In a move that signals both progress and familiar power dynamics in Egypt’s remittance sector, fintech startup Balad has officially gone live as the country’s first remittance aggregator. With a final nod of approval from the Central Bank of Egypt (CBE), Balad now joins the select group of financial institutions handling the billions of dollars flowing into the country annually from its vast expatriate population.

The announcement marks a significant milestone for the Egyptian fintech ecosystem, where homegrown startups often struggle to gain a foothold in tightly regulated financial sectors. Balad’s platform enables international Money Transfer Operators (MTOs) and fintech aggregators to connect directly to a robust payout network in Egypt. Beneficiaries can receive their funds through bank accounts, mobile wallets, or cash pickups at designated branches.

While Balad’s regulatory approval appears to be a win for fintech innovation, the broader context raises questions. The CBE has been steering Egypt’s remittance landscape toward a more centralized model. Just last year, it integrated international transfers into the national instant payment system, InstaPay, effectively giving banks a tighter grip on the remittance market. The move, though touted as a step toward financial inclusion, has left many wondering whether local fintechs can ever truly compete with entrenched financial institutions.

Egypt ranks among the world’s top remittance-receiving nations, with annual inflows surpassing $30 billion. In 2024 alone, remittances surged to $23.7 billion in the first ten months, a staggering 45.3% increase compared to the previous year. The Gulf states remain the primary source of these inflows, with agreements between Egyptian and Gulf-based banks aiming to further streamline transactions.

For decades, global heavyweights like Western Union, MoneyGram, and Ria Money Transfer have dominated the Egyptian remittance sector. While new entrants such as Wise have made inroads among tech-savvy users, the market remains firmly in the hands of legacy players. Regional operators, such as Saudi Arabia’s FAWRI Money Transfer, have also capitalized on the expatriate demand, but the collapse of UK-based Small World in 2024 served as a stark reminder of the sector’s volatility.

Balad’s entry raises the question: Can an Egyptian startup meaningfully challenge the international titans that have long dictated terms in the market?

Egypt’s fintech sector accounts for 36% of the country’s startup ecosystem, according to the CBE’s 2023 FinTech Landscape Report. However, despite this growing presence, regulatory hurdles remain formidable. The government’s tight control over foreign currency transactions, including periodic caps on withdrawals and credit card spending abroad, has deterred innovation.

In late 2023, the temporary ban on using Egyptian pound debit cards abroad sent shockwaves through the financial sector, with fintechs struggling to adapt to the ever-changing regulatory landscape. Meanwhile, restrictions on corporate foreign payments and liquidity constraints have created additional barriers for startups looking to scale.

Founded in 2022 by Adham Azzam, Sally Asaad, and Mohamed Assem, Balad secured a seven-figure USD pre-seed funding round in 2023, led by Egyptian venture capital firm Acasia Ventures. Other notable investors include Launch Africa Ventures, Future Africa, and Magic Fund, among others. The funding enabled Balad to develop its remittance platform, hire key talent, and secure the necessary licenses.

“Ensuring seamless, regulatory-compliant, and efficient remittance flows to Egypt is at the heart of our mission,” said Adham Azzam, Co-Founder & CEO of Balad. “Becoming the first Egyptian remittance aggregator to go live is a testament to our commitment to providing a best-in-class payout network for our global remittance partners.”

While Balad’s technology-driven approach offers lower transfer fees and faster payouts, its long-term success depends on its ability to navigate an environment where banks, regulators, and legacy remittance providers continue to wield immense influence.

The launch of Balad aligns with the CBE’s broader remittance digitization push, but skepticism remains. The government’s past initiatives, while well-intentioned, have often reinforced existing power structures rather than democratizing financial access.

For now, Balad’s debut is a step forward, but whether it marks the beginning of a real shift in Egypt’s remittance landscape or just another chapter in the ongoing dominance of established players remains to be seen.