With rapid moves to boost funding and expand within Egypt's microfinance market, Al Oula Microfinance is stepping up its plans to secure new international and local funding sources. This will support its ability to grow and increase its customer base in the coming period, backed by strategic support from its owner, the Sri Lankan LOLC Group.
International Funding
Ali Abdel Wahab, the Managing Director and CEO of Al Oula Microfinance, announced that the company is currently negotiating with six international entities to secure new funding totaling around $5 million. This effort is strongly supported by the company's owner, the Sri Lankan LOLC Group.
He explained that this step is part of a plan aimed at supporting expansion and boosting the company's market share in Egypt, while also enhancing its capacity to offer financial services to a larger number of clients.
Kiva International Organization
Abdel Wahab also mentioned that the company successfully secured $2 million in funding from Kiva International. He sees this as a significant indicator of the LOLC Group's strength and credibility on a global scale.
He added that Al Oula Microfinance is working to attract even more international funding in the upcoming period. This will further support its ability to expand and serve broader segments of customers within the Egyptian market.
Comprehensive Restructuring Strategy
Abdel Wahab revealed that Al Oula Microfinance has put together a comprehensive restructuring strategy. This plan aims to boost its share in Egypt's microfinance market, focusing on achieving sustainable growth and supporting financial inclusion goals.
He clarified that this plan was developed after the new Managing Director took office last March. It includes improving operational performance and expanding the customer base.
He also added that the company is following a clear roadmap designed to achieve balanced growth, combining geographical expansion with improving the quality of its loan portfolio.
He pointed out that Egypt's microfinance sector has become a key driver of economic growth, with a market size exceeding 72 billion Egyptian Pounds and a customer base of nearly 3.5 million clients.
The Sri Lankan LOLC Group, which owns Al Oula Microfinance, is one of the largest multi-activity investment entities, operating in over 25 countries across Asia and Africa.
The group's assets exceed $7 billion, and it manages a global microfinance portfolio of approximately $4.5 billion. This significantly boosts its capacity to support Al Oula Microfinance's expansion efforts in the Egyptian market.
Local Funding
In a related development, Abdel Wahab stated that the company is in talks with several banks operating in the Egyptian market to secure new credit facilities worth up to 400 million Egyptian Pounds.
He explained that the company already has existing credit lines with six banks, totaling around 250 million Egyptian Pounds. These banks include the National Bank of Egypt, Arab African International Bank, Housing and Development Bank, Egyptian Arab Land Bank, Kuwait Finance House, and Abu Dhabi Commercial Bank. This clearly shows the growing confidence from the banking sector in the company's business model, its ability to grow, and its commitment.
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