Egypt has made impressive strides in financial inclusion, driven by the Central Bank and the nation’s banking sector. From December 2016 to June 2024, the number of Egyptians with access to financial services surged by 181%. This growth has brought the total number of individuals holding financial accounts to 48.1 million—equivalent to 71.5% of eligible citizens.
A Collective Effort Across Government and Banks
This surge in financial inclusion resulted from a collective effort. The Egyptian government and banking institutions worked together to create a favorable regulatory environment. These efforts included the development of financial products tailored to the needs of Egypt’s diverse population. Financial literacy initiatives also helped bridge knowledge gaps and increase awareness.
The Power of Financial Inclusion Events
One of the key drivers of financial inclusion has been the Financial Inclusion Events, launched by the Central Bank in 2017. These six annual events coincide with global financial literacy observances and have provided an excellent platform for banks to reach citizens outside traditional bank branches. Banks can now offer services such as fee-free account openings, mobile wallets, and prepaid cards, targeting underserved groups including youth, women, and people with disabilities. These events have significantly raised financial awareness and expanded access to financial services across Egypt.
Empowering Women Through Financial Initiatives
The Central Bank has also prioritized financial empowerment for women. Through a partnership with the National Council for Women and the Agricultural Bank of Egypt, the Central Bank has supported the Savings and Credit Groups initiative. This program promotes savings and provides access to credit for women in rural areas, helping increase their financial literacy and independence. Such efforts play a key role in enhancing gender equality and ensuring that women have equal opportunities to thrive in the financial system.
Supporting Small Farmers and Rural Communities
In addition to empowering women, the Central Bank has focused on integrating small farmers into the formal financial sector. In collaboration with the World Food Programme, Egypt has introduced financial products designed for farmers. These initiatives are helping small-scale farmers improve their economic and social conditions, contributing to poverty reduction and rural development.
Financial Inclusion Meets the “Decent Life” Initiative
The Central Bank has also been instrumental in supporting the Haya Karima (Decent Life) initiative, launched by the Egyptian government in 2021. The initiative aims to improve the quality of life in underserved regions, targeting 20 governorates and 1,667 villages. Financial institutions, under the guidance of the Central Bank, have been key players in funding this project, which focuses on enhancing basic services such as education, healthcare, and infrastructure in rural Egypt.
Unprecedented Growth in Micro and Small Business Financing
Another critical area of focus for the Central Bank has been the financing of Micro, Small, and Medium Enterprises (MSMEs), which are essential to job creation and economic development. The financing for MSMEs has surged by 388% from December 2015 to June 2024, with significant investments also directed to the industrial sector (61% increase). The financing for MSMEs in Upper Egypt and the Delta region saw growth rates of 59% and 72%, respectively.
Additionally, microfinance has expanded at an extraordinary rate of 1,350% from 2016 to 2024. This growth is attributed to the Central Bank’s initiatives designed to improve access to credit for micro-entrepreneurs, many of whom are women and youth. This has helped create thousands of jobs and stimulated economic growth in local communities.
A Clear Vision for the Future
Egypt’s efforts to boost financial inclusion reflect a forward-thinking vision aimed at fostering social and economic development. By prioritizing underserved groups such as women, rural farmers, and small businesses, the country is not only improving its financial system but also promoting broader economic empowerment. The Central Bank’s initiatives are playing a pivotal role in the government’s broader vision of a more inclusive and sustainable economy.
As Egypt continues to push for financial inclusion, its efforts offer valuable lessons for other emerging economies. The country’s focus on empowering women, supporting small farmers, and financing MSMEs is setting the stage for long-term growth and prosperity for all Egyptians.
For further details on Egypt’s financial inclusion strategy, visit the official portal of the Central Bank of Egypt.
