Egypt’s Financial Regulatory Authority (FRA) issued Decision No. 237 of 2025 extending the suspension of accepting incorporation requests and preliminary approvals for companies seeking FRA licences to conduct microenterprise finance or consumer finance through traditional channels. It also halted the acceptance of licensing applications for microenterprise finance from civil associations and foundations for one year, renewable. The FRA linked the extension to ensuring firms’ financial soundness and transaction integrity and to supporting digital transformation. The decision cites a marked rise in new licences for consumer finance and microenterprise finance providers before Decision No. 184 of 2024 introduced a halt on receiving incorporation applications, creating a need to assess the solvency of existing companies and service providers. Applicants proposing to conduct either activity using financial technology are exempt under Law No. 5 of 2022 regulating the use of fintech in non-banking financial activities. The FRA also reported around 3.6 million microfinance beneficiaries and around 7 million consumer finance beneficiaries, with total financing of EGP 56.2 billion and EGP 56.7 billion respectively. The suspension period is set at one year and may be renewed.
Egypt Financial Regulatory Authority 2025-10-22
Egypt Financial Regulatory Authority extends one-year suspension on traditional microfinance and consumer finance licensing applications with a fintech exemption
Egypt's Financial Regulatory Authority (FRA) issued Decision No. 237 of 2025, extending the suspension of incorporation requests and preliminary approvals for traditional microenterprise and consumer finance licences for one year, renewable. The decision aims to ensure financial soundness and support digital transformation, exempting fintech-based activities under Law No. 5 of 2022. The FRA noted a significant rise in new licences before the initial halt, necessitating an assessment of existing firms' solvency.