The Central Bank of Egypt (CBE) announced that its various initiatives have led 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 78.3bn directed to 4.7 million beneficiaries in June 2023, compared to EGP 6.4bn for 2 million beneficiaries in December 2016.
The CBE also 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), as well as local and Arab information technology companies, and the Egyptian Credit Bureau “I-Score”.
During the forum, May Abulnaga, CBE’s First Sub-Governor, received a shield of honour from the EFFMSMP, in recognition of the CBE’s outstanding efforts in providing the necessary support to MSMEs through implementing and launching several initiatives. These include adding microfinance granted by the banks – directly or indirectly (through microfinance institutions “MFIs”) – to the MSMEs’ mandatory financing ratio stipulated by the CBE.
The CBE was also honored for sponsoring and funding the Institutional Upgrade Program, aimed at building the capacities of microfinance associations (Category C NGOs), in a step towards qualifying them to obtain financing and enabling them to reach the financially marginalized segments and integrate them into the formal economy.
The forum also honored several successful stakeholders, including the Financial Regulatory Authority (FRA), the Egyptian Credit Bureau “I-Score”, and several MFIs financing MSMEs.
The forum promoted the CBE’s vision of expanding finance for MSMEs, by providing opportunities for MSME financing entities to identify the latest developments in the fields of information technology and FinTech, as well as loan management systems. It also provided an opportunity to explore advanced technological solutions, both in the Egyptian and Arab markets and to showcase the challenges and proposed solutions to efficiently tackle them, while facilitating operational mechanisms.
The CBE’s efforts in this area 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. The CBE also expressed its keenness to overcome all obstacles encountered by MFIs while dealing with the banking sector.
The CBE’s participation in the forum stemmed from its substantial commitment to supporting MSMEs, given their vital role in driving the national economy, creating employment opportunities for the youth, reducing unemployment rates, and promoting financial inclusion.
