Sherif Lokman, Sub Governor of the Central Bank of Egypt (CBE) for Financial Inclusion, said that Egypt has made significant progress in enhancing financial inclusion, thanks to the cooperation between CBE and various local and international partners. He said that the rate of financial inclusion in Egypt has increased remarkably in the past seven years.
Lokman said that by June 2023, the number of citizens who have bank accounts that enable them to perform financial transactions was 44.6 million, which represents 67.3% of the total population aged 16 years and over, estimated at 66.4 million. This means that the growth rate of financial inclusion from June 2016 to June 2023 was 160.8%.
He also highlighted the achievements of financial inclusion for women, saying that the number of women with financial accounts rose to 19.3 million by the end of June 2023, with a growth rate of 227% in seven years.
Lokman made these remarks during the Arab Conference on Savings and Financial Culture 2023, which concluded last Thursday. He also said that the banking sector has increased its financing for micro, small and medium enterprises (MSMEs) by 350% from January 2016 to June 2023.
He stressed that CBE is keen to continue its efforts to raise awareness and financial education across all governorates of Egypt, as a key factor in enabling citizens to access and use the available financial products and services.
Lokman pointed out that the recent global challenges, such as the pandemic and the Russian-Ukrainian war, have shown the importance of digital financial inclusion and financial technology in coping with their impacts, especially as they offer low-cost and accessible solutions for financially excluded groups.
He also emphasized the importance of financial literacy and long-term saving in enhancing the financial capabilities of families. He said that CBE recognizes the role of financial literacy in improving the financial behaviour of citizens, helping them to save, borrow and invest more safely.
Lokman concluded by saying that Egypt has taken major steps towards providing financial services to individuals, companies, and MSMEs over the past decade, in line with the objectives of the sustainable development strategy Egypt Vision 2030, especially regarding achieving a competitive and diversified economy.
Additionally, the CBE’s Sub Governor emphasized the grave consequences of lacking financial education in societies, which can affect both individual well-being and economic development. He cited World Bank data that showed that inexperienced users of financial services may not be able to benefit from them or manage their money properly. This highlights the importance of financial education, both for protecting against fraud and for enhancing economic and social empowerment.
Lokman also said that CBE considers financial education a top priority, as it plays a major role as a regulator and promoter of financial inclusion. It is also one of the key pillars of the financial inclusion strategy 2022-2025 issued by CBE, which aims to spread financial literacy and awareness and improve citizens’ ability to make sound financial decisions.
Lokman explained that CBE adopts a comprehensive approach that seeks to provide effective financial education programmes at the national level, following a unique methodology that covers three main aspects: financial education and awareness for citizens, capacity building for workers in the banking and financial sector, and technical capacity building for relevant entities, including policymakers and various regulatory bodies.
To ensure that financial education programmes reach the target groups, Lokman said that CBE is establishing strategic partnerships with governmental and non-governmental entities that have the potential to reach millions of citizens, such as the Ministries of Youth and Sports, Education, and Social Solidarity, and the Financial Regulatory Authority (FRA). These partnerships aim to integrate financial education as a key component into the economic and social development programmes implemented by the state, such as the Decent Life Initiative and others.
He also stressed that CBE recognizes the importance of financial education for entrepreneurs and owners of startups, and micro, small and medium enterprises. This was evident in the launch of the NilePreneurs Initiative in collaboration with the banking sector and several universities and local and international bodies, to create a supportive environment.
Moreover, CBE’s efforts also include awareness programmes and financial education services for entrepreneurs and owners of these projects, as well as disseminating knowledge of the principles of entrepreneurship, the culture of self-employment, and the importance of financial inclusion. This supports the state’s efforts to grow these projects, increase their contribution to the national product, and encourage projects operating in the informal economy sector to transition into the formal sector.
He emphasized that CBE applies an integrated methodology to implement financial literacy projects and initiatives, ensuring the effectiveness and sustainability of the efforts made.
He concluded that financial literacy is not a luxury, but a necessity. It will motivate citizens to plan and save for their future, and protect themselves from crises or emergencies that may occur at any moment, as well as enhance their ability to keep up with the rapid development that the world is witnessing in the field of financial technology.
Khaled Bassiouni, Director of the Financial Inclusion Department at the CBE, said that CBE is working on presenting the national strategy for financial education in collaboration with government agencies and the private sector.
He explained that financial inclusion is one of the main pillars of financial education for citizens. He also noted that one of the main objectives of financial inclusion is to enhance the financial literacy of the population.
Bassiouni said that harmonizing concepts and messages was one of the important pillars of financial inclusion and that banks, in cooperation with the Ministry of Planning, were working on this aspect.
He added that financial education is not the sole responsibility of one party, but rather a collective effort. He said that financial services received a lot of attention after the global financial crisis in 2008 when it was discovered that those most vulnerable to risks were the ones with low levels of financial literacy.
He also said that the lack of widespread financial literacy leads to negative phenomena in society, such as the inability of some institutions to provide fast and reliable investment services to citizens.
Bassiouni concluded by saying that CBE authorized the Egyptian Banking Institute in 2013 to provide education for youth and children until 2017, stating that each entity creates financial literacy, but for a specific group and through a specific channel, while taking into account the consistency of concepts and issues.
