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Thursday, 15 April 2021

Torrid growth continues in factoring, microfinance

GB Auto’s NBFS arm Drive had the largest share of Egypt’s factoring market in February after more than doubling lending during the month, according to official figures. The Financial Regulatory Authority’s monthly report (pdf) on the NBFS sector shows that Drive increased its market share to almost 22% in February after loaning out EGP 254 mn, up from EGP 115 mn in January (pdf). Egypt Factors had the second-largest share of the market at 17.7% and QNB Factoring was in third with 16%. Drive had a 13% market share in January, behind EFG Hermes Corp-Solutions, Egypt Factors and QNB Factoring. Drive Managing Director Ahmed Osama said last month that the company is aiming to raise its share of the overall non-bank lending market — which also includes its auto finance and forthcoming consumer finance activities — to 25% by the end of 2021.

Factoring market on the up: Monthly lending in the sector grew more 40% y-o-y to EGP 1.17 bn, from EGP 830.1 mn in February 2020 — outpacing the 30% growth rate it posted in January. Total lending in the sector now stands at EGP 6.93 bn.

Microfinance market posts its seventh consecutive month of growth: The value of micro loans rose to EGP 20.2 bn in February, up 14% from EGP 17.7 bn from the same month in 2020, according to the report. This continues a trend that has seen the value of micro loans rise for seven consecutive months, up 16% from less than EGP 17.4 bn last August.

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