Non-banking finance granted by companies and institutions to micro, small, and medium enterprises (MSMEs) increased to EGP 63.1bn in April 2024, compared to EGP 43.6bn in April 2023. According to a recent report by the Financial Regulatory Authority (FRA), the non-banking finance for micro-enterprises reached EGP 54.9bn in April 2024, up from EGP 40.9bn in April 2023. Despite this increase, the number of beneficiaries decreased to 3.8 million from 3.9 million.
The report revealed that the financing balances for small and medium enterprises amounted to EGP 8.1bn in April 2024, up from EGP 2.6bn in April 2023, with the number of beneficiaries increasing to 7,400 from 3,000.
The FRA reported that total real estate financing provided by companies reached EGP 5.725bn in April 2024, compared to EGP 2.417bn in April 2023, a growth rate of 136.8%. The number of real estate financing contracts rose to 3,167 from 1,395. Financing distributed to regular clients amounted to 145 contracts worth EGP 1.287bn, and 208 contracts to fund clients worth EGP 54.1m. Purchased portfolios included 2,814 contracts worth EGP 4.384bn.
For real estate financing based on monthly income brackets, the segment earning more than EGP 3,500 dominated with EGP 5.7bn across 3,078 contracts.
Consumer finance companies provided EGP 15.58bn in financing during the first four months of 2024, compared to EGP 13.110bn during the same period in 2023, an 18.9% growth. However, the number of customers decreased to 1.098 million in April 2024, from 1.131 million in April 2023, a decline of 2.9%.
The FRA stated that automobiles and vehicles accounted for 33.42%; electrical appliances and electronics 26.88%; household electrical appliances 9.70%; single-invoice purchases from various stores and chains 6.15%; and clothing, shoes, watches, and jewellery 5.29%.
The FRA revealed that the value of leasing contracts decreased to EGP 33.234bn in April 2024, down from EGP 36.8bn in April 2023, a 9.8% decline. The total number of contracts recorded was 569, compared to 636.
Real estate and land accounted for 76.73%; transport vehicles 5.95%; machinery and equipment 4.88%; heavy equipment 3.47%; production lines 2.82%; and private cars 2.70%.
