• Outstanding consumer finance balances rose 61.6% year on year, with the sector maintaining one of the lowest default rates in the market.
  • Federation emphasizes consumer finance as a key pillar in supporting households and advancing financial inclusion.
  • Consumer Finance achieves record expansion, stable credit quality, and full readiness for the implementation of Basel III in 2026.

Cairo – The Egyptian Federation for Consumer Finance (EFCF) announced that the sector delivered record growth in 2025, reaching more than nine million beneficiaries while maintaining stable repayment performance and default rates within safe limits. The results confirm consumer finance as one of Egypt’s most regulated and resilient financial sectors, with a growing role in supporting households across the country.

The Federation noted that this expansion is being driven within a robust regulatory framework overseen by the Financial Regulatory Authority (FRA), enabling the sector to meet essential consumer needs, strengthen purchasing power, and expand financial inclusion.

The Federation revealed that outstanding consumer finance balances reached EGP 74.9 billion between January and October 2025, up from EGP 47.4 billion over the same period in 2024, marking a growth of nearly 58%. During this period, the number of customers rose sharply from 3.27 million to 9.25 million, an increase of 182%, supported by stronger digital infrastructure, a broader range of products, and growing confidence in the sector’s regulatory and supervisory framework.

Despite this rapid expansion, default rates remained stable at 3–4%, highlighting the sustainability of the sector’s growth and its continued ability to manage risk effectively.

The announcements were made at a press conference held by the Egyptian Federation for Consumer Finance, attended by four senior industry leaders: Mr. Saeed Zaater, Chairman of the Federation; Mr. Osama Farid, Chief Executive Officer of Premium Card; Mr. Ahmed Osama, Managing Director of Drive Finance; and Mr. Ali Abdel Wahab, Executive Director of Consumer Finance at B.TECH. All three executives also serve on the Federation’s Board of Directors.

The speakers shared insights on current market trends and regulatory developments, highlighted consumer protection priorities, and addressed the sector’s readiness for digital expansion and the adoption of Basel III standards.

Saeed Zaater: Law No. 18 Reshaped the Market and Strengthened Consumer Protection

Mr. Saeed Zaater, Chairman of the Egyptian Federation for Consumer Finance, said: “Law No. 18 of 2020 fundamentally reshaped the market, transitioning the activity from a phase characterized by unstructured practices into a clear rules-based framework built on full cost disclosure, a ban on hidden fees, fair early-repayment rights, and robust standards for licensing, governance, and risk management. This framework strengthened consumer confidence, reinforced market discipline, and created a stable, competitive environment – one that allows companies to grow responsibly while fully protecting customer rights and delivering sustainable growth and high service standards.”

He added that the Federation is working closely with the Financial Regulatory Authority and banks to develop a unified credit database, aimed at improving credit assessments, supporting smaller borrowers, and safeguarding overall market stability.

Ahmed Osama: Bank Partnerships Power Sustainable Growth in Consumer Finance

Mr. Ahmed Osama, Managing Director of Drive Finance and Member of the Federation’s Board of Directors, said: “The consumer finance sector today is built on a strong partnership with Egyptian banks, which provide structured financing programs and well-defined credit facilities that allow companies to meet growing demand safely and sustainably. This collaboration reflects banks’ confidence in the soundness of consumer finance activity and the quality of its credit portfolios, while also highlighting the sector’s expanding role in supporting the real economy and boosting purchasing power. As digital capabilities continue to advance and product offerings expand, we expect deeper collaboration between finance companies and banks – broadening access for beneficiaries while maintaining disciplined risk management.”

He added that the adoption of Basel III–based capital adequacy requirements – global standards designed to strengthen capital resilience and risk controls – represents a strategic step toward enhancing the sector’s ability to withstand market volatility. He confirmed that preparations are already underway for the pilot phase, scheduled to begin in January 2026.

Osama Farid: Clear Rules and Strong Controls Are Curbing Cash Conversion

Mr. Osama Farid, Chief Executive Officer of Premium Card and Member of the Federation’s Board of Directors, said: “The consumer finance sector now operates within a modern, technology-driven framework built on advanced data analytics, integration across multiple databases, and active fraud-monitoring systems. These tools have significantly improved the efficiency of financing decisions and the accuracy of portfolio oversight. The Financial Regulatory Authority has played a central role in this progress by setting clear supervisory and risk-management standards and by supporting the use of technology to regulate cash conversion and ensure financing is used for its intended purposes. This infrastructure has strengthened credit quality, enhanced consumer protection, and increased the sector’s appeal to investors.”

Regarding the regulation of cash conversion, Farid explained that this issue has become one of the core supervisory priorities within the sector. Financing is now directly linked to suppliers or service providers to ensure the proper use of funds. In parallel, fraud detection systems have been activated and data sharing strengthened through the unified anti-fraud system, enabling early identification of abnormal patterns, preserving the integrity of the activity, and ensuring financing is directed toward the goods and services consumers genuinely need.

Ali Abdel Wahab: Consumer Finance Plays a Growing Social and Economic Role

Mr. Ali Abdel Wahab, Executive Director of Consumer Finance at B.TECH and Member of the Federation’s Board of Directors, said: “Market experience shows that Egyptian consumers use consumer finance in a disciplined and responsible way. Most financing is directed toward essential needs that shape everyday family life—such as food, healthcare, education, and basic living expenses. This pattern confirms that consumer finance supports necessities, not luxuries, helping households manage their obligations while maintaining a reasonable quality of life.”

He added that the sector has helped bring large segments of the population into the formal financial system for the first time. Millions of consumers now have an established credit history, strengthening consumer protection, supporting a more mature financial culture, and expanding access to safe, regulated financing.

Full Readiness for 2026: A New Phase of Regulation and Digital Growth

The Federation said that 2026 will mark the next phase of the sector’s development, with further expansion in digital services, the entry of new fintech-driven players, and the launch of the pilot phase for Basel III capital adequacy standards—strengthening sustainability and reinforcing long-term stability across the market.

The Federation also announced a series of new awareness initiatives aimed at strengthening consumer credit literacy, advancing data and analytics capabilities, and improving companies’ ability to reach customers in governorates beyond major urban centers.