Tamweely Microfinance has launched its new expansion strategy for 2019 which aims to increase the number of the company’s branches and its portfolio size, introduce new financial products, and sign cooperation agreements with banks and financial institutions.
“This strategy is based on the company’s success in the last few months, since its inception seven months ago,” said Chairperson and Managing Director of the company, Amr Abu Al Azm.
He added that the size of the company’s finance portfolio during this relatively short period reached EGP 170m benefiting 13,000 clients.
Abu Al Azm added that Tamweely has now 20 branches in eight governorates, including two branches in Beni Suef, two in Luxor, three in Minya, four in Sohag, three in Sharqeya, four in Qena, one in Aswan, and another in Alexandria.
He further added that the company aims to open new 18 branches before the end of this year, to cover 11 governorates and reach 40,000 clients with a portfolio of EGP 700m.
Abu Al Azm pointed out that over 70% of the company’s financing were directed to commercial projects.
Ahmed Khorshid, the company’s CEO, said the company has signed financing agreements with six banks, including the Export Development Bank of Egypt, the Egyptian Arab Land Bank, the National Bank of Egypt, the Industrial Development Bank, the Housing and Development Bank, and the Suez Canal Bank, with credit lines of EGP 700m.
Additionally, Tamweely is negotiating with four other banks for supplementary financing of EGP 400m.
Khorshid said that the rapid growth achieved by Tamweely in its first months of operation was reflected in the financing size and employment rates of the company. It currently has about 400 employees and will likely double that figure by the end of this year.
The company benefited from the huge growth witnessed by the microfinance industry in the Egyptian market at the current stage, as well as the technological support enjoyed by the financial services sector, explained the CEO.
Moreover, Khorshid predicted that the industry will achieve annual growth exceeding 15% as the market strives for this type of funding, thanks to the government’s support of the sector, being an important generator of employment.
He pointed out that the company’s business strategy and future expansion plans coincide with the growth of financial inclusion, and support the state’s plan to integrate the informal economy into the formal economy, in order to achieve social and economic goals by increasing employment opportunities and enabling low-income segments of the population to achieve higher incomes, characterised by sustainability and growth.
Tamweely Microfinance was established with an issued capital of EGP 50m and an authorised capital of EGP 500m. It is owned by three companies, including NI Capital, Ayady for Investment and Development, and Post for Investment.