Sarwa Capital Group has expanded its presence in Egypt’s non-banking financial sector after launching two insurance and life insurance companies.
The group has also obtained the first licence in Egypt to practice consumer finance activities, after undergoing supervision by the Financial Regulatory Authority (FRA).
It continues to diversify its financing services for individuals and companies following the launch of its real estate finance activities, becoming the largest issuer of bonds, at 34, in the Egyptian market.
Saeed Zaatar, CEO of Sarwa Capital Groups, revealed that the volume of financing provided by its subsidiary, Contact, has reached more than EGP 20bn since its inception. The exception to this has been the company’s real estate finance account.
The company was able to achieve growth of about 9% during the first half (H1) of 2020, compared to the same period in 2019, with the total financing portfolio amounting to EGP 6.9bn.
Zaatar added that the company has succeeded in obtaining the first consumer finance licence in Egypt. It has also become the first financing company to receive accreditation by the Traffic Authority.
He said that Contact provides finance for used cars as part of its portfolio, although the used car market has recently witnessed a slowdown compared to that for new cars.
According to Zaatar, reducing the interest rate motivates consumerism and increases the demand for purchasing cars. This will be supported by the stability of car prices in the coming period, which will occur in conjunction with the reopening of new car licensing services by the government as part of the country’s post-coronavirus (COVID-19) reopening.
The company aims to strengthen its presence in governorates outside Cairo and Alexandria, by expanding its network of Contact branches in both Upper Egypt and Delta. There are currently 23 such branches, with new facilities recently opened in Minya, Sohag and Assiut, Damanhur, Damietta, Zagazig and Alexandria.
“Within a year of operating Sarwa Insurance and Life Insurance companies, the company was able to open three branches in both Cairo and Alexandria to strengthen its presence in the Egyptian insurance market in a short period of time,” Zaatar said.
The group recorded total insurance instalments of EGP 131m in H1 of 2020, an increase of 470% compared to the same period in 2019. This was mainly supported by its general insurance activities.