• Dr. Omran: The percentage of females is 70% of the total number of beneficiaries acquiring 52% of the value of microfinance
• Agricultural activity and related activities achieve the highest growth rate and attract 322 thousand clients with financing amounts of 1.2 billion pounds by the end of the second quarter of 2018
Within the framework of FRA’s pivotal role to support financial inclusion , Dr. Mohammed Omran – FRA’s Chairman revealed that the remarkable rise in the value of microfinance activity in Egypt reach 9.75 billion EGP by the end of the second quarter of 2018 with a growth rate of 76% EGP compared to 5.5 billion EGP by the end of the same quarter of the previous year 2017,
The growth that occurred in the activity was accompanied by an increase in the number beneficiaries who benefit from microfinance loans provided by companies, associations and civil institutions licensed to practice the activity to reach about 2.6 million citizens of micro-entrepreneurs whether service, productive, agricultural or commercial by the end of the second quarter of 2018 with an increase of about 28% compared to the same quarter last year.
FRA’s Chairman stated that the entry of banking sector in addition to the MSME Development Agency has had a positive and strong impact in facilitating and providing financing for microfinance activity, especially for NGOs and associations , that is in addition to microfinance companies that have benefited from their ability to access continuous and strong sources of financing taking advantage of the legislative and regulatory structure provided by the Authority in order to attract sources of financing from financial institutions for the newly launched activity by the end of 2014 and achieving “a quantum leap in financing values – only 25 months after the issuance of the law regulating the activity – to reach 4.5 billion EGP by the end of 2016.
Dr. Omran emphasized that the most important indicators of microfinance development in the second quarter of 2018 is the continuous increase in the number of beneficiaries from microfinance loans in agricultural activity recording the highest growth rate by 36% in terms of the number of those who obtain financing . He added that 72% of financing amounts were directed to agricultural activity compared to the same quarter of the previous year. The number of beneficiaries in agricultural activity and related activities reached 322 thousand clients with financing amounts of 1.2 billion pounds by the end of the second quarter of 2018.
On the other hand, commercial activity remains at the first place compared to other activities with financing amounts of 6.1 EGP billion by the end of the first six months of 2018. Female clients also retained the largest share of microfinance activity. The percentage of female beneficiaries from microfinance loans reached about 70% of the total number of clients obtaining 52% of financing value provided to the sector.
Also, Dr. Omran noted that the number of NGOs and civil associations licensed to practice microfinance activity by the end of the second quarter of 2018 reached 896 associations and private companies, in addition to 5 companies engaged in activity. The total number of branches that are active is 1815 at the level of all governorates, adding that associations and private institutions have 1462 branches while companies have 353 branches.