The Central Bank: Financial inclusion rates increased by 181% by the end of June 2024.
Driven by the Central Bank of Egypt’s and the Banking Sector’s Support
The Financial Inclusion Initiatives and Projects Drive a Substantial Increase in the Number of Beneficiaries of Banking and Financial Services
• Remarkable increase in banks’ financing portfolios for Micro, Small, and Medium-sized Enterprises (MSMEs).
The Central Bank of Egypt (CBE), in collaboration with the banking sector, has driven substantial progressin Egypt’s financial inclusion rates, marking an 181% increase during the period from December 2016 to June 2024. The number of citizens owning transactional accounts - whether bank accounts, Egypt Post accounts, mobile wallets, or prepaid cards - has reached 48.1 million citizens out of 67.3 million eligible citizens (16 years and above), with a financial inclusion rate reaching 71.5% in June 2024.
The remarkable growth came as a result of the collaborative efforts exerted by all relevant stakeholders, and through enabling a supportive regulatory framework, participating in different projects, and availing suitable products that meet the different needs of all target segments, in addition to disseminating financial literacy and essential financial awareness across all segments of society. This progress was also driven by the launch of projects and initiatives, in partnership with a number of ministries and governmental authorities.
Furthermore, as one of the key projects launched by the CBE, the financial inclusion events (6 events annuallysince 2017 to coincide with the international occasions), have contributed to increase the beneficiaries of banking and financial services. During these events, banks are allowed to operate outside their branches, and market their products by opening accounts without fees and without a minimum balance, while offering other services and products. The financial inclusion’s events aim at promoting financial literacy across all segments of society, especiallyyouth, women, and persons with disabilities.
Additionally, the CBE is sponsoring the smallholder farmers’ support project in collaboration with the UN World Food Programme (WFP), aiming to integrate small farmers into the formal financial sector and provide them with tailored financial products and services to raise their economic and social capabilities.
As part of its efforts towards achieving economic andsocial empowerment for women - one of the top-priority target segments -, the CBE is committed to supporting the expansion of the digital saving and lending groups project, in collaboration with the National Council for Women (NCW), and with the participation of the Agricultural Bank of Egypt. Thisproject aims to promote financial inclusion for women, encourage saving, and raise awareness on the benefits of using FinTech applications in savings and lending practices.
Moreover, banks operating in Egypt are participating, under the auspices of the CBE, in the first phase of the presidential initiative “Decent Life” (Hayah Karima) since July 2021. The initiative’s objective is to improvethe services provided to citizens in 20 governorates, 52 rural centers, and 1667 villages, contributing to the improvement of their standard of living.
In the same context, the CBE's accomplishments have significantly contributed to the growth of banks' portfolios for financing MSMEs, which are essential to economic development, in addition to their significant role in creating job opportunities, especially for women and youth, and in reducing unemployment rates. Notably, the amount of facilities allocated for MSMEs increased by 388% during the period from December 2015 to June 2024. Also, funding directed to the industrial sector increased by 61%, whereas the growth in facilities directed to the Delta region reached 72%, and in Upper Egypt signaled 59%, over the period from December 2020 to June 2024
Additionally, the microfinance portfolios in the banking and non-banking sectors witnessed a tremendous development, with a growth rate exceeding 1350% - driven by the CBE’s initiatives - from December 2016 to June 2024 (as per the Egyptian Federation for Financing MSMEs – MSMEF)
