São Paulo – The International Finance Corporation (IFC) provided on Thursday (25th) a US$ 2 million loan for the Lebanese Association for Development (Al Majmoua). The amount will be passed on, also as loans, to small business owners, including female entrepreneurs. The IFC is a member of the World Bank Group focused on encouraging private sector development.
According to the IFC’s communiqué, around half of Al Majmoua’s clients are located in the Bekaa Valey, north Lebanon and South Lebanon, regions where aspiring entrepreneurs often struggle to get financing.
“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,” said Youssef Fawaz, executive director of Al Majmoua. “This partnership allows Al Majmoua to continue expanding its outreach in Lebanon, helping improve the economic and social conditions of low-income individuals,” he added.
The Lebanese association has been operating since 1994 and is the leading microfinance institution in the country. It has a market share of just under 50 percent and more than 46,000 members, 54 percent of whom are women.
“Providing better access to finance for 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,” stressed James Gohary, IFC Manager for the Financial Institutions Group in the Middle East and North Africa.
*Translated by Rodrigo Mendonça
