Fawry, Egypt’s top e-payments and banking services provider, has announced today that the total value of loans given by its subsidiary Fawry Microfinance had crossed EGP 1 billion ($63.6 million) since its start. Fawry Microfinance was founded in 2018 to give small businesses and entrepreneurs in Egypt with financial solutions that are both accessible and affordable, leveraging an end-to-end digital infrastructure to dispense loans and collect payments. The efforts of Fawry Microfinance have made a significant contribution to the national goals of financial inclusion and financial service digitization.
“The benefits of financial inclusion are growing clearer by the day,” said Fawry CEO Eng. Ashraf Sabry. “Access to affordable financial services allows small- and medium-sized businesses, which employ the majority of Egypt’s labor force, to expand and invest, creating employment and powering inclusive economic growth. We at Fawry Microfinance are proud of our track record in creating tangible opportunities for entrepreneurs and families, allowing them to invest in their futures and promoting the government’s efforts to achieve sustainable growth by expanding marginalized groups’ access to financial services.”
Here Is What You Need To Know
- Despite the lingering impacts of the COVID-19 pandemic on the Egyptian and worldwide economies, such as supply chain disruptions and heightened inflation, Fawry Microfinance’s portfolio grew rapidly in 2021.
- As of December 31, 2021, Fawry Microfinance had an outstanding portfolio of EGP 437 million, up 67 percent over the EGP 267 million booked at the end of 2020. At the end of 2021, the subsidiary had a 98.5 percent collection rate.
- With almost 40% of Fawry Microfinance’s clients under the age of 30, the subsidiary’s operations demonstrate Fawry’s dedication to the principles of sustainability and reaching the national goal of financial inclusion. In addition to boosting employment, extending accessible funding to young entrepreneurs aids in the creation of new economic prospects and the optimal usage of Egypt’s human capital resources.
- Meanwhile, Fawry supports the Egyptian Central Bank’s goal of increasing financial inclusion and financial awareness in rural areas. Fawry Microfinance’s services are not limited to Egypt’s main cities. The subsidiary’s services are offered in 25 of Egypt’s 27 governorates, covering a large portion of the country’s rural and economically disadvantaged communities.
- The majority of Fawry Microfinance’s 33 thousand clients were involved in retail trade as of year-end 2021, with other clients involved in simple service supply. Nearly 60% of clients were previous Fawry customers who had been introduced into the Company’s merchant network via Fawry POS equipment. The Company’s membership in the Fawry network enables it to simply deliver a variety of services to these clients, ranging from omnichannel acceptance to the establishment of e-commerce platforms.
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Founded in 2008, Fawry is the largest e-payment platform in Egypt serving the banked and unbanked population. Fawry’s primary services include enabling electronic bill payments, mobile top-ups and provisions for millions of Egyptian users. Other digital services also include e-ticketing, cable TV, and variety of other services. Through its peer-to-peer model, Fawry is enabling corporates and SMEs to accept electronic payments through a number of platforms including websites, mobile phones, and POSs. With a network of 36 member banks, its mobile platform and more than 250,000 agents, Fawry processes an average of 3 million transactions per day, serving an estimated customer base of 35 million users monthly.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer