Al Tadamun Microfinance Foundation, which operates in the field of financing micro-projects by women, announced signing a financing agreement with the Arab African International Bank (AAIB) at a value of EGP 100m, with the aim of supporting micro-enterprises and helping them develop and grow.
The two parties stressed that the signing of this agreement comes within the framework of keenness on keeping pace with the plans and strategies of the Central Bank of Egypt (CBE) and the Financial Regulatory Authority (FRA), to achieve financial inclusion and support the economic empowerment of citizens, in line with the goals of sustainable development and the vision of “Egypt 2030”.
Mona Zulfiqar, chairperson of the Board of Trustees of Al Tadamun Microfinance Foundation, said that signing a cooperation agreement with AAIB contributes to providing financing needs to the largest possible number of women who own micro-enterprises with fairness, quality and appropriate cost, to help them develop and grow their projects. The Foundation tries to increase the financing portfolio directed to the activity of micro-enterprises, which represents a basic pillar of economic growth in Egypt.
She indicated that the balances of financing microenterprises witnessed a tangible jump, reaching about EGP 64.6bn, serving 4.5 million customers by the end of June 2022.
Tamer Khalifa, Assistant Managing Director and Group Chief Executive Officer of AAIB, said, “This agreement comes in line with the bank’s strategy 2021-2025 to diversify the bank’s portfolio, in addition to financing small and medium enterprises (SMEs) and microfinance, based on the experience of the bank. It has also been long committed to providing financing solutions to the corporate sector over the years, as these enterprises are considered a major factor in advancing economic development.
Reham Farouk, CEO of Al Tadamun Microfinance Foundation, said that the signing of the cooperation agreement with AAIB comes within the framework of the constant concern to diversify financing sources. He pointed out that the institution has a strong credit history, as it is currently cooperating with seven government and private banks operating in the Egyptian banking sector.
She said that the microfinance activity contributes to creating many job opportunities, and also promotes sustainable economic growth. She noted the institution’s ability to continue outstanding performance, and achieve strong growth rates in financing balances and customers’ base during the coming period, which supports the state’s tendencies towards strengthening the role of the sector, which contributes to increasing domestic production and supporting economic activity.
She added that the Foundation provides a variety of financing products that suit various segments of society for women, which include retail financing, group financing, household financing, and golden and complementary financing.
For his part, Mohamed Hussein, Head of the SMEs Sector at AAIB, stressed the importance of this agreement because of its effective role in financing micro-enterprises, as these projects contribute to providing permanent and temporary job opportunities and increasing production and income.
He also emphasized the bank’s interest in supporting the SMEs sector, as part of its strategy, and in line with the directives of CBE and the state’s efforts to advance this vital sector, to increase development rates and reduce unemployment rates.