Last updated July 15, 2013

Partner Description:

The Abaarso School of Science and Technology is a nonprofit educational institute launched in 2008 to provide primary, secondary, tertiary and graduate-level students with high-quality education in the Somaliland region of Somalia. Located in the village of Abaarso, the school is built on donated land and has traditionally been funded by its founder and individual grants.

The heart of the operation is the secondary school, a four-year boarding school that admits the brightest students in the country regardless of their ability to pay. Offering comprehensive courses in the sciences and humanities, the Abaarso School emphasizes interactive, hands-on learning techniques designed to propel its graduates to top-ranked universities worldwide.

Despite the Abaarso School’s need-blind admission policy, the secondary school aims to be sustainable. The goal is to cross-subsidize tuition for poorer students with three revenue-generating initiatives: a primary-level tutoring program, an undergraduate finance degree program, and an MBA program. While this effort has been somewhat successful, the Abaarso School still struggles to provide scholarships to all the students who need them.

That’s where Kiva comes in. Our partnership with the Abaarso School gives lenders the opportunity to provide partial tuition loans to brilliant high school students who could not afford to attend otherwise. By offering longer-term loans, with repayment periods up to five years, Kiva helps the Abaarso School become more sustainable and serve a greater number of bright, low-income students.

Before partnering with Kiva, the Abaarso School subsidized full and partial tuitions for nearly 84% of its student body, and there were no loans available. This model was not operationally sustainable and too reliant on donor funding. Kiva has enabled the Abaarso School to establish its first ever loan program, and to give students and their families a choice of the best loans to fit their financial situations.

For extra security, an 8% fee is charged upfront on loans and added to the amount of principal listed on Kiva. The full amount is repaid to lenders in accordance with the repayment schedule provided for each student. This small fee goes into the secondary school’s Shared Responsibility Fund, used to assist struggling borrowers with monthly repayments.

All loan contracts are executed by both student and their parent or guardians -- and when possible, the student’s clan elder.

Kiva HelpRepayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 9, 2013 Oct 12, 2005
Total Loans $27,000 $535,272,925
Amount of Raised Inactive Loans $0 $231,500
Number Of Raised Inactive Loans 0 230
Amount of Paying Back Loans $27,000 $115,952,475
Number Of Paying Back Loans 40 121,581
Amount of Ended Loans $0 $419,088,950
Number Of Ended Loans 0 538,794
Delinquency Rate 8.24% 3.69%
Amount In Arrears $2,183 $2,866,312
Outstanding Portfolio $26,486 $77,652,360
Number of Loans Delinquent 40 16,008
Default Rate 0.00% 1.04%
Amount of Ended Loans Defaulted $0 $4,349,827
Amount of Ended Loans $0 $419,088,950
Number Of Ended Loans Defaulted 0 14,108
Currency Exchange Loss Rate 0.00% 0.05%
Amount of Currency Exchange Loss $0 $293,076
Refund Rate 0.00% 0.82%
Amount of Refunded Loans $0 $4,415,650
Number Of Refunded Loans 0 4,862

Kiva HelpLoan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans To Women Entrepreneurs 60.00% 74.09%
Average Loan Size $675 $417
Average Individual Loan Size $675 $655
Average Group Loan Size $0 $1,810
Average Number Of Entrepreneurs Per Group 0 8
Average GDP Per Capita (PPP) in Local Country $600 $3,464
Average Loan Size / GDP Per Capita (PPP) 112.50% 12.04%
Average Time To Fund A Loan 0.29 days 5.27 days
Average Dollars Raised Per Day Per Loan $2,364.48 $79.18
  Average Loan Term 60 months 10.04 months

Kiva HelpJournaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1 268,315
  Journaling Rate 0.00% 42.16%
  Average Number Of Comments Per Journal 0.00 0.09
  Average Number Of Recommendations Per Journal 0.00 2.07

Kiva HelpBorrowing Cost Comparison (based on 2009 data)

    This Field Partner Median for MFI Peers in Country All Kiva Partners
  Portfolio Yield N/A N/A 34.93%
  Profitability (Return on Assets) N/A N/A -1.11%
  Average Loan Size (% of Per Capita Income) N/A N/A 42.70%

Kiva HelpCountry Fast Facts

Field Partner Staff

Mike Freund
Ava Ramberg
Jonathan Starr