The Central Bank of Egypt has unveiled its plan to launch a new financial inclusion strategy for the period 2026-2030 in the middle of this year, according to statements from Sherif Luqman, the bank's Deputy Governor for Financial Inclusion and Sustainability. This initiative is part of the bank's efforts to enhance financial inclusion across the country and achieve sustainable development.
During his speech at the conference titled "From Financial Inclusion to Comprehensive Growth," organized by the Union of Arab Bankers and the Banking Union, Luqman emphasized the leap made by the Egyptian banking sector in the area of financial inclusion, noting that the penetration rate has risen to 77.6%, reflecting the benefit of approximately 55 million citizens from financial services.
Details of the Initiative
Luqman highlighted the importance of financial inclusion in supporting small and medium-sized enterprises, as this is one of the fundamental pillars relied upon by the Central Bank to enhance this category of projects. He explained that the expansion of financial inclusion has contributed to an increase in gross domestic product and supported the activities of small companies, with the total financing portfolio for small enterprises reaching 630 billion Egyptian pounds, with a growth rate exceeding 400%.
Thanks to these efforts, 50% of small enterprises have transitioned into major companies, reflecting the success of the strategy implemented to support the national economy.
Background & Context
The financial inclusion strategy is part of the Central Bank of Egypt's vision to achieve sustainable development and enhance the national economy. This step comes amid the economic challenges facing the country, as the Central Bank seeks to improve access to financial services for all segments of society.
In recent years, Egypt has witnessed a notable improvement in financial inclusion rates, contributing to enhanced financial stability and economic growth. This new strategy represents an additional step toward achieving the sustainable development goals pursued by the Egyptian government.
Impact & Consequences
Economic circles anticipate that the new strategy will contribute to boosting economic growth by supporting small and medium-sized enterprises, which will positively reflect on the labor market and increase employment opportunities. Additionally, the rise in the number of individuals engaging with the banking sector will lead to an improvement in the quality of financial services provided to citizens.
This strategy is expected to enhance the business environment in Egypt, attracting more local and foreign investments. It will also help build trust in the Egyptian financial system, thereby reinforcing the stability of the national economy.
Regional Significance
Egypt's experience in promoting financial inclusion serves as a model for other countries in the Arab region, as many nations seek to improve access to financial services. This new strategy could inspire other countries in the region to adopt similar policies aimed at enhancing financial inclusion and supporting local economies.
In light of global economic challenges, strengthening financial inclusion can have a positive impact on financial stability in the region, contributing to the achievement of sustainable development.