The Financial Regulatory Authority (FRA) has disclosed the total volume of non-banking financing provided by institutions under its supervision to various sectors in July 2024.
Micro, Small, and Medium Enterprises (MSMEs)
According to a recent FRA report, the outstanding loans for MSMEs increased to EGP 66.8bn in July 2024, compared to EGP 46.143bn in July 2023, marking a rise of EGP 20.657bn, or 44.76%.
The report indicated that the loans granted to micro-enterprises reached EGP 57.29bn in July 2024, compared to EGP 42.6bn in July 2023, reflecting an increase of EGP 14.69bn. However, the number of beneficiaries from these loans dropped to 3.796 million, down from 3.841 million in the previous year.
For small and medium enterprises (SMEs), the outstanding loans amounted to EGP 9.5bn in July 2024, up from EGP 3.5bn in July 2023, with the number of beneficiaries rising to 8.4 thousand, compared to 3,900 in the previous year.
Consumer Finance
The report also highlighted an increase in consumer finance, with loans granted by consumer finance companies reaching EGP 29.339bn in July 2024, compared to EGP 24.403bn in July 2023, an increase of EGP 4.936bn, or 20.2%.
The number of customers benefiting from consumer finance increased to 2.127 million in July 2024, up from 1.986 million in July 2023.
Car and vehicle purchases accounted for 28.88% of total consumer finance in July 2024, followed by electrical appliances and electronics at 28.70%, home appliances at 10.66%, purchases from stores and commercial chains at 6.64%, and clothing, footwear, bags, watches, jewellery, and eyewear at 5.35%.
Mortgage Financing
In the real estate sector, the FRA reported a significant rise in mortgage finance provided by companies operating in the sector. In July 2024, real estate financing reached EGP 12.88bn, up from EGP 4.8bn in July 2023, an increase of EGP 8.08bn, or 168.1%.
The number of mortgage contracts also rose to 5,854 in July 2024, up from 2,559 in July 2023.
Of the total real estate financing, 249 contracts were for regular clients, amounting to EGP 2.7bn, while 378 contracts were issued to fund clients, totalling EGP 100m. Additionally, 5,227 contracts were acquired portfolios, amounting to EGP 10.036bn.
Regarding the distribution of real estate financing according to monthly income brackets, the segment with incomes over EGP 3,500 accounted for EGP 12.8bn across 5,710 contracts.
Leasing
The FRA also reported an increase in the value of leasing contracts, reaching EGP 64.28bn in July 2024, compared to EGP 57.38bn in July 2023, an increase of EGP 6.9bn, or 12%.
The total number of leasing contracts stood at 968 in July 2024, compared to 1,110 in July 2023.
The real estate and land sector accounted for 78.74% of total leasing financing, followed by the transport vehicles sector at 6.03%, machinery and equipment at 4.85%, heavy equipment at 3.01%, passenger cars at 2.49%, and production lines at 2.35%.
Factoring
In a related context, the FRA revealed that the factoring market in Egypt grew to EGP 24.102bn in July 2024, compared to EGP 16.79bn in July 2023, an increase of EGP 7.312bn, or 43.5%.
The number of customers benefiting from factoring services increased by 8.6% to 611 customers in July 2024, compared to 564 customers in July 2023.
The volume of factored papers with recourse amounted to EGP 21.43bn, compared to EGP 15.1bn, while the volume of non-recourse factored papers reached EGP 12.7bn, up from EGP 9.1bn.
