Egypt's small, medium, and microenterprises are a vital component of the country's economy, driving growth and employment. According to Tarek El-Khouli, Deputy Governor of the Central Bank of Egypt, there are approximately 3.858 million small, medium, and microenterprises in Egypt, representing 99.3% of all businesses. These enterprises provide around 12.5 million jobs, equivalent to 82% of the country's total workforce.
Microenterprises dominate the sector, accounting for 80% of all small, medium, and microenterprises. Small enterprises make up 19%, while medium enterprises comprise only 0.7%. The Central Bank's strategy focuses on increasing financing for these enterprises, with a particular emphasis on supporting informal businesses to transition into the formal economy.
The Central Bank's initiative, "Rwads El Nil," has established 140 business development centers across 25 governorates, providing financial and non-financial services to entrepreneurs. These centers have delivered around 1.3 million non-financial services and consultations to nearly 589,000 beneficiaries, including 41% women. The initiative has also facilitated financing worth approximately 24 billion Egyptian pounds.
El-Khouli highlighted the collaboration between the Central Bank, the Egyptian Financial Supervisory Authority, and the Egyptian Union for Financing Small and Medium Enterprises in developing the market. He noted that 36 associations operating in the sector have been upgraded from category C to category B through a program sponsored by the Central Bank.
The Central Bank has implemented measures to encourage banks to provide financing to small and medium enterprises. In 2016, banks were required to allocate 20% of their credit portfolios to these enterprises, with this requirement increasing to 25% in 2021. El-Khouli emphasized that empowering women is a key aspect of the strategy, with women-owned or managed enterprises accounting for around 24% of total financing from the banking sector.
The microfinance portfolio, comprising both banking and non-banking sectors, has grown significantly, with a rate of growth exceeding 1570% since 2016. As of June 2026, the portfolio has reached over 107 billion Egyptian pounds, serving more than 3.9 million clients. El-Khouli also noted that the default rates for microenterprises managed by women are significantly lower, often approaching zero.
El-Khouli concluded that the growth of small and medium enterprises has contributed to a decline in Egypt's unemployment rate from around 9% to 6%. He emphasized that continued support for these enterprises is crucial to sustaining their growth and job creation. The Central Bank's efforts aim to promote financial inclusion and stability, ensuring that the expansion of financing is accompanied by robust consumer protection and improved service quality.
Key points
- Small and medium enterprises in Egypt provide 12.5 million jobs, accounting for 82% of the country's workforce.
- The Central Bank of Egypt has implemented measures to increase financing for small and medium enterprises, including requiring banks to allocate 25% of their credit portfolios to these enterprises.
- Microenterprises dominate the sector, accounting for 80% of all small, medium, and microenterprises in Egypt.
