Egyptian Financial Regulatory Authority Boosts Microfinance and Microinsurance Limits to Support MSMEs
The Board of the Egyptian Financial Regulatory Authority (FRA), chaired by Dr. Mohamed Farid, has issued two decisions aimed at enhancing the growth and sustainability of micro enterprises. The measures include raising the maximum financing limits and increasing the maximum insurance coverage for microinsurance activities, strengthening both protection and empowerment for these businesses.
Dr. Farid emphasized that the decisions reflect the FRA’s commitment to developing a supportive regulatory environment for micro enterprises, enabling owners to access financial and insurance services tailored to their actual needs and the risks they face, thereby promoting sustainability and financial inclusion.
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Decision No. 1 of 2026 raises the maximum financing provided by companies, associations, and NGOs to micro enterprises from EGP 266,000 to EGP 292,000. Non-bank financing to micro, small, and medium enterprises reached EGP 95.7 billion by the end of 2025, a 12.1% growth, benefiting approximately 3.1 million clients.
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Decision No. 2 of 2026 increases the maximum insurance coverage for microinsurance activities to EGP 390,000, up from EGP 312,500, offering enhanced protection aligned with the risks faced by micro entrepreneurs.
These initiatives aim to improve the efficiency of non-banking financial services and provide affordable financial and insurance solutions for highly vulnerable economic groups, including workshops, craftspeople, small home-based businesses, and other micro enterprises.