In an effort to support post-conflict recovery in Liberia, the African Development Bank (ADB) approved an equity investment of USD 900,000 in Access Bank Liberia (ABL) and a USD 1 million grant from the ADB-managed Fund for African Private Sector Assistance (FAPA) to be used in the development of micro-enterprises in the region.
Access Bank Liberia (ABL) is to be established as a greenfield microfinance bank, providing microfinance services to the region’s poor population, with plans to expand to 12 branches with a total of 400 employees within the next five years. According to Tim Turner, Private Sector Department Director of the African Development Bank, ABL aims to have an active client base of 27,000 and total assets of USD 38 million by 2013. ABL plans to mobilize resources through client savings to be used as their major source of funding.
The two primary sponsors of Access Bank Liberia are Access Holding AG, a Berlin-based commercial microfinance holding company who will provide the majority of the seed capital and LFS Financial Systems, a German financial consulting and management company specializing in microfinance and small business development. LFS Financial Systems will manage Access Bank Liberia’s microfinance projects and provide technical assistance.
Access Holding will initially own 52 percent equity in Access Bank Liberia, with the African Development Bank’s USD 900,000 investment giving it an approximate 15 percent equity share. The European Investment Bank (EIB) will also hold a 15 percent equity share and the World Bank’s International Finance Corporation’s (IFC) investment will give it an 18 percent share.
Francis T. Karpech, Executive Director of Liberia at the African Development Bank stated that Access Bank Liberia will focus on creating jobs and sustainable economic growth by supporting the establishment of micro, small and medium enterprises in Liberia where access to financial services is sparse.
The African Development Bank was established in 1964 as a regional multilateral development bank to support economic and social development in the African region through loans, equity investments and technical assistance. Based out of Abidjan, Côte d’Ivoire, its shareholders include 53 African countries and 24 non-African countries from Asia, Europe, North America and Latin America.
By Melissa Duscha
Additional Resources:
African Development Bank (ADB)
The European Investment Bank (EIB)
International Finance Corporation’s (IFC)
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