Finance: Egypt’s Small Borrowers Have Big Potential
Wednesday, November 26, 2014
A new law permitting non-bank for-profit lending institutions may unleash a revolution in microfinance by allowing more actors and innovators to get involved.
Tamer Taha is a part of Egypt’s thriving start-up community.
A few years ago, he noticed that microfinance came at a high cost and even higher interest rates, and with logistics which he says create inefficiencies.
He also realised that general interest in and financial support for innovative ideas was mostly going to the top of the pyramid, comprised of tech start-ups and mobile phone applications.
“No one is focusing on the bottom of the pyramid, which represents around 60% of the labour force,” says Taha, pointing to the many tradespeople and workers in fading industries that face tough competition from Chinese goods.