Egypt - Banks and mortgage companies participating in the Affordable Housing Initiative have provided financing worth EGP 73.09bn to more than 583,700 clients until August 2024.

According to a report from the Social Housing and Mortgage Finance Support Fund, 22 participating banks have injected around EGP 70.626bn, benefiting approximately 564,102 clients, accounting for 96.6% of the initiative. Meanwhile, mortgage companies contributed EGP 2.465bn to around 19,500 clients, representing 3.4% of the total.

The report highlights that the National Bank of Egypt topped the list of participating banks, with financing of EGP 18.553bn for 151,234 clients, capturing 25.4% of the initiative’s total funds by the end of August 2024.

Banque Misr ranked second with EGP 17.375bn, benefiting 136,551 clients (23.8%), while the Housing and Development Bank came in third with EGP 7.452bn for 74,301 clients (10.2%).

In fourth place was Banque du Caire, providing EGP 6.572bn to 52,229 clients (9%), followed by QNB ALAHLI in fifth place with EGP 4.388bn for 27,340 clients (6%).

CIB came sixth, financing EGP 3.705bn for 26,279 clients (5.1%). Industrial Development Bank followed in seventh place with EGP 1.964bn for 17,600 clients (2.7%).

In eighth place, United Bank contributed EGP 1.930bn to 14,246 clients (2.6%), while the Arab African International Bank financed EGP 1.277bn for 10,592 clients (1.7%). Arab Investment Bank rounded out the top ten with EGP 1.220bn for 8,182 clients (1.7%).

On the corporate side, Al Tameer Mortgage Finance led the companies, providing EGP 946.870m to 7,262 clients, followed by Contact Mortgage with EGP 838.7m for 6,167 clients.

In third place was Al Ahly Mortgage Finance, with a portfolio of EGP 284.307m for 2,534 clients, followed by Amlak Finance, which financed EGP 252.133m for 2,320 clients.

Tamweel Mortgage Finance took fifth place with EGP 68.6m for 602 clients, followed by Egyptian Mortgage Finance with EGP 43.042m for 429 clients. Al Ahly Mortgage Finance provided EGP 19.97m to 200 clients, and Arab African International Mortgage financed EGP 12.2m for 109 clients.

The Central Bank of Egypt launched the Affordable Housing Initiative in February 2014, offering subsidized interest rates ranging from 5% to 7% for low- and middle-income individuals. The Social Housing and Mortgage Finance Support Fund handles housing unit allocation for low-income beneficiaries and sets unit prices based on construction costs.

In 2021, President Abdel Fattah Al-Sisi instructed the Central Bank to launch a new mortgage programme aimed at helping low- and middle-income families acquire housing units. This programme offers long-term loans of up to 30 years with a simplified, reduced interest rate of 3%.

In November 2022, Prime Minister Mostafa Madbouly assigned the Ministry of Finance to manage and oversee all ongoing initiatives with below-market interest rates, replacing the Central Bank’s role.

This decision includes initiatives like the Affordable Housing Initiative for low- and middle-income groups, tourism support, vehicle replacement programs, and modern irrigation projects. The Ministry of Finance now oversees decision-making, cost management, beneficiary eligibility, and funding, with all costs and resources reflected in the state budget, subject to approval by the Cabinet based on recommendations from the Finance Minister.

For the Affordable Housing Initiative, EGP 100bn has been allocated with a 3% interest rate, and the Ministry of Housing and Urban Development will compensate banks for the difference in interest rates.

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