Egypt Launches Microfinance Incentives to Contain Informal Economy
The Egyptian government has begun a microfinancing programme called “Nano Finance” to integrate the informal economy in the formal sector and empower economically marginalised people through financing mechanisms that improve their living conditions.
The Financial Regulatory Authority said terms and conditions for granting nano loans include a maximum of approximately $190 per individual to be reimbursed in three months.
Authority Executive Chairman Mohamed Omran said “nanofinancing, offered for the first time in Egypt, relies very much on digital technologies.” He added that “international experiences in microfinancing have shown the product is used essentially to meet requirements of marginalised groups and those most in need of financial services and suffer from difficulty in accessing financing.”
Photo courtesy of WorldFish.