Egypt’s microfinance market amounted to about EGP 17.866bn in the first quarter (Q1) of 2020, granted to 3.2 million customers, the Financial Regulatory Authority (FRA) has announced.
An FRA report noted that the total financing granted to microfinance companies stands at about EGP 9.296bn given to about 1.192 million beneficiaries in that period. This compared to the EGP 6.078bn granted to about 960,600 beneficiaries in the same period of 2019.
The authority’s report revealed that the total financing granted by “Class A” civil society organisations amounted to EGP 7.196bn for 1.718 million beneficiaries in Q1 of 2020. This compared to EGP 5.303bn for 1.5 million beneficiaries at the end of the Q1 of 2019.
The total funding by “Class B” civil society organisations stood at EGP 642.5m for about 125,200 customers in March 2020, while it reached EGP 730.46m for “Class C”, benefiting for about 164,100 customers.
The authority added that 59 new entities were licensed to engage in microfinance activities during Q1 of 2020. Of these, 57 are classed as associations and private institutions, and two as companies.
The number of entities providing microfinance services increased to 969, alongside 1,618 branches, in Q1 of 2020.
Microfinance services outlets grew by about 500 in Q1 of 2020, to reach 2,587 outlets in Q1 of 2020, compared to 2,087 outlets in Q1 of 2019.
Meanwhile, the FRA noted that the beneficiaries of nano-finance products currently amounted to about 2,456. They received a financing of EGP 577.300m in Q1 of 2020.
The agricultural sector had the lion’s share of the total nano-financing, at 46%, followed by the commercial sector with 31.4% and the service sector with 22.4%.
FRA Chairperson Mohamed Omran said this type of financing depends mainly on digital technologies.
Omran added that the nano-financing targets small farmers, self-employed. homemade projects, and street vendors.