Egypt’s Non-Bank Financial Sector Extended $28 Billion in Financing Last Year

For Egypt, which is pushing ahead with economic reforms after years of global and regional turbulence, the expansion of non-bank financial services has become a central pillar of its growth strategy. With more than 60 million people now using services regulated by the Financial Regulatory Authority and financing volumes reaching about $28 billion last year, officials are betting that deeper financial markets, stronger regulation and greater integration with the rest of Africa can help unlock investment and strengthen resilience in one of the continent’s largest economies.

Egypt’s non-bank financial sector provided about $28 billion in financing in 2025 and now serves more than 60 million people, highlighting the industry’s growing role in supporting economic activity across the country, Planning and Economic Development Minister Ahmed Rostom said.

Speaking at the 52nd Conference of the African Insurance Organisation in Cairo, Rostom said institutions regulated by Egypt’s Financial Regulatory Authority have expanded access to financing while helping deepen the country’s financial markets.

The conference, hosted by the Insurance Federation of Egypt under the patronage of the prime minister and the Financial Regulatory Authority, brought together senior policymakers and insurance executives from across the continent, including Investment and Foreign Trade Minister Mohamed Farid, Financial Regulatory Authority Chairperson Islam Azzam, African Insurance Organisation President Yared Mola and Insurance Federation of Egypt Chairperson Alaa El-Zoheiry.

Rostom said the gathering comes at a time of accelerating geopolitical and economic uncertainty that is forcing governments and businesses to strengthen resilience and improve risk management frameworks.

He said the insurance industry has evolved beyond its traditional role as a mechanism for mitigating risk and is increasingly contributing to economic growth, financial stability and resilience against climate-related and economic shocks.

Despite recent disruptions including commodity-price volatility and the Covid-19 pandemic, African economies have demonstrated resilience, supported by macroeconomic reforms, Rostom said. Average real GDP growth across the continent accelerated to about 4.4% in 2025 from 3.5% a year earlier, with 22 countries expanding by more than 5%.

Africa also possesses substantial domestic financial resources, including an estimated $2.5 trillion in banking assets and approximately $320 billion in insurance assets, he said. Insurance penetration, however, remains below 2% of gross domestic product across much of the continent.

Greater integration of African financial markets could help mobilize long-term savings, deepen financial intermediation and direct capital toward infrastructure and development projects through innovative financing mechanisms, Rostom said.

Turning to Egypt, the minister said the country has maintained macroeconomic stability while continuing to advance major national projects despite successive regional and global shocks.

Economic growth recovered from 2.4% in fiscal year 2023-24 to about 4.4% in fiscal year 2024-25 and accelerated further to 5.2% during the first nine months of the following fiscal year, he said.

Egypt’s economy benefits from a diversified production base, with manufacturing, wholesale and retail trade, tourism, construction and agriculture expected to generate roughly 64% of targeted growth in fiscal year 2026-27.

The insurance sector has also expanded rapidly, recording growth of 8.9% and 12.5% in the first and second quarters of fiscal year 2025-26, respectively. Rostom attributed much of that momentum to implementation of the Unified Insurance Law No. 155 of 2024.

The government is continuing a broad reform program aimed at supporting sustainable growth and job creation, including measures to improve governance of public investment and diversify funding sources, he said.

Rostom reaffirmed Egypt’s commitment to developing both the insurance industry and the wider non-bank financial sector and called for stronger cross-border cooperation among African countries.

Such efforts, he said, would help create more integrated and resilient financial systems capable of financing the continent’s long-term development priorities while strengthening its ability to withstand future economic shocks.

Stay ahead of the stories shaping our world. Subscribe to Impact Newswire for timely, curated insights on global tech, business, and innovation all in one place.

Dive deeper into the future with the Cause Effect 4.0 Podcast, where we explore the ideas, trends, and technologies driving the global AI conversation.

Got a story to share? Pitch it to us at info@impactnews-wire.com and reach the right audience worldwide