Project detail - FIRST MICROFINANCE COMPANY

FIRST MICROFINANCE COMPANY

Status: Approved investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

First Microfinance Company Egypt (FMF-E) is a non-profit MFI in Egypt. Established in 2005 as an NGO by Aga Khan Association for Microfinance (AKAM), the MFI transformed from an NGO to a company at the end of 2018. FMF-E focuses on bottom-of-the-pyramid, mainly rural clients in Egypt, particularly youth and women (app. 60% of loan portfolio)

What is our funding objective?

With FMO's financing FMF-E will increase its outreach to women and youth in rural areas. FMF-E is a 100% inclusive finance project.

Why do we fund this investment?

FMF-E fits perfectly in FI-MENA's strategy of financial inclusion due to its client focus and fintech strategy. FMF-E contributes to access to finance for microfinance clients at affordable conditions, which facilitates small scale, labor intensive economic activities. Its large presence in upper Egypt is interesting from a development perspective an differentiates FMF-E from other MFIs.

What is the Environmental and Social categorization rationale?

The project has been categorised as Category C in accordance with FMO’s Sustainability Policy. As part of the loan, First Microfinance Company – Egypt will be required to apply the EDFI Exclusion List and Egyptian E&S laws and regulations.

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Date Total FMO financing
8/6/2020 EUR 0.03 MLN
Region
Africa
Country
Egypt
Sector
Financial Institutions
Publication date
2/13/2019
Effective date
7/5/2019
Total FMO financing
USD 0.70 MLN
Funding
MASSIF
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
C