Non-Banking Finance for MSMEs Rises to EGP 84.6bn in March, Marking EGP 21.8bn Annual Growth

The Financial Regulatory Authority (FRA) announced a significant increase in non-banking finance extended to micro, small, and medium enterprises (MSMEs) in Egypt. By March 2025, the total volume surged to EGP 84.579 billion, up from EGP 62.800 billion in March 2024. This growth reflects an annual increase of EGP 21.779 billion.

According to the FRA report, approximately 3.714 million clients benefited from this financing, slightly less than the 3.826 million clients the previous year. Microenterprise financing contributed the largest share, rising to EGP 65.796 billion from EGP 54.811 billion. Meanwhile, financing for small and medium enterprises more than doubled, increasing from EGP 7.989 billion to EGP 18.782 billion, indicating growing trust in non-bank funding for business capital.

Leasing Activity

The leasing sector experienced a notable boost in Q1 2025. The total contract value reached EGP 42.121 billion, up 79.8% from EGP 23.420 billion in the same period the previous year. Contract numbers increased from 460 to 603. Real estate and land leases accounted for over 72% of total value, followed by vehicles, machinery, and equipment.

Consumer Finance

Consumer finance also expanded significantly. In Q1 2025, companies provided EGP 17.465 billion in financing to about 2.319 million clients, a 44.7% increase in value and a 188.2% increase in client numbers compared to the year before. Automotive purchases led, followed by electronics, household items, and goods purchased with finance cards.

Mortgage Finance

Mortgage finance grew rapidly, with companies granting EGP 11.183 billion in Q1 2025 versus EGP 5.318 billion previously, a rise of 110.3%. Contracts increased from 3,019 to 4,838, mostly benefiting clients with incomes over EGP 3,500.

Movable Collateral Registry

Egypt’s Movable Collateral Registry expanded as well. Registered claims reached EGP 3.292 trillion in March 2025, up 29% from EGP 2.550 trillion the year before. The number of claims rose 26.5% to approximately 212,000. The digital registry enhances credit access by securing claims on movable assets. Banks dominate the claims' value and volume, followed by consumer finance providers and leasing companies.

Egypt’s pioneering legal framework for movable collateral sets a regional benchmark for financial inclusion.

Source: Daily News Egypt