Financing for Egyptian Micro-Businesses Hits LE 108 Billion in Q1 2026
Microfinance companies continued to hold the largest share of the market as SME financing and loan limits increased during the first quarter of 2026.
Egypt's outstanding microfinance portfolio reached nearly LE 108 billion in the first quarter of 2026, serving more than four million clients, according to the Egyptian Federation for Financing Medium, Small and Micro Enterprises (MSMEF).
The portfolio grew from around LE 105 billion in March 2025, representing an annual increase of approximately 3%.
Non-governmental associations and institutions affiliated with the federation and licensed by the Financial Regulatory Authority (FRA) provided LE 23.4 billion in financing to 1.6 million clients in March 2026, compared to LE 22.1 billion for 1.765 million clients a year earlier.
Microfinance companies continued to account for the largest share of the market, with an outstanding portfolio of LE 50.2 billion serving 1.9 million clients, up from LE 43.7 billion in March 2025. Meanwhile, banks extended LE 34.3 billion in direct financing to 587,000 microenterprise clients, down from LE 39 billion provided to 720,000 clients during the same period last year. The figures exclude indirect financing channelled through licensed providers.
Federation members licensed to finance small and medium-sized enterprises also recorded growth, extending LE 25.3 billion to 16,700 clients in March 2026, compared with LE 18.7 billion during the corresponding period in 2025.
According to Hala Abu Elsaad, Chairperson of MSMEF, the sector continues to support microenterprise owners while advancing Egypt's financial inclusion agenda. She added that the federation is working with the Financial Regulatory Authority, the Central Bank of Egypt and other partners to improve market efficiency and expand access to financing services.
