- Active: Active
- Region: Africa
- Country: Liberia
- Sector: Microfinance
- Year: 2017
- Domicile: Liberia
- Instrument: Loan
- Commitment (MNOK) as of 30.09.2018: 16.3
- Original Commitment (MNOK): 16.3
Diaconia MDI is a Microfinance Deposit taking Institution operating in Liberia. The Institution is owned 99% by Alliance Microfinance AS (AMAS) which is a fully owned subsidiary of the Mission Alliance in Oslo (Misjonsalliansen).
AMAS is a well-known Norwegian institution with a strong social mission and long experience in establishing and operating MFIs in challenging environments.
Increased access to capital for poor people
The reason for being in Liberia is the high poverty level and the lack of access to financial credit for poor and underprivileged people.
Norfund’s loan will enable Diaconia MDI to promote access to financial services for low income households in this poor post conflict country with a very low financial services penetration. The loan is additional and catalytic as Diaconia MDI has no other external funders so far, and this loan is expected to help them pursuing additional lenders to finance their growth.
Diaconia MDI was registered in Liberia in December 2012 as a limited liability company and had its first full year of operations in 2016. The demand for Diaconia MDI’s products is strong. They offer the lowest interest rates among the MFIs, no fees, free life and disability insurance and free financial literacy training. Due to the low educational level in the country and the lack of skilled labour, Diaconia MDI offers trainee programs, competitive salaries, regular training and gives opportunities to grow within the organization.
Currently, Diaconia has only two physical locations in Monrovia, the capital of Liberia. However, the objective is to grow viably through consistent customer service and strict requirements, securing a low portfolio at high risk.