IFC Supports DBACD to Increase Microfinance Lending in Egypt

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Mar 2018
Egypt, March, 11 2018 - The International Finance Cooperation (IFC), a member of the World Bank Group, will provide advisory services to the Dakahliya Businessmen Association for Community Development (DBACD), a leading microfinance institution in Egypt, with the aim of ramping up its lending to vulnerable and low-income citizens, a statement from the IFC said Sunday.

The project is part of an IFC effort to support micro and small businesses, a crucial part of Egypt’s economy.

“We value our long-term partnership with IFC as it enabled us to strengthen our institutional capacity, better serve our clients, and ultimately, contribute to improving the livelihoods of low-income families,” said Hassan Faried, the Executive Director of DBACD.

Despite being one of the largest microfinance markets in MENA with 2.3 million active borrowers and a gross loan portfolio of over LE 7 billion, access to finance in Egypt remains modest. Only 14 percent of adults have an account at a formal financial institution, the statement said.

IFC will also help DBACD improve in key areas, including risk management and strategic business planning. This is expected to support DBACD’s expansion across the country, extending 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,” he said in the statement.

IFC and DBACD have been partners since 2011. IFC first engaged with DBACD to design a home improvement loan product, the first of its kind in the country. IFC also supported DBACD in building a risk management function, upgrade its human resources department, and shape its strategy.

The latest partnership is supported by the Japanese Ministry of Finance, IFC’s development partner. It is also part of IFC’s broader strategy in Egypt, which focuses on supporting micro, small, and medium enterprises, expanding access to finance and promoting a business-friendly investment climate.

Head of the Egyptian Financial Supervisory Authority (EFSA) Mahmoud Omran said in a press conference Sunday that the size of micro enterprises funding reached LE 10 billion. He said that some 2.2 million citizens benefited from these projects, of which 70 percent are women.



Source : Egypt Today
 

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