Liberia - Technical Assistance for Access Bank


Project Summary

Approval Date 05 Nov 2008
Signature Date 05 Nov 2008
Planned Completion Date 30 Jun 2012
Last Disbursement Planned Date 30 Dec 2013
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 651,856.49
Status Completion

Project General Description

The proposed project is an Equity investment of USD 0.9 million in the share capital of Access Bank Liberia (ABL) as well as a FAPA grant for USD 1 million for Technical Assistance (TA). Access Bank Liberia (ABL) will be established as a greenfield microfinance bank to provide financial services to the low-income population of Liberia. ABL will initially focus on serving the major urban and semi-urban areas. However, given the transportation challenges and the fragile political situation in Liberia, the branch roll-out plan for the first 5 years of operations will focus on Monrovia and the neighboring cities of Buchanan, Grand Bassa, Bong, and Nimba. Within 5 years, ABL is projected to have expanded to 12 branches; with a workforce of about 400 people, an active client base of around 27,000, and total assets of USD 38 million. This investment in a greenfield microfinance bank supports Liberia’s national development strategy and is well aligned to the joint interim country strategy of the Bank Group and World Bank, which emphasizes support toward improving the living conditions of the vulnerable population groups in Liberia. For the first 5 years of operation, ABL will benefit from a comprehensive TA and management program provided by LFS. The estimated total cost of the capacity-building program is USD 5.1 million. Through the Fund for African Private Sector Assistance (FAPA), the ADB will provide USD 1.0 million towards the cost of TA during ABL’s start-up phase. The Bank’s contribution will be used to support about 20-30% of the cost of training staff and setting up the management information systems (MIS) and will be linked to specific performance targets by the TA provider.

Project Objectives

The project will jump start the provision of microfinance services in Liberia, where access to finance is sparse for the entire population and low-income sectors in particular. The main objectives are to: (i) train and provide technical support to all levels of personnel as necessary to build the necessary capacity to operate and perform banking operations by year 5; (ii) to install software for credit and risk analysis to support the sale of banking products and services.

Beneficiaries

Once fully operational, Access Bank Liberia (ABL) will extend credit access to an estimated 27,000 micro entrepreneurs and will provide savings products to around 81,000 depositors from the poorer segments of the population. ABL is expected to create direct employment for at least 400 local staff and will contribute to the progressive “formalization” of the economy. By creating a new institution able to sustain microfinance on commercial terms and following best practices, the project has the potential to generate a substantial increase in the long-term availability of financial services for the poor.

Participating Organization

Funding
Fund for African Private Sector Assistance
Implementing
Access Bank Liberia

Information

IATI identifier 46002-P-LR-H00-001
Last Update 22 Nov 2020

Export

Contact Details

Email fapa@afdb.org

Geographic Location

Country Liberia
Coordinates Location Name
6.5 -9.5 Liberia