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Egypt international remittance market to hit $20.5 billion by 2023, Ken Research

Thursday 14 February 2019 10:35 AM

Immigration minister Nabila Makram
Immigration minister Nabila Makram

Remittance Market, International, Domestic and Bill Payments, in Egypt is still in its growth stage and a large portion of the remittance has to be formalized.

Huge potential exist for Central Bank and other participants to develop policies and infrastructure that promote the growth in use of legal channels.

Clarity on regulations and transparency in fee charged is expected to act as key potential developments to have positive impact on the market. Saudi Arabia, which has been the largest source for inbound remittance in Egypt, has introduced regulation that favor hiring of local population and may have negative impact on Egyptian remittance market.

Rapid growth in the usage of mobile technologies in the country for money transfer and bill payments will be the key factor for promotion of cashless economy in the country. 

This is expected to have positive impact in formalizing the money transfer, bill payment and remittance process. More companies and utility service providers are expected to digitize their billing system promoting involvement of third party payment service providers as technology partners.

With the price of computers and other access devices declining substantially, connectivity is expected to improve further in the coming years. Owing to this, the access to online remittance services in the Egypt is likely to increase, augmenting the transaction volume and value of domestic and international money transfers.

In the next few years increased presence of banking transaction in the international, domestic and bill payment market is expected to be visible as financial inclusion improves. Government and banks in the country are increasingly focusing on improving financial inclusion in the country and is in process of collaboration with various financial institutions for the same.

Other entities such as Egypt Post, bill payment service providers, and money transfer organizations are also expected to encourage the population to increase bank penetration in the country, which in turn will help formalization of remittance market in Egypt.

Analysts at Ken Research in their latest publication "Egypt Remittance Market Future Outlook to 2023 – By Inbound and Outbound Remittance, By Mode of Transfer (Bank Transfer, Through Friends or Relatives, Through Agent or Courier, Carried Money on Their Visits, and Others), By Banking and Non Banking Channel, By Bill Type(Mobile Services, Internet Services, Utilities, and Others), By Bill Payment Mode (Cash Payments, Card Payments, and Fund Transfers)" believe that increase in banking population coupled with growth of mobile users will positively impact the market future growth. The international remittance, domestic remittance, and bill payment markets are expected to register a positive CAGR of 2.7%, 5.2%, and 15.4% respectively in terms of transaction value during the forecast period 2019E-2023E.