Reefy Microfinance Injects EGP 4 Billion into Egypt’s Economy in 2024

In 2024, Reefy Microfinance injected EGP 4 billion into Egypt’s economy, elevating its total funding to over EGP 20 billion since 2007. The company reported a 27% increase in operating revenue and a net profit of EGP 374 million. Additionally, they expanded their branch network to 185 locations and gained international recognition as a fast-growing company.

Reefy Microfinance Enterprise Services has significantly contributed to Egypt’s economy by injecting EGP 4 billion in financing during 2024. This amount elevates the company’s total funding to over EGP 20 billion since its inception in 2007, with the previous year accounting for 20% of the total financing dispensed throughout its history, signaling a notable milestone in its growth trajectory.

As the pioneering entity to receive a license from the Financial Regulatory Authority (FRA) for operating in the microfinance sector, Reefy has strengthened its leadership in providing accessible financial solutions tailored to client needs. The company’s vital role in promoting entrepreneurship, stimulating economic activity, enhancing financial inclusion, and contributing to social stability is evident.

In December 2024, Reefy reported a total client portfolio value of EGP 3.2 billion, with an average loan size of EGP 36,400, reflecting a robust 23% increase. The company continued to expand its outreach, opening 23 new branches throughout 2024, bringing its total to 185 branches across 21 governorates, thereby improving access to financial services in underserved regions.

Reefy delivered strong financial performance in 2024, with total operating revenue reaching EGP 1.84 billion, marking a 27% rise from the previous year. The net profit rose to EGP 374 million, achieving a record return on equity (ROE) of 78.1%. Such achievements were made in light of challenging economic conditions, including an 800 basis-point interest rate increase earlier in the year.

The company’s commitment to regulatory compliance was showcased by its early adoption of the new minimum wage in May 2024. Ahmed Labib, Managing Director and CEO, emphasized Reefy’s resilience in overcoming economic hurdles. He stated, “Reefy continues to demonstrate that sustainable growth and financial stability are achievable, even amid economic uncertainties.”

Furthermore, Reefy received approval from the Financial Regulatory Authority in November 2024 to securitize a portfolio valued at EGP 1.066 billion, executed under its securitization bond program, which achieved a “Prime 1” credit rating from MERIS. This successful funding maneuver provided crucial liquidity for supporting micro-entrepreneurs with competitive financing options.

Reefy’s influence has extended internationally, as evidenced by its recognition on the Financial Times’ list of Africa’s fastest-growing companies in May 2024, marking its second consecutive appearance on this prestigious ranking. This acknowledgment underscores the company’s adeptness in sustaining growth and maintaining its competitive edge in Egypt’s microfinance industry.

In conclusion, Reefy Microfinance’s substantial contributions in 2024 reflect its ongoing commitment to fostering economic development in Egypt. Through strategic growth, innovative financing solutions, and a strong focus on financial inclusion, Reefy is set to continue its leadership role in the microfinance sector and support entrepreneurship amidst challenging economic conditions.

Original Source: www.dailynewsegypt.com