In Egypt, lending apps augment cash-strapped ladies business people

  • Egypt's businesswomen face higher microlending prices
  • To manage, numerous move to online loan groups
  • Unique apps offering lifeline in pandemic

CAIRO, Dec 30 (Thomson Reuters Foundation) - Nagat Mohamed was at serious straits. After selling at her clothing store in Egypt's Nile Delta plummeted, she took away that loan from the microfinance providers to help keep the company going – but didn't make sufficient to pay that back either.

The 43-year-old entrepreneur turned to a traditional money-lending system known as a 'gameya' - revived with a 21st-century twist as an app to escape default.

" It is a lifesaver that is real" Mohamed told the Thomson Reuters Foundation over the telephone.

"we could not sleep due to the debts, but finding this application stored me personally and my kids."

A gameya is a kind of community discount pool that also functions as being a peer-to-peer loan system.

People deposit a set, equal amount of cash in to a joint cooking pot every month. At the conclusion of every month, one individual are awarded the amount that is full everybody else has already established their change.

While gameyas are long organised informally and offline, they're now on offer through apps in a technology change that are revolutionising funding for Egypt's cash-strapped feminine business owners.

One in five Egyptian employees is females, in line with the globe Bank, several of whom operate their small enterprises or home-based initiatives.

That means it is difficult to bring a loan from banking institutions, which need documents demonstrating a set ownership or salary of a store. Read more