Egypt Achieves Financial Milestones: Enhanced Inclusion & Banking Oversight Project Celebrated

The Central Bank of Egypt, the European Union, and the German Agency for International Cooperation announced the successful completion of the technical support project "Enhancing Financial Inclusion and Banking Supervision in Egypt."

Launched in November 2018 with funding of €4.12 mn from the European Union and the German Ministry for Economic Cooperation and Development, the project was executed by the German Agency for International Cooperation.

This initiative reflects the Central Bank of Egypt's commitment to enhancing collaboration with international and local institutions to support national efforts in achieving a comprehensive financial system.

The project achieved significant milestones, including the formulation of the Financial Inclusion Strategy (2022-2025) based on field surveys of financial services, covering individuals, small and medium-sized enterprises, both formal and informal sectors, in collaboration with the Central Agency for Public Mobilization and Statistics, ministries, and relevant authorities.

The financial inclusion indicators, released by CBE in December 2022, showed a substantial increase in financial inclusion rates from 2016-2022, with a growth rate of 147%, totaling 42.3 million citizens, representing 64.8% of the total population of 65.4 million (16 years and above).

Additionally, the project contributed to the launch of the "Understand Business" platform in collaboration with the Egyptian Banking Institute, providing technical support for startups and small businesses.

In the realm of banking supervision, a 12-element risk assessment model was developed, aligning with international best practices to enhance banking oversight.

The project focused on strengthening supervisory capabilities, particularly regarding market, credit, and liquidity risks, as well as regulatory capital.

Furthermore, it provided technical support to the regulatory instructions sector of CBE, promoting international cooperation mechanisms and capacity-building for impact assessment frameworks in the banking sector.

The project also supported the overall financial stability by enhancing the institutional structure for financial stability, analytical frameworks, and comprehensive policy tools.

The project received praise from various stakeholders, emphasizing its vital role in supporting financial stability, sustainable growth, and social progress in Egypt.

In this context, Mai Abu El-Naga, the first deputy governor, office sector, stated, "The project reflects the strategic partnership of the Central Bank of Egypt with both the European Union and German Development Cooperation, as part of the bank's commitment to enhancing financial inclusion and providing banking services for all segments of society, including citizens, micro, small, and medium enterprises, promoting sustainable financing."

On his part, Mohamed Abu Mousa, the first deputy governor, office sector of supervision, stated, "The project contributed to strengthening supervision and oversight, supporting the banking system's strength, including the control of anti-money laundering and terrorism financing in line with international best practices."

Ambassador Christian Berger, Head of the European Union Delegation to Egypt, stated, "The project to enhance financial inclusion and banking supervision in Egypt is a vital part of the European Union's efforts to support economic development and social progress in Egypt.

Through this project, we closely worked with our partners to create a more inclusive financial system that can better meet the needs of all Egyptians, including financially excluded women and populations."

He added, "The project also contributed to enhancing regulatory instructions, which are crucial for financial stability and sustainable growth. We are proud to be part of this important initiative and look forward to building on these achievements in our future cooperation with Egypt."

Stephanie Sorensen, Deputy Head of German Development Cooperation in Egypt, said, "We are proud to support the Central Bank of Egypt alongside the European Union as partners in the project, where we join forces to make significant progress in enhancing financial inclusion and banking supervision in Egypt.

This project is a testament to our commitment to supporting sustainable economic growth and social development in Egypt, and we look forward to continuing our collaboration with our partners in Egypt."

Andreas Ruepp, Project Manager for Financial Sector Development at the German International Cooperation Agency, confirmed, "We witnessed the Central Bank's commitment to enhancing banking supervision in Egypt, along with its keenness to increase financial inclusion rates in society.

We are proud of what we have achieved together in this ambitious project. We were impressed by the level of skill, qualifications, resilience, and motivation we saw at the Central Bank, which is a key indicator of the project's success. We thank the Central Bank of Egypt for this successful cooperation and are happy to collaborate on future projects."