Harbu’s work is internationally recognized Harbu Microfinance Institution, Ethiopia : Winner of the 3rd European Microfinance Award 2011
« Convinced that microfinance is an important tool for poverty alleviation, the Ministry of Foreign Affairs – Development Cooperation Directorate, announced the creation of the European Microfinance Award in 2005 in order to highlight and stimulate breakthroughs in the field of microfinance.
Our partners • Ethiopian partners
HARBU MICRO FINANCE INSTITUTIONS / CO
• International partners
The 3rd European Microfinance Award on “value chain finance” focuses on stimulating and promoting inclusive financial schemes that contribute to the evolution of value chains in developing countries. The award involved a rigorous three phase selection process: in the first phase a Selection Committee from the European Microfinance Platform produced a short list of ten candidates. From this list, three Award finalists were selected by the Luxembourg Round Table on Microfinance. The winner was then chosen by a High Jury and was unveiled as Harbu Microfinance Institution, Ethiopia. Harbu’s initiative for the 3rd European Microfinance Award, involves financing the soybean value chain as a response to market demand generated by a shortage of cow milk in Jimma city, zone of Oromia regional state. The initiative started with 240 farmers and it was built on the basis of strengthening horizontal linkages between farmer marketing organisations and vertical linkages with retailers and women’s associations in charge of processing and producing soya milk. Through their project, Harbu have created market opportunities for producer farmers and employment opportunities for urban women and youth. Simultaneously, it contributed to the improvement in the nutritional constituents of families, especially children and women. » http://award.lrtm.lu/
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HARBU MICRO FINANCE INSTITUTIONS / CO
HARBU MICRO FINANCE INSTITUTIONS / CO
Tel : + 251 011 6 18 55 10 Fax : + 251 011 6 61 00 16 harbumfi@ethionet.et P.O Box : 13460 Addis Ababa, Ethiopia
Tel : + 251 011 6 18 55 10 Fax : + 251 011 6 61 00 16 harbumfi@ethionet.et P.O Box : 13460 Addis Ababa, Ethiopia
Harbu’s General background Harbu Micro Finance Institution (HMFI) is a NonGovernmental Organization (NGO) created in February 2005 to fullfill the requirements and the directives of the National Bank of Ethiopia, the authorized body to licence and supervise micro finance projects in Ethiopia. Trough credits, HMFI helps very poor people in both rural and urban areas to start, establish, support or expand small and selfsustainable business. HMFI operates in the three biggest Regional States known as Amhara, Oromia and the South, and covers twenty-four Districts. Nowadays, 17 566 clients are accessing to services from Harbu. 76% of these clients are women, when it is less than 40% in the existing industry standard.
Our Mission is To take part and to play an important role in the struggle against poverty eradication and food insecurity through sustainable economic development by providing financial and nonfinancial services to stimulate individual, group and community based initatives for self-reliance and fair economic development.
Target groups • Women / Youths • Farmers / Pastoralist Communities • Farmers Marketing Organizations / Co-operatives • People with disabilities • Civil servants, teachers & Health Professionals • Micro & Small Entreprises / Self-Help Groups
Our Objectives are • To develop and use pro-poor loan products • To deliver financial services and entrepreneurial skill training for rural and urban poor mothers • To enhance the engagement of rural landless youths to improve their livelyhood through feasible rural orientated incomes • To avail flexible financial services in the promotion of Market Orientated Farmers Organization in the value chain • To ensure that all eligible household members access to financial services • To take care of children through economic empowerment of mothers by providing financial services • To Provide financial services for the selfemployement of female headed households • To Help increasing agricultural productivity and marketing by taking part in the value chain facilitation by shouldering the role of financial services providers • To Reduce the exploitation of poor population by informal money lenders
Products and services we provide • Loan products : It includes agricultural, micro and small business loan products such as : + Rural agricultural loan : loan for cattle rearing, dairy production, small animals rearing, fatting and horticultural crops production ; + Petty trade : loan for trading grain, spices, vegetables, fruits, honey, butter and small scale entreprises and services like woodwork, shoe making, hair dress, barber, restaurants and local beverage making ; + Urban agricultural loan : loan for producing and marketing agricultural products, dairy and fatting activities ; + Lease financing : promoting agro-processing and emergence of small and micro through a value chain approach and a rural-urban linkage. • Saving product : Harbu provides both compulsory and voluntary savings to individuals and insitutions. Compulsory savings are mobilized from the institution’s loan clientele in accordance with the contractual agreement between the two parties. This includes personal and group tax savings. Voluntary savings are based on the willingness of clients to save. For the last calendar year, voluntary saving represents about 50% more than the compulsory one. • Insurance product : in the case of the natural death of a client, the loan from Harbu is ensured through 1% of the loan paid as insurance premium upon loan disbursement. This protects clients from the possible claim of Harbu into the deasesed asset and can remain in the ownership of the family’s living members.