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Egypt boosts micro and SME lending to $1.58 billion in January

Consumer finance companies also saw a significant increase of 16.5% in loan disbursements, reaching $109.4 million in January 2025. 

Egypt boosts micro and SME lending to $1.58 billion in January
[Source photo: Shubham Mahadik/Fast Company Middle East]

Egypt’s Financial Regulatory Authority (FRA) has reported a significant increase in lending to micro, small, and medium enterprises (MSMEs) and consumers in January 2025. Microfinance companies and associations disbursed $1.58 billion, up from $1.16 billion in the same month last year.

Although the number of clients slightly declined to 3.729 million from 3.803 million, funding for micro-enterprises rose to $1.26 billion. Lending to small and medium enterprises saw a sharp jump, more than doubling from $136 million to $320.5 million.

Consumer finance in Egypt surged in January 2025, with loan disbursements rising 16.5% to $109.4 million, according to the Financial Regulatory Authority. The number of beneficiaries saw a dramatic 190.8% increase, reaching 761,400 clients.

The automotive and vehicle sector accounted for the largest share of consumer finance at 19.6%, followed by electrical appliances and electronics (18.7%), household appliances (17.1%), credit card-financed goods (12.4%), and fashion-related purchases such as clothing, shoes, and accessories (3.7%).

Financial leasing in Egypt also saw notable growth in January 2025, with total contract values rising 26.8% year-over-year to $204 million, according to the Financial Regulatory Authority.

The real estate and land sector led the market, making up 65.1% of total contracts. This was followed by machinery and equipment at 12.2%, transport vehicles at 8.2%, passenger vehicles at 4.8%, and heavy equipment at 4.1%.

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