The Credit Guarantee Company (CGC) and the Egyptian Union of Microfinance have signed a cooperation protocol under the sponsorship of the Central Bank of Egypt (CBE) and the Egyptian Financial Supervisory Authority (EFSA) with the aim of qualifying 25 civil associations from category C to B, according to EFSA’s classification.
According to Zo El Fokkar, head of the Egyptian Union of Microfinance, the associations in class C are those whose microfinance portfolio is less than EGP 10m. The number of these associations in Egypt is 721, with portfolios of EGP 392m and 124,000 clients.
Class B includes companies whose microfinance portfolio ranges from EGP 10m to less than EGP 50m. They are 18, with total portfolios of EGP 143m and 178,000 clients.
The head of the union said that the protocol includes enabling these 25 chosen associations to obtain necessary financing from banks with the supervision of the CGC.
She added that these companies will also obtain technical support to build their operational and financial capacity, as well as take them to the level of financial and operational sustainability after a specific period of their operation. She noted that it was agreed upon to start implementing this protocol immediately.