Afar Micro Finance Institute S.C

The Afar Micro Finance Institution S.Co.

1.  1.  Introduction

The Afar MFI was registered on January31,2011 by National Bank of Ethiopia according to proclamation No.626/2009, This guideline is intended to provide operational policies and procedures regarding imterest free mode of financing .

 

1.2. Vision ,Mission and objective

 

1.2.1 Vision

Afar Micro Finance Institution strives to see a reduced level of poverty and increased level of consumption and ultimately wealth creation in the region through provision of efficient, affordable and sustainable micro finance services.

  

  1.2.2 Mission

Afar MFI makes its effort to address the financial needs of the rural pastoralists and semi-pastoralists and urban poor people, especially women so as to engage them-selves in income generating activities on sustainable basis.

 

1.3General Objectives of the Afar MFI

To offer credit and savings services to the active poor both in rural & urban areas;

To support self-employment and income generating activities;

To promote rural and urban micro and small enterprises;

To improve the culture of savings by the wider public.

Specific objectives of the Afar MFI

Subject to the conditions set under the Licensing and Supervision of Micro Financing Institutions Proclamation No. 626/2009, the major business activities of the Company are shown as under:

a)     To accept both voluntary and compulsory savings as well as demand and time deposits;

b)     To extend credit to rural and urban farmers and people engaged in other similar activities as wellas micro andsmall-scale rural and urban entrepreneurs;

c)       To draw and accept drafts payable within Ethiopia;

d)     To provide micro-insurance services for the vulnerable as prescribed by the directives to be issued by the National Bank;

e)     To purchase income-generating financial instruments such as treasurybills and other short term instruments as the National Bank may determine as appropriate;

f)     To acquire, maintain and transfer any movable and immovable property including premises for carrying out its business;

g)     To support income generating projects of urban and rural micro and small scale operators;

h)     To render managerial, marketing, technical and administrative advice to customers and assisting them to obtainservices in those fields;

i)    To manage funds for micro and small scale businesses;

j)    To provide local money transfer services;

k)     To provide financial leasing services to peasant farmers, micro and small scale urban and rural entrepreneurs in accordance with the Capital Goods Leasing Business Proclamation No. 103/1998; and,

    To be engaged in other activities as specified by directives of the National Bank from time to time.