Egypt’s FRA raises financing limit for micro-enterprises to EGP 266k

Egypt’s Financial Regulatory Authority (FRA) has increased the maximum financing limit for micro-sized enterprises to 266,000 Egyptian pounds, up from 242,000 pounds, marking a 10 per cent increase. Additionally, the FRA has raised the maximum insurance coverage for microinsurance activities to 312,500 pounds, up from 250,000 pounds, in response to economic developments and the implementation of the Unified Insurance Law.

The decision, issued by FRA Chairman Mohamed Farid, aims to expand financial access for individuals and small businesses, enabling them to launch, grow, and compete more effectively. The increase reflects economic shifts, including inflation, and aligns with Egypt’s broader economic development strategy.

The FRA’s move also strengthens financial protection for low-income groups, reinforcing investment in micro and small enterprises. This follows a 2024 adjustment that raised the microinsurance coverage limit by 25 per cent under the Unified Insurance Law.

Farid emphasised the FRA’s commitment to refining non-banking financial regulations to support the sustainability of microfinance. He highlighted that financing provided by companies, associations, and NGOs for micro-enterprises reached 73.9 billion pounds in the first 11 months of 2024, benefiting 3.1 million recipients. As of November 2024, outstanding financing balances stood at 61.4 billion pounds.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser