Egypt’s microfinance market amounts to EGP 22.53bn

The Financial Regulatory Authority (FRA) has revealed that the volume of microfinance in the Egyptian market reached about EGP 22.53bn in the second quarter (Q2) of 2021, compared to EGP 17.22bn in Q2 of 2020.

According to the authority, microfinance means any financing for economic, productive, service, or commercial purposes in the fields and at the value determined by FRA’s board of directors.

Microfinance is a major means of encouraging the participation of low-income groups in economic activity. Access to various financing means for individuals and owners of micro-enterprises contributes to reducing unemployment, contributing to improving the incomes of the poorest families, and having a positive impact on increasing the volume of investment and employment in the national economy.

Microfinance is characterized, according to the experiences prevailing in various countries of the world, depends on personal and direct contact between the financing entity and customers, and on the provision of amounts or services of limited value, which requires the presence of organized entities for personal communication with individuals, entities, and micro-enterprises.