MICROCAPITAL BRIEF: American Refugee Committee (ARC) Sells Liberia-based Liberty Finance to DCRB Investments

The American Refugee Committee (ARC), a US-based nonprofit that provides humanitarian assistance in Africa, Asia, Haiti, and the Middle East, recently announced that it has sold its Liberia-based microfinance institution, Liberty Finance, to DCRB Investments (DCRB), a private investment company based in Liberia. Financial details of the transaction have not been disclosed.

According to comments attributed to DCRB, the aim of the new owners is to empower “…Liberia’s vulnerable populations, including the youth, women, men, and persons with disabilities.”

Liberty employs 33 people and operates seven branches in four counties in Liberia. As of December 31, 2012, the company reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 765,000, a gross loan portfolio of USD 385,000, 3,500 active borrowers, return on assets of -13.5 percent and return on equity of -36.2 percent. ARC established Liberty in 2005 while undertaking humanitarian work following a political crisis in Liberia that ended in 1996. For the year 2013, ARC had a budget of USD 34.3 million.

By A’kos Szebeni, Research Associate

About Liberty Finance (Liberty)

Liberty Finance is a for-profit microfinance institution (MFI) that was created in 2005 and is located in Monrovia, Liberia. The company employs 33 people and provides microcredit products to low-income households in Liberia through a network of seven branches in four counties in the country. As of December 31, 2012, the company reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 765,000, a gross loan portfolio of USD 385,000, 3,500 active borrowers, total deposits of USD 41,500 from 21,900 depositors, return on assets of -13.5 percent and return on equity of -36.2 percent.

About American Refugee Committee (ARC)

Established in 1979, the American Refugee Committee (ARC) is a US-based international nonprofit that provides humanitarian assistance and training in Haiti, Ivory Coast, Kyrgyzstan, Liberia, Rwanda, Sierra Leone, Somalia, Sudan, Thailand and Uganda. ARC provides shelter, clean water and sanitation, health care, skills training, microcredit loans and assistance to refugees and internally displaced persons. For the year 2013, ARC had a budget of USD 34.3 million.

Sources and Additional Information

Mshale article, “ARC sells Microfinance Bank to Liberian Diaspora,” http://mshale.com/2014/03/27/arc-sells-microfinance-bank-liberian-diaspora/

MicroCapital, September 27, 2013, “Central Bank of Liberia Loans $483k to Three Counties in Western Liberia to Promote Financial Inclusion,” https://www.microcapital.org/microcapital-brief-central-bank-of-liberia-loans-483k-to-three-counties-in-western-liberia-to-promote-financial-inclusion/

MicroCapital, July 30, 2013, “Ecobank, Lonestar Cell MTN Launch ‘Mobile Money School Fees Payment Service’ in Liberia,” https://www.microcapital.org/microcapital-brief-ecobank-lonestar-cell-mtn-launch-mobile-money-school-fees-payment-service-in-liberia/

MicroCapital, April 19, 2012, “Liberian Senate President Disburses First Tranche of $18k Microloan Fund,” https://www.microcapital.org/microcapital-brief-liberian-senate-president-disburses-first-tranche-of-18k-microloan-fund/

MicroCapital, January 25, 2012, “Central Bank of Liberia Launches $2.7m Loan Facility For Microfinance Institutions, Backed By United Nations Development Program,” https://www.microcapital.org/microcapital-brief-central-bank-of-liberia-launches-2-7m-loan-facility-for-microfinance-institutions-to-be-implemented-by-afriland-first-bank-backed-by-united-nations-development-program/

MicroCapital, January 27, 2009, “Central Bank of Liberia (CBL) Grants Formal Banking License to Liberia’s First Commercial Microfinance Institution, Access Bank Liberia (ABL); ABL Starts Issuing Loans to the Public,” https://www.microcapital.org/microcapital-story-central-bank-of-liberia-cbl-grants-formal-banking-license-to-liberias-first-commercial-microfinance-institution-access-bank-liberia-abl-abl-starts-issuing-loans-to-the-publ/

MicroCapital Universe Profile: Liberty Finance (Liberty), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Liberty+Finance

MicroCapital Universe Profile: American Refugee Committee (ARC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=American+Refugee+Committee+%28ARC%29

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