MICROCAPITAL BRIEF: Microfinance Institution Dakahliya Businessmen Association for Community Development (DBACD) of Egypt Receiving Advisory Services from IFC

The Dakahliya Businessmen Association for Community Development (DBACD), a microfinance institution in Egypt, recently entered an agreement with the World Bank Group’s International Finance Corporation to access advisory services relating to increasing loan sizes for its borrowers and expanding to additional parts of Egypt. The arrangement will also address DBACD’s risk management and business planning. The Japanese Ministry of Finance is supporting the effort.

DBACD provides group and individual loans for home-improvement, transportation, animal husbandry and other businesses. Terms range from 10 weeks to 3 years with loan sizes of EGP 50 (USD 3) to EGP 100,000 (USD 5,700). The microlender also offers microinsurance and financial education to its clients as well as consulting services to other microfinance institutions. As of 2017, DBACD reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 42 million, a gross loan portfolio of USD 30 million and 158,000 borrowers served through 21 offices. DBACD does not accept deposits.

IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and total assets of USD 95 billion as of September 2017.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses: (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) the International Finance Corporation (IFC); (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2017, the World Bank Group disbursed funds totaling USD 44 billion.

Sources and Additional Resources:

IFC press release
https://ifcext.ifc.org/ifcext/Pressroom/IFCPressRoom.nsf/0/EBC46321203EAB158525824D0040E079

DBACD products
http://www.dbacd-eg.org/english/Products.html

MIX Profile on DBACD
https://www.themix.org/mixmarket/profiles/dbacd

IFC budget for fiscal year 2018
http://www.ifc.org/wps/wcm/connect/cbd63894-c62a-453c-bfc8-92b8f8a3155f/IFC+FY18+Q1+MDA+and+FS_FINAL.pdf?MOD=AJPERES

World Bank Group
http://worldbankgroup.org/

Ministry of Finance of Japan
http://mof.go.jp/

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