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PEACE MICROFINANCE S.C

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Core Function

PEACE MFI is engaged in the delivery of both Savings and loan services.

Loan products: There are two major categories of loans: agricultural loans and non-agricultural loans. Non-agricultural loans are provided for clients engaged in petty trade, local beverage production, artesian, hairdressing and barber, transport services using carts, etc. Agricultural loans are taken for goat and sheep rearing, purchase of oxen, fattening, purchase of select seed, fertilizers, dairy cow, etc.
All loans are provided on the basis of group guarantee and joint commitment of group members.

About Us

  • Similar to HH income trend  most of the clients experienced  increased income over the last 12 months . 75.2% of the existing clients and 56.3% of new clients reported so while  about10”% of  clients from both groups have experienced decrease in their income.
  • Here the female clients seem to enjoy more positive impact of the program in increasing their income. 
  • 75% of existing female clients indicated their income has increased as opposed to only 12.1% of the existing male clients. Similarly, 3.9% of existing female clients felt their income has greatly increased while none of the existing male clients felt the same 
  • the same proportion (7.7%) of the existing clients attribute the decrease their income to sickness or death of a household member, natural disaster and poor agricultural season. On the other hand, 38.5% and 23% of the existing client’s income decreased due to poor sales and poor agricultural season 
  • the reasons for the decrease of income for new clients is accounted on various factors: natural disaster (11.1%), poor agricultural season (11.1%), poor sales (33.3%), could not collect credit (22.2%) and others (11.1%) 
  • With regard to the reasons given for the increase in the income relatively higher proportion of both existing clients (30.3%) and new clients (30.0%) account the increase of their income for increase of demand for their products or sales almost the same percentage (28% and 34.3% respectively) were able to increase their income for they expanded the existing enterprise 
  • The above observation, in general, indicates the positive impact of participating in PEACE by enabling the clients to expand their enterprise activities 

 
  • Most women who had no self respect and no self esteem and who have no good perception of themselves and by others have got self respect and self esteem and good perception, became joyful as well as receive respect from other members of the household and the community.
  • The women whose roles have been limited to child bearing and other household chores have now become influential decision makers at household and business level, because of the income they generated and savings mobilized by them. The women, who experienced violence, disrespect and ashamed of requesting their husbands for every minor expense are now covering their own personal expenses and partially their children’s and household expenditures. After the loan there is calm at home, respect from their respective husbands and the latter’s parents. There is also strong involvement in household decision making by women clients at least jointly with their husband
  • The women clients participate in the community affairs and social networks not as a passive member only as used to be in the past. Rather they have got respect and recognition in the community and hence actively participate in many of the social affairs. Some have even goes to the extent of leading the Kebele’s (local administrative unit) and Iqqub or Iddirs.

 
Loan and Savings use strategies
  • 56 % of clients had no habit of saving before joining the PEACE program. This definitely reflects the fact that participation in the program encourages savings. 80 % of the respondents have mentioned multiple mechanisms of saving. Majority of clients have mentioned Equib as the most important way of saving; next to equib Cattle and livestock and Edir were mentioned as the most important alternative saving mechanisms. The top three reasons for savings in order of importance are: reserve for bad times or emergency, starting or expanding of business and as a means to access loan.
  • Food self sufficiency, freedom from richer farmers and from vendors and money lenders were the primary changes realized in the life and businesses of clients of Kuy branch after the first loan cycle.  During the significant loan cycle Self dependence in farming and increased ability to cloth and feed children were the changes realized by clients
  • Except for seven clients (18%) who stated that they made no profit during the first cycle; all other clients realized profit during the first and significant loan cycles. Majority of clients used the surpluses they earned after the end of the first cycle to construct and improve their houses, to expand their business and to purchase of cattle and sheep. Business expansion was the most important area of using surpluses during the significant loan cycle; followed by purchase of cattle and sheep, house construction and improvement and house hold expenditures.
  • Majority of clients have said that they did not have any comparable choice to PEACE. All the choices they could have considered are unreliable and not dependable

 
External Audit Report 2012

EXTERNAL AUDIT REPORT 2012

We have audited the accompanying financial statements of poverty eradication and community empowerment (PEACE) Micro-Financing institution share company, which comprise the balance sheet of poverty eradication and community empowerment (PEACE) Micro – Financing institution share company, and the income statement, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Generally Accepted Accounting principles, and for such internal control as management determines in necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

For a detailed information about external audit report 2006 download the pdf document.

 

   External Audit Report 2012
 
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Partners & Linked Organizations

Agriservice Ethiopia

Oxfam NOVIB

Women's World Banking

TRIPLE Jump

Microfinance Information Exchange

Planet Rating 

Micro Finance African Institution Network (MAIN)

http://www.mainnetwork.org

Association of Ethiopia Microfinance Institution

http://www.aemfi-ethiopia.org

http://www.mossict.com

Existing Clients

PEACE Achievements

PEACE has achieved a competitive position in the Ethiopia MF sector through a focus strategy that targets rural low income women.  It has experienced significant growth during the past years and the market still has a high level of unmet demand.