CAIRO, 20/07/06 - A group of Dutch investors wants to help millions of Egyptians acquire a bank account. The Giro-Nil company they have set up with local partners will introduce the first giro payments in Egypt via preformatted giro slips this summer.

"Most Egyptians still keep their savings in an old sock under the mattress," explained Giro-Nil director Ulbe Spaans from his office on the Nile. "We must get a cultural change going. The introduction of the preformatted giro is the starting phase. People will then at least have the confidence of a piece of paper. But it is the beginning of a completely new financial structure in Egypt."

Giro-Nil is a joint venture between the group of Dutch investors, two large Egyptian banks and the state postal company, set up to replace the system of cash payments by a system of giro payments.

Soon Telecom Egypt will become the first company to pay its salaries by giro. The Netherlands Financing Company for Developing Countries (FMO) recently decided to take a 10 percent stake in Giro-Nil.

"Of the 77 million Egyptians, only seven million have a bank account. As a result, less than 10 percent of the money remains in the financial circuit, compared with over 90 percent in the Netherlands," said Spaans. "Our aim is to help 20 million Egyptians to get a giro bank account within 10 years." To achieve this aim, 60 percent of Giro-Nil's budget is earmarked for marketing.

The Dutch investors behind Giro-Nil also plan to introduce giro payment traffic in other developing countries. Prospects in South America are already being investigated. The World Bank has also indicated interest in the project. At a conference organised by the United Nations in Dakar recently, representatives of 34 African countries met to discuss the possibilities for introducing the giro in their country.