The International Finance Corporation (IFC) will support the Dakahlya Businessmen Association for Community Development (DBACD) as it scales up its lending operations and caters to borrowers who seek larger loans, according to a press statement issued on Sunday.
The IFC, a member of the World Bank Group, said it will provide advisory services to a leading microfinance institution in Egypt to ramp up it’s lending to vulnerable and low-income citizens.
According to the statement, the project is part of an IFC effort to support micro and small businesses, a crucial part of the country’s economy.
Although Egypt is one of the Middle East and North Africa’s largest microfinance markets, with almost 2.3 million active borrowers, and a gross loan portfolio of over EGP 7bn, access to finance is still low-key, with the percentage of Egyptian adults who have an account at a formal financial institution stands at 14%.
Furthermore, the IFC will also assist the DBACD to improve in key areas, including risk management and strategic business planning. In order to support the DBACD’s expansion across the country, it will extend key financial services to the underprivileged who struggle to build and expand their businesses.
“Microfinance is a critical tool in the fight against poverty,” said Walid Labadi, IFC country manager in Egypt, Libya, and Yemen. “By supporting the development of the sector, we can help channel more capital into the industry, and support microfinance institutions as they expand their reach and provide crucial loans to Egypt’s neediest citizens.”