Banks' loans to support the industrial sector jumps 61.8% in 2024, recording EGP 1.37 tn

The monthly statistical bulletin of the Central Bank of Egypt revealed an increase in the size of loans portfolio provided by banks to the industrial sector during the past year, with a growth rate of 61.8% and an increase of EGP 524.98 bn, jumping to EGP 1.37 tn by the end of 2024, compared to EGP 850.11 bn by the end of 2023.

This came in light of the increasing interest paid by the state and the Egyptian banking sector to support and develop the industrial sector, as it is one of the basic pillars for achieving the goals of Egypt’s Vision 2030, for Egypt to become among the 30 largest economies in the world by 2030, by laying the foundations and foundations for sustainable development to create an economy based on knowledge and competition.

In terms of the volume of loans directed by banks to support the industrial sector «in local currency only, it increased at a growth rate of 54.8%, recording an increase of EGP 322.88 bn over the past year, reaching EGP 911.66 bn by the end of 2024, compared to EGP 588.78 bn by the end of 2023.

This noticeable increase in the volume of loans for the industrial sector «in local currency» is due to the increase in the volume of bank financing directed to support the private industrial sector «in local currency» at a rate of 43.1% and an increase of EGP 237.13 bn over the past year, reaching EGP 787.83 bn by the end of 2024, compared to EGP 550.70 bn by the end of 2023.

As for the volume of banks' loans directed to the industrial sector «in foreign currencies only », it rose to the equivalent of EGP 463.44 bn by the end of 2024, compared to the equivalent of EGP 261.33 bn by the end of 2023, achieving a growth rate of 77.3%, and an increase equivalent to EGP 202.11 bn during the past year.

The big jump achieved by banks in supporting and financing the industrial sector «in foreign currencies only », is due to the increase in bank loans to the private industrial sector «in foreign currencies only » with a growth rate of 41.4% and an increase value equivalent to EGP 90.01 bn during the past year, recording the equivalent of EGP 307.71 bn by the end of 2024, compared to the equivalent of EGP 217.69 bn by the end of 2023.

It is worth noting that the total loans provided to customers by banks (other than the Central Bank of Egypt) increased at a growth rate of 57.2%, recording an increase of EGP 3.02 tn over the past year, reaching EGP 8.31 tn by the end of 2024, compared to EGP 5.29 tn by the end of 2023.