Egypt’s economic summit discusses banks, finance role in sustainable growth

CAIRO - 12 November 2019: Egypt’s economic summit discussed the impact of the banking and finance sector’s role in achieving sustainable economic growth in Egypt.

The panel, which was the first session after the opening was about banking and Finance.

The panel was moderated by Head of economic department at Youm7 Ahmed ya’qoub and speakers included Chairman of Agricultural Bank ElSayed ElKosayer, Chairman of Suez Canal Bank Hussein Refaay, Managing Director of Attijariwafa Bank in Egypt Hesham Safaa, and Head of Research department at Banque Misr Hany Farahat. Head of SME Finance Group at National Bank of Egypt Mamdouh Afia, Head of SMEs department in the Banque du Caire Nader Saad, and CEO of data analysis department at CIB Eslam Zekry we’re also speakers at the panel.


First session of Egypt Economic summit kicked off Tuesday, Nov. 12, in Cairo - Photo by Karim Abdel Aziz/Egypt Today

“Success of Egypt’s economic reform program comes as a result of political support and the Egyptian desire, professional banking system,” Chairman of Agricultural Bank ElSayed Elkosayer said.

“Reform program protected Egypt from fluctuations hit emerging markets,” ElKosayer stated.

Foreign reserves hit unprecedented levels, ElKosayer noted, adding that investment climate in Egypt has become stimulating.

Inclusive growth is to include all citizens and sectors, He pointed.

ElKosayer further said that the Egyptian market became attractive in terms of bonds issuance.

Regarding financial inclusion, he said that including farmers in it enhances the program success.

Chairman of Suez Canal Bank Hussein Refaay said that Banking sector is strong and is a supporter of the Egyptian economy.

“Banking sector supported and funded all expansions of development projects lately,“ Refaay.

He clarified that 20% of each bank funding will go for SMEs by 2020.

“We have to focus on rationalizing imports and supporting exports,” he stated, adding that banks fund Business incubations through Nilepreneurs initiative.

As per Attijariwafa Bank, Safaa said that his bank has been existing in Egypt for two years now.

“Egypt is able to increase its presence in Africa to raise current figures,” Safaa indicates.

Meanwhile, Head of Research department at Banque Misr Hany Farahat said that during the last 3- 4 years, Egypt recorded an economic miracle.


First session of Egypt Economic summit kicked off Tuesday, Nov. 12, in Cairo - Photo by Karim Abdel Aziz/Egypt Today

“Private sector role is expected to increase and to return to haunt funding opportunities during 2020,” Farahat stated.

Farahat added thatSMEs funding portfolio in Banque Misr rose to LE 21 billion from LE1.5 billion, noting that number of clients in Banque Misr related to SMEs increased to 45,000, from LE 122,000.

“SMEs got benefit from SMEs initiative by returning back to operational mode,” Mamdouh Afia Head of SME Finance Group at National Bank of Egypt.

Afia noted that interest rate of SMEs funding should be increased. Partnerships between banks are required to reach development, Afia pointed.

“We need to focus on specific kind of projects inside each sector,” Afia said. Informal sector represents more than 40% of Egypt’s economy, according to Afia. “Technology can help in overcoming the obstacle of informal sector.”

For Banque Du Caire’s part, Saad said that 30% of SMEs portfolio in the bank is directed for Women.

“SMEs needs banking solutions and products more than fundings,” Saad added.

“We have a big issue of product design,” Eslam Zekry CEO of data analysis department at CIB said.


First session of Egypt Economic summit kicked off Tuesday, Nov. 12, in Cairo - Photo by Karim Abdel Aziz/Egypt Today

Zekry added that targeted clients now are not those who have positive cash flows.

Cyber security risks and operational risks are added risks to banks currently, Zekry noted

He pointed out that banking sector allocated 30-40% of Circulation economy which represents LE 5-6 trillion.