Established in 1998 with the status of non-governmental organization, Faten obtained its license to operate as a non-banking financial institution in 2014. The microfinance institution initially mainly targeted women entrepreneurs and the most marginalized people, offering group loans to start income-generating activities. It subsequently expanded its social mission and adapted its range of services to include all individual entrepreneurs and SMEs. Faten has become the leading microfinance institution in Palestine, with a network of 35 branches, including 8 in Gaza, and over 26,000 borrowers.
The ARIZ SME “209” guarantee covers 80% of the final loss associated with a portfolio of loans granted to MSMEs in fragile countries, especially in the priority areas of the Ministry for Europe and Foreign Affairs.
This operation has a particularly strong impact on development, as it will allow the microfinance institution to maintain its activity in areas and sectors underserved by formal financial services. The portfolio guarantee focuses on the Gaza Strip, Area C and East Jerusalem in the Palestinian Territories. It also specifically targets the sectors of health, agribusiness/food security, education, crafts, renewable energies, women’s entrepreneurship and transport.
The project is enabling an operation in a fragile country to facilitate access to financing for certain MSME segments located in an area poorly served by the local banking market. It is also supporting a leader in the microfinance sector in Palestine. Faten is already a partner of Proparco and its practices are recognized as first-rate. It will benefit from the support provided by AFD Group to continue its mission to finance MSMEs.
This information is given at the time of signature, without prejudice to any developments in the operation/project
Proparco supports Faten's action in the most fragile areas of the Palestinian TerritoriesPublished on 08 December 2022
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