Egypt's Microfinance Institutions Boost Economic Growth With EGP 80.8Bn In 3Q 2023

(MENAFN- Daily News Egypt) Mona Zulfiqar, Chairperson of the Board of Trustees at Al Tadamun Microfinance Foundation, highlighted the pivotal role of microfinance institutions in addressing the financial needs of entrepreneurs, thereby facilitating business development across Egypt.

By the close of the third quarter (3Q) of 2023, these institutions had successfully extended financing to over 4.6 million clients, amounting to a substantial EGP 80.

Members of Al Tadamun, licensed by the Financial Regulatory Authority (FRA), catered to 1.9 million clients with loans totaling EGP 16.7 billion. Concurrently, financing companies provided EGP 28 to 1.8 million clients, while the banking sector offered direct financing of approximately EGP 35 to 797,000 customers by September's end.

Zulfiqar emphasized the importance of product diversification within microfinance, leading to the introduction of a comprehensive suite of financial services tailored to client requirements. This initiative saw six Al Tadamun members securing licenses for small and medium enterprises (SMEs) financing, expanding their customer base to 4,640 with a portfolio worth EGP 4.43bn by 3Q's conclusion.

The continued expansion of the beneficiary base for medium, small, and microfinance is anticipated, supported by the innovative efforts of the FRA and the Central Bank of Egypt. These institutions have been instrumental in devising novel financing mechanisms, thereby extending financial inclusion to previously underserved social groups and simplifying their access to capital.

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