Egyptian Microfinance Portfolio Surpasses EGP 93.4Bn To 4.5 Million Clients
Date
8/14/2024 2:35:01 PM
(MENAFN- Daily News Egypt) The total microfinance portfolio exceeded EGP 93.4bn, benefiting over 4.5 million clients in Q1 2024. NGOs licensed to provide microfinance services supported 1.8 million clients, with a credit portfolio growth of 27.6% to EGP 19.4bn. Microfinance provided by companies increased by 52% to EGP 35.4bn, serving 1.9 million clients.
Mona Zulficar, Chairperson of the Egyptian Microfinance Federation, announced significant advancements in the microfinance sector. Legislative and regulatory frameworks have improved, and financial institutions are implementing best practices to enhance efficiency and quality of services. These efforts aim to address rising poverty rates and promote financial inclusion.
Banks play a crucial role in meeting direct financing needs for micro-entrepreneurs. By March 2024, direct financing from banks reached EGP 38.6 billion, serving 800,000 clients.
The Financial Regulatory Authority's licenses for medium and small enterprise financing bridged the credit gap between microfinance institutions and the banking sector. Financing for medium and small enterprises provided by associations and companies reached EGP 7.9bn, serving 7,200 clients by March 2024.
Zulficar expects continued growth in financing balances, supported by policymakers' efforts and positive social and economic impacts on clients' lives.
Additionally, the Federation collaborated with the National Center for Social and Criminological Research on a study titled“Measuring the Economic and Social Impact of Microfinance.” The study found that 97.1% of project owners (clients of NGOs and companies) reported profitability, with 80% reinvesting their profits.
The study's statistics reflect the contribution of micro-enterprises to improving the quality of life for business owners and their families, particularly in areas such as food and healthcare, with profits leading to increased spending in these essential sectors.
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