(MENAFN- Daily News Egypt) Corporate and institutional financing for Micro, Small, and Medium Enterprises (MSMEs) totaled EGP 71.321bn for 3.759 million customers in September 2024, up from EGP 49.653bn for 3.824 million customers in September 2023.
The financial Regulatory Authority (FRA) reported that the volume of financing for micro-enterprises reached EGP 59.530bn for 3.750 million customers in September 2024, compared to EGP 45.222bn for 3.819 million customers in the previous year. Financing for medium and small enterprises amounted to EGP 11.791bn for 9,400 clients, up from EGP 4.431bn for approximately 4,600 clients.
Among the financing recipients, companies accounted for 65.15% of microfinance balances, while“A” category associations and civil institutions received 32.37%,“C” category institutions 1.38%, and“B” category institutions 1.10%.
Mortgage Finance
The FRA also reported a significant increase in total real estate financing granted by companies, which reached EGP 17.759bn in September 2024, a 163.6% rise from EGP 6.736bn in September 2023. The number of mortgage finance contracts rose to 7,641, compared to 3,590 the previous year.
These financings were distributed as follows: 218 contracts worth EGP 3.7bn for regular customers, 545 contracts valued at EGP 145m for fund customers, and 6,878 contracts totaling EGP 13.909bn for purchased portfolios.
In terms of mortgage finance distribution by monthly income, the bracket above EGP 3,500 accounted for EGP 17.707bn across 7,455 contracts.
Consumer Finance
The value of financing granted by consumer finance companies increased to EGP 41.914bn in September 2024, up from EGP 33.076bn in the same month in 2023, reflecting a growth rate of 26.7%. The number of beneficiaries reached 2.896 million customers, compared to 2.556 million customers in the previous year.
The electrical and electronics sector received 28.88% of the financing value, followed by car and vehicle purchases at 27.93%, home appliances at 10.74%, single invoice purchases from various stores and chains at 6.12%, and clothing, footwear, bags, watches, jewelry, and eyewear at 5.41%.
Financial Leasing
The FRA reported a rise in the value of contracts from financial leasing companies, which reached EGP 82.321bn in September 2024, up from EGP 78.511bn in September 2023, representing a growth rate of 4.9%. However, the number of contracts decreased to 1,309, compared to 1,428 in the previous year.
The real estate and land sector accounted for 74.45% of these contracts, followed by the transport vehicles sector at 7.46%, machinery and equipment at 4.16%, private passenger cars at 3.66%, and heavy equipment at 3.44%.
Movable Collateral Register
The value of disclosures in the Movable Collateral Register reached EGP 2.825bn in September 2024, up 19.4% from EGP 2.367bn in September 2023.
The Movable Collateral Register is an electronic system for registering, modifying, and canceling security rights on movable assets. Egypt was one of the first countries in the Arab region to implement legislation regulating movable collateral.
According to the FRA, the number of disclosures in the register reached 191,000 in September 2024, a 30.3% increase from 146,200 disclosures in September 2023.
The banking sector accounted for 97.47% of the value of disclosures, followed by financial leasing companies at 2.03%, factoring companies at 0.17%, and international financing entities at 0.17%. In terms of the number of disclosures, banks accounted for 80.27%, consumer finance companies for 10.61%, retail companies for 5.89%, and financial leasing companies for 2.24%.
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