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.
