Last updated June 24, 2014
The Abaarso partnership is now moved to inactive status. Abaarso will not be posting any new loans to the Kiva website, but Kiva expects that Abaarso will continue to monitor its borrowers and facilitate repayments to lenders. Over the course of the 2-year partnership, Abaarso raised nearly $27,000 in loans and helped 40 borrowers attend school. We thank Abaarso for their collaboration and wish them all the best in their work.


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.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 9, 2013 Oct 12, 2005
Total Loans $27,000 $822,827,750
Amount of raised Inactive loans $0 $403,625
Number of raised Inactive loans 0 404
Amount of Paying Back Loans $0 $137,217,750
Number of Paying Back Loans 0 162,817
Amount of Ended Loans $27,000 $685,206,375
Number of Ended Loans 40 848,120
Delinquency Rate 0.00% 8.33%
Amount in Arrears $0 $7,537,453
Outstanding Portfolio $0 $90,442,176
Number of Loans Delinquent 0 24,563
Default Rate 84.39% 1.26%
Amount of Ended Loans Defaulted $22,784 $8,610,143
Amount of Ended Loans $27,000 $685,206,375
Number of Ended Loans Defaulted 40 22,789
Currency Exchange Loss Rate 0.00% 0.41%
Amount of Currency Exchange Loss $0 $3,389,095
Refund Rate 0.00% 0.65%
Amount of Refunded Loans $0 $5,367,575
Number of Refunded Loans 0 5,688

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 60.00% 74.67%
Average Loan Size $675 $409
Average Individual Loan Size $675 $646
Average Group Loan Size $0 $1,818
Average number of borrowers per group 0 7.9
Average GDP per capita (PPP) in local country $600 $5,942
Average Loan Size / GDP per capita (PPP) 112.50% 6.89%
Average Time to Fund a Loan 0.29 days 6.81 days
Average Dollars Raised Per Day Per Loan $2,364.48 $60.11
  Average Loan Term 60 months 10.98 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 6 402,182
  Journaling Rate 0.00% 40.52%
  Average Number of Comments Per Journal 0.00 0.06
  Average Number of Recommendations Per Journal 0.00 1.38

Borrowing Cost Comparison (based on 2009 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 4% APR N/A 28.54% PY
  Profitability (return on assets) N/A N/A -0.69%
  Average Loan Size (% of per capita income) N/A N/A 19.50%

Country Fast Facts

Field Partner Staff

Mike Freund
Ava Ramberg
Jonathan Starr