[Egypt] IFC supports Dakahliya Businessmen Association for Community Development to boost lending to low income borrowers
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 country’s economy.
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 DBACD
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.