Liberia - Technical Assistance to support Access Bank on financial inclusion


Project Summary

Approval Date 26 Jan 2015
Signature Date 06 Aug 2015
Planned Completion Date 31 Dec 2017
Last Disbursement Planned Date 31 Dec 2017
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 327,432.43
Status Completion

Project General Description

The proposed project is in line with the country's priorities and the Bank Group's Joint Interim Strategy for Liberia. It aims to support private sector development by protecting and improving access to finance for Liberian micro, small and medium enterprises (MSMEs) in the aftermath of the Ebola epidemic. In practical terms, the project consists of supporting the establishment of Access Bank Liberia (ABL) as a new microfinance bank to provide financial services to low-income populations in Liberia. The operation consists of an equity investment of US$0.9 million in ABL's capital plus a FAPA grant of US$1 million for technical assistance. ABL will position itself as a full-service bank, targeting micro, small, and medium-size customers. ABL will offer basic loan and savings products to low-income people and micro-entrepreneurs in Liberia. Within 5 years, ABL is expected to open nearly 12 branches, employ about 400 people, realize total assets of US$38 million, and manage around 27,000 active clients. In a high-risk environment, this project is expected to have a significant development impact by building more inclusive, pro-poor financial systems in a fragile state.

Project Objectives

The sectoral objective of the project is to contribute to poverty reduction at the level of poor households and women by strengthening the financial sector. Specifically, the project has two main objectives: (i) to support and expand access to finance for Liberian MSMEs by supporting a reputable financial institution with technical assistance to sustain its continued operation during the Ebola crisis and beyond; and (ii) deepen Liberia's capital markets by supporting the development of new trade finance products to meet the needs of Liberian MSMEs.

Beneficiaries

The main beneficiaries of the project are: shareholders, Access Bank Liberia (ABL) staff, client entrepreneurs, the economically active poor, including women micro-entrepreneurs and poor heads of households, especially women living in urban and rural areas.

Participating Organization

Funding
Fund for African Private Sector Assistance
Implementing
Financial Systems GmBH (LFS)

Information

IATI identifier 46002-P-LR-HB0-001
Last Update 22 Nov 2020

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Contact Details

Email fapa@afdb.org

Geographic Location

Country Liberia