Central Bank: Microenterprise funding exceeds EGP 78.3 bn by June 2023End

The Central Bank of Egypt (CBE) participated in the second forum of Information Technology Systems organized by the Egyptian Federation for Financing Medium, Small, and Micro Projects (EFFMSMP). The forum was attended by more than 270 entities financing micro, small, and medium enterprises (MSMEs), in addition to local and Arab information technology companies, and The Egyptian Credit Bureau “I-Score”.

The Central Bank of Egypt’s various initiatives have contributed to a significant growth  in the funding allocated to microenterprises, from both the banking and non-banking sectors. The total amount of funds reached more than EGP 78.3 billion directed to 4.7 million beneficiaries in June 2023, compared to EGP 6.4 billion for 2 million beneficiaries in December 2016 (With a maximum credit limit of up to EGP 220,000 according to the definition of the Financial Regulatory Authority).

This forum promotes the CBE's vision of expanding finance for medium, small, and micro enterprises (MSMEs), through availing opportunities for MSME financing entities to identify the latest developments in the fields of information technology and FinTech, as well as loan management systems.

Furthermore, it provides an opportunity to explore advanced technological solutions, both in the Egyptian and Arab markets, in addition to showcasing the challenges and proposed solutions to efficiently tackle them, while facilitating operational mechanisms.

CBE’s efforts in this area have also included the digitization of transactions for MFIs, and the transition from cash transactions to cashless payment methods in lending and repayment operations, through setting agreements between MFIs and banks; to operate as banking agents, enabling them to issue cards and electronic wallets for their customers.

Moreover, CBE is keen on overcoming all obstacles encountered by MFIs while dealing with the banking sector.

The Central Bank’s participation in the forum stems from its substantial commitment to supporting MSMEs, given their vital role in driving the national economy, creating employment opportunities for the youth, reducing the unemployment rates, and promoting financial inclusion.