FRA increases financing caps for microfinance and micro-insurance

The Financial Regulatory Authority (FRA), led by Mohamed Farid, has introduced new measures to strengthen Egypt’s microfinance and micro-insurance sectors, increasing the maximum financing cap for micro-enterprises from LE 242,000 to LE 266,000, marking a 10 percent rise.

Under Decisions No. 17 and 18 of 2025, the maximum coverage for micro-insurance was also raised to LE 312,500, up from LE 250,000. These adjustments aim to reflect economic developments and align with the implementation of the Unified Insurance Law.

The changes are part of the FRA’s ongoing efforts to support financial sustainability and enhance access to funding.

By increasing the microfinance ceiling, the authority seeks to empower individuals and small businesses, enabling them to establish or expand their operations while mitigating the effects of inflation.

In parallel, the increase in micro-insurance coverage enhances financial protection for low-income individuals and entrepreneurs. This follows a previous adjustment under Decision No. 268 of 2024, which raised the coverage limit by 25 percent to LE 250,000 in accordance with Article 37 of the Unified Insurance Law, effective since July 2024.

Farid reaffirmed the FRA’s dedication to continuously refining regulations governing non-banking financial services, ensuring that businesses can operate sustainably.

He highlighted that microfinance loans disbursed by companies, associations, and NGOs amounted to LE 73.9 billion in the first 11 months of 2024, benefitting around 3.1 million individuals.

As of November 2024, outstanding microfinance balances had reached LE 61.4 billion.