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Microfinance Overview of Egypt

Welcome to Egypt

 

In the 1990's, the microfinance sector started in Egypt funded by USAID, supporting the establishment of 9 private non-profit organizations serving different geographic areas, under a board of directors, representing the local business communities. During the same time, many NGOs began offering microfinance services and some banks started to downscale their product offerings to include credit provision to micro and small enterprises. By the end of Q2 2019, 938 NGOs were licensed along with 9 companies offering microfinance services.

By the end of Q2 2019, Egyptian MFI's served a total of 2,935,035 active clients with a gross loan portfolio exceeding 13.7 billion EGP (approximately 850 million USD). This indicates a growth of 14.1% in the outreach and a 41.5 % gross loan portfolio in comparison with Q2 2018.

Female clients are the primary target for the NGO's with a representation of 65.77% of active clients, while male clients represent 52% of the gross loan portfolio.

Individual lending is the predominant lending methodology now, opposite to group lending during early years of Microfinance practice in Egypt. By the end of Q2 2019, the individual lending represents 78.63% of the gross loan portfolio versus 21.37% group lending, and this illustrates a growth in the individual lending and a declining in the group lending by 6% compared to Q2 2018

The microfinance sector in Egypt is governed by the Microfinance Law No. 144, which was issued by a presidential decree in 2014; allowing commercial companies to engage directly in microfinance, alongside the NGOs and banks.

Microfinance Law No. 144 governs all NGO's and companies under the supervision of The Financial Regulatory Authority (FRA), and categorizes NGO MFIs into three tiers:

  • Class A: MFI's with loan portfolio of EGP 50 million and above
  • Class B: MFI's with loan portfolio of EGP 10 million and less than EGP 50 million
  • Class C: MFI's with loan portfolio of less than EGP 10 million.

 

Sanabel's Members in Egypt

  • Al Tadamun Microfinance Foundation
  • Alexandria Business Association (ABA)
  • Assiut Business Women's Association (ABWA)
  • Assiut Businessmen Association (ASBA)
  • Commercial International Bank (CIB)
  • Coptic Evangelical Organization for Social Services (CEOSS)
  • Dakahleya Businessmen's Association for Community Development (DBACD)
  • First Microfinance Foundation (Aga Khan Agency for Microfinance)
  • Future Association for Microfinance
  • LEAD Foundation

Contact us

  • Address:
    34 B South Police Academy
    New Cairo, Egypt.

  • Phone:
    (+2) 02 – 25 37 30 23
    (+2) 02 - 25 37 31 70

  • Mobile:
    (+2) 0100 041 04 58

  • Email:
    Conference2020@sanabelnetwork.org

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