Regulated companies and institutions in Egypt provided EGP 75.436bn in financing to 3.726 million medium, small, and micro enterprises (MSMEs) by the end of November 2024, according to Egypt’s Financial Regulatory Authority (FRA). This represents an increase of EGP 21.309bn compared to the EGP 54.127bn provided to 3.821 million clients in November 2023.
A recent FRA report detailed that EGP 61.378bn was allocated to 3.716 million micro-projects by November 2024, up from EGP 48.549bn for 3.815 million projects the previous year. Financing for medium and small enterprises reached EGP 14.058bn for 10,300 projects, a significant increase from EGP 5.577bn for 5,600 projects in November 2023.
Companies operating in this sector accounted for 65.22% of microfinance balances, while Category A associations and NGOs held a 32.32% share. Category C organisations accounted for 1.38%, and Category B institutions held 1.09% of the market.
Real Estate Financing
The FRA report also revealed a substantial increase in real estate financing, with total funds provided by companies in this sector reaching EGP 22.119bn by November 2024, a 160.6% growth rate compared to the EGP 8.488bn recorded in November 2023. The number of real estate finance contracts increased to 9,430, up from 4,477 contracts the year before.
Of these, 329 contracts, with a total financing value of EGP 4.979bn, were allocated to regular customers. Social housing programmes accounted for 545 contracts amounting to EGP 145m, while 8,556 contracts were executed under purchased portfolios, with financing reaching EGP 16.995bn. Customers earning more than EGP 3,500 per month accounted for EGP 22.055bn in financing, covering 9,240 contracts.
Consumer Financing
In the consumer finance sector, total financing reached EGP 55.067bn by the end of November 2024, a 27.1% increase from the EGP 43.321bn recorded in November 2023. The number of clients benefiting from these financing services increased to 3.758 million, up from 3.128 million in the previous year.
The largest share of consumer financing (29.01%) was allocated to electrical appliances and electronics. Car and vehicle purchases represented 26.64%, while home appliances accounted for 11.22%. The financing of single-invoice purchases from various retail stores and shopping chains represented 6.21%, whereas clothing, footwear, handbags, watches, jewellery, and eyewear purchases constituted 5.77% of total consumer financing.
Leasing Sector
Financial leasing contracts amounted to EGP 102.082bn by November 2024, compared to EGP 103.138bn in November 2023, reflecting a 1% decline. The number of leasing contracts also decreased, from 1,818 to 1,577.
The real estate and land sector accounted for the majority of financial leasing volumes, with a 76.36% share. The automotive sector followed, with 7.07%, while machinery and equipment accounted for 3.88%. Leasing of passenger cars constituted 3.73%, and heavy equipment leasing made up 2.84% of total leasing transactions.
Factoring Sector Sees Significant Growth
Egypt’s factoring market experienced substantial growth, with the FRA reporting a total factoring volume of EGP 31.904bn by November 2024, a 77.9% increase compared to the EGP 17.931bn in November 2023.
The number of clients utilising factoring services increased by 16.1%, reaching 700 clients, compared to 603 clients in 2023.
Factored receivables with recourse rose to EGP 39.871bn (compared to EGP 23.922bn the previous year), while factored receivables without recourse amounted to EGP 23.202bn (up from EGP 14.214bn).
Movable Collateral Registry Expands
The FRA report highlighted the expansion of Egypt’s Movable Collateral Registry, where the total registered collateral value reached EGP 2.920trn by November 2024, a 21% growth rate compared to EGP 2.414trn in November 2023.
The Movable Collateral Registry is an electronic platform for registering secured interests in movable assets, enabling users to record, amend, or remove security interests on movable properties. Egypt was among the first countries in the Arab region to implement regulations governing movable collateral.
The number of registered security interests grew to 199,000 by November 2024, compared to 151,700 in November 2023, marking a 30.9% increase.
The banking sector dominated the registry, accounting for 97.32% of registered security interests, followed by financial leasing companies at 2.13%. The factoring sector and international financial institutions each accounted for 0.16% of total registered security interests.
In terms of the number of registered security interests, banks held the majority share at 80.68%, while consumer finance companies accounted for 10.41%. Retail companies represented 5.65%, and financial leasing companies held a 2.18% share.
