Microfinance balances in Egypt increase to LE 20.9B in Q1 of 2021

CAIRO – 24 May 2021: Microfinance balances increased to LE 20.93 billion during the first quarter of 2021, compared to LE 17.87 billion during the same quarter in 2020, marking a growth rate of 17.13 percent, according to the Financial Regulatory Authority (FRA).

FRA noted Monday that despite the growth in the value of the portfolio, the number of beneficiaries decreased to 3.19 million beneficiaries at the end of the first quarter of 2021, compared to 3.2 million beneficiaries at the end of the first quarter of 2020, with a decrease of 0.36 percent.

FRA Report showed that the microfinance companies came first in terms of the value of financing balances, with a financing value of LE 11.58 billion in the first quarter of 2021, while they came in second place with respect to the number of beneficiaries and amounted to 1.3 million beneficiaries compared to the end of the first quarter of 2020.

The value of the financing balances amounted to LE 9.26 billion, for a number of beneficiaries amounting to about 1.19 million beneficiaries, it noted, adding that the market share of the financing of the microfinance companies occupied the first position with a rate of 55.35 percent, while it ranked second in terms of the number of beneficiaries with a rate of 40.77 percent.

The FRA stated that the civil associations and institutions of category (A) came in second place at the end of the first quarter of 2021 in terms of the value of financing balances with a value of LE 7.99 billion, while it came first with regard to the number of beneficiaries, which amounted to 1.65 million beneficiaries, compared to the end of the first quarter  of 2020, in which the value of funding balances amounted to LE 7.2 billion, for a number of beneficiaries amounting to about 1.7 million beneficiaries. It added that the market share of funding for associations and civil institutions of category (A) ranked second with 38.2 percent while it ranked first in terms of the number of beneficiaries by 51.38 percent.

Class B associations and civil institutions came fourth at the end of the first quarter of 2021 in terms of the value of financing balances and the number of beneficiaries, with a financing value of LE 630 million for a number of beneficiaries that amounted to about 89 thousand beneficiaries, compared to the end of the first quarter of 2020, in which the value of the financing balances reached about LE 643 million for a number of beneficiaries amounting to about 125 thousand beneficiaries, and the market share of the financing stocks of associations and civil institutions in category (B) occupied the fourth position by 3.01 percent, as well as the number of beneficiaries at a rate of 2.79 percent.

Class (C) associations and civil institutions came in third order at the end of the first quarter of 2021 in terms of the value of financing balances and the number of beneficiaries, with a financing value of about LE 720 million for the number of beneficiaries that amounted to about 147 thousand beneficiaries compared to the end of the first quarter of 2020, in which the value of funding balances hit about LE 730 million for a number of beneficiaries that reached about 164 thousand beneficiaries.