Egypt’s microfinance activities continued to grow to reach EGP 9.75bn by the end of the second quarter (Q2) of 2018, marking a 76% increase compared to EGP 5.5bn in the same period last year, Egyptian Financial Regulatory Authority (FRA) Chairperson Mohammed Omran announced on Tuesday.
Omran added that the growth was accompanied by an increase in the number of beneficiaries of microfinance loans provided by companies, associations and civil institutions licensed to practice the activity to reach the number of about 2.6 million owners of micro-enterprises, in service, production, agriculture, and commercial sectors, by end-Q2 2018, marking an increase of about 28% compared to the same period last year.
The banking sector, as well as the Micro, Small, and Medium Enterprises Development Authority (SMEDA) played had a strong impact in facilitating and providing funding for microfinance activity, especially, for NGOs.
Omran explained that the legislative and regulatory framework provided by the FRA to attract sources of funding from financial institutions for the newly launched activities by the end of 2014, was the driver behind the quantum leap in funding balances to reach EGP 4.5bn by the end of 2016.
Agriculture sector micro-financing loans witnessed the highest growth rate in terms of the number of recipients of funding, increasing by 35% in Q2 2018 to reach 322,000 beneficiaries, additionally, 72% increase in funds directed to the agriculture was witnessed to registered at EGP 1.2bn.