Egypt’s FRA extends suspension of new microfinance, consumer finance licences for one year

Egypt’s Financial Regulatory Authority (FRA) has extended for another year its suspension on accepting applications to establish companies seeking licences to operate microenterprise or consumer finance activities through traditional channels, the regulator said Wednesday.

The decision, issued under Resolution No. 237 of 2025, also continues the suspension of licence applications from associations and non-governmental organisations for microfinance activities for the same renewable period.

The FRA said the move aims to safeguard companies’ solvency, maintain transaction integrity, and support its drive toward digital transformation across non-banking financial markets.

According to the Authority, the step follows a sharp increase in the number of entities licensed before Decision No. 184 of 2024, which first introduced the suspension. The extension will allow time to assess the financial soundness of existing companies and service providers.

The decision excludes companies using financial technology, in line with Law No. 5 of 2022 regulating fintech in non-banking financial activities.

The FRA said Egypt’s microfinance sector now serves about 3.6 million beneficiaries, while consumer finance covers around 7 million clients, with total financing of 56.2 billion Egyptian pounds and 56.7 billion pounds respectively.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser