Microfinance Reaches EGP 95.5Bn For 4.5 Million Clients In September: Zulficar

(MENAFN- Daily News Egypt) Mona Zulficar, Chairperson of the Egyptian Medium, Small and Micro-Enterprise Finance Federation, announced that civil society organizations and financing companies are employing a strategic approach to select micro-enterprise clients for financing in challenging economic times. She emphasized that these procedures ensure a balance between institutional sustainability and client protection, thereby enhancing service quality, fostering trust in the sector, and supporting overall market stability.

By the end of the third quarter of 2024, financing agencies successfully provided funding to approximately 4.5 million clients, totaling EGP 95.5bn.

In a press statement, Zulficar revealed that associations and civil institutions within the Federation served 1.8 million clients with EGP 20.7bn in financing. Microfinance companies accounted for 1.9 million clients, distributing EGP 38.8bn during the same period. Meanwhile, the banking sector directly funded 744,000 clients, amounting to EGP 36bn for 242,000 individuals by the close of September 2024.

Zulficar noted that microfinance agencies are focused on diversifying their financing products, tailoring a suite of services to meet client needs. Furthermore, eight members of the federation have received licenses to fund small and medium enterprises, expanding their client base to 9,400 customers with financing reaching EGP 11.8bn in the third quarter.

Looking ahead, she anticipates continued growth in the micro, small, and medium enterprises (MSMEs) financing market, supported by the proactive roles of the Financial Regulatory Authority (FRA) and the Central Bank of Egypt (CBE). Their efforts to innovate unconventional financing strategies have successfully opened avenues for funding previously unreachable social groups, facilitating easier access to finance.

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