Islam Azzam, Chairperson of the Financial Regulatory Authority (FRA), convened an expanded meeting with representatives of companies financing micro, small, and medium enterprises (MSMEs), reinforcing the authority’s commitment to open dialogue and sector development.
The discussions centered on operational and financing challenges, with a strong focus on advancing responsible pricing frameworks that reflect current market conditions. Azzam emphasized that such frameworks must strike a balance between business sustainability and client protection, an approach he said is essential to strengthening confidence and driving sector expansion.
He highlighted the FRA’s broader strategy to support growth across non-banking financial activities, stressing the need to expand access to finance while safeguarding credit quality. Digital solutions, he noted, are key to widening beneficiary reach and accelerating financial inclusion.
FRA data show MSME financing balances reached approximately EGP 97.4bn in February, up from EGP 83.3bn a year earlier, with around 3.6 million beneficiaries in 2025.
Participants also reviewed proposals to enhance risk management, improve business models, and advance digital transformation. Azzam underscored human capital development as a cornerstone of sector progress, urging greater cooperation in training and capacity building. He recommended a cooperation protocol between the FRA’s Financial Services Institute and the Egyptian Federation for MSME Finance to meet workforce training needs.
The meeting further addressed the phased implementation of Basel III standards, with emphasis on gradual adoption to strengthen risk management and institutional readiness. Representatives’ proposals will be studied within the framework of applicable laws and regulations, ensuring regulatory measures balance development needs with market stability.
Concluding the session, Azzam reaffirmed that direct dialogue with companies remains vital to identifying real challenges and shaping balanced regulatory policies. He pledged ongoing technical and regulatory support through dialogue platforms and specialized training, positioning MSME financing as a driver of economic growth and sustainability.
This meeting is part of the FRA’s regular engagements across non-banking financial sectors, reflecting its comprehensive vision to enhance efficiency, sustainability, and financial inclusion.
