Aman Microfinance, which focuses on micro projects, has obtained the temporary license from the Egyptian Financial Regulatory Authority (FRA) to practice its activity in the Egyptian local market in accordance with the provisions of the Micro Enterprise Law No. 141 of 2014 and the rules and standards of practice issued by the FRA board of directors No. 173 of 2014.
The company, which is part of Raya Holding, is seeking to finalise the necessary procedures to obtain the final license and start its launch of the microfinance sector in the local market.
According to Hazem Moghazy, CEO of Aman Microfinance, the establishment of the company comes within the objectives of the company to support the state plan to spread financial inclusion, which reflects positively on increasing youth employment rates and reducing unemployment.
He noted that the company will start its activities through 55 branches spread throughout Egypt during the first two years, with a plan to reach 150 branches in five years.
He added that the company sets within its strategy easy access to targeted customers within their places of residence, and the speed of access to financial services within a period of not more than three working days from the date of submitting the request and completing the necessary data.
He pointed out that the company has started to take practical and operational steps to meet the requirements of the FRA to obtain the final license before the actual start of its financing programmes. Meanwhile, Aman has already finalised its financing policy and internal regulations.
Raya Holding is one of the largest investment entities in the Middle East. It is listed on the Egyptian Exchange with a capital of about EGP 504.6m at the end of last year. Its investments range from the field of electronic payment, retail, to ICT.
Microfinance has been very active during the past years after the issuance of the law regulating the work of companies and associations operating in the sector. The volume of activity in the sector increased to more than EGP 6bn by the end of the third quarter of last year, according to FRA.