By Akanimo Sampson
A member of the World Bank Group, International Finance Corporation (IFC), has announced a partnership with the Lift Above Poverty Organisation (LAPO) to help expand banking services to low-income populations in sub-Saharan Africa.
LAPO is seeking to expand its microfinance business to some of the continent’s less developed economies and fragile states.
Under the partnership, IFC will conduct market analysis of several African countries, including fragile states, and provide advisory support to LAPO to help it expand its microfinance business beyond Nigeria and Sierra Leone, where it currently operates with more than 495 branches, serving over 800,000 customers.
LAPO’s planned microfinance expansion will help boost financial inclusion and increase lending to individuals and micro and small businesses in the region, stimulating economic activity. The expansion will specifically target women borrowers, low-income earners, and those in rural areas.
Founder and Chief Executive Officer, LAPO, Dr. Godwin Ehigiamusoe, said “through IFC’s advisory support, we will expand our capacity to build greater financial inclusion among a rural, low-income client base in sub-Saharan Africa. IFC’s advisory will also help us deepen our efforts to reach more women-owned micro enterprises, which currently represent about 70 percent of clients in our existing microfinance operations.”
For IFC’s Regional Director, Southern Africa and Nigeria, Kevin Njiraini,”IFC’s support to LAPO is part of our commitment to strengthen economic development in sub-Saharan Africa, support micro enterprises, and reduce poverty.
“This project marks a significant milestone in the development of microfinance in Africa, particularly as countries continue to suffer the severe effects of the COVID-19 pandemic.”
On his part, IFC’s Director for Transaction Advisory Services, Emmanuel Nyirinkindi,
said “LAPO’s existing microfinance businesses target women and the financially excluded. IFC’s support to LAPO will extend to more women in the region and contribute to the development of economic opportunities.”
Supporting financial inclusion is an important part of IFC’s strategy in Africa to boost private sector growth and job creation. Individuals and businesses, in fragile and conflict-affected situations especially, struggle to access loans and other banking services because of underdeveloped domestic financial sectors.
IFC is the largest global development institution focused on the private sector in emerging markets. It work in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.
In fiscal year 2020, IFC invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. LAPO was however, established as a non-for-profit organisation (NGO) in 1987 in Benin City, Nigeria and over time has diversified into a variety of subsidiaries that are for-profit and non-for-profit. LAPO main areas of operation are: (i) microfinance; (ii) micro leasing; (iii) health/medical Services; (iv) micro insurance; (v) resource/training Institute; and (vi) social empowerment. It currently operates two for-profit Microfinance Banks in Nigeria and Sierra Leone with 495 branches and over 800k customers.
