Grameen Foundation : Resource Center : Print Newsletter : Fall 2007 : $1 Million for LAPO
$1 Million for Nigeria's LAPO
The Lift Above Poverty Organization in Nigeria recently became the first MFI in Sub-Saharan Africa to benefit from Grameen Foundation’s innovative Growth Guarantee program. With a $500,000 guarantee from Grameen Foundation, LAPO secured a $1 million loan from a subsidiary of Citibank, Nigeria International Bank (NIB), that propels LAPO forward to reach its goal of serving 225,000 clients by 2008. The clients are women like Roseline Adamu, who runs a grocery store and has taken five loans from LAPO. “LAPO has raised me from zero level to a position of self-sustenance and economic independence,” she proudly remarks. The guarantee to LAPO marks the first transaction between a Nigerian MFI and NIB/Citibank, and it is also LAPO's first leveraged commercial bank transaction. Previously, commercial banks were only willing to loan to MFIs if 100 percent backed by a guarantee. This development shows significant progress toward viewing microfinance as a very stable investment and increasing the availability of growth capital to MFIs.
HOW CAN YOU PARTICIPATE IN GROWTH GUARANTEES?
Participation in Growth Guarantees presents an opportunity for individuals or institutions
in the U.S. to make a significant impact on the lives of microfinance borrowers in the poorest regions of the world. Donor-guarantors, or participants who share GF’s vision that microfinance is a scaleable solution to global poverty, provide a guarantee to Citigroup. The donor-guarantors do not part with their money, but enable their assets to be put to valuable use as guarantees. For example, by providing a guarantee commitment of $2 million to the Growth Guarantees, a donor-guarantor could generate more than $8 million in direct financing for microfinance, or the equivalent of loans to approximately 50,000 women and their families. If you or your institution would like to commit assets of at least $1 million to the Growth Guarantees program, please contact Camilla Nestor at cnestor@grameenfoundation.org.
Grameen Foundation : Resource Center : Print Newsletter : Fall 2007 : $1 Million for LAPO
Grameen Foundation uses microfinance and innovative technology to fight global poverty and bring opportunities to the world's poorest people. With tiny loans and financial services, we help the poor, mostly women, start businesses and escape poverty. Our global network of 55 microfinance institution (MFI) partners including our Growth Guarantee partners has touched more than 34 million people in 24 countries. In addition, we introduced and now sustain technology initiatives (Mifos and Village Phone) in Cameroon, Kenya, Rwanda, and Uganda, bringing our total country outreach to 28.
+1-202-628-3560 www.grameenfoundation.org
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