Triple Jump loan approved in Egypt

Triple Jump and the Oxfam Novib Microfinance Fund are proud to announce the first ever local currency direct loan to an MFI in Egypt made by an international MIV. The loan was made to microfinance institution Al Tadamun, based in Cairo.

Egypt boasts a strong and healthy microfinance sector, but the difficult process of obtaining a license for a loan from abroad means that there is very little direct investment from Microfinance Investment Vehicles (MIVs) based outside of Egypt. Long delays as well as strict conditions to obtain the legal authorization to make a loan are the main barrier to direct investment in the Egyptian microfinance sector.

It took Al Tadamun and Triple Jump a full eighteen months to obtain official authorization from the Egyptian Ministry of Social Solidarity (MSS), the regulating entity for non-governmental organizations (NGOs) in the country, to go forward with a loan. Both parties expect that future applications will be processed more easily now that the MSS is familiar with Triple Jump as a microfinance investor. Triple Jump has already approved a second loan to Al Tadamun, and looks forward to broadening its cooperation with Egyptian MFIs in the coming years.

Al Tadamun is Egypt’s preeminent provider of group-guaranteed loans to low-income women micro-entrepreneurs. In March 2009 Al Tadamun Microfinance Programme became an independent NGO operating under the legal umbrella of the Ministry of Social Solidarity. As of December 2009 Al Tadamun had 90,714 active clients, all of whom are women, with an outstanding portfolio of LE 59,173,870 (USD 10.2 million). Al Tadamun has 22 branches across the Greater Cairo Governorate. For more information about Al Tadamun, visit www.altadamun.org.

Triple Jump is a microfinance investment manager based in Amsterdam, the Netherlands, offering professional fund management services to investors, and providing loans and equity investments to microfinance institutions (MFIs), particularly tier 2 and tier 3 MFIs. Triple Jump currently has 150 investments with 135 MFIs in 51 countries, for a total invested capital of USD 210 million. For more information about Triple Jump, visit www.triplejump.eu.

Oxfam Novib is a Dutch donor organization and the founder of Triple Jump. The Oxfam Novib Fund (ON Fund) for investment in microfinance was established by Oxfam Novib in 1997, and is owned and funded by Oxfam Novib. In 2007 fund management was transferred to Triple Jump. The ON Fund mainly finances Tier 3 MFIs that show significant potential to grow. MFIs should have a social mission and should service low-income groups, particularly women. By the end of 2009 the fund had grown to nearly EUR 31 million, with loans to 83 institutions in 38 countries and two global funds. For more information about Oxfam Novib, please visit www.oxfamnovib.nl.