Since EGX was established in 1883, what changes did it bring to the business environment in Egypt?

The Egyptian Exchange has always played a significant role in the Egyptian economy. Although there was a period of inactivity between the 1960s and early 1990s, we are now witnessing a gradual and consistent shift in the economy, with different segments of the population engaging with the exchange. EGX provides a platform for companies to raise capital and access equity finance while supporting them in terms of governance and disclosure, which are crucial for investments.

What is the breakdown of EGX in terms of SMEs, and how does EGX engage with them?

SMEs are integral to the Egyptian economy, although their presence on EGX is not accurately reflected. It is easier to attract large companies to list on EGX, but SMEs require more effort in terms of convincing them to list and preparing them for the journey. Becoming a public company involves transparency and proper disclosure of finances, governance, and maintaining proper books, which can be a challenge for many SMEs. However, EGX is working with tech start-ups and exploring opportunities to support them in various ways, including listing, access to financing, and more.

How would you define innovation, and how has EGX embraced innovation in terms of products or technologies?

Innovation, for us, involves giving priority to digitalization and fintech solutions in our strategy. We have taken significant steps in this direction, collaborating with market participants and supporting brokerage firms in adopting fintech solutions when dealing with clients. One notable example is the tech start-up Thndr, which helps customers invest in the stock market and has made a real impact in attracting more people to our system. We assist Thndr in increasing efficiency and reducing costs. We are also looking to update areas where manual processes still exist and develop our own app to connect with the community, providing better solutions and monetizing our assets.

EGX has a historical experience in ESG index, and recently EGX announced that it is working on the African Voluntary Carbon Market. Can you provide more details about this?

EGX has been a pioneer in sustainability and was the second exchange globally to issue an ESG index in 2010. We continue to conduct training programs for companies to meet ESG and sustainability reporting requirements. The regulator has also made significant efforts, and starting from 2021, EGX will file annual reports with mandatory ESG disclosures. We believe sustainability is not just a trend but a business opportunity for corporates. We emphasize to companies that in the future, unsustainable products may face export restrictions. As part of our commitment to climate change, we announced the launch of the first Voluntary Carbon Market in Africa during the COP27 Conference. The VCM aims to promote VCMs, encourage emission reductions, raise awareness, prepare stakeholders, create business opportunities, and integrate ESG principles into strategies.

What are EGX’s future plans and goals in terms of sustainability and innovation?

Our future plans revolve around continuing to promote sustainability and innovation in the Egyptian market. We will maintain our focus on ESG practices, ensuring companies meet reporting requirements and driving awareness among public and private sectors. We will also explore further digitalization and fintech solutions to enhance efficiency and provide better services to market participants. EGX aims to be at the forefront of sustainable and innovative practices, contributing to the development of the Egyptian economy and attracting more investors and stakeholders to our market.