Harbu Microfinance Institution Share Company (Harbu) of Ethiopia was recently presented the third annual “European Microfinance Award” by Maria Teresa, the Grand Duchess of Luxembourg, on behalf of the Luxembourg Round Table on Microfinance, a government organization established to catalyze interactions between microfinance institutions (MFIs) and financial institutions in Luxembourg, at the European Investment Bank (EIB) in Luxembourg.
The honor, awarded every two years by the Luxembourg Round Table on Microfinance, includes a prize of EUR 100,000 (USD 131,000). This year’s winner, Harbu, is an MFI that assists farmers in the cultivation and processing of soybeans. The organization currently supports 220 farmers, many of whom are women. Harbu’s CEO, Mr Tesfaye Befekadu, indicated that the money will be used to bring more women into the program. As of 2009, Harbu had USD 1.3 million in total assets and a gross loan portfolio of USD 812,000. In 2008, Harbu reported return on assets (ROA) of 0.45 percent and return on equity (ROE) of 1.36 percent [1].
By John Howard-Smith, Research Associate
About Harbu Microfinance Institution Share Company (Harbu): Harbu Microfinance Institution Share Company (Harbu) is an Ethiopian microfinance institution (MFI) based in Addis Ababa, Ethiopia. It assists farmers, especially women farmers, in the cultivation and processing of soybeans. As of 2009, Harbu had USD 1.3 million in total assets and a gross loan portfolio of USD 812,000. In 2008, Harbu reported return on assets (ROA) of 0.45 percent and return on equity (ROE) of 1.36 percent.
About European Investment Bank (EIB): The EIB was created in 1958 as the long-term lending bank of the European Union. In addition to supporting projects in EU member states, its main priorities include financing investments in likely future member states and EU partner countries, principally in the area of small and medium-sized enterprises. In 2008, the EIB raised approximately EUR 60 billion. According to its website, “the EIB operates on a non-profit maximizing basis and lends at close to the cost of borrowing.”
About Luxembourg Round Table on Microfinance: The Luxembourg Round Table on Microfinance was established in 1993 by the Department for Development Cooperation within Luxembourg’s Ministry of Foreign Affairs in collaboration with a number of specialized nongovernmental organizations (NGOs) including LuxFLAG, SOS Faim and Etika, among others. It was founded to catalyze interactions between microfinance institutions (MFIs) and financial institutions in Luxembourg and to fuel socially responsible investments.
[1] Wort.lu: “Grand Duchess Presents the European Microfinance Award”, http://www.wort.lu/wort/web/business/artikel/2010/12/128627/die-gesamte-kette-im-blick.php
MicroCapital’s Microfinance Universe profile: Harbu Microfinance Institution Share Company (Harbu), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Harbu+Microfinance+Institution+Share+Company+(Harbu)
MicroCapital’s Microfinance Universe profile: European Investment Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Bank
MicroCapital’s Microfinance Universe profile: Luxembourg Round Table on Microfinance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+Luxembourg+Round+Table+on+Microfinance
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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