Afar Micro Finance Institute S.C

The Afar Regional State is one of the places in Ethiopia where all inclusive financial service demand is unmet though most of the Ethiopian Regional States have been successful in establishing Regional Microfinance Institutions that can provide financial access to the financially excluded segment of the society.

In response to this gap the Afar Regional State in collaboration with National Bank of Ethiopia (NBE) and other stakeholders like the Association of Ethiopian Microfinance Institution (AEMFI) and PRIME Project (USAID) established the Afar MFI S.Co in August 2014. Nevertheless, establishing MFI in access deficit areas like Afar state is a major success, yet the challenge ahead is to ensure Sustainability and Outreach of the operations of microfinance service in such regional states.

Sustainability of MFI depends on many factors; among them, providing customer demand oriented financial service, designing lending methodology appropriate to the people’s way of life and beliefs, and delivery of financial product appropriate for the public.

Afar MFI operate in a region where the population is predominantly Muslim. Hence, it is essential to develop Muslim friendly mode of financing which is not common in the Ethiopian MFI Industry.