Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

Status Update — March 10, 2015

Association for Rural Development operates in Sierra Leone, one of the countries in West Africa that was most affected by the Ebola outbreak. As a result, the association had to close some of their branches last year. They have now re-opened all of them and are slowly resuming operations, however they have witnessed high delinquency rates in affected areas. Association for Rural Development is still posting new loans on Kiva, and has been reporting repayments regularly so did not require a grace period from Kiva.

Status Update — October 23, 2014

Association for Rural Development (ARD) operates in Sierra Leone, one of the countries in West Africa currently experiencing an Ebola outbreak. This epidemic is the largest in history, claiming thousands of lives and having a deep impact on the national economy. ARD is continuing to operate throughout the outbreak, but accordingly these loans will have a higher risk associated with them. Learn more about the epidemic here

Partner Description:

Association for Rural Development (ARD) is one of the leading Micro Finance Institutions in Sierra Leone. ARD, a registered NGO, was established in 1986 and started operations in 1989.

The Association works on a range of programmes related to meeting the needs of entrepreneurs through the creation, implementation, monitoring and evaluation of small scale projects. Over the years ARD has been providing professional and committed services to helping the poor, disadvantaged and marginalized groups taking responsibility for their own development. The organization has metamorphosed in the last decade to a Financial Service Provider, specialising in microfinance and providing loans for small scale businesses. It mainly gives loans to economically active women, who do not usually have access to formal banking systems. ARD primarily engages in group lending whereby (5- 10) persons each co-guarantee the other. Loan are between $100 and $1,600. To date, the organization has more than 15,000 active clients - over 70% of whom are women and has disbursed more than $1.9 million in loans.

Through its numerous loan products and participatory methodologies, ARD has been able to provide direct financial services mainly through the provision of credits/loans. This has increased women’s access to credit and cash and has enabled them to improve upon their productive capabilities in their various enterprises. To guarantee the sustainability of these efforts, ARD improves the management skills of their clients through business advisory services and technical support. Literacy, HIV/AID sensitization and condom social marketing are allied activities patronized by the loan recipients.

ARD has offices in Freetown, Bo, Makeni and Kenema.

A Note on ARD's Portfolio Yield:

We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Field Partners. With Kiva's 0% capital, many of our Field Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.

For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.

We seek to support loans that don’t impose an unjustifiable cost burden on hard-working borrowers. We nevertheless recognize that in order to reach vulnerable and excluded people with high-impact products and services, some of our partners incur high costs that necessitate charging higher-than-average costs to borrowers in order to allow for sustainability and scale.

Factors that drive up the costs that this partner organization charges its borrowers include:

  • They provide more than just cash to many of their borrowers, including costly wraparound services such as healthcare, financial or business training, agricultural extension services, insurance or access to education.
  • They work in areas with very poor infrastructure, such as limited roads. This increases the costs of finding clients and maintaining branch offices.
  • They pay high interest rates on the loans they take from banks and other funders, given the market in which they operate. This means they need more support from innovative sources like Kiva to reduce costs and pass savings on to borrowers.
  • This partner is working in a country where doing business is difficult and costly due to regulatory, procedural and governance issues.
  • They operate in an area with a limited or poorly functioning banking system. This makes it difficult to access funding locally, and makes it more challenging to send and receive payments on loans from outside the country.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Sep 30, 2009 Oct 12, 2005
Total Loans $4,522,200 $973,426,675
Amount of raised Inactive loans $0 $453,325
Number of raised Inactive loans 0 230
Amount of Paying Back Loans $466,275 $146,082,550
Number of Paying Back Loans 423 182,274
Amount of Ended Loans $4,055,925 $826,890,800
Number of Ended Loans 3,941 1,039,570
Delinquency Rate 49.09% 8.35%
Amount in Arrears $91,345 $7,901,679
Outstanding Portfolio $186,084 $94,659,120
Number of Loans Delinquent 307 20,373
Default Rate 4.73% 1.39%
Amount of Ended Loans Defaulted $191,713 $11,517,049
Number of Ended Loans Defaulted 660 33,034
Currency Exchange Loss Rate 2.38% 0.45%
Amount of Currency Exchange Loss $107,762 $4,428,385
Refund Rate 1.43% 0.61%
Amount of Refunded Loans $64,875 $5,967,400
Number of Refunded Loans 62 5,984

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 68.34% 75.39%
Average Loan Size $567 $399
Average Individual Loan Size $967 $629
Average Group Loan Size $1,239 $1,759
Average number of borrowers per group 4.2 7.7
Average GDP per capita (PPP) in local country $2,100 $5,875
Average Loan Size / GDP per capita (PPP) 26.98% 6.79%
Average Time to Fund a Loan 11.37 days 6.9 days
Average Dollars Raised Per Day Per Loan $49.83 $57.75
  Average Loan Term 7.96 months 11.13 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 883 509,005
  Journaling Rate 19.70% 41.50%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.14 1.16

Borrowing Cost Comparison (based on 2014 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 54% PY 47.00% PY 26.12% PY
  Profitability (return on assets) 5% -9.5% -1.72%
  Average Loan Size (% of per capita income) 35.84% 28.00% 16.65%

Country Fast Facts

Field Partner Staff

Esther Allie
Isatu Bangura
Christian Charles
Samuel Davies
Alpha Deen
Alie Forna
Rebecca Gborie
Augusta Kalokoh
David Kamara
Kadiatu Kamara
michael kamara
Prince Kandoh
Mabinty Mansaray
Matta Mansaray
Elizabeth Mathews
Stephanie Meyer
Jaka Jusu Ngobeh
Joseph Sesay