• EFSA issues a Report on microfinance activity for the first quarter of 2017
• Sherif Samy: 10% increase in microfinance in the first quarter of 2017
• Women represent 70% of microfinance beneficiaries in Egypt
• Sherif Samy: 1.9 million citizens benefited from microfinance through 771 associations and companies
• 1488 outlets for NGOs and companies to provide microfinance services in Egypt
Sherif Samy- EFSA’s Chairman revealed that microfinance activity continued to grow during the first quarter of 2017, representing a rise of 10.7% in the value of financing balances which were amounted to 4.96 billion pounds, compared to 4.48 billion pounds by the end of December 2016. Microfinance quarterly report which is published by the Authority today shows an increase in the number of beneficiaries by 4.3% by the end of March reaching 1.9 million beneficiaries and 1.8 million beneficiaries at the beginning of the year.
The report pointed out that during the first quarter of the year, financing balances for females was amounted to 51.4% representing 69.7% of the total number of beneficiaries of microfinance provided by associations, NGOs and companies.
Sherif Samy noted that microfinance includes two forms, one of which is personal loans representing 73% of the total financing balances by the end of the first quarter of the year and Crowd-funding represents 27.3%.
EFSA’s Chairman noted that among those entities which are authorized to practice microfinance are the fastest growing companies which achieved an increase by 24% in financing balances and 18% increase in the number of beneficiaries. By the end of the first quarter of 2017, the share of associations and NGOs from the microfinance market reached about 74% in terms of stocks compared to 26% for companies. In terms of beneficiaries, 82.2% were for NGOs and 17.8% for companies.
He explained that by analyzing the activity according to the purpose of financing, portfolio of commercial activities represented 61% and service activity about 19%, while the agricultural activity was 13% and finally the productive and crafts activity was 8%.
Sherif Samy revealed that the number of entities which obtained the license to practice microfinance reached 771 serving its customers through 1488 headquarters and branches in various governorates of the Republic.
EFSA’s Chairman praised the efforts of the Egyptian Microfinance Federation (EMF), which recently held its General Assembly and elected a new board of directors representing different regions in Egypt. He pointed out that EFSA was keen to state that the law was established for the purpose of developing the activity, promoting concepts and bases of its practice and providing recommendations on the legislations governing the practice of microfinance or that are associated with the work of the members of the (EMF), namely companies, associations , NGOs and banks engaged in microfinance activity in addition to the Small and Medium Enterprises Development Authority – SMEDA and credit guarantee companies.