Chambers of Commerce, along with its Islamic counterpart, launches microfinance workshops

The General Federation of Chambers of Commerce, in collaboration with the Federation of Islamic Chambers of Commerce, Industry and Agriculture, has launched a series of workshops to discuss microfinance to support sustainable development in African countries and the least developed member states.

And the development of a financing model to support the economies of member states and alleviate poverty, especially in light of the inflationary waves facing the world economy and the world economy not recovering from the negative effects of the Corona pandemic .

The workshops were opened by Eng. Ibrahim El-Araby, President of the General Federation of Chambers of Commerce and President of the African Union of Chambers of Commerce, Industry and Agriculture, Sheikh Abdullah Saleh Kamel, President of the Islamic Chamber of Commerce, Industry and Agriculture, and Tariq Ali Bakheet, Assistant Secretary-General for Humanitarian, Cultural and Social Affairs of the Organization for Islamic Cooperation and Ahmed Bab Ould Ala, President of the Federation of Chambers of Commerce and Industry of the Five Sahel Group, and President of the Mauritanian Chamber of Commerce, Industry and Agriculture

The first session of the regional workshops, entitled “Microfinance and the Transition to Sustainability”, was held – both personally and by default – in partnership at the headquarters of the General Federation of Egyptian Chambers of Commerce in Cairo.

Eng. Ibrahim El-Araby, President of the General Federation of Commerce and President of the Federation of African Chambers of Commerce, Industry and Agriculture, said in his opening speech that taking the initiative and starting these workshops is a serious and effective step represents the path to sustainable economic development for the poorest and least developed countries that are members of the Federation of Islamic Chambers.

The Federation of Egyptian Chambers of Commerce looks forward to achieving the maximum levels of growth and prosperity in the economic, commercial and investment fields, and to work to make the best use of the great economic potential and pillars enjoyed by member states in all areas.

In a speech delivered on his behalf by Alaa Ezz, Secretary General of the Federation of Chambers of Commerce, Al-Arabi added that we all agree on the importance and role of the Chambers of Commerce, Industry and Agriculture in supporting the economy, which increases production rates, the creation of investment opportunities and the use of manpower.

The initiative of the Islamic Chamber of Commerce, Industry and Agriculture comes in the organization of this workshop under the title “Microfinance and Transition to Sustainability” in joint collaboration with the Federation of Egyptian Chambers of Commerce to be a core for finding an effective mechanism to increase employment opportunities and discuss ways to support small and micro businesses to support young people and owners of ideas constructively.

In addition to providing funding opportunities that contribute to the achievement of the desired goals for sustainable development and the provision of a variety of packages and financial services for young people to start or develop their businesses and help plan for a better future and get involved touch society with productive activities

Microfinance comes as an effective tool in combating unemployment, creating jobs, improving the business environment and improving incomes and living standards to serve the goals of countries for development, support the youth, improve individuals’ abilities and develop their skills.

Microfinance is seen as an important way to encourage the participation of low-income groups in economic activities Access to various means of financing for individuals and owners of micro-enterprises contributes to reducing unemployment and helping to improve families’ incomes and community development .

This workshop is in line with the initiatives pursued by the wise Egyptian political leadership of President Abdel Fattah El-Sisi to support the youth, fight unemployment and provide a decent life for the whole society, as well as in line with the initiatives previously issued by the Central Bank of Egypt in this context to encourage banks to provide microfinance, as he has launched an initiative that deals with ways to stimulate this type of financing, which motivates banks to share strongly to undertake the development of the microfinance industry and service in all parts and towns of Egypt,

And the microfinance activity in the Arab Republic of Egypt benefits about 3.5 million beneficiaries, with financing balances of about 29 billion Egyptian pounds in all commercial, industrial, agricultural and service activities.

He pointed out that there is no doubt that the results of this workshop will have the greatest impact in achieving our goals and creating opportunities for joint collaboration and exchange of experiences at all levels, the provision of jobs and the finding effective mechanisms for funding, especially the least developed member state.

It also calls for the strengthening of activities aimed at achieving economic and social development in the countries of the Organization of Islamic Cooperation, and contributing to international efforts aimed at supporting micro-enterprise financing programs that aims to alleviate poverty in the least developed member states and to encourage, develop and develop. small sources of income. It is well known that microfinance is one of the basic tools and an important source of poverty alleviation and encouragement of sustainable sources of income in small projects.

He added that microfinance is one of the development strategies that must be implemented and supported to achieve the ambitious goal of poverty alleviation and income sustainability in the world. Although microfinance is one of the most powerful tools for combating poverty, this sector still faces several real problems. Despite the high repayment rates, the operating costs of microcredit institutions remain much higher than their traditional commercial counterparts.

These institutions often charge very high interest rates to cover the high administrative costs of the microloans they provide to the poor. This reality creates tension between the continuity of the microcredit sector and its beneficiaries. It also creates the problem of regulating microcredit institutions. In line with this reality.

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