Banks' financing for the industrial sector increase by EGP 116.4 bn during H1-2023

Bank loans (excluding the central bank) to the industrial sector showed significant growth in the first half of the current year, jumping by approximately 17.26% to reach EGP791.05 bn by the end of June 2023, compared to EGP 674.63 bn by the end of 2022, an increase of EGP116.42 bn.

This comes in light of the state's growing interest in the industrial sector, considering it one of the key pillars to achieve Egypt's Vision 2030, aiming to become one of the world's top 30 economies by 2030, by establishing the foundations of sustainable development to create a knowledge-based and competitive economy.

The latest statistical report from the Central Bank of Egypt revealed an increase in banks' loans to the industrial sector in the local currency to EGP 557.85 bn by the end of the second quarter of 2023, compared to EGP495.36 bn by the end of 2022, with a growth rate of 12.62% and an increase of EGP62.5 bn.

 This significant leap in financing for the industrial sector in the local currency is a result of banks increasing loans to the private industrial sector in the local currency from EGP461.2 bn by the end of the previous year to EGP516.7 bn by the end of June 2023, with a growth rate of 12.03% and an increase of EGP55.50 bn.

Additionally, banks' loans to the industrial sector in foreign currencies jumped to the equivalent of EGP 233.2 bn by the end of the first half of 2023, compared to the equivalent of EGP179.27 bn by the end of 2022, with a growth rate of 30.08% and an increase of approximately EGP53.92 bn.

This significant increase in the industrial sector in foreign currencies is due to a 32% increase in banks' loans to the private industrial sector in foreign currencies, reaching the equivalent of EGP218.39 bn by the end of June 2023, compared to the equivalent of EGP165.46 bn by the end of 2022, with an increase of approximately EGP52.92 bn.