Beltone Holding Secures SMEs Finance Licence in Egypt

Beltone Holding, one of the fastest-growing financial institutions in Egypt, has announced on Wednesday s that it has secured the Egypt Financial Regulatory Authority’s final approval for its Small and Medium Enterprises (SMEs) finance license.

This significant milestone highlight’s Beltone’s trajectory of serving the needs and the growing demand of SMEs in Egypt and the region. The SME finance license compliments Beltone’s offerings in becoming a fully-fledged Non-Banking Financial Institutions Platform.

In a related development, the European Bank for Reconstruction and Development (EBRD) on Tuesday extended a $30 million credit line to the National Bank of Egypt (NBE) to support the development of small and medium enterprises (SMEs) in Egypt.

Ashraf Abdel Fattah, CEO of Beltone SMEs, emphasised that they were dedicated to providing innovative and tailored financing solutions to meet the needs of SMEs, which are the backbone of our economy, across diverse industries.

He added: “Through prioritising client-centricity and innovation, we empower SMEs to thrive in today’s dynamic market conditions. Our aim is to serve as a catalyst for SME growth and development, by equipping them with financial tools and resources to achieve their business objectives.”

Beltone SMEs, a subsidiary of Beltone Holding, offers tailored financing solutions for a wide range of products and services. Committed to client-centricity and innovation, Beltone SMEs empowers SMEs to thrive in today’s dynamic market.

The company’s mission is to support SME growth and development by providing the necessary financial tools and resources to achieve their goals.

Lion’s Share

The Egyptian SMEs have acquired 98% of the private sector landscape in Egypt, employing over 47 million.

According to a report entitled “SME Megatrends” launched by Visa last month, SMEs share in Egypt’s GDP has reached 43% in FY 2023-24. However, the financing gap faced by SMEs has reached $46 billion, the report noted.

It said that 33% of SMEs in Egypt struggle with lack of access to finances and only 15% of these enterprises have adequate access to finances. The report also found that SME’s outstanding loan portfolio stood at $11 billion.

The SME Megatrends report identified significant opportunities for growth and innovation for the SMEs in Egypt, particularly in the digital and financial domains, with clear insights that can be leveraged by issuing banks to unlock new revenue opportunities and gain a competitive edge.

The report noted that digital transformation is paving new avenues of growth and sales for SMEs in the Egyptian market, with an uptick in social media and e-commerce, buy now, pay later (BNPL) and point of sale (POS) financial and e-wallet penetration.

Egypt has around 2.5 million SMEs, accounting for 75% of the labour force, many of which are involved in manufacturing. In some cases, SMEs are at the forefront of some of the most innovative and emerging sectors, such as biotech, renewable energy, green ICT and services.