The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has announced that it will loan USD 2 million to Al Majmoua, a Lebanese nongovernmental organization (NGO) that is also known as the Lebanese Association for Development. The loan is intended to help Al Majmoua “expand outreach to small business owners”[1] and female entrepreneurs. It is anticipated that the loan will promote entrepreneurship and contribute to economic growth in Lebanon, in particular in rural regions of the country such as the Bekaa Valley.
Mr Youssef Fawaz, the executive director of Al Majmoua, said that “this agreement with IFC highlights the importance of the microfinance sector in general, and Al Majmoua’s work in particular in improving financial inclusion for the unbanked”[1]. He added that “this partnership allows Al Majmoua to continue expanding its outreach in Lebanon, helping improve the economic and social conditions of low-income individuals”[1]. Mr James Gohary, the manager of IFC’s Middle East and North Africa division’s financial institutions group, said that “providing better access to finance those at the bottom of the pyramid will help stimulate growth, create jobs, and reduce poverty. In addition, we believe our investment will help encourage other investors, especially local banks, to fund Lebanon’s microfinance sector and help bridge the financing gap”[1].
IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013. IFC’s strategy in Lebanon is to “expand financial services to underserved regions and people, including female entrepreneurs”[1]. As of December 31, 2013, Al Majmoua reported total assets of USD 41.4 million, a gross loan portfolio of USD 35.8 million, return on assets of 10.17 percent, return on equity of 18.81 percent and approximately 44,300 active borrowers. The institution does not accept deposits.
By Alíz Crowley, Research Associate
About Al Majmoua
Al Majmoua, also known as the Lebanese Association for Development, is a nongovernmental organization (NGO) that was launched as a microcredit program in 1994 by Save the Children, a UK-based nonprofit organization. Al Majmoua is headquartered in Hamra, and it has 15 offices in Lebanon. As of 2014, Al Majmoua is an independent organization that aims to contribute to the well-being of low-income Lebanese people and female entrepreneurs by offering them tools to become financially independent. As of December 31, 2013, Al Majmoua reported total assets of USD 41.4 million, a gross loan portfolio of USD 35.8 million, return on assets of 10.17 percent, return on equity of 18.81 percent and approximately 44,300 active borrowers. The institution does not accept deposits.
About International Finance Corporation
The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.
Sources and Additional Resources
[1] International Finance Corporation, News, IFC, Al Majmoua Support Small Businesses and Women Entrepreneurs in Lebanon
MicroCapital, January 11, 2014, Grameen-Jameel Microfinance to Loan $2m Each to Microfund for Women of Jordan, Al Majmoua of Lebanon
MicroCapital, June 13, 2013, Sanad Fund for MSME to Loan $2m to Al Majmoua of Lebanon for Microenterprises
MicroCapital, February 2, 2010, International Finance Corporation (IFC) Makes $100m Equity Investment in Byblos Bank of Lebanon to Provide Finance for Small and Medium-Sized Enterprises (SMEs) and Expand Operations in the Middle East and Africa
MicroCapital Universe Profile: Al Majmoua
MicroCapital Universe Profile: International Finance Corporation
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