Egypt's FRA grants first SME funding licence in NBFC sector

SMEs have contributed about 80% to the country's gross domestic product

  
Image used for illustrative purpose. Cairo Skyline along Nile River. The bridge, the Nile river & the Corniche Street in central Cairo.

Image used for illustrative purpose. Cairo Skyline along Nile River. The bridge, the Nile river & the Corniche Street in central Cairo.

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Cairo - Mubasher: The Egyptian Financial Regulatory Authority (FRA) has licensed a micro-funding company to provide funding to small- and medium-sized enterprises (SMEs), the first licence given to a non-banking financial company (NBFC), according to a statement on Monday.

As per the amendment made to law no. 201 of 2020 in October 2020, micro-funding companies, institutions, and associations have become allowed to provide SME funding solutions.

According to the latest data in early 2021, SMEs have contributed about 80% to the country's gross domestic product (GDP), the FRA's Chairman, Mohamed Omran, revealed.

At the end of May, the micro-funding portfolio reached EGP 21.7 billion provided to 3.3 million beneficiaries. Women made up about 62% of the portfolio and the youth accounted for 63% of the micro-funding services.

Source: Mubasher

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