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Dr. Mohammed Omran: 2.1 million citizens benefited from microfinance activity by the end of September 2017


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• Omran: 6.1 billion pounds are the amount of existing financing account by the end of the third quarter of 2017
• Omran: Merging insurance with microfinance activity supports financial inclusion positively

Dr. Mohammed Omran- FRA’s Chairman revealed that the Authority continues to work positively towards the growth of microfinance activity in Egypt and this was clearly shown by microfinance remarkable rates since the promulgation of Law no. 141 of 2014 on regulating microfinance activity.  He added that the value of existing financing accounts by the end of the third quarter of 2017 continued to raise to more than 6.1 billion pounds , with an increase up to  10% compared to the end of the second quarter of this year. In addition, the number of those who obtained financing from companies, associations and NGOs  licensed by the Authority to practice  microfinance increased to reach 2.1 million citizens who owned commercial, industrial, or micro-service projects.

The number of licensed entities increased to more than 840 as of last November, starting microfinance activity from its main headquarters spread throughout the governorates of the Republic in addition to more than 750 branches. Entities operating in this sector receive necessary financing to start the activity either from their own resources or from sources of finance such as banks and the SME. This activity is one of the most important activities that the country gives great attention and support because of its significant economic impact on a broad sector of society besides it spreads financial inclusion and offers different financial services on a wide range.

In a move towards merging non-banking financial activities under FRA’s supervision, Dr. Omran said that the Authority has coordinated through its training arm – Financial Services Institute – to hold a meeting between microfinance companies , NGOs  and  insurance companies in order to support and stimulate  micro insurance products. The licensed NGOs engaged in microfinance activity presented the nature of risks faced their clients and their requirements in Insurance protection and NGOs financing portfolios.  In addition, they emphasized their capabilities towards marketing of micro-insurance products in response to FRA’s BOD decision no. 902 of 2016 on granting license for insurance companies to issue E- micro- insurance policies through the International Information Network and allow printing and distribution by associations, NGOs, companies licensed to practice microfinance and taking advantage of its branches in various parts of the republic, especially in the remote areas.

Dr. Omran said that insurance companies have shown great interest in working with microfinance companies and NGOs to provide insurance products commensurate with the requirements and capabilities of microfinance clients, which has a positive impact on increasing the rates of financial inclusion in Egypt and supporting national economy.

The meeting was attended by the Chairman of the Insurance Federation of Egypt (IFE) , representatives of insurance companies, insurance brokerage companies and representatives of the Egyptian Microfinance Union and the SME Development Agency.

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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