Access Bank Liberia fights poverty through microfinance
Liberia’s first microfinance bank, Access Bank Liberia (ABL), launched its business activities with one branch in the country’s capital, Monrovia and an initial capital of EUR 4.2 million.Today, partly due to the EIB and other financing partners support, ABL has a team of 270 employees in five operating branches and over 50,000 customers.
In a country where less than 1% of the population has a bank account, Access Bank Liberia concentrates on providing financial services to the country’s “informal” business sector. A wide clientèle of low-income retail shop owners, street vendors, craftsmen and farmers have already benefited from their services in a country not long ago devastated by a civil war. Confident in the positive economic and social benefits generated by such “informal” private sector initiatives, the EIB, alongside AccessHolding of Germany, the African Development Bank and the International Finance Corporation has supported the start-up of Access Bank Liberia.
The EIB also participated in the technical assistance grant to support ABL’s management, training and human resources development plan given the lack of previous microfinance experience in the country.
With over 50,000 customers, the Bank can now boast of over EUR 3,3 million clients' deposits. The loans extended range from EUR 67 to EUR 4800, with an average repayment period of 6 to 12 months. ABL plans to open new branches in Monrovia and in the provinces within the next five years to be able to advance over 45,000 new loans over the next three years, disbursing an estimated EUR 48 million to Africa’s poor.
Access Bank employs mostly young people straight out of any of the accredited universities in the country and not only offers loans but other banking services as well. The Bank has equity of some EUR 7 million.
Access Bank Liberia: Testimonials
Henry Wellington started his cement business 12 years ago, building on the experience and passion transmitted by his grand-father. He was able to finance his studies in accounting at the University of Liberia but could not satisfy the growing demand of his customers.
Addy Nyemah, moved into a more profitable business thanks to a first loan of EUR 245 after having sold soft drinks for a couple of years in Ma-Juah market in Monrovia. Today, her business involves buying, cleaning and refurbishing used bed sheets prior to putting them on the market at a cheaper price than new ones.
EIB: a leading provider of microfinance to Africa
Since 2000, the EIB has supported microfinance institutions, fund providers and other industry stakeholders in Africa but also in Europe and the Mediterranean, addressing specific market failures and promoting financing solutions for micro, small and medium enterprises as well as low income self-employed. In Africa, the bank’s portfolio exceeds EUR 122 million in 12 microfinance operations.
