Egypt.. Microfinance projects exceed 400 billion pounds

Mohamed El-Antably, head of the Small and Medium Enterprises Committee at the Federation of Egyptian Banks and head of the Small and Medium Enterprises Sector at Banque Misr, revealed that the total size of the medium, small and micro enterprise financing portfolio in banks operating in the Egyptian market, which are being implemented within the framework of the state’s strategy and the initiatives of the Central Bank, has exceeded EGP 400 billion by the end of the year. past 2021.

Al-Antabli said in his statements today that the Central Bank’s initiatives to support small and medium enterprises at the end of 2015 and early 2016 are a milestone for the small and medium enterprises sector as one of the main drivers of economic growth, especially in light of the increasing need to create job opportunities, confront the problem of unemployment and raise rates of economic development. and social.

He added that the Central Bank of Egypt set a unified definition for small, medium and micro enterprises, which was applied as a unified national definition within the Small and Medium Enterprises Law, and then obligated banks to direct 20% of their credit portfolios to finance these projects, before raising that percentage to 25%, provided that it is not less than The percentage directed to small projects is 10%.

Egyptian Pound

He explained that to ensure and help banks achieve the targeted percentages of these financings, the Central Bank launched a number of financing initiatives at reduced interest rates, including the initiative of small projects with a return of 5% and medium projects with a return of 8%, and other initiatives that were completed with a return of 7% and 12%, in addition to Continuing the Central Bank’s pledge to the credit risk guarantee company at a value of two billion pounds to cover part of the risks associated with financing these projects.

Al-Antabli pointed out that some banks succeeded in achieving the objectives of the Central Bank of Egypt and reaching 25% of their credit portfolio in favor of small, medium and micro enterprises, and other banks are still working on this, pointing out that the Banks Union is currently working on a plan to help these banks achieve Targeted percentages of its credit portfolios in accordance with the directives of the Central Bank of Egypt.

He stressed that the initiatives of the Central Bank of Egypt have brought about unprecedented leaps in the volume of financing granted to small, medium and micro enterprises, and there are no longer any difficulties in obtaining these projects with financing, especially with the development that has occurred in the banks’ view of them in light of the directives and decisions of the Central Bank, which made the banks a role Adviser to the owners of these projects and not only the financier.

The head of the Small and Medium Enterprises Committee at the Federation of Egyptian Banks and the head of the Small and Medium Enterprises Sector at Banque Misr pointed out that the belief of the state and the Central Bank in the small, medium and micro enterprises sector reflects the great importance of this sector in achieving economic development. He pointed out that the greater the contribution of small and medium-sized enterprises to the gross domestic product and the lower the contribution of the informal sector, the higher the economies of countries would be in the ranks of high-income economies and vice versa, especially that the returns of these projects accrue to individuals and families quickly, according to World Bank studies.

Mohamed El-Antabli, Chairman of the Small and Medium Enterprises Committee at the Federation of Egyptian Banks and Head of the Small and Medium Enterprises Sector at Banque Misr, said that due to the fact that the Egyptian economy is huge and diversified and characterized by different geographic, cultural and sectoral characteristics, the Central Bank has launched many complementary initiatives in order to complete the work system and achieve its goal, from Through initiatives to provide non-financial services to help owners of small, medium and micro enterprises.

He added that among these initiatives is the Nile Pioneers initiative, which aims to provide consulting services and assistance in establishing projects and crystallizing ideas into reality, and assistance in expansion and preparation of feasibility studies, as well as awareness and knowledge services, among others, and the establishment of specialized units within banks to serve these projects in addition to programs Another initiative to support young people, entrepreneurs, owners of ideas and start-ups, small and medium enterprises, where non-financial services are an essential part of the work provided by banks to achieve the concept of a comprehensive bank.

Al-Antabli pointed out that the Nile Pioneers Initiative succeeded in creating a boom in the field of entrepreneurship in Egypt, and given this great success of the initiative, the Banks Union aims, in coordination with the Central Bank, to double the number of banks participating in the initiative.

Al-Antabli revealed that the performance indicators of banks for financing small and medium enterprises witnessed a great leap with the support of the initiatives and directives of the Central Bank, both in terms of the increase in the number of customers or financing rates, pointing out that with the start of the implementation of the digital transformation strategy in banks and the creation of digital products that facilitate the process of obtaining funds. , large segments of informal sector enterprises have begun to shift towards the formal economy.

As for Banque Misr, Mohamed El-Antabli, head of the Small and Medium Enterprises Committee at the Federation of Egyptian Banks and head of the Small and Medium Enterprises Sector at Banque Misr, explained that the bank is the first bank in Egypt to achieve the Central Bank’s objectives for financing small, medium and micro enterprises, and even exceeded the percentage, bringing the percentage of financing to 27% of the volume The credit portfolio since last June, which reflects the great interest the bank attaches to this sector.

Egypt's economy is suitable

Egypt’s economy is suitable

Mohamed El-Antabli, head of the Small and Medium Enterprises Committee at the Federation of Egyptian Banks and head of the Small and Medium Enterprises Sector at Banque Misr, indicated that the bank’s strategy focuses on all regions of the republic, not just Greater Cairo and Alexandria, in line with the development strategy of countries, noting that the first digital loan (Express) that he launched At the end of 2020, the bank pumped 15 billion pounds in 14 months, benefiting 15,000 customers, most of which are the governorates of Upper Egypt, followed by the governorates of the Delta, Cairo and Alexandria.

He revealed that the size of Banque Misr’s small, medium and microfinance portfolio amounted to 61 billion pounds, benefiting 179,000 clients by the end of November 2021.

Regarding micro-loans, El-Antabli explained that the bank’s portfolio is the largest in Egypt, amounting to 11.5 billion pounds, and the number of beneficiaries is about 139 thousand customers. The bank also provided the first instant loan in Egypt via tablet, whose portfolio amounted to 925 million pounds, benefiting about 14 1,000 clients, in addition to helping 7,000 clients transferred from the informal sector to the formal sector, at a value of approximately 908 million.

 
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