A non-banking Sri Lankan financial institution, conglomerate LOLC Group has acquired 100% of First Microfinance in a transaction worth EGP 80.2 mn, First Microfinance CEO and Managing Director Ahmed Kamal El Din told Enterprise, validating a report from Al Mal.
The acquisition marks LOLC Group’s entry into Egypt and will see the firm introduce new services — including micro ins, micro leasing, and consumer finance — starting 2023, he added.
LOLC plans to grow First Microfinance’s loan portfolio
It is aiming to increase the microlender’s outstanding portfolio to 1.4 billion Egyptian Pounds from a current 190 million Egyptian pounds over the next three years, Kamal El Din told us. It also wants to expand the company’s branch count here by more than 10 times to reach 100 over the next two years, he said. First Microfinance will retain its name, he noted.
Who’s who?
First Microfinance is a microlender established in 2005 by nonprofit Aga Khan Development Network’s microfinance agency. It operates nine branches across Egypt, with a majority of its clients residing in rural areas. The company is focused on development lending, with 50% of its portfolio allocated to livestock and fishing loans. SME finance makes up another 15% of its portfolio.
LOLC Group is a Sri Lankan conglomerate listed on the Colombo Stock Exchange. It owns stakes in financial services companies in Africa and Asia, and was the third-largest listed company in Sri Lanka by revenue in 2021.
