The Financial Regulatory Authority (FRA) announced the volume of non-banking financing provided by regulated institutions to various sectors as of the end of July 2024.

 

Micro, Small, and Medium Enterprises (MSMEs)

 

According to a recent report from the FRA, loan balances allocated to MSMEs rose to EGP 66.8 billion by the end of July 2024, an increase from EGP 46.143 billion at the same time last year. This represents a growth of EGP 20.657 billion, or 44.76%.

 

The financing for microenterprises reached EGP 57.29 billion by the end of July 2024, up from EGP 42.6 billion in July 2023—an increase of approximately EGP 14.69 billion. However, the number of beneficiaries dropped to 3.796 million, down from 3.841 million.

 

For small and medium enterprises (SMEs), loan balances totaled EGP 9.5 billion by the end of July 2024, compared to EGP 3.5 billion in July 2023, with about 8,400 beneficiaries, an increase from 3,900 in the previous year.

 

Consumer Finance

 

The FRA also reported a rise in consumer financing provided by companies, amounting to EGP 29.339 billion by the end of July 2024, compared to EGP 24.403 billion in July 2023. This reflects an increase of EGP 4.936 billion, with a growth rate of 20.2%.

 

The number of customers benefiting from these funds increased to 2.127 million by the end of July 2024, up from 1.986 million the previous year.

 

The FRA noted that purchases of cars and vehicles comprised 28.88% of consumer financing by the end of July 2024, followed closely by electrical and electronic appliances at 28.70%, home appliances at 10.66%, single-invoice purchases from retail chains at 6.64%, and clothing, shoes, bags, watches, jewelry, and eyewear at 5.35%.

 

Mortgage Finance

 

In a similar vein, the FRA reported that mortgage financing from companies in this sector climbed to EGP 12.88 billion by the end of July 2024, up from EGP 4.8 billion in July 2023—an increase of EGP 8.08 billion, or 168.1%.

 

The number of mortgage financing contracts rose to 5,854 by the end of July 2024, compared to 2,559 contracts in July 2023.

 

The report specified that financed contracts included 249 contracts for regular clients valued at EGP 2.7 billion, 378 contracts for fund beneficiaries totaling EGP 100 million, and 5,227 purchased portfolio contracts amounting to EGP 10.036 billion.

 

In terms of income brackets, clients earning over EGP 3,500 per month accounted for EGP 12.8 billion in financing, represented by approximately 5,710 contracts.

 

Leasing Activity

 

The FRA also reported an increase in the total value of financial leasing contracts, which reached EGP 64.28 billion by the end of July 2024, compared to EGP 57.38 billion in July 2023—an increase of EGP 6.9 billion or 12%.

 

The total number of financial leasing contracts stood at 968 by the end of July 2024, down from 1,110 contracts in July 2023.

 

According to the FRA, the real estate and land sector represented 78.74% of the total financing, followed by the transportation sector at 6.03%, machinery and equipment at 4.85%, heavy equipment at 3.01%, passenger vehicles at 2.49%, and production lines at 2.35%.

 

Factoring Activity

 

In related developments, the FRA indicated that factoring activity within the Egyptian market reached approximately EGP 24.102 billion by the end of July 2024, compared to EGP 16.79 billion in July 2023, marking an increase of EGP 7.312 billion, or 43.5%.

 

The number of clients benefiting from this service grew by 8.6%, reaching 611 by the end of July 2024, compared to 564 the previous year.

 

The total value of factored papers with recourse rights was EGP 21.43 billion, up from EGP 15.1 billion, while the value of non-recourse factored papers reached EGP 12.7 billion, an increase from EGP 9.1 billion.