PRESS RELEASE: Grameen Foundation Secures Over $5m for Ethiopian Microbank Amhara Credit and Savings Institution (ACSI)

Source: Grameen Foundation.

Original press release here.

WASHINGTON, May 5 – Grameen Foundation has announced its first Growth Guarantee placement in East Africa which has mobilized USD 5.3 million for Amhara Credit and Savings Institution (ACSI). Recognized by Forbes magazine as one of the top ten microfinance institutions (MFIs) globally, ACSI is the largest MFI in Ethiopia and one of the largest in sub-Saharan Africa. The financing from the Commercial Bank of Ethiopia, the leading local commercial bank, was facilitated by a USD 2.5 million guarantee from Grameen Foundation’s Growth Guarantee Program. This landmark transaction is the largest loan from a commercial bank to an Ethiopian MFI and is also the largest Grameen Foundation Growth Guarantee placement in sub-Saharan Africa.

“ACSI’s success in building a sustainable organization without sacrificing its commitment to reaching the poorest in Ethiopia’s rural and urban communities is a testament to the strength and vision of its leadership,” said Alex Counts, president of Grameen Foundation. A Grameen Foundation partner since 2007, ACSI is one of the few MFIs operating in the rural areas of Amhara, one of the poorest regions of Ethiopia. It currently serves more than 800,000 clients (borrowers and savers) and, by 2012, intends to reach more than 1.9 million borrowers and savers combined.

“Private banks in Ethiopia have been reluctant to lend to sectors where they have little or no lending experience, leaving the microfinance sector’s need for financing underserved,” said Mekonnen Yelewmwessen, CEO of ACSI. “Grameen Foundation’s Growth Guarantees program provides a true risk-sharing that encourages local institutions to take an active role in funding projects in new or underdeveloped areas.”

Launched in late 2005, the Grameen Foundation Growth Guarantee program is one of the microfinance industry’s largest financing efforts dedicated to ensuring adequate liquidity for fast-growing MFIs exclusively in their local currencies. To date, it has generated USD 125 million in financing for microfinance institutions in 12 countries through the placement of USD 25 million in guarantees.

Grameen Foundation is a global non-profit organization that combines microfinance, technology, and innovation to empower the world’s poorest people to escape poverty. It has established a global network of partners in 27 countries that has impacted an estimated 31 million lives in Asia, Africa, the Americas, and the Middle East. Grameen Foundation was founded by Alex Counts, who began his work in microfinance with Grameen Bank founder, and 2006 Nobel Peace Prize Laureate, Dr. Muhammad Yunus. Dr. Yunus is a founding and current member of Grameen Foundation’s board of directors.

Founded in 1995, Amhara Credit and Savings Institution (ACSI) is Ethiopia’s largest microfinance institution and operates in that country’s poorest region, serving a largely rural population. ACSI provides loans and other financial services including savings deposits and insurance and also integrates its activities with the local government and NGOs working towards achieving food security and poverty alleviation. It is the 2007 recipient of the Grameen Foundation Excellence in Microfinance award.

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