Reefy Microfinance Injects EGP 4 Billion into Egypt’s Economy in 2024
In 2024, Reefy Microfinance injected EGP 4 billion into Egypt’s economy, significantly expanding its total funding to over EGP 20 billion since 2007. The company, a pioneer in microfinance, has reinforced its leadership by opening 23 new branches, achieving strong financial growth, and gaining global recognition.
Reefy Microfinance Enterprise Services has injected EGP 4 billion into the Egyptian economy in 2024, marking a significant milestone as its total funding since inception in 2007 surpasses EGP 20 billion. Notably, the past year’s contributions represent 20% of the company’s historical financing, showcasing its rapid expansion.
As a pioneer in the microfinance sector, Reefy became the first firm to secure a license from the Financial Regulatory Authority (FRA), affirming its leadership in providing financial solutions that cater to diverse client needs. This accomplishment underscores the company’s essential role in fostering entrepreneurship, driving economic activity, and enhancing financial inclusion.
In 2024, Reefy achieved strong operational momentum, with a client portfolio valued at EGP 3.2 billion and an average loan size of EGP 36,400, reflecting a remarkable 23% growth. The company strategically expanded its reach by opening 23 new branches, bringing its total to 185 across 21 governorates, improving accessibility to financial services, especially in underserved communities.
The financial results for 2024 were robust, with total operating revenue reaching EGP 1.84 billion, an increase of 27% from the previous year. Net profit rose to EGP 374 million, yielding a record return on equity (ROE) of 78.1%. These results were achieved despite challenges posed by an 800 basis-point interest rate hike at the year’s start, emphasizing the company’s resilience.
Ahmed Labib, Managing Director and CEO of Reefy, remarked on the firm’s exceptional performance amidst economic challenges, stating, “Reefy continues to demonstrate that sustainable growth and financial stability are achievable, even amid economic uncertainties.” He emphasized the company’s commitment to expanding its offerings and retaining client trust.
In a pivotal development, Reefy received approval from the Financial Regulatory Authority in November 2024 to securitize a portfolio worth EGP 1.066 billion, which received a “Prime 1” rating from MERIS, the highest available credit rating. This issuance facilitated liquidity to support micro-entrepreneurs with competitive financing options, reinforcing Reefy’s industry leadership.
Reefy’s influence has also gained international recognition, having been listed by the Financial Times as one of Africa’s fastest-growing companies for the second consecutive year in May 2024. This acknowledgment highlights Reefy’s commitment to sustainable growth and its prominent position within the Egyptian microfinance sector.
In summary, Reefy Microfinance’s impressive financial performance, significant funding injections, and strategic expansion highlight its vital role in Egypt’s economic landscape. The company continues to lead the microfinance sector through innovative solutions, regulatory compliance, and a commitment to supporting entrepreneurs. Its recognition on an international level further underscores its achievements and future potential.
Original Source: www.dailynewsegypt.com
