Social Issue

Lebanon has a fairly developed financial sector, but microentrepreneurs are largely neglected by banks, although it is estimated that this market has a great capacity for growth.

However, the development of the microfinance sector has been affected by political conflicts and instability in the region. There are more than 20 institutions that offer microloans, but many operate with sectarian objectives.

Our Response

Al Majmoua, which means “The Group” in Arabic, was founded in 1994 by the NGO Save the Children, offering microloans to women’s groups. In 1997 it parted company and is now the largest microfinance institution in Lebanon, with more than 29 subsidiaries and 69,000 clients, representing more than 50% of the market.

Al Majmoua’s objective is to improve the socioeconomic conditions of low-income people, especially micro-entrepreneurs and women. They offer various credit products, although the majority of their portfolio is made up of individual loans so that micro-businesses can be maintained. 56% of its clients are women. In addition, they have several projects to help refugees (along with NGOs such as the International Rescue Committee), which represent more than 10% of their portfolio.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that Al Majmoua will be able to provide 690 microloans, with the idea of empowering rural communities in Lebanon and refugees due to the migration crisis.