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: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.

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 $2,525,025 $575,361,250
Amount of raised Inactive loans $0 $291,900
Number of raised Inactive loans 0 255
Amount of Paying Back Loans $409,250 $119,483,125
Number of Paying Back Loans 420 125,559
Amount of Ended Loans $2,115,775 $455,586,225
Number of Ended Loans 2,271 580,601
Delinquency Rate 11.97% 3.43%
Amount in Arrears $24,046 $2,701,035
Outstanding Portfolio $200,802 $78,668,138
Number of loanDelinquent 117 11,378
Default Rate 4.83% 1.08%
Amount of Ended Loans Defaulted $102,220 $4,937,756
Amount of Ended Loans $2,115,775 $455,586,225
Number of Ended Loans Defaulted 343 15,266
Currency Exchange Loss Rate 0.00% 0.07%
Amount of Currency Exchange Loss $0 $406,266
Refund Rate 1.30% 0.78%
Amount of Refunded Loans $32,925 $4,479,350
Number of Refunded Loans 35 5,008

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 60.70% 74.23%
Average Loan Size $938 $419
Average Individual Loan Size $938 $656
Average Group Loan Size $700 $1,824
Average number of borrowers per group 2 8
Average GDP per capita (PPP) in local country $903 $3,440
Average Loan Size / GDP per capita (PPP) 103.88% 12.17%
Average Time to Fund a Loan 8.36 days 5.52 days
Average Dollars Raised Per Day Per Loan $112.22 $75.89
  Average Loan Term 8.19 months 10.25 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 484 286,360
  Journaling Rate 19.26% 42.41%
  Average Number of Comments Per Journal 0.00 0.08
  Average Number of Recommendations Per Journal 0.18 1.94

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Portfolio Yield 42.00% 47.00% 33.54%
  Profitability (return on assets) 3.2% -9.5% -1.15%
  Average Loan Size (% of per capita income) 35.84% 28.00% 41.59%

Country Fast Facts

Field Partner Staff

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