الهيئة العامة للرقابة المالية

Dr. Mohamed Farid:

• MSME Financing rates show relative stability despite market volatility.
• Disciplined price gaps and a strategic focus on financing portfolio quality.
• Microfinance exhibited consistent pricing trends, accompanied by a shift toward portfolio quality.

FRA has finalized the latest update to Responsible Pricing Reference Index for MSME financing, utilizing data as of September 2025. This move underscores the Authority’s commitment to foster market transparency and optimize the efficiency of the non-banking financial sector.

Notably, Dr. Mohamed Farid – FRA Chairman launched the Responsible Pricing Index in September 2023. This marked the first time such an index was introduced within Egypt’s financial sector specifically for MSME financing activity.

Recent statistical data from the index reveals significant developments in the cost of non-banking finance in Egypt. A comparison between September 2024 and September 2025 shows limited movement in pricing levels, characterized by relative stability across most financing categories. Variations in pricing tiers remained tied to the risk profiles of products and clients despite current economic variables.

This update underscores the Authority’s commitment to transparency by providing periodic data that allows clients to assess the Total Cost of Credit (TCC). By enabling direct rate comparisons across licensed providers, the index empowers borrowers to make informed financial decisions and strengthens market disclosure.

Dr. Mohamed Farid stated that September 2025 review demonstrates the resilience of licensed entities in managing costs and absorbing market fluctuations. He noted that financing is increasingly being directed toward low- and medium-risk clients.

The Chairman added that individual micro- finance moved within stable price ranges in September 2025. Based on the Median metric, pricing ranged from approximately 30% for low-risk clients to 32% for high-risk clients.

Dr. Farid explained that minimum pricing levels remained low across all risk categories. The “most frequent” market prices indicate that most lenders are focusing on medium-risk clients, reflecting a strategic balance between risk management and sustainability of financing activities.

The data further confirms a trend toward low- and medium-risk clients, highlighting the lenders’ commitment to maintain financing portfolio quality. This occurs alongside the provision of group-based financing products at relatively competitive prices.

Index results reveal that group microfinance displayed notable price resilience, with median rates fluctuating between 31.5% and 33% across different risk tiers. These results indicate that pricing spreads remain well regulated and aligned with risk profiles.

Data shows that SME financing experienced positive stability compared to other products. Median financing rates recorded a narrow range between 22.4% and 22.7% across all risk categories.

Minimum pricing levels remained stable, ranging between 19.5% and 20.6%.

Moreover, Data shows that 81% of SME financing entities adhered to the Responsible Pricing Standards, while compliance reached 64.4% for individual microfinance and 64.3% for group financing.

The index tracks real-time shifts in MSME financing costs across all Egyptian governorates. By utilizing a transparent and objective methodology, FRA ensures that the index serves as a factual representation of the non-banking financial market.

Regularly updated on FRA website, the index serves as a comparative tool for entrepreneurs to evaluate total financing costs. This transparency curbs unwarranted price volatility and balances borrower protection with institutional sustainability.

The importance of updating the index lies in the continuous growth of MSME financing as a primary driver of economic activity and job creation, as well as its vital role in supporting financial inclusion and expanding the formal non-banking financial services base.

In this context, the value of MSME financing rose by 11.9% to reach EGP 85.9 billion from January to October 2025 compared to the same period in 2024. Total outstanding balances reached EGP 93.8 billion by the end of October 2025, representing a robust 27.1% growth.

On the other hand, updating the index is an extension of the practical application of FRA resolution No. (20) of 2022 regarding responsible pricing controls. It aims to establish disciplined and fair pricing practices, adhering to fixed interest rates, capping administrative expenses and applying clear, unified disclosure templates for clients.

FRA continues to enforce responsible pricing across all financing entities to ensure a fair and competitive market. By prioritizing compliance, the Authority improves service standards and guarantees robust protection for MSME clients.