Companies, Associations' Investments In Msmes Reach EGP 61.1Bn In February 2024
Date
5/19/2024 2:14:13 PM
(MENAFN- Daily News Egypt) In a significant boost to Egypt's microfinance sector, companies and associations have collectively invested EGP 61.14bn in micro, small, and medium enterprises (MSMEs) in February 2024. This funding has been granted to 3.813 million customers, marking an impressive increase of EGP 19.018bn within just one year.
According to a recent report by the financial Regulatory Authority (FRA), the breakdown of financing provided by these entities is as follows:
Micro Enterprises: Financing amount reaches EGP 53.582bn for approximately 3.806 million customers, compared to EGP 39.930bn for about 3.949 million customers in February 2023.
SMEs: Financing amount reaches EGP 7.5bn for around 6,900 customers, compared to EGP 2.184bn for about 2,500 customers in February 2023.
Distribution of Microfinance:
Companies: 64.55% Associations and category“A” companies: 32.8% Associations and category“C” companies: 1.45% Associations and private institutions (category“B”): 1.14%
Additionally, consumer finance companies have played a crucial role in supporting individuals during January and February 2024. They disbursed EGP 8.715bn in funding, reflecting a growth rate of 44% compared to the same period in 2023. However, the total number of customers in consumer finance activity decreased slightly to 525,400 (from 537,300 in 2023).
Breakdown of Consumer Finance Activity:
Cars and vehicles: 38.78% of financing Electrical appliances: 16.08% Electronics: 7.98% Single-invoice purchases from various stores: 5.50% Clothing, shoes, watches, and jewellery: 3.84%
Furthermore, the value of contracts for financial leasing companies in the Egyptian market declined to EGP 14.430bn in January and February 2024 (compared to EGP 21.061bn in 2023). The number of financial leasing contracts also decreased slightly to 353 (from 350).
Breakdown of Financial Leasing Contracts:
Real Estate and land sector: 65.36% Transportation vehicles sector: 8.19% Machinery and equipment sector: 6.77% Heavy equipment sector: 6.75% Private automobile sector: 3.75% Production lines: 3.59%
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