Business Hub – Cairo:
The monthly report of the Financial Supervisory Authority revealed, Regarding the increase in financing balances for small and medium-sized projects to 31.6 billion pounds at the end of May 2022, compared to 21.7 billion pounds during the same month last year, The number of beneficiaries reached 3.7 million at the end of May 2022, compared to 3.3 million beneficiaries during the same month of the previous year.
Microfinance means any financing for economic, production, service or commercial purposes in the fields and at the value determined by the Board of Directors of the Financial Supervisory Authority. Microfinance is a major means of encouraging the participation of low-income groups in economic activity. Access to various financing means for individuals and owners of micro-enterprises contributes to reducing unemployment and contributing to improving the incomes of the poorest families. It has a positive impact on increasing the volume of investment and employment in the national economy.
The Financial Supervisory Authority aims to Doubling the size of microfinance from 27 billion pounds by the end of 2021 to 50 billion pounds by the end of 2026, according to the authority’s strategy during the period (2022-2026), Continuing to expand the base of microfinance, and doubling the number of beneficiaries from about 3.5 million to reach 4.5 million by 2026.
The Financial Supervisory Authority intends to Achieving this goal by launching the initiative to revitalize value chain financing in the micro-agricultural sector, and motivate farmers to participate in marketing groups for their great yield crops, While working to enhance integration with other necessary financial services such as micro-insurance coverage, which will support the effectiveness of this initiative, The authority also intends to adopt initiatives with the concerned authorities to support and develop category (C) institutions.