Our Work

Liberia Investing for Business Expansion

Approach

The program had a two-pronged approach to stimulating access to finance for small and medium enterprises, working with both lenders and borrowers to build successful and profitable loan relationships that grow the economy and create jobs.

  • IESC trained banks and financial institutions on best practices and strategies to reduce risk and costs associated with lending in these sectors. We partnered with banks that participated in USAID’s Development Credit Authority loan guarantee program to maximize the benefit of this initiative that puts more capital in the hands of global entrepreneurs.
  • IESC trained and mentored prospective borrowers on business and financial planning, records management, the loan application process, and other skills to make them loan-ready.

The program continued operations, with some small modifications to ensure safety, during the 2014 Ebola virus outbreak. IESC worked with lenders and borrowers to restructure existing loans to businesses that were adversely affected by the health crisis.

Summary

Liberia’s civil war decimated its economy and banks became very risk averse. Combined with low overall financial literacy and business owners not always having the documentation necessary to apply for a loan, small business lending was almost nonexistent. Liberia Investing for Business Expansion supported economic growth in Liberia by improving the small business lending environment across seven sectors: agriculture, renewable energy, infrastructure, construction, general merchandise, transportation, and hospitality.

Program details

  • Funder: USAID
  • Administrator: Volunteers for Economic Growth Alliance
  • Duration: 2012 to 2016
  • Award: $3.4 million

Results

  • $8.5 million in loans approved
  • 1,200 businesses trained on the loan process, business planning, or becoming loan-ready
  • 68% use of the Development Credit Authority guarantee, up from just over 2% when the program started
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