The microfinance portfolio of the banks operating in the Egyptian market reached EGP 6.94bn at the end of the first quarter (Q1) of this year. Mona Zulfukar, the chairperson of the Egyptian Union of Microfinance, said that the banking sector ranked third in terms of the number of beneficiaries of funding, estimated at 383,000 people in Q1 of 2019, with a 4.1% growth rate compared to December 2019, and with a 22.7% growth compared to Q1 of 2018. While the sector ranked first in terms of the direct credit portfolio value which amounted to EGP 6.94bn with 11.2% growth compared to December 2018, and with 51.8% growth in Q4 of 2018. Zulfukar said in a statement that the microfinance industry has witnessed a remarkable growth during the recent period, in light of the efforts of the state to achieve financial inclusion. She added that the support of the Central Bank of Egypt, the Financial Regulatory Authority, and the Micro, Small and Medium Enterprises Development Agency had a great impact on the growth of this industry. According to Zulfukar, the balances of microfinance amounted to EGP 19.5bn in Q1 of 2019 with 10.1% growth, compared to December 2018, and with a 50.4% growth compared to Q1 of 2018. She added that the number of beneficiaries reached 3.237 million people, with a 2.8% growth in December 2018, and a growth of 18.8% in Q1 of 2018. Zulfukar pointed out that the NGOs operating in microfinance ranked first in terms of the number of beneficiaries of funding. It provided financing to 1.8 million customers in Q1 of 2019, achieving a 7% growth compared to Q1 of 2018. The value of loan portfolio in NGOs stood at EGP 6.575bn in Q1 of 2019, an increase of 4.4% compared to December 2018, and a growth of 28% compared to Q1 of 2018. According to Zulfukar, companies operating in the same activity ranked second in terms of the number of beneficiaries, offering funding to nearly 961,000 customers, with 10% growth compared to the end of December 2018, and a growth of 49.4% compared to Q1 of 2018. These companies ranked third in terms of the value of funding, providing EGP 6.078bn worth loans in Q1 of 2019, with an 81.3% growth compared to Q1 of 2018, and a growth of 15.7% compared to December 2018.
