Egypt’s Financial Regulatory Authority (FRA) has issued a board decision revoking the microfinance activity licences of 260 Category C civil associations and non-profit institutions for breaches of applicable legal and supervisory requirements, bringing the cumulative total of cancelled licences to 518. Continuous FRA inspections found the entities had completely failed to conduct microfinance activity or provide any financing to target beneficiaries, alongside ongoing refusal to submit periodic reports and financial statements, which prevented the FRA from assessing financial positions and monitoring performance. The move follows a 16 November decision cancelling the licences of 258 Category C associations for non-compliance. The FRA clarified that revocation applies only to the microfinance activity and does not affect the associations’ legal status or other community activities authorised by the Ministry of Social Solidarity, and that the step was taken after providing time to regularise and exhausting engagement and warning measures. The FRA’s current register includes 494 licensed microfinance associations and institutions, comprising 23 Category A entities with portfolios above EGP 50 million, 33 Category B entities with portfolios between EGP 10 million and EGP 50 million, and 438 Category C entities with portfolios of EGP 10 million or less. Chairman Mohamed Farid indicated the FRA will redirect resources toward technical support and advanced training for compliant institutions, in cooperation with the sector federation, alongside efforts to accelerate digitisation and strengthen the quality of sector data and reporting.

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