To significantly boost Egypt’s microfinance sector, companies and organizations jointly invested 61.14 billion Egyptian pounds in micro, small and medium enterprises (MSMEs) in February 2024. The funds were granted to 3,813,000 customers, representing a significant increase of 19.018 Egyptian pounds. Within just one year he would make $1 billion.
According to a recent report by the Financial Regulatory Authority (FRA), the breakdown of loans provided by these institutions is as follows:
- Small business: Loans amounted to EGP 53,582 million to approximately 3,806,000 customers, and in February 2023 amounted to EGP 39,930 million to approximately 3,949,000 customers. .
- Small and medium-sized enterprises: Loans amounted to EGP 7.5 billion to around 6,900 customers, compared to EGP 2.184 billion to around 2,500 customers in February 2023.
Distribution of microfinance:
- Enterprise: 64.55%
- Associations and category “A” companies: 32.8%
- Associations and category “C” companies: 1.45%
- Associations and private institutions (category “B”): 1.14%
Additionally, consumer finance companies played a key role in supporting individuals in January and February 2024. The consumer finance company disbursed funds of 8.715 billion Egyptian pounds, reflecting a growth rate of 44% compared to the same period in 2023. Consumer financial activity decreased slightly to 525,400 (from 537,300 in 2023).
Breakdown of consumer finance activities:
- Automobiles and Vehicles: 38.78% of loans
- Electrical appliances: 16.08%
- Electronics: 7.98%
- Single invoice purchases from different stores: 5.50%
- Clothing, shoes, watches, jewelry: 3.84%
Furthermore, the contract value of finance leasing companies in the Egyptian market decreased to EGP 14.43 billion in January and February 2024 (21.061 billion EGP in 2023). The number of finance lease contracts also decreased slightly to 353 (350).
Breakdown of finance lease contract:
- Real estate and land sector: 65.36%
- Transport vehicle sector: 8.19%
- Machinery and equipment sector: 6.77%
- Heavy equipment sector: 6.75%
- Private automobile sector: 3.75%
- Production line: 3.59%
