Established in 2009, Tanmeyah Microenterprise Services is one of Egypt’s leading microfinance solutions providers, offering funding solutions to lower-income, small and micro enterprise owners with limited access to capital. Tanmeyah offers innovative financial solutions targeted at governorates where business owners typically lack access to funding from conventional banking channels, with an eye to ensure financial inclusion in Egypt and bolster the development of surrounding communities. Tanmeyah extends credit facilities of up to EGP 50,000 for microenterprises, and between EGP 50,000 and EGP 100,000 for very small businesses. Through its diverse portfolio, Tanmeyah not only complements the CBE’s efforts to promote nationwide financial inclusion, but also empowers a multitude of entrepreneurs in Egypt’s underserved areas to grow their businesses, fueling economic growth and community development. In 2016, EFG Hermes Holding acquired 94% of Tanmeyah, which later increased to 100% owned by EFG Finance Holding in 2021, in efforts to expand its Non-Bank Financial Institutions (NBFI) platform.

Tanmeyah started off 2021 on a high note on the back of its successful implementation of a robust recovery strategy in the previous year. Although the microfinance sector was heavily impacted by the COVID-19 pandemic, the company was able to confidently navigate through the crisis by adopting IFRS9, which predicts risk using a probability of default technique. This prudent risk management approach, along with a dedicated remedial taskforce to mitigate risk in high-risk branches, enabled Tanmeyah to stabilize its risk and focus on its growth, with sales substantially picking up in 1Q21.

During 2021, Tanmeyah proceeded with its branch expansion strategy to broaden its client base and increase its sales. The company inaugurated 16 additional branches, bringing its total to 300 branches in 25 governorates. This expansion was guided by extensive research to determine and serve areas where there is high demand for microfinance. Next to expanding its branch network, Tanmeyah actively worked towards enhancing the efficiency and work environment of its existing branches to complement its corporate image. By the end of 2021, the company had refurbished 25 of its branches, recruited high-caliber talent, and enhanced branch operations. As a result, Tanmeyah’s total number of clients grew to a record 381K in 2021, and the company’s portfolio reached almost EGP 3.7 billion — its highest level since inception.

At present, Tanmeyah’s team comprises of around 5,000 employees, of which over 2,700 are field loan officers. In 2021, the company focused heavily on the development of its people by offering them several learning and development opportunities, including trainings on money laundering and programs for top calibers to obtain various certifications. As such, a key priority for Tanmeyah was to enhance internal communication to ensure higher levels of transparency and accountability. As part of its efforts to improve its technological infrastructure and by means of capitalizing on its data analytics, internal dashboards were rolled out to allow for the live tracking of performance metrics by field staff that were then used to cascade actions from management to front liners easily and swiftly.

Moreover, Tanmeyah launched a new position at the end of 2020 — Governorate Manager — to streamline operations in each governorate, ensure ease of communication, and subsequently hold managers accountable for the performance in their respective governorate. This organizational restructuring started to reap fruit and contributed to a strong comeback in 2021. At present, Tanmeyah has 18 governorate managers, mostly promoted from within the company. The new post resulted in the ascension of several area managers, loan officers, supervisors, and branch managers to higher positions, creating healthy competition between employees and motivating them to outperform. This led the company’s portfolio at risk 30+ to significantly decline to 5.2% at year-end 2021, compared to 7.1% in the previous year.

In line with the government’s digital transformation strategy, Tanmeyah became the first microfinance company in Egypt to acquire an agency banking license from the Central Bank of Egypt (CBE). Following the licensing, the company entered into an agreement with Banque Misr to issue co-branded cards and host the bank’s ATM machines in 250 branches and points of sales starting 2022, enabling clients to easily withdraw and deposit cash. Tanmeyah also completely rolled out its 2020 partnership with “Damen”, a leading e-payment network, to offer payments through their points of sale.

To further diversify its product offering, Tanmeyah employed geo-based marketing to provide unique bespoke products in each governorate based on insights obtained from market research. The company fully rolled out its Women in Business product across all its branches, which extends loans to women seeking to launch or expand their home-based businesses to more branches, raising the portfolio of women empowered.

Driven by increased sales, enhanced margins, and a record portfolio growth, Tanmeyah recorded a revenue increase of around 30% Y-o-Y to EGP 1.4 billion in 2021, up from EGP 1.1 billion recorded at year-end 2020.

In 2022, Tanmeyah aims to further optimize its operations to ensure efficiency and accountability. The company will relocate all its operations to a single centralized headquarters and launch an upgraded and a more robust Core Banking System to enhance operational efficiencies and accommodate for its increased business demand. Tanmeyah will also continue its efforts to enhance its technological capabilities and completely digitize its operations.

Stemming from its firm belief that developing human capital is a long-term investment, Tanmeyah plans to invest EGP 10 million in the development of its human capital. In addition to recruiting high-caliber talent, the company expects to upskill its employees that need to acquire more qualifications by enabling them to join open universities to receive undergraduate degrees. Moreover, the company will launch the Tanmeyah Champions League, an eight-month competition among the governorates for the best performance, in terms of sales, risk and overall efficiency KPIs.

Building on the overwhelming success of the first tranche of its securitization program that delivered a net gain of EGP 24 million, Tanmeyah is assessing the launch of a second tranche in 2022, securing additional funding to diversify its funding lines. However, it is worth noting that Tanmeyah has sufficient existing funding lines to cover its growing operations and is perfectly positioned to sustain its flagship position in the Egyptian market.

The company will also implement its agreement with Banque Misr, issuing the co-branded cards and introducing the Bank’s ATM machines in 250 of its branches and points of sales. Tanmeyah is also exploring wallets and other digital payment methods with key players in the market, in parallel to its existing partnership with Damen and Banque Misr.

Tanmeyah will further diversify its offerings by providing tailor-fit products to the SMEs sector. In addition, Tanmeyah aims to introduce consumer finance services as a new line of business. Following its decision to halt its light vehicle program, the company will develop new segment-based products, including a medical product targeted at doctors and pharmacists.