Dr. Omran: 3.2 million citizens benefit from microfinance activity where 61% goes for commercial activities
Dr. Omran: 2,700 citizens use Nano finance with a loan portfolio of 650,000 pounds by the end of May 2020
Dr. Omran: 43 thousand clients used non-cash payment methods in the microfinance business
On the occasion of launching of the activities of SMEs International Day which was approved by the United Nations General Assembly – yesterday – as a recognition of the need to improve opportunities for small enterprises to access financing and provide credit.
Dr. Omran – FRA’s Chairman stresses on the importance of microfinance activity in providing unconventional financing channels that create new job opportunities , diversify sources of income , stimulate the economy with new small activities for young people and also allow groups in society such as youth , women and others to become a productive and stimulating social force.
FRA’s Chairman reveals that the balance of the existing financing portfolio reached at the end of March 2020 about 17.8 billion Egyptian pounds, as the share of microfinance companies amounted to about 52%, private associations and institutions from category (A) about 40%, and the share of category (B) about 4% and the share of category ( C) about 4%. While the number of beneficiaries from the activity reached 3.2 million, the female share was 63% and the male share 37%.
Dr. Omran emphasized that the finance portfolio was distributed among economic activities by 61% for commercial activities, 16% for service activities, 15% for agricultural activities and 8% for productive activities. The share of geographical regions in the microfinance services reached about 40% in Upper Egypt, 27% in Delta, 10% in Alexandria, Greater Cairo 16%, and Canal governorates 6%.
FRA’s Chairman adds that May 2020 has witnessed fruitful results in light of activating Nano Finance as a new product in the market approved by the Authority’s Board of Directors in November 2019. Nano finance mainly depends on digital technologies in order to support the most needy groups such as street vendors, small farmers, marginalized groups, all those who work in household chores, women breadwinners and fresh graduates as their portfolio reached about 650 thousand EGP serving more than 2,700 clients .
Also, Dr. Omran points out that many clients depend on non-cash payment methods in microfinance activity, as the amount of electronic proceeds from the financing installments reached about 99 million EGP for a number of about 43 thousand clients. On the other hand, the amount of electronic payments reached 405 million EGP for a number of about 30 thousand clients by the end of February 2020. He points out that the number of clients dealing with electronic payment services grows monthly and this shall enhance the spread of financial inclusion in various governorates.