A tool in the fight against poverty and hunger
Ethiopia is one of the poorest countries in Africa:
- 31% of the population lives on less than $1.25 a day
- 41% of the population is undernourished
- Ethiopia is ranked 173rd in terms of the Human Development Index
Since 1996, a law has governed the microfinance sector. Ethiopia considers access to microfinance as an essential instrument in the fight against poverty and the achievement of the Millennium Development Goals.
BUUSAA GONOFAA in brief
BUUSAA GONOFAA is a microfinance institution created in 1999 by HUNDEE – an Ethiopian NGO that wanted to manage and develop its credit programmes. It operates in the Oromo region, in eastern Ethiopia.
BUUSAA GONOFAA provides efficient and sustainable financial services to the rural and peri-urban populations suffering from poverty. It grants loans and collects savings, targeting women, small farmers and landless young people in particular. While it dedicates 65% of its credits to agriculture, it uses the rest to support small commercial activities for example.
BUUSAA GONOFAA & SOS Faim
As a partner of BUUSAA GONOFAA since 2003, SOS Faim has strengthened the team's capacities and improved the financial services provided to beneficiaries.
Between 2017 and 2021, the partnership has got different objectives:
- Extending the reach of actions to remote rural areas through establishing new rural savings and credit banks: feasibility studies, construction, equipment, training of community leaders, etc.
- Supporting the use of new technologies to facilitate banking operations in rural areas: branchless banking, tablets, mobile banking, etc.
- Developing new financial products and services adapted to the specific needs of agriculture: development of an agricultural financing strategy
- Strengthening the team's knowledge: training, field visits to other microfinance institutions, workshops to exchange experiences, etc.
At the end of 2019, Buusaa Gonofaa counted:
- 114,000 clients (beneficiaries of credit and/or savings services)
- Outstanding loans of €16.8 million
- Outstanding savings of €6.8 million
- 62% of women amongst clients
What prospects ?
Targets to be achieved by 2021:
- Setting up 25 new rural credit savings banks
- Gathering 21,450 members for these banks (20% of whom are women)
- Reaching 101,300 rural borrowers (65% women)