During the Second Forum for Information Technology Systems

By Fathy Elsayeh

An Exponential Growth in Microfinance to Record More Than EGP 78 bn, Compared to EGP 6.4 bn in 2016
The Central Bank of Egypt was Honored for Its Outstanding Efforts in Supporting MSMEs

The Central Bank of Egypt (CBE) 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), in addition to local and Arab information technology companies, and The Egyptian Credit Bureau “I-Score”.

During the forum, Ms. May Abulnaga, CBE’s First Sub-Governor, received a shield of honor from the Egyptian Federation for Financing Medium, Small, and Micro Projects (EFFMSMP), in appreciation for the CBE’s outstanding efforts in providing the necessary support to these enterprises through implementing and launching several initiatives; including the addition of microfinance granted by the banks – directly or indirectly (through microfinance institutions “MFIs”) – to the MSMEs’ mandatory financing ratio stipulated by the CBE. Moreover, the CBE was 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 reach for the financially marginalized segments, to integrate them into the formal economy.

The Central Bank of Egypt’s various initiatives have contributed 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 78.3 billion directed to 4.7 million beneficiaries in June 2023, compared to EGP 6.4 billion for 2 million beneficiaries in December 2016 (With a maximum credit limit of up to EGP 220,000 according to the definition of the Financial Regulatory Authority).

During the forum, the Federation also honored several successful stakeholders, including the Financial Regulatory Authority (FRA), the Egyptian Credit Bureau “I-Score”, and a number of MFIs financing medium, small, and micro enterprises.

This forum promotes the CBE’s vision of expanding finance for medium, small, and micro enterprises (MSMEs), through availing opportunities for MSME financing entities to identify the latest developments in the fields of information technology and FinTech, as well as loan management systems. Furthermore, it provides an opportunity to explore advanced technological solutions, both in the Egyptian and Arab markets, in addition to showcasing the challenges and proposed solutions to efficiently tackle them, while facilitating operational mechanisms.

CBE’s efforts in this area have 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. Moreover, CBE is keen on overcoming all obstacles encountered by MFIs while dealing with the banking sector.

The Central Bank’s participation in the forum stems from its substantial commitment to supporting MSMEs, given their vital role in driving the national economy, creating employment opportunities for the youth, reducing the unemployment rates, and promoting financial inclusion.