In 2024, Reefy Microfinance injected EGP 4 billion into Egypt’s economy, raising total funding since 2007 to over EGP 20 billion. With significant expansions, including 23 new branches, and robust financial results, Reefy has reinforced its leadership in microfinance. The company secured a ‘Prime 1’ rating for a portfolio securitization, showcasing its stability and growth amid economic challenges.
Reefy Microfinance Enterprise Services has significantly contributed to Egypt’s economy in 2024 by injecting EGP 4 billion in financing. This substantial investment brings the total funding provided since the company’s inception in 2007 to over EGP 20 billion. Importantly, the financing in the past year represents 20% of this total, illustrating a pivotal moment in the company’s growth trajectory.
As a pioneer in the microfinance sector, Reefy was the first company to obtain a license from the Financial Regulatory Authority (FRA). This milestone underscores its dedication to providing accessiblefinancial solutions that cater to client needs, playing a crucial role in fostering entrepreneurship, driving economic activity, promoting financial inclusion, and enhancing social stability within Egypt.
Throughout 2024, Reefy maintained robust operational momentum, solidifying its leadership in the microfinance industry. By December 2024, the total client portfolio amounted to EGP 3.2 billion, with an average loan size of EGP 36,400, reflecting a substantial 23% increase. This growth signals Reefy’s enduring commitment to serving its clients effectively.
In its quest to expand outreach, Reefy opened 23 new branches in 2024, raising its total to 185 locations across 21 governorates, thereby enhancing access to financial services, especially in underserved areas. The company’s financial performance was notable, reporting total operating revenue of EGP 1.84 billion, a 27% increase over the previous year, with net profit escalating to EGP 374 million and a remarkable return on equity (ROE) of 78.1%.
Despite facing economic challenges, including an 800 basis-point interest rate increase early in the year, Reefy has demonstrated remarkable resilience. Furthermore, the company was proactive in implementing the new minimum wage in May, highlighting its commitment to compliance and employee welfare.
Ahmed Labib, Managing Director and CEO of Reefy, emphasized the company’s adaptability in the face of economic challenges. “Reefy continues to demonstrate that sustainable growth and financial stability are achievable, even amid economic uncertainties. Despite sharp interest rate hikes in early 2024, we maintained strong performance and steady expansion,” said Labib.
Labib further asserted, “With a clear vision and an exceptional team, we remain dedicated to expanding our footprint and innovating financing solutions to earn and retain the trust of our clients.”
Additionally, in a pivotal development, Reefy received approval from the Financial Regulatory Authority in November 2024 to securitize a portfolio valued at EGP 1.066 billion via the Egyptian Securitization Company. This transaction, part of Reefy’s securitization bond program, was awarded a “Prime 1” rating by MERIS, the highest credit rating, providing vital liquidity to support micro-entrepreneurs with competitive financing options.
Reefy has also achieved international recognition for its sustained growth. In May 2024, the company was once again listed on the Financial Times’ ranking of Africa’s fastest-growing companies, marking its second consecutive year in this prestigious category. This recognition highlights Reefy’s successful efforts in attaining sustainable growth while maintaining its prominent position in Egypt’s microfinance landscape.
Reefy Microfinance has established itself as a key player in Egypt’s financial sector, contributing EGP 4 billion in financing in 2024 alone, thus surpassing EGP 20 billion since its inception. The company’s strategic expansion and commitment to innovation have led to significant growth in its client portfolio and financial performance. Furthermore, the firm’s global recognition underscores its impactful role in advancing microfinance in Egypt.
Original Source: www.dailynewsegypt.com
