Letta Micro-Finance Institute (Addis Ababa, Ethiopia)
In August, 2001, IAP established a micro-loan program servicing the Gedeo region of Ethiopia called the Letta Micro-Finance Institute. In the Gedeo language, Letta translates as "emerging toward the light", as a germinating seed. The Letta project disburses small loans, primarily to women, who receive training and prepare business plans, equipping the loan recipients for financial independence. Currently, most of these business owners are involved in food and commodity trading.
Since its inception, Letta has grown to include over 1,000 loan recipients. Loan terms are from 8-12 months with an interest rate of approximately 14% annually. To date, 100% of Letta's funding has been raised through IAP in the form of contributions from individuals and organizations (churches, service clubs, etc.). The total number of borrowing clients has grown steadily, with an average loan size of $300 USD or 4000 Birr. Loan repayment is excellent with virtually no losses. Each client is a testimony to the success of the micro-finance project. These small business owners and their families are given the opportunity to prosper financially, which in turn has a positive effect on the surrounding community and church.
As a result of the recent Sustainability '11 campaign, Letta MFI is now sustainable! This means enough loans have been distributed that the interest coming in from those loans are now covering 100% of Letta's administrative fees. Letta MFI is now profitable and sustainable! This is a huge milestone as profits earned can now be used to cover capital expenses and grow the loan pool. Letta leadership has visions of servicing 10,000 loans in the not to distant future. Your continued support will make this possible. Lives are being changed!
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