Tamweely Microfinance started implementing its expansion plans by activating a cooperation protocol with the National Postal Authority (NPA), in connection with launching company branches in the headquarters of NPA offices in several governorates of Egypt.
Chairperson of Tamweely, Amr Abou El-Azm, stated that the first phase of the plan includes launching seven new branches of the company in NPA offices in Beni Suef, Minya, Sohag and Qena. In addition, 14 branches have already been established in these four governorates, which means that Tamweely’s branch network reached 21 branches in these governorates, while it reached 35 branches nationwide, covering a large number of governorates of Upper Egypt and Delta.
Abou El-Azm confirmed that this movement is within the framework of an investment plan to increase the company’s capital from EGP 50m to 75m, which was recently implemented. The expansion through the NPA branch network was one of the reasons for increasing the company’s capital, especially as the NPA is an indirect shareholder in Tamweely through its investment arm, Post for Investment Company.
This step also reflects the NPA’s trust in Tamweely’s business model, which proved to be a huge success in a short period of time.
Ahmed Khurshid, CEO of Tamweely, stated that the new branches will start to operate by early October. Branch preparation and supply with the necessary technological systems is currently ongoing, Khurshid said, noting that the company has allocated about EGP 7m to be injected as funding for 3,500 new clients through these seven branches.
Khurshid also explained that the company’s business model focuses on the strong presence in Upper Egypt, due to the huge funding gap in these governorates and the strong need for financing and keeping pace with the state’s plan to accelerate economic and social development plans in poor and marginalised rural areas. In addition, they need to empower women in Upper Egypt to obtain financing opportunities and establish small and micro enterprises there.
Tamweely has signed an agreement with the NPA several weeks ago, whereby branches of the NPA offices in various governorates of Egypt will be used to provide financing services and collect the financing instalments granted by the company to its clients. The agreement allows Tamweely to use the technological infrastructure of the NPA to provide various financial services to its clients, such as disbursement of funds, collection of instalments, and issuance of prepaid cards for the benefit of microfinance clients, allowing geographical spread, and ensuring rapid access of its services to its clients in record time.
Noteworthy, Tamweely’s portfolio currently stands at EGP 400m, benefiting about 30,000 clients. NI Capital Holding, Ayady for Investment and Development, and Post for Investment Co contribute toward Tamweely’s capital.
