MICROCAPITAL BRIEF: Dr Youssef Fawaz of Sanabel Warns Syrian Microfinance Institutions (MFIs) of Unsustainable Business Practices at Seventh Annual Microfinance Network of Arab Countries Conference

DayPress news, a Syrian online news publication, recently reported on comments made by Youssef Fawaz, Board Director at Sanabel, a microfinance network of Arab countries, warning Syrian microfinance institutions (MFIs) that past growth rates cannot be replicated unless the industry reevaluates its business practices. At the seventh annual Microfinance Network of Arab Countries Conference in Damascus, Dr Fawaz cited 30-percent annual growth in microcredit in Syria over the past decade, but cautioned, “It is not possible to have sustainable growth without responsible practices, which are characterized by good internal governance and a responsible regulatory framework.”

US Small Enterprise Education and Promotion (SEEP) Executive Director William Tucker recommended a consolidation of the industry, arguing that a smaller number of large MFIs, rather than a large number of small MFIs, will help promote stability.

About Sanabel

Sanabel, a network of microfinance institutions (MFIs) in Arab countries, was established in 2002 by 17 founding members from 7 Arab countries. Its headquarters are located in Cairo, Egypt. Currently Sanabel has 64 members from 12 Arab countries. Sanabel serves 2.4 million clients, a number that reportedly represents 83 percent of the total microfinance clients in the region. In 2004, Sanabel was incorporated and registered as a nonprofit organization in both Atlanta, Georgia, and in Cairo.

By Matthew Fox, Research Assistant

Sources and Additional Resources

DayPress: Responsible Growth Key to Success of Microfinance, 07 July 2010: http://www.dp-news.com/pages/detail.aspx?l=2&articleId=44675

MicroCapital Brief: Experts Debate New Code Of Conduct Adopted by the Microfinance Indian Network (MFIN), 11 May 2010: https://www.microcapital.org/microcapital-brief-experts-debate-new-code-of-conduct-adopted-by-the-microfinance-india-network-mfin/

MicroCapital Universe: Sanabel: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=sanabel

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