Investment min. launches strategy for non-banking services

CAIRO – 2 April 2018: Minister of Investment, Sahar Nasr, launched the National Strategy for Non-banking Financial services 2018-2022 with a main purpose to create a non-banking sector that is conducive to the sustainable growth and supports the financial inclusion, according to chairman of Financial Regulatory Authority.

The minister called to form a teamwork from the attendance to support the entrepreneurship activities; as a part of the financial inclusion.

A discussion was attended by Chairman of Financial Regulatory Authority Mohamed Omran, Chairman of the Egyptian Exchange (EGX) Mohamed Farid, and his deputy Mohsen Adel, in addition to Chairman of Misr for Central Clearing, Depository and Registry, Mohamed Abdel Salam, and a large number of non-banking financial sector officials and representatives of a number of international financial institutions.

Omran stated, at the first community discussion regarding the strategy, that it is necessary to edit some laws that are not related to the economic group in the Parliament in order to achieve the financial inclusion.

This can be achieved by facilitating financing opportunities for national projects, small and medium enterprises, and empowering women and young people, Omran clarified.

The national strategy focuses on the provision of funding groups and sectors, including strengthening the poor’s capacity to improve aspects of their lives, such as access to education, health care and the development of human capital in general.

The objectives of the strategy include increasing the number of beneficiaries of microfinance to 4 million beneficiaries, compared to 2.5 million currently, and increasing the amount of microfinance granted by the entities to LE 15 billion which currently stands at LE 11.5 billion, by increasing the number of microfinance institutions to 1,000.

The strategy aims to increase the real estate finance portfolio to LE 20 billion from LE 8 billion by 2022, increase the leasing portfolio to LE 50 billion compared to less than LE 24 billion currently, and raise the value of the portfolio of factoring activity to LE 20 billion compared to LE 9 billion.

For his part, Chairman of EGX Farid said that the market capitalization of EGX reached LE 980 billion, clarifying that the society is not benefitting from it as a result of not executing the financial inclusive.

With regard to the capital market, the strategy aims to increase the contribution of the capital market to drive investment and promote sustainable growth through simplifying procedures and speeding up the completion of approvals.