Egypt’s Tamweely Microfinance net profit grows 75% in 2020
Egypt’s Tamweely Microfinance announced on Wednesday strong results for its 2020 financial year ending December 31, 2020.
The results were fueled by revenue growth as well as clients and branches expansion.
During the press conference, Amr Abou El-Azm – executive vice chairman and CEO of Tamweely, announced that the company’s net profit increased 75 percent to 51.5 million Egyptian pounds ($3.3 million) in 2020, compared to 29 million pounds in 2019.
The total amount of disbursed loans reached to 2.64 billion pounds in 2020, versus 1.1 billion pounds in 2019, marking an increase of 139 percent. Gross loan portfolio grew 53 percent year-on-year to 1.07 billion pounds in 2020 from 699 million pounds in 2019.
Abou El-Azm added that Tamweely has expanded its outreach and served 75,000 clients in 2020, compared to 55,000 clients in 2019. He expressed his pride that women represented 42 percent of beneficiaries.
He further emphasised that the company relied on its esteemed risk management strategy to thrive and overcome COVID-19 implications on the economy and in particular the microfinance sector.
He also highlighted that Tamweely’s strategy aims at providing cutting-edge financial services, reinforcing economic empowerment for underprivileged communities, along with integrating them in the formal economic sector.
Building on its strategy, the company’s investment value is maximised, benefiting its shareholders and boosting Tamweely’s pivotal role in microfinance industry nationwide.
Abou El-Azm added that Tamweely handled the crisis with swift and agile response, offering incentives for clients and introducing innovative products according to market needs.
He concluded his talk unveiling Tamweely’s projected plans for 2021. He revealed expansion plans, working on three pillars: first, geographic expansion in Upper and Lower Egypt to reach more segments of the community, second, technological expansion reinforcing digital transformation, and third, products expansion, enriching the sector with new credit products, including: nano finance and revolving credit.
Tamweely also continues to offer support to micro projects, complying with the state’s strategy to reduce the burden on MSEs.
Meanwhile, Ahmed Khorched – CEO and managing director of Tamweely – asserted that the company’s witnessed success in 2020 was ensured by its unceasing expansion plans along the year. Accordingly, branches increased from 47 branches covering 11 governorates in 2019 to 71 branches in 15 governorates by the end of 2020.
Also, Tamweely offered more employment opportunities, moving from 891 employers in 2019 to 1450 employers in 2020, whose notable efforts contributed to the company’s growth during tough times.
Khorched acknowledged Tamweely’s shareholders for their prominent support, in addition to the management’s assertive decisions, leading to reliable performance during the pandemic. Striving hard to achieve its aspiring plans, Tamweely financed more than 111,000 clients with 91 percent growth compared to 2019. Women represent 42 percent of client base.
Moreover, Khorched expressed his delight with the company’s profitable partnerships in 2020. Tamweely has signed cooperation protocols with several entities, facilitating distant payment, including: National Post Authority, Bee Company, and Damen ePayment. Also, the company allied with Banque Misr and Al Qada Foundation. With programmes to enhance employers’ skills and develop technological infrastructure, Tamweely aims at cooperating with international development institutions to acquire further credit facilities and technical support.
