The Egyptian Federation for Financing Medium, Small, & Micro Projects (MSMEF) announced that microfinance portfolios have surpassed EGP 101bn in the second quarter of 2025, benefiting more than 4.1 million clients across the country. Hala Abu Elsaad, Chairperson of the MSMEF, said the achievement underscores the sector's resilience and developmental role despite ongoing economic challenges. According to Abu Elsaad, licensed NGOs offering microfinance services reached approximately 1.6 million clients by June 2025, with their combined credit portfolio rising by 15% to EGP 22.9bn, compared to EGP 19.9bn in June 2024. Corporate financing portfolios also expanded by 16%, exceeding EGP 42bn and serving about 1.8 million clients. She highlighted that banks continue to play a vital role in supporting microenterprise owners. Direct financing balances—up to EGP 266,000—amounted to EGP 36.1bn by June 2025, serving 671,000 clients, in addition to indirect financing extended to microfinance associations and companies. Medium enterprise financing also recorded exceptional growth, with a 130% increase during the comparison period, reaching EGP 20.7bn by June 2025 and serving 14,500 clients—an 81% rise year-on-year. Abu Elsaad noted that the Federation's institutions remain active participants in Egypt's broader economic development agenda. She referred to the MSMEF's contribution to the National Dialogue on "Egypt's Narrative for Economic Development," launched by Prime Minister Mostafa Madbouly, which sets ambitious targets including 7% sustainable GDP growth, the creation of 1.5 million jobs annually by 2030, greater private sector engagement, and higher levels of green investment aligned with Egypt's Vision 2030. Looking ahead, she expected the Central Bank's recent interest rate cuts to further stimulate the expansion of microfinance services, especially in low-income rural areas, thereby supporting social justice and financial inclusion. She also underlined the Federation's ongoing priorities for the coming period, which include enhancing workforce efficiency, strengthening cooperation with government agencies and international partners, and expanding flexible non-banking financial products, alongside fostering partnerships and knowledge-sharing among member institutions. Abu Elsaad stressed that the new MSMEF Board is committed to building on the strategy of its predecessors, positioning the Federation as a vital link between members and stakeholders. Concluding, she affirmed that the MSME financing sector has proven itself to be a cornerstone of inclusive development in Egypt, serving not only as a source of funding but also as an active partner in shaping the future of the national economy.
