Messrs United Cement Company of Nigeria (UNICEM), an indirect subsidiary of the French construction materials company Lafarge, and Agence Française de Développement (AFD), the international development department of the French government, reportedly have collaborated to loan NGN 1 billion (USD 5 million) to Lift Above Poverty Organization (LAPO), a Nigerian microfinance institution (MFI), for funding the construction of 5,000 new housing units in the country. Nigeria suffers from a housing deficit of approximately 17 million units.
Under the terms of the program, prospective homeowners will be required to supply a minimum of 10 percent of the cost of construction and provide two guarantors for the transaction. Additionally, they must own property to develop in the city of Calabar, Cross River State.
As of June 2014, LAPO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 208 million, a gross loan portfolio of USD 176 million, return on assets (ROA) of 10.5 percent, return on equity (ROE) of 46.9 percent and approximately 721,000 borrowers. LAPO also reported USD 107 million in deposits from approximately 1.2 million depositors as of the same month. As of June 30, 2013, AFD had total assets of EUR 24.7 billion (USD 33.9 billion).
By Makai McClintock, Research Associate
About Agence Francaise de Developpement (AFD):
Established in 1941, Agence Française de Développement (AFD) is a bilateral development finance institution whose public mandate is to finance development according to the overseas development assistance policies of the French government. AFD finances development projects in approximately 90 countries across four continents. As of June 30, 2013, AFD had total assets of EUR 24.7 billion (USD 33.9 billion).
About Lift Above Poverty Organization (LAPO):
Lift Above Poverty Organization (LAPO), established in 1987 in Nigeria, is a microfinance institution (MFI) that provides savings, investment and loan products intended to address the needs of low-income households. The majority of LAPO’s clients are engaged in micro-, small and medium-sized enterprise (MSME). As of June 2014, LAPO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 208 million, a gross loan portfolio of USD 176 million, return on assets (ROA) of 10.5 percent, return on equity (ROE) of 46.9 percent and approximately 721,000 borrowers. LAPO also reported USD 107 million in deposits from approximately 1.2 million depositors as of the same month.
Sources and Additional Resources:
The Guardian Article: “Cement firm partners microfinance bank on 5,000 new homes quantity,” http://www.ngrguardiannews.com/2015/05/cement-firm-partners-microfinance-bank-on-5000-new-homes-quantity/
MicroCapital Universe Profile: Agence Francaise de Developpement (AFD)
MicroCapital Universe Profile: Lift Above Poverty Organization (LAPO)
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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