Our Work

LIBERIA - LEAP

Country:  LIBERIA

Project Title:  LEAP

Project Designation:  1104

The Need:

The primary reason for beginning microfinance work in Liberia was to serve the financial needs of the Liberian poor both during and after the civil war.  World Relief began the Local Enterprise Assistance Project (LEAP) in 1994 but has had to rebuild it on two occasions following new rounds of civil conflict.  LEAP is locally registered as an independent non-governmental organization (NGO) microfinance institution (MFI) with four stakeholders:  the local NGO - Association of Evangelicals of Liberia, World Relief Canada, World Relief US, and World Hope International.

LEAP MFI is the most experienced microfinance provider in the Liberian context having survived multiple rounds of civil war.  For governance it has a stakeholder assembly and local Board, including WRC.  It has 3,175 clients (83% women), PAR of 5% and OTR of 95%.  The plan for 2007 to 2010 was to support LEAP MFI to expand microfinance services to the poor, while at the same time moving to institutional sustainability as a contribution to longer-term poverty reduction.  Institutional development will include governance, management, financial and HR enhancement, while increasing the number of active clients served to 10,000 and maintaining a strong loan portfolio.

WRC’S Planned Response for 2007 to 2010:

With the apparent peace in Liberia, the plan during the program period of 2007-2010 is to provide support to expand microfinance services to the poor outside Monrovia so as to contribute to economic rebuilding of rural areas which were devastated by 14 years of civil war, while at the same time moving LEAP Microfinance Institution (MFI) towards institutional sustainability as a contribution to longer-term poverty reduction in Liberia. LEAP uses a method known as the “village banking model” for all new clients, and then graduates some clients to a more self-directed method known as “solidarity groups” as their businesses mature. This allows for larger loans and more flexibility. By mid-2001, LEAP was serving more than 5,000 clients, with an average loan size of $87, and nearly all of the clients were women. The need for access to financial services for post war Liberians is so crucial that WRCanada has joined with several other International NGOs and committed to supporting LEAP’s next phase of growth. The plan for 2007-2010 is to support LEAP MFI to expand microfinance services to the poor, while at the same time moving to institutional sustainability as a contribution to longer-term poverty reduction. Institutional development will include governance, management, financial and HR enhancement, while increasing the number of active clients served to 10,000 and maintaining a strong loan portfolio.

Recent successes:

As of last reporting from the field – March 2009

1. Active borrowers increased from 9,929 to 12,978 - 94% are women.

2. 12,978 clients have increased awareness and skills on credit management, business practices, gender and primary health.

3. 12,978 active borrowers have applied micro-loans to their business.12,978  clients are saving for investment.

4. LEAP is trying to open one additional new branch in LOFA County to the already seven branches that are established, making it eight branches in total.

Expected Impacts:

Contribution to poverty reduction and enhanced livelihoods of poor communities in Liberia through improved household income and well-being, and establishment of a sustainable MFI providing microfinance services.  LEAP is offering Liberians credit to establish and develop businesses enterprises for hope, self-esteem, human dignity, and for a stake in the peace and stability of Liberia.

WRC's Planned Response for 2010 to 2015:

The plan for 2010 - 2015 is to support LEAP MFI to expand microfinance services to the poor, while at the same time increasing their sustainability as a contribution to longer-term poverty reduction.  Institutional development will include technical and governance support, board and staff training in technical, financial and human resource management, and updated MIS, while increasing the number of active clients served to over 24,000 and maintaining a strong loan portfolio.

1.  Active Clients [>90% women] increased from 15,000 to 22,000.

2.  22,000 clients have increased awareness and skills on credit/business migmt and various social topics.

3.  22,000 Active Borrowers have applied microloans to their businesses.

4.  MFI assessment/action plan in place.  Regular review, monitoring and advisory visit conducted every 0-12 months with adjustments to planning as needed.

5.  (From trainings, advisory visits, forums) increased MFI staff awareness, technical and management skills, along with better system capacity and effectiveness (incl. 45 field staff trained in group formation mgmt; 60 support staff trained in credit, financial, HR and supervision mgmt; enhanced policies, and MIS.

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