September 11, 2011

As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.

During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 

Kiva's new risk rating system, which now includes half stars, has enabled us to display ARD's risk rating with a higher level of granularity. As a result, ARD's risk rating will now be displayed as 2.5 stars instead of 3 stars. 

We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here:

ARD has been informed of the change in the display of their rating on Kiva's website.

Original 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.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Sep 30, 2009 Oct 12, 2005
Total Loans $2,585,050 $591,510,100
Amount of raised Inactive loans $0 $801,625
Number of raised Inactive loans 0 640
Amount of Paying Back Loans $377,975 $116,887,025
Number of Paying Back Loans 384 124,445
Amount of Ended Loans $2,207,075 $473,821,450
Number of Ended Loans 2,363 601,157
Delinquency Rate 12.65% 4.15%
Amount in Arrears $22,214 $3,134,116
Outstanding Portfolio $175,564 $75,521,492
Number of loanDelinquent 109 14,058
Default Rate 4.96% 1.13%
Amount of Ended Loans Defaulted $109,527 $5,346,749
Amount of Ended Loans $2,207,075 $473,821,450
Number of Ended Loans Defaulted 373 16,817
Currency Exchange Loss Rate 0.00% 0.09%
Amount of Currency Exchange Loss $0 $538,403
Refund Rate 1.27% 0.77%
Amount of Refunded Loans $32,925 $4,537,625
Number of Refunded Loans 35 5,064

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 60.89% 74.18%
Average Loan Size $941 $418
Average Individual Loan Size $941 $655
Average Group Loan Size $700 $1,828
Average number of borrowers per group 2 8
Average GDP per capita (PPP) in local country $903 $3,429
Average Loan Size / GDP per capita (PPP) 104.17% 12.20%
Average Time to Fund a Loan 8.58 days 5.6 days
Average Dollars Raised Per Day Per Loan $109.69 $74.70
  Average Loan Term 8.21 months 10.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 515 296,133
  Journaling Rate 19.77% 42.36%
  Average Number of Comments Per Journal 0.00 0.08
  Average Number of Recommendations Per Journal 0.17 1.87

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 42% PY 47.00% PY 33.27% PY
  Profitability (return on assets) 3.2% -9.5% -1.45%
  Average Loan Size (% of per capita income) 35.84% 28.00% 40.88%

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