Cairo, Egypt, February 12, 2019—IFC,
a member of the World Bank Group, today signs an agreement with Egypt’s
largest microfinance organization Tanmeyah, to help increase its sustainability
and boost its outreach to underserved groups across the country.
IFC’s advisory services team will work with Tanmeyah, which commands almost
a quarter of the microfinance market in the country through 259 branches,
to identify and help rectify any areas of weakness. The two-phase project
will include a strategic review of Tanmeyah’s current loan products, an
in-depth risk management diagnostic, and a review of its human resources.
The findings will inform the second phase of the project, during which
IFC will help Tanmeyah implement the key recommendations based on its priorities.
Amr Abouesh, Chairman and CEO of Tanmeyah said: “Micro- finance has been
increasingly proving highly successful as a way to end the cycle of poverty,
decrease unemployment, increase earning power, and aid the financially
marginalized. Despite being a young and vibrant segment of the population,
the majority of Egyptian small businesses remain outside the scope
of the traditional banking industry. This agreement will help us address
the financing needs of this under-served group”.
Egypt has high unemployment rates and a strong micro, small and medium
enterprise (MSME) sector is critical to spur job creation and economic
growth in the country. Only a third of adults have access to a bank account,
while the formal MSME finance gap was estimated at $46.7 billion in 2017,
representing a significant opportunity for financial institutions to increase
their outreach to individuals and the sector.
Walid Labadi, IFC Country Manager for Egypt, Libya and Yemen said: “Our
goal is to deepen financial markets and promote financial inclusion in
Egypt. Identifying and supporting strong MFIs like Tanmeyah will ultimately
result in more sustainable growth and greater outreach, spurring growth
and helping to unleash the full potential of this sector.”
The agreement is part of IFC’s wider strategy to expand access to finance
and boost financial inclusion in Egypt. It marks the first project under
the MENA Micro, Small and Medium Enterprises (MENA MSME) Facility, a joint
World Bank Group initiative that aims to promote sustainable job creation
and boost private sector-led economic growth across the region. The facility
is supported by the governments of the Netherlands, the United Kingdom,
Sweden, and Switzerland.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
where they are needed most. In fiscal year 2019, we delivered more than
$19 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org.