Egyptian lenders have been at the forefront of the country’s remarkable economic growth over the past five years. The country’s banks — especially state-owned giants National Bank of Egypt and Banque Misr — have been among the fastest-growing lenders in Africa in recent years, maintaining significant asset growth even amid warnings of the fragility of Egypt’s economic model.
This fragility was exposed in early 2022, with the war in Ukraine prompting an exodus of more than $20bn worth of portfolio investment from the country in a matter of months, resulting in import backlogs, soaring inflation and a 50% slump in the Egyptian pound. The country has returned to the International Monetary Fund (IMF) for the fourth time in seven years and has also sought relief funds from Arabian Gulf allies including Saudi Arabia and the UAE.
