Mr Ahmed El Bardai, founder and chief executive of the Egyptian for-profit microfinance institution (MFI) Reefy, expects the country’s next government to focus on small and medium-sized enterprises (SMEs) to boost the economy that is facing a huge budget deficit and declining gross domestic product [1]. Reefy was established as a commercial business in 2007 and disburses loans to SMEs through Commercial International Bank, a private bank, since only banks are licensed to lend in Egypt. The implementation of a formal microfinance law that would allow MFIs to lend directly to the consumers was drafted in 2009 but has been delayed due to the recent “Arab uprising” and the subsequent change in government. Until the formalization of the new law, Reefy is looking to provide SMEs services such as mobile banking in collaboration with international mobile companies.
As of 2010, Reefy reported loans disbursed to 60,000 clients totaling EGP 600 million (USD 99 million) through its 29 branches. It was established with a paid-in capital of EGP 22.5 million (USD 3.7 million). Reefy does not report data to the US-based nonprofit Microfinance Information Exchange (MIX).
By Nisha Koul, Research Associate
About Reefy: Reefy, established in 2007, is a private sector microfinance lender in Egypt. It was started by Mr Ahmed El Bardai, a former chairman of Banque du Caire, an Egyptian public bank, with a paid-in capital of EGP 22.5 million (USD 3.7 million) which was sourced from his personal finances; Mr Naguib Sawiris, a telecom business owner; and the Social Fund for Development, a government organization that focuses on sustainable development projects. Since microfinance institutions (MFIs) are not licensed to lend directly to consumers in Egypt, it disburses loans through Commercial International Bank, a private bank. As of 2010, Reefy reported loans totaling EGP 600 million (USD 99 million) disbursed to 60,000 clients through its 29 branches. Reefy does not report data to the US-based nonprofit Microfinance Information Exchange (MIX).
Sources and Additional Resources:
[1] The Financial Times, “Microfinancier aims to fuel Egypt’s recovery” http://www.ft.com/intl/cms/s/0/acc966a6-ccbe-11e0-b923-00144feabdc0.html#axzz1YPRJeQzL
MicroCapital.org story, August 11, 2011, “MICROCAPITAL BRIEF: Microfinance Portfolio Risk Jumps in Tunisia, Egypt, As a Result of Political Unrest,” https://www.microcapital.org/microcapital-brief-microfinance-portfolio-risk-jumps-in-tunisia-egypt-as-a-result-of-political-unrest/
MicroCapital.org story, July 15, 2011, “MICROCAPITAL BRIEF: Overseas Private Investment Corporation (OPIC) to Guarantee $500m in Loans to Microfinance Institutions (MFIs) for Lending to Small and Medium-Sized Enterprises (SMEs) in Egypt, Jordan; USAID to Fund Technical Assistance,” https://www.microcapital.org/microcapital-brief-overseas-private-investment-corporation-opic-to-guarantee-500m-in-loans-to-microfinance-institutions-mfis-for-lending-to-small-and-medium-sized-enterprises-smes-in-egypt-jo/
MicroCapital Universe Profile: Reefy, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Reefy
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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