Grace Ashiru
The Financial Regulatory Authority (FRA) has extended the suspension of incorporation applications and preliminary approvals for companies seeking licenses in the microfinance and traditional consumer finance sectors. This decision follows the FRA’s resolution No. 237 of 2025, which also halts the acceptance of microfinance license applications from associations and civil society organizations for another year.
This suspension aims to ensure financial stability across markets and non-banking financial institutions, while enhancing their role in supporting the national economy and addressing individual needs. The extension follows a surge in licenses granted before the FRA issued resolution No. 184 of 2024, which had initially halted new incorporation applications.
The FRA has emphasized that this extension will allow adequate time to assess the financial solvency of existing companies and service providers before any further market entries are considered. However, companies aiming to operate within the financial technology space are exempt, as they fall under the legal framework of Law No. 5 of 2022, regulating financial technology in non-banking financial activities.
As of now, microfinance services have reached 3.6 million beneficiaries, with total financing at EGP 56.2 billion, while consumer finance services have expanded to about 7 million beneficiaries, totaling EGP 56.7 billion in financing.
