Edris
Alleviating Egypt's Economic Crisis through FinTech and Big Data
Introduction
The cash-heavy economy of Egypt has been harmful to the country’s financial well-being: it gives way to an increasingly large informal sector that is unaccounted for, promotes inflation, and remains hard to regulate. All of these elements have impacted the public’s well-being negatively. Edris approaches the economy differently, with a mentality that has been long awaited but hasn’t happened before: implementing a cashless economy.
Edris is a fintech ecosystem that provides bank cards, point-of-sale machines, and financial software for both individuals and businesses.
Problem
There are three major problems in Egypt's economy and financial sector,
Lack of Confidence in the Financial Sector: According to multiple reliable international sources, Egypt's public finances are weak and debt sustainability is at risk, judged as being speculative and hard to do business with. For the locals, the current tools provided by banks have been deemed unreliable. Only in recent times has the fintech bubble begun to grow and better services emerged. All of these factors have made both the global and local investor communities lose confidence.
Large Informal Sector, Taxation is Difficult: While Egypt does have a taxation system that does place taxes on imports and income, the informal sector remains large at 62.5% of the national economy, with 85% of the small and medium-sized enterprises being informal. The wide-spread use of cash-based transactions makes it tough for the government to regulate it. When a nation cannot collect taxes, consequences ranging from budget deficits to financial crises erupt.
Hyperinflation: The price of goods and services has increased drastically over the past year and the Egyptian people have been vocal about it. With the Egyptian pound devaluing and the country relying on imports, the prices had to go up. In an attempt to manage the economic situation, more ccash money was printed. The increase of money supply directly causes inflation.
Opportunity
For every economic problem Egypt faces, Edris presents a win-win-win solution,
Boosting Efficiency and Safety: Edris has brought in technology that was built on international standards to serve the public. The tools being provided are at par with the tools provided by the largest banks in the United States. Being a private entity registered in Switzerland and headquartered in New York, our clients have full control over their finances and the total freedom to manage their money. We respect our client’s decisions and protect their assets with the highest caliber of security.
Transactions Recorded and Taxed Automatically: Edris documents every transaction made with the Edris card and Edris hardware revolving the new cashless economy it supervises. When we say everything, we mean it, whether you’re buying a single olive from a vegetable market in Upper Egypt or purchasing a multi-million pound property in New Cairo; Edris will record the transaction and automatically collect the respective tax on the commodity, that will be delivered efficiently to the government. This hassle-free, efficient form of taxation will empower the republic to collect taxes effortlessly, shrink the informal sector efficiently, and demolish the black market easily. All of these elements will allow Egypt to continue developing its infrastructure and grow its economy.
Gradual Deflation: Once Edris cards have been passed out to the entire population and the hardware is provided to all entities, there will no longer be a need for cash. Gradually the cash will be taken out of circulation and the economy will become easier to manage/regulate. This will all lead to deflation, restore the value of the Egyptian pound and boost the purchasing power of Egyptians. Eventually, prices of goods will also decrease and citizens will be able to enjoy a more comfortable life.