The Financial Regulatory Authority (FRA), under the leadership of Mohamed Farid, has issued two pivotal decisions, No. 17 and 18 of 2025, aimed at addressing economic shifts and furthering the implementation of the Unified Insurance Law. These decisions increase the maximum financing limit for microfinance institutions and raise the insurance coverage cap for microinsurance.
Decision No. 17 of 2025 increases the loan ceiling for microfinance projects to EGP 266,000, up from EGP 242,000—a 10% rise. This adjustment is designed to expand access to financing, enabling individuals and businesses to launch new ventures or scale existing operations, thereby enhancing competitiveness and supporting economic development. It also addresses inflationary pressures, ensuring sufficient funding for business growth while aligning with the government’s broader economic strategies.
Simultaneously, Decision No. 18 of 2025 raises the maximum microinsurance coverage limit to EGP 312,500, up from EGP 250,000. This change reflects the FRA’s commitment to mitigating economic fluctuations and adhering to the regulatory framework introduced by the Unified Insurance Law, which came into effect in July 2024.
These adjustments build upon the FRA’s prior decision (No. 268 of 2024), which raised the microinsurance cap by 25%, bringing it to EGP 250,000. The recent updates demonstrate the FRA’s dedication to increasing the availability of tailored financial and insurance solutions, advancing the integration of non-banking financial activities, and supporting the government’s financial inclusion goals. Microinsurance, in particular, plays a critical role in offering financial protection to low-income individuals and fostering investment in micro, small, and medium enterprises (MSMEs), thereby promoting economic stability and growth.
FRA Chairman Mohamed Farid highlighted that Law No. 201 of 2020, which amended the Microfinance Regulation Law No. 141 of 2014, empowers the FRA’s Board of Directors to adjust loan limits based on evolving economic conditions. He emphasized that the latest decisions align with ongoing efforts to refine the regulatory framework for non-banking financial activities, ensuring sustainability and innovation in the microfinance sector. This sector, Farid noted, is vital for providing customized financing solutions to diverse businesses and individuals.
During the first 11 months of 2024, companies, associations, and NGOs in the microfinance field disbursed a total of EGP 73.9bn, benefiting 3.1 million individuals. By November 2024, the sector’s outstanding loan portfolio had reached EGP 61.4bn.
Moreover, the FRA reported a significant expansion in access points for microfinance services, which grew to 4,620 locations by the end of 2024. These included 1,036 entities operating through approximately 3,584 branches. Among these, “Category A” NGOs comprised 22 organizations with 988 branches and 1,010 service points. Additionally, 20 other NGOs managed 152 branches and 172 service points, while “Category C” NGOs included 971 entities, with 87 branches and 1,058 access points.
As of late 2024, the number of companies involved in microfinance reached 23, collectively operating 2,357 branches and 2,380 service points. Furthermore, nine companies specializing in small and medium enterprise (SME) financing had 87 branches and 96 service points, while one SME-focused institution operated through 101 branches and 111 access points.
