EGYPT – International Finance Corporation (IFC) has partnered with Egypt’s Medium, Small, and Micro-Enterprise Finance Federation to expand access to finance for micro-business across Egypt.
The goal is to help the MFIs, which have portfolios smaller than EGP10 million (US$0.55 million), upgrade their operations and expand their client base of micro-businesses across the country.
IFC and the Egyptian MSME Finance Federation will also work directly with the CEOs of the MFIs to help them strengthen their strategic decision-making skills through a mentorship program and webinars.
The new program, known as the “Institutional Upgrade Program”, aims to address the microfinance gap and help MFIs widen their outreach to micro-businesses.
“Smaller MFIs are playing an instrumental role in providing access to finance to the poor and underprivileged, particularly in under-served and remote areas,” said Mona Zulficar, Chairperson of the Egyptian MSME Finance Federation.
“We are proud of our Institutional Upgrade Program and our partnership with IFC and look forward to offering this opportunity to more MFIs.”
According to IFC Egypt Country Officer, micro and small-sized enterprises are more likely to struggle to access finance compared to larger firms.
The program will build the capacity to allow small MFIs to attract more funding in order to reach and finance MSMEs, contributing to the creation of jobs and economic growth.
This project aligns with IFC’s broader strategy in Egypt to help address funding gaps faced by MSMEs.
IFC’s investment portfolio in Egypt stands at US$1.2 billion. Over the past two fiscal years, IFC has committed and mobilized more than US$720 million in the country, supporting private businesses and economic activity through the COVID-19 pandemic.