Frequantly Asked Questions

No, the Federation is not a funding body, but rather a federation of institutions that includes in its membership NGOs working in microfinance activity, microfinance companies and some member banks.

All entities working in microfinance activity are obligated to join the federation and abide by its statute, in accordance with Law 141 of 2014 regulating microfinance activity in Article No. (18). You can join the union membership by: 1- Fill out the membership form 2- Credit inquiry contract Annex 1 or Annex 2 3- Pay the union subscription You can also find out all the details by phoning the Federation officials.

You can go directly to the Financial Supervisory Authority or address the Federation to know the content of the complaint and the complainant’s data and take the necessary action.

The member must pay the value of the annual membership in the federation and address the federation to obtain a membership statement

No the Law states that you report monthly and query.

Kindly, proceed to the EMFF to place a dispute on your issue.

Every financing for economic, productive, service or commercial purposes for the medium, small and micro enterprises indicated in the Law for the Development of Medium, Small and Micro Enterprises, provided that the value of financing a micro project does not exceed two hundred thousand Egyptian pounds, for a single project, as stated in Article (2) of the Law No. 201 of 2020 amending some provisions of Law No. 141 of 2014 regulating microfinance activity. The Authority’s Board of Directors may increase the maximum funding limit for a micro-project for a single project or natural person, not to exceed (10%) annually, according to economic conditions. Microfinance is considered a major means of combating poverty and encouraging the participation of low-income groups in economic activity, which contributes to reducing unemployment and improving the incomes of the poorest families, and achieving positive effects on increasing the volume of investment and employment in the national economy. Microfinance is characterized, according to the experiences prevailing in various countries of the world, that it depends on direct personal contact between the financing entity and clients, and on providing financing in amounts or services that suit the target group, which requires the presence of organized institutional entities capable of providing a large number of finance officials trained in field work. And personal communication with individuals, entities and micro-enterprises.

On November 13, 2014, Law 141 of 2014 was issued regulating microfinance activity in accordance with unified standards and specific controls for licensing and controlling the activity, issued by the Financial Supervisory Authority, in order to ensure institutional efficiency, financial sustainability and protection of the rights of beneficiaries. The law also allowed associations, NGOs and private sector companies to obtain a license to practice the activity from the authority that specified the conditions for its issuance and the controls for practicing the activity. Law No. 201 of 2020 was also issued amending some provisions of Law No. 141 of 2014, and Law No. 155 of 2022 amending some provisions of Law 141 of 2014 regulating the activity of financing medium, small and micro enterprises.

When was the union established and what are its functions? The Federation was established by the decision of the President of the Arab Republic of Egypt by Law No. 141 of 2014 regulating microfinance activity in accordance with Article (18) and pursuant to the decision of the Board of Directors of the Financial Supervisory Authority No. 2 of 2015 in implementation of the law. The first board of directors of the Federation was elected on 16/9/2015. The functions of the union include providing recommendations on legislation regulating the activity, developing the skills of workers and training them, coordinating among members, defending their interests, and adopting initiatives to support the microfinance industry in general. The law also stipulated to issue a license to practice the activity of any association, civil institution, or company from the private sector, to be a member of the federation, and allowed banks that practice the activity and are subject to the supervision of the Central Bank to join the federation. Thus, the union became a representative of the industry and was able to build bridges of cooperation between member financial institutions and regulatory authorities, especially the Central Bank and the Financial Supervisory Authority, in addition to the Ministry of Social Solidarity and the main supporting partners, namely the Medium, Small and Micro Enterprise Development Agency, the Egyptian Credit Bureau and the Credit Risk Guarantee Company.

Since the establishment of the Federation, it has had a clear vision that is summarized in building a microfinance sector that applies the best international practices in Egypt, and contributes to the fight against poverty by supporting the mechanisms of financial inclusion for the poor and developing their projects, and supports the implementation of the economic and social development plan. To achieve this vision, the Union sought to develop microfinance activity to provide service in all parts and villages of Egypt, in a manner that meets the needs of all citizens, members of poor families in the informal sector who are not qualified to deal directly with banks, especially in slums and rural areas. Therefore, the Union’s efforts focused on providing sources of funding for its members to re-pump them to the beneficiaries on the one hand, and building and supporting the capabilities of microfinance institutions by providing specialized training programs and providing aid and technical advice to raise institutional efficiency and support financial sustainability and the quality of financial services, on the other hand, and providing a credit inquiry service For associations and civil institutions that do not have the capabilities to directly inquire from the credit bureau.

The Federation includes 1000 associations and civil institutions of different categories, 19 joint stock companies licensed to practice the activity by the Financial Supervisory Authority, 11 banks subject to the supervision of the Central Bank, in addition to the Medium, Small and Micro Enterprise Development Agency and the Credit Risk Guarantee Company.