Egypt Financial Regulatory Authority revokes microfinance licences for around 258 category C NGOs over inactivity and regulatory breaches

Egypt’s Financial Regulatory Authority issued a board decision cancelling the microfinance licences of around 258 category C civil associations and institutions, after supervisory follow-up and inspections found they were not complying with the rules governing microfinance activity under Law No. 141 of 2014, as amended by Law No. 201 of 2020. The breaches cited included a complete failure to conduct the activity or provide any financing services to targeted beneficiaries, persistent refusal to submit periodic supervisory reports and financial statements, and non-compliance with the credit inquiry system. The entities also lost membership of the Egyptian Federation for Financing Small, Medium and Micro Enterprises, which the FRA described, alongside credit-inquiry participation, as a basic condition for operating. Chairman Mohamed Farid said the decision followed a period in which the FRA granted time to regularise and exhausted communication and warning steps, but received no response. The FRA noted its register currently includes 754 licensed microfinance associations and institutions: 23 category A (financing portfolios above EGP 50m), 33 category B (EGP 10m to EGP 50m), and 698 category C (EGP 10m or less). The FRA indicated it will continue technical support and specialised training for compliant associations and may take further measures to ensure discipline and protect counterparties in the microfinance market.