Funding balances for small, medium and micro enterprises increased to 35.6 billion pounds in August 2022, with a total number of beneficiaries reaching 3.9 million, according to data from the Financial Supervisory Authority.
Microfinance means all financing for economic, productive, service or commercial purposes in the fields and at the value determined by the Board of Directors of the Financial Supervisory Authority. Microfinance is considered a major means of encouraging the participation of low-income groups in economic activity. Microfinance contributes to reducing unemployment and contributing to improving the incomes of the poorest families, and has a positive impact on increasing the volume of investment and employment in the national economy.
The Financial Supervisory Authority aims to double the size of microfinance from 27 billion pounds by the end of 2021 to 50 billion pounds by the end of 2026, according to the authority’s strategy during the period (2022-2026), continuing to expand the base of microfinance, and doubling the number of beneficiaries from about 3.5 million Beneficiaries to reach 4.5 million beneficiaries by 2026.
The Financial Supervisory Authority intends to achieve this goal by launching the initiative to revitalize value chain financing in the micro-agricultural sector, motivating farmers to participate in marketing groups for their high-return crops, while working to enhance integration with other necessary financial services such as micro-insurance coverage. Which will support the effectiveness of this initiative, and the authority intends to adopt initiatives with the concerned authorities to support and develop category (C) institutions.