Triple Jump, Oxfam Novib Microfinance Fund give local currency loan to Egyptian MFI

Microfinance Focus, July 23, 2010: Netherland based Triple Jump and the Oxfam Novib Microfinance Fund have received approval from Egyptian Ministry of Social Solidarity (MSS) for lending a local currency direct loan made by an international MIV (Microfinance Investment Vehicle) to an Egyptian MFI Al Tadamun.

Despite a strong and healthy microfinance sector, there is very little direct investment from Microfinance Investment Vehicles (MIVs) based outside of Egypt in Egyptian MFIs. Long delays as well as strict conditions to obtain the legal authorization to make a loan are the main barrier to direct investment in the Egyptian microfinance sector. Triple Jump has already approved a second loan to Al Tadamun, and looks forward to broadening its cooperation with Egyptian MFIs in the coming years.

Al Tadamun is a provider of group-guaranteed loans to low-income women micro-entrepreneurs. In March 2009 Al Tadamun Microfinance Programme became an independent NGO operating under the legal umbrella of the Ministry of Social Solidarity. As of December 2009 Al Tadamun had 90,714 active clients, all of whom are women, with an outstanding portfolio of LE 59,173,870 (USD 10.2 million). Al Tadamun has 22 branches across the Greater Cairo Governorate.

Oxfam Novib is a Dutch donor organization and the founder of Triple Jump. The ON Fund mainly finances Tier 3 MFIs that show significant potential to grow. By the end of 2009 the fund had grown to nearly EUR 31 million, with loans to 83 institutions in 38 countries and two global funds.

© 2010, Microfinance News. All rights reserved. 2008-09