Islam Azzam, Chairperson of the Financial Regulatory Authority (FRA), received Mahmoud El-Montasser Mansour, Executive Director-General and founder of Tunisia’s Microfinance Supervisory Authority, in the presence of Rehab Taha, FRA Assistant Chairperson.
The meeting aimed to strengthen bilateral cooperation and exchange regulatory and supervisory expertise in non-bank finance, supporting efforts to develop markets, improve their efficiency and promote sustainability.
The Tunisian delegation’s visit was part of its efforts to gain first-hand insight into Egypt’s legislative and regulatory frameworks governing financing for micro, small and medium enterprises, given the relatively similar timing of the regulation of this activity in both countries.
Azzam said the FRA valued cooperation with fellow Arab and African countries, placing the exchange of expertise and dissemination of knowledge among its top priorities. He added that the authority was keen to share Egypt’s institutional and regulatory experience in managing and governing non-bank financial activities, while also benefiting from the experiences of other countries.
He explained that non-bank financing for enterprises was among the key sectors overseen by the FRA, given its relevance to the vast majority of citizens. Its direct links to promoting financial inclusion, a key objective of Egypt Vision 2030 and the state’s plan to advance the national economy, along with its anticipated positive impact on the most vulnerable groups, underscore its vital role in sustainable economic and social development.
Egypt has witnessed notable growth in outstanding financing balances for medium-sized, small and micro enterprises in recent years, Azzam added. Their combined value exceeded EGP 101bn in the second quarter of 2026, benefiting around 3.5 million people through approximately 4,400 outlets operated by licensed entities, including companies, associations and institutions, nationwide, he said.
Azzam stressed that the FRA had recently attached considerable importance to improving beneficiaries’ financing experience, particularly for micro-enterprises. Measures include tightening standards for assessing clients’ repayment capacity to reduce default rates, ensuring clear information and data protection, and encouraging providers to develop innovative products that meet clients’ needs. The authority also seeks to ensure that clients can effectively use available mechanisms to appeal decisions or submit complaints, ultimately assessing the tangible impact of financing on their lives and economic activities.
The FRA chairperson also highlighted several recent decisions aimed at regulating debt collection activities and preventing misconduct, strengthening customer identity verification procedures, and improving the authority’s ability to detect risks early and reduce the risk of individual defaults. Other measures seek to improve the financial solvency of companies and entities operating in the sector and encourage the development of new products using financial technology to keep pace with market developments and changing customer circumstances.
For his part, Mansour reviewed the development of Tunisia’s microfinance sector since its regulation began in 1999, initially at the level of associations, followed by the sector’s restructuring in 2011 and the introduction of supervision over commercial microfinance institutions. He also outlined the authority’s role since 2012 in regulating pricing and monitoring financing costs, as well as the latest measures taken in this area last year. These included reviewing the prices of certain products offered by the seven licensed companies operating in the sector and 289 licensed microcredit associations.
Mansour said that more than 856,000 clients currently benefit from microfinance in Tunisia. In 2025, financing worth approximately TND 2.7bn, equivalent to EGP 47.1bn, was extended, reflecting the sector’s continued expansion. The number of financing transactions exceeded 524,000.
The meeting also addressed the development of financial products and diversification of financing instruments. Discussions covered both countries’ experiences in digital transformation, financial technology applications and the use of artificial intelligence in supervisory tools, as well as modern mechanisms for risk management, compliance and consumer protection to improve the efficiency of activities of mutual interest.
