microfinance in Ethiopia
Microfinance Institutions in Ethiopia
Published on: By
Ethiopia’s journey into microfinance began in 1996 with the enactment of Proclamation 40/96, aimed at empowering the underprivileged through financial access. In 1999, the Association of Ethiopian Microfinance Institutions (AEMFI) was established as a non-profit organization to support the sector. Originally focused on information sharing and advocacy, AEMFI’s mission has expanded to encompass training, research, and technical assistance. Today, AEMFI boasts over 50 member institutions providing essential services like credit, savings, and money transfers nationwide, underpinning Ethiopia’s economic development. The listing below includes the 3 most prominent microfinance institutions operating across the country.
ESHET Microfinance Institution S.C.
Eshet Microfinance Institution (EMFI) was established in the year 2000 G.C. in accordance with proclamation number 40/96 and registered again by the amended proclamation number 626/2009 issued for licensing and supervision of microfinancing institutions in Ethiopia. The Institution has secured a business license from the National Bank of Ethiopia and a certificate of registration from both Addis Ababa City Administration and Oromia Region of Trade Industry and Tourism Bureau. The initial capital was Birr 225,000.00.
The establishment of Eshet MFI was initiated by a local NGO, named ERSHA (Enhanced Rural Self-Help Association) that had been providing an integrated rural development program including saving and credit as one of its core development intervention strategies. Thus, ERSHA is the main founder of Eshet MFI while some individuals that are willing to support the development goals of the NGO have been designated to administer the share company. Thus, at the inception, ERSHA and five individuals were registered as founding nominal shareholders. However, currently, the number of nominal shareholders has increased to 20 through the transfer of shares from the founding shareholders. The paid-up capital of Eshet has increased to Birr 10 million as of June 30, 2022.
The establishment of Eshet MFI was initiated by a local NGO, named ERSHA (Enhanced Rural Self-Help Association) that had been providing an integrated rural development program including saving and credit as one of its core development intervention strategies. Thus, ERSHA is the main founder of Eshet MFI while some individuals that are willing to support the development goals of the NGO have been designated to administer the share company. Thus, at the inception, ERSHA and five individuals were registered as founding nominal shareholders. However, currently, the number of nominal shareholders has increased to 20 through the transfer of shares from the founding shareholders. The paid-up capital of Eshet has increased to Birr 10 million as of June 30, 2022.
Head Quarter: Addis Ababa
Phone No: +251-113206451/52, +251-902481762
Fax: +251-113206452
Establishment Date: 09/04/1997
P.O Box: 23923/1000
Website: https://eshetmfi.com/
Debo Microfinance Institution S.C.
Debo Microfinance Institution (DMFI) was established and registered by the National Bank of Ethiopia on August 3, 2017, as a share company, fulfilling the requirements of proclamation No. 626/2009 and the directives of the National Bank of Ethiopia, the authorizing body to license and supervise MFIs in the country.
The institution is a private microfinance company established by 27 shareholders with a paid-up capital of Birr 10,350,000 and licensed by the National Bank of Ethiopia in August 2017. The operation started in February 2018 by opening one branch in Addis Ababa Bole sub-city.
The shareholders of Debo MFI are committed and motivated private investors who put in their resources to provide financial services to targeted clients on a commercial basis.
Debo MFI envisions being a leading microfinance institution in the country, identified with the provision of innovative, efficient, and sustainable financial services to its target market, which are basically small entrepreneurs, farmers, growth-oriented enterprises, and individuals. Debo MFI is expected to provide innovative and sustainable financial services to micro and small enterprises, individuals, and institutions to achieve maximum satisfaction in terms of business and economic well-being.
Debo will mainly have the following types of loan products. These are business loans, agricultural loans, Micro & Small enterprise loans, employee loans, and household loans. The first two loan products are channeled through group lending methodologies, and the remaining other products are delivered through individual lending modalities.
The institution is a private microfinance company established by 27 shareholders with a paid-up capital of Birr 10,350,000 and licensed by the National Bank of Ethiopia in August 2017. The operation started in February 2018 by opening one branch in Addis Ababa Bole sub-city.
The shareholders of Debo MFI are committed and motivated private investors who put in their resources to provide financial services to targeted clients on a commercial basis.
Debo MFI envisions being a leading microfinance institution in the country, identified with the provision of innovative, efficient, and sustainable financial services to its target market, which are basically small entrepreneurs, farmers, growth-oriented enterprises, and individuals. Debo MFI is expected to provide innovative and sustainable financial services to micro and small enterprises, individuals, and institutions to achieve maximum satisfaction in terms of business and economic well-being.
Debo will mainly have the following types of loan products. These are business loans, agricultural loans, Micro & Small enterprise loans, employee loans, and household loans. The first two loan products are channeled through group lending methodologies, and the remaining other products are delivered through individual lending modalities.
Head Quarter: Addis Ababa
Phone No: +251-116721518/19; +251-917823995
Establishment Date: 03/08/2018
P.O Box: 198/1065
Website: https://debomicrofinance.com/
Grand Microfinance Institution S.C.
Grand Microfinance Institution Share Company (Grand MFI) was established in accordance with Proclamation No. 626/2009 of the National Bank of Ethiopia by 366 visionary individual shareholders and one Share Company with paid-up capital of Birr 12,834,000. It is licensed by the National Bank of Ethiopia on October 24, 2019, and registered at the Ministry of Trade on November 1, 2019, with the purpose of providing financial and non-financial services to the active poor and the ‘missing middle income’ urban and rural residents. It started its operation on April 24, 2020, at its first branch named Kera Branch.
Its vision is to be a leading financial institution in Ethiopia that provides excellent financial services to active poor families in order to create benefits for clients, shareholders, employees, and society.
Major Saving Products: Compulsory Saving, Individual Voluntary Saving, Institutional Voluntary Saving, Fixed Time Deposit, Interest-Free Saving, Child and Youth Saving, Women Saving, and Coin Box Saving.
Major Loan Products: Group Microbusiness Loan, Individual Business Loan, SME Loan, Micro Business Loan, Energy/Solar Loan, Union Members Loan, Consumer Loan, Agricultural Loan, Agri-Business Loan, Women Entrepreneur Loan, Fixed Asset Loan, and Short-Term Loan.
Non-financial services: Business, marketing, management, and finance training for clients, Fund management, Technical support, Business advice, and Stakeholders management.
Its vision is to be a leading financial institution in Ethiopia that provides excellent financial services to active poor families in order to create benefits for clients, shareholders, employees, and society.
Major Saving Products: Compulsory Saving, Individual Voluntary Saving, Institutional Voluntary Saving, Fixed Time Deposit, Interest-Free Saving, Child and Youth Saving, Women Saving, and Coin Box Saving.
Major Loan Products: Group Microbusiness Loan, Individual Business Loan, SME Loan, Micro Business Loan, Energy/Solar Loan, Union Members Loan, Consumer Loan, Agricultural Loan, Agri-Business Loan, Women Entrepreneur Loan, Fixed Asset Loan, and Short-Term Loan.
Non-financial services: Business, marketing, management, and finance training for clients, Fund management, Technical support, Business advice, and Stakeholders management.
Head Quarter: Addis Ababa
Phone No: +251-911133287/948852760/11470510
Fax: +251-114705103
Establishment Date: 24/10/2019
Website: https: https://grandmfi.com
Find the complete list here
