egyptian businesses, a move that could revolutionize access to working capital for the country’s SMEs.

The announcement was made in a recent statement from the company, marking a significant milestone under Egypt's FinTech law number 5, issued in 2022, and FRA decree 268 of 2023, designed specifically for venture-backed FinTech companies.

According to FRA reports, the size of Egypt’s factoring industry in 2023 amounted to LE 44 billion, serving just 605 clients.

The company’s statement explained that with SMEs contributing approximately 43 percent to the country’s GDP and accounting for over 75 percent of total employment, access to financing is crucial as market studies reveal a staggering funding gap of $39 billion in the sector.

The approval comes after a comprehensive review by the FRA, which examined oliv’s operating procedures, credit and risk strategies, and technology infrastructure to ensure compliance with regulatory standards.

Looking ahead, Oliv has set an ambitious goal to expand its factoring services to over 5,000 clients by 2028.