In a move indicating growing investor interest in Africa’s digital financial infrastructure, the European Bank for Reconstruction and Development (EBRD) has committed to investing up to $21 million in MSS Holding, an Egyptian payments infrastructure company backed by private equity firm Lorax Capital Partners.
The transaction, structured in two phases, will see an initial equity investment of $14.7 million through DigiPay U.A. — a Netherlands-based special purpose vehicle established to channel funds into MSS Holding. An additional $6.3 million has been earmarked as an uncommitted follow-on investment to support the company’s future growth, particularly via acquisitions.
The agreement, approved by the EBRD’s board and signed by the relevant parties, marks one of the most significant recent equity investments into Egypt’s fintech infrastructure space. MSS Holding provides card issuance and payment processing services to both financial and non-financial institutions, with operations centered in Egypt and expansion plans targeting broader African markets.
The EBRD’s involvement aligns with its broader strategy for Egypt and the wider region, which prioritizes support for private sector competitiveness and financial inclusion. The investment is also part of the bank’s Technology, Media, and Telecom (TMT) Strategy, which supports fast-growing, tech-driven enterprises introducing innovative digital applications.
MSS Holding is expected to use the capital to accelerate regional expansion, diversify its client base, and develop new products. According to project documents reviewed by Launch Base Africa, Lorax Capital will leverage its previous experience in scaling fintech ventures to help guide MSS’s growth trajectory.
“The project reflects a clear alignment with EBRD’s goals to advance digital transformation and financial sector resilience across its regions of operation,” the Bank stated in its investment disclosure.
The EBRD has categorized the investment as a low-risk.
MSS Holding’s operational model focuses on providing digital financial rails to institutions traditionally underserved by legacy infrastructure. By integrating such services across African markets, the company is positioning itself at the center of a regional push toward modernized, tech-enabled payment ecosystems.
The investment in MSS Holding is part of a broader trend among development finance institutions and private equity firms to support digital infrastructure in emerging markets. As African economies digitize, demand for backend payment systems — such as those offered by MSS — has surged, particularly from telecom operators, e-commerce firms, and small banks.
The presence of co-investors and the EBRD’s engagement with regulators across African markets is expected to smooth the company’s regional expansion, according to the project’s additionality assessment.
While MSS Holding has yet to make public any new market entries, the follow-on investment capacity signals potential for strategic acquisitions or partnerships to strengthen its footprint.
In addition to being aligned with Egypt’s national development priorities, the project is also consistent with the EBRD’s Financial Sector Strategy and its 2021 digital acceleration framework. Both policies emphasize capital provision to non-traditional market actors and the “future-proofing” of financial ecosystems through the integration of digital technologies.
As the digital finance race continues across Africa, EBRD’s backing of MSS Holding highlights a growing recognition of the central role infrastructure providers will play in shaping the region’s financial future.