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Partner Description: 

Al-Amal Microfinance Bank (AMB) was established in 2009 with a mandate to expand access to diversified financial services throughout Yemen. AMB is a joint collaboration between the Yemeni government’s Social Fund for Development, Arab Gulf Programme for Development (AGFUND), and private sector shareholders.

The bank’s primary goal is to improve economic and social conditions of low-income households in Yemen, especially micro and small entrepreneurs. AMB aims to fight poverty and unemployment through the provision of diversified, sustainable financial services. Since its inception, AMB has grown to provide a broader range of services: credit, savings and insurance delivered in line with Islamic principles, in addition AMB offers remittances, currency exchange and cash disbursement services.

AMB began with three offices in Yemen’s capital city of Sana'a. Today, the bank boasts 18 branches throughout Yemen, spread over nine governorates, representing more than 80% of the total Yemeni population. As of the end of November, 2013, AMB has served over 88,423 clients, disbursed over 81,928 loans, totaling $24.2 million and opened 54,908 saving accounts in the amount of $17.2 million. It focuses on youth and women’s empowerment, and women constitute 61% of the bank’s total borrowers.

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In addition, Al-Amal Microfinance Bank seeks to adopt latest technologies to improve the quality and scale of its services. The bank launched two new services: Mobile Banking and Mobile Branch Banking. These new services along with the 227 service points of authorized agents will enable AMB to cover rural areas. Also, Al-Amal Microfinance bank opened in the middle of May, 2013 “Al-Amal Foundation for Training and Entrepreneurship” that aims to provide non financial services to all Yemenis, especially micro and small entrepreneurs. This training foundation is the largest in the MENA region and will help AMB to integrate financial and non financial services.

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Al-Amal Microfinance Bank’s unique lending approach:

Political instability in Yemen has significantly impacted the business sector and led to high rates of unemployment. AMB seeks to address these economic disparities by providing microloans to the very poor, including those on government welfare. The bank has developed a careful contingency plan to deal with Yemen’s ongoing political issues by stabilizing its portfolio and expanding only gradually.

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Additionally, AMB prioritizes women’s empowerment as one of its social performance metrics, and offers savings products and training courses tailored to women. One of AMB's specific female empowerment programs is targeted at rehabilitating female victims of violence through employment and loan opportunities.

Awards and honors:

Since the inception, AMB has received international and local awards, particularly for its innovative Islamic loan products. These awards include CGAP’s Islamic Microfinance Challenge, 2010, the Grameen-Jameel Award for Innovation 2010, MIX Award for Transparency in 2009 and 2010, the 2011 Award for Best Innovative Microfinance Product, at the Global Microfinance Achievement Awards, the award of the Best Microfinance Institution in Yemen 2011 from the New Economy Magazine ,the Award of "Successful Product Innovation" in the middle East and Africa -2011 Hanson Wade - UK, Grameen-Jameel Award for Sustainable Growth 2012 and the Award of the Best Member in the Yemen Microfinance Network 2012.

Since its inception, AMB has received international and local awards, particularly for its innovative Islamic loan products. These awards include CGAP’s Islamic Microfinance Challenge, 2010, the Grameen-Jameel Award for Innovation 2010, MIX Award for Transparency in 2009 and 2010, the 2011 Award for Best Innovative Microfinance Product, at the Global Microfinance Achievement Awards, the award for Best Microfinance Institution in Yemen 2011 from New Economy Magazine, the Award for "Successful Product Innovation" in the Middle East and Africa from Hanson Wade in 2011, the Grameen-Jameel Award for Sustainable Growth 2012, and the Award for Best Member in the Yemen Microfinance Network 2012.

All images courtesy of Al-Amal Microfinance Bank.
 


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Nov 2, 2011 Oct 12, 2005
Total Loans $2,494,850 $623,097,275
Amount of raised Inactive loans $0 $271,100
Number of raised Inactive loans 0 261
Amount of Paying Back Loans $1,038,725 $127,717,350
Number of Paying Back Loans 1,253 139,649
Amount of Ended Loans $1,456,125 $495,108,825
Number of Ended Loans 1,790 625,088
Delinquency Rate 0.20% 4.89%
Amount in Arrears $1,164 $4,135,822
Outstanding Portfolio $568,122 $84,655,758
Number of loanDelinquent 14 22,734
Default Rate 0.69% 1.14%
Amount of Ended Loans Defaulted $10,083 $5,621,865
Amount of Ended Loans $1,456,125 $495,108,825
Number of Ended Loans Defaulted 7 17,370
Currency Exchange Loss Rate 0.00% 0.11%
Amount of Currency Exchange Loss $0 $679,886
Refund Rate 0.09% 0.74%
Amount of Refunded Loans $2,175 $4,586,900
Number of Refunded Loans 3 5,124

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 55.34% 74.17%
Average Loan Size $309 $418
Average Individual Loan Size $813 $654
Average Group Loan Size $826 $1,836
Average number of borrowers per group 4.2 8
Average GDP per capita (PPP) in local country $2,700 $3,409
Average Loan Size / GDP per capita (PPP) 11.45% 12.27%
Average Time to Fund a Loan 9.38 days 5.78 days
Average Dollars Raised Per Day Per Loan $32.95 $72.34
  Average Loan Term 13.52 months 10.51 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 290 312,552
  Journaling Rate 13.98% 42.19%
  Average Number of Comments Per Journal 0.00 0.07
  Average Number of Recommendations Per Journal 0.00 1.77

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 39% PY 39.00% PY 33.35% PY
  Profitability (return on assets) 12% -17.1% -1.49%
  Average Loan Size (% of per capita income) 16.50% 13.00% 38.01%

Country Fast Facts

Field Partner Staff

Mohanad Al Maktary
Ebrahim Al Mohers
Sameh Al-Hakimi
Abdullah Al-kassim
Abdullah Al-kassim
Abdulrahman Al-Waji
Abdulrahman Al-Waji
Ahmed Alathary
Ghamdan Awn