Cairo, Egypt, March 11,
2018—IFC, a member of the World Bank Group, is providing advisory
services to a leading microfinance institution in Egypt, to ramp up its
lending to vulnerable and low-income citizens. The project is part of an
IFC effort to support micro and small businesses, a crucial part of the
IFC will support the Dakahliya
Businessmen Association for Community Development (DBACD) as it scales
up its lending operations and caters to borrowers who seek larger loans.
IFC will also help DBACD improve in key areas, including risk management
and strategic business planning. This is expected to support DBACD’s expansion
across the country, extending key financial services to the underprivileged
who struggle to build and expand their businesses.
“We value our long-term
partnership with IFC as it enabled us to strengthen our institutional capacity,
better serve our clients, and ultimately, contribute to improving the livelihoods
of low-income families,” said Hassan Faried, the Executive Director of
Despite being one of the
largest microfinance markets in MENA with 2.3 million active borrowers
and a gross loan portfolio of over 7 billion Egyptian pounds, access to
finance in Egypt remains modest. Only 14 percent of adults have an account
at a formal financial institution.
“Microfinance is a critical
tool in the fight against poverty” said Walid Labadi, IFC Country Manager
in Egypt, Libya, and Yemen. “By supporting the development of the
sector, we can help channel more capital into the industry, and support
microfinance institutions as they expand their reach and provide crucial
loans to Egypt’s neediest citizens.”
IFC and DBACD have been
partners since 2011. IFC first engaged with DBACD to design a home improvement
loan product, the first of its kind in the country. IFC also supported
DBACD in building a risk management function, upgrade its human resources
department, and shape its strategy.
The latest partnership
is supported by the Japanese Ministry of Finance, IFC’s development partner.
It is also part of IFC’s broader strategy in Egypt, which focuses on supporting
micro, small, and medium enterprises, expanding access to finance and promoting
a business-friendly investment climate.
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 in the toughest areas
of the world. In FY17, we delivered a record $19.3 billion in long-term
financing for developing countries, leveraging the power of the private
sector to help end poverty and boost shared prosperity. For more information,