IFC partners with Nigeria’s LAPO to expand microfinance lending in sub-Saharan Africa
To help expand banking services to low-income populations in sub-Saharan Africa, the International Finance Corporation (IFC), has partnered with Nigeria's Lift Above Poverty Organization (LAPO), to expand its microfinance business to some of the continent's less developed economies and fragile states. IFC is a member of the World Bank Group.
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.
"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," Dr. Godwin Ehigiamusoe, Founder and Chief Executive Officer, LAPO said.
"IFC's support to LAPO is part of our commitment to strengthen economic development in sub-Saharan Africa, support micro enterprises, and reduce poverty," said Kevin Njiraini, IFC's Regional Director, Southern Africa and Nigeria. "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."
"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," said Emmanuel Nyirinkindi, IFC's Director for Transaction Advisory Services.
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.