The total non-banking financial credit extended to medium, small, and micro-enterprises (MSMEs) by companies and institutions increased to EGP 64.421bn in May 2024, up from EGP 44.485bn in May 2023, marking an increase of around EGP 20bn.
According to a recent report from the Financial Regulatory Authority (FRA), these funds were allocated to approximately 3.813 million beneficiaries in May 2024, compared to 3.896 million beneficiaries in May 2023.
The FRA report highlighted that micro-enterprises recorded balances of EGP 55.929bn in May 2024, compared to EGP 41.533bn in May 2023, representing an increase of approximately EGP 14.4bn. However, despite this growth, the number of beneficiaries of this financing decreased to 3.821 million, compared to 3.909 million beneficiaries.
For small and medium-sized enterprises (SMEs), financing balances amounted to EGP 8.492bn in May 2024, up from EGP 2.943bn in May 2023, with the number of beneficiaries increasing to 7,700, compared to 3,300.
Mortgage Finance
In the same context, the FRA revealed that the total mortgage finance provided by companies reached EGP 7.013bn in May 2024, compared to EGP 3.295bn in May 2023, reflecting a growth rate of 112.8%. The number of mortgage finance contracts increased from 1,842 to 3,690.
According to the FRA, the financing went to ordinary clients with 183 contracts valued at EGP 1.778bn, 350 contracts for clients of the Housing Fund valued at EGP 92.3m, and portfolios purchased through 3,157 contracts worth EGP 5.142bn.
Regarding the development of mortgage finance by income brackets, the segment with monthly incomes exceeding EGP 3,500 accounted for EGP 6.973bn in total financing, benefiting 3,555 clients. The segment with monthly incomes between EGP 2,500 and EGP 3,500 received EGP 22.7m for 94 clients, while the segment with monthly incomes less than or equal to EGP 2,500 received EGP 16.7m for 41 clients.
Consumer Finance
The FRA report also highlighted that consumer finance companies disbursed EGP 19.936bn during the first five months of 2024, compared to EGP 16.869bn during the same period in 2023, reflecting a growth rate of 18.2%. The number of clients reached 1.424 million in May 2024, compared to 1.423 million in May 2023.
The report added that vehicle purchases accounted for 31.18% of the total financing provided by consumer finance companies. Electrical appliances and electronics accounted for 26.85%, household electrical appliances 10.95%, single-invoice purchases from various stores and retail chains 6.20%, clothing, shoes, watches, jewellery, and eyewear 5.15%, home finishing and furnishings 4.98%, vehicle parts 2.05%, furniture and home accessories 3.43%, and other goods 9.20%.
Financial Leasing
In a related context, the FRA reported a decline in the value of financial leasing contracts to EGP 42.543bn in May 2024, compared to EGP 45.166bn in May 2023, representing a decrease of 5.8%. The total number of contracts stood at 681, down from 804 contracts.
The real estate and land sector dominated 77.16% of the total value of leasing contracts, followed by the freight transport sector at 6.35%, the machinery sector at 5.14%, the heavy equipment sector at 3.44%, the production lines at 2.70%, and the private car sector at 2.50.
