The GCA Foundation finalises an agreement to fund Egyptian MFIs
The GCA Foundation has finalised an agreement in principle with Crédit Agricole Egypt to fund Egyptian MFIs
In December 2016, a prospecting mission was carried out in Egypt. Working meetings were held with the Group's subsidiary, Crédit Agricole Egypt (CAE), as well as with the Egyptian Financial Supervisory Authority (EFSA) and four local microfinance institutions (MFIs): Lead Foundation, DBACD, Reefy, Tanmeyah. CAE has confirmed its interest in funding MFIs in partnership with the Foundation. Such funding would enable CAE to play its part in development by contributing to the economic growth of a segment of the population that is today excluded from the traditional banking sector. An agreement has been reached between CAE and the GCA Foundation allowing each party to contribute to this Group synergy in its own area of excellence.
The collaboration of the GCA Foundation with Crédit Agricole's subsidiary in the microfinance sector is positively welcomed by the regulator and by the MFIs we met, who appreciate the new system combining local banks and microfinance specialists that might emerge.
Due diligences will be carried out in March and financing projects should be ready to be submitted to the Investment Committee in April.