Around LE 27.8 billion of the total funding was provided directly and indirectly by banks, Sub Governor of CBE May Abulnaga highlighted
Latest data revealed that the Central Bank of Egypt’s (CBE) initiatives to boost small, medium and micro enterprises (SMEs) has grown their microfinance portfolio to LE 47.1 billion, compared to LE 6.4 billion in December 2016.
Talking to the Middle East News Agency (MENA), Sub Governor of CBE May Abulnaga highlighted that the funding grew 7x the original fund, with over 4 million citizens benefiting from the initiatives.
Around LE 27.8 billion of the total funding was provided directly and indirectly by banks, she noted.
The CBE also collaborates with relevant parties such as the Financial Regulatory Authority (FRA) and the Egyptian Federation for Financing Medium, Small & Micro Projects (EFFMSMP) to address the challenges facing the sector.
One of the initiatives launched by the CBE to stimulate the micro-enterprise sector cooperated with banks to allocate 25 percent of their credit portfolios to finance small, medium and micro enterprises.
Abulnaga also discussed how the central bank prioritized the development of small, medium and micro enterprises, highlighting the sector’s vital role in creating job opportunities and reducing poverty and inequality.
The initiatives also funded an the institutional upgrade program for 41 micro-finance associations, and training over 1 thousand workers 11 governorates, including 7 governorates in Upper Egypt.
During the last few years, the CBE implemented a number of initiatives to encourage and support the microfinance industry in order to ensure its continuity and sustainability to serve as a mechanism for reducing poverty in Egypt, in addition to enhancing financial inclusion and improving access to finance.
In May 2017, the Egyptian Central Bank adopted an initiative to motivate banks to finance microfinance institutions or individuals who have their own businesses within the mandatory rate of 20 percent, which then increased to 25 percent in February 2021.
