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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


To see that poverty is eradicated and productive poor especially

of women are empowered, through Sustainable micro enterprises.

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


National Bank of Ethiopia issued a directive in connection with GTP-2 which states the saving amount should be equivalent to the loan outstanding of MFIs in the final year of the Growth Transformation Plan.

Thus, it is high time to focus more on saving mobilization from the general public (voluntary saving) in addition to the existing saving products. Particularly, we need to provide different saving product options that satisfy the interest of clients.

The major objectives of the saving amendment is double fold firs to meet the GTP-2 plan and to fight the loan fund shortage as saving is the best source of fund for lending.

The proposed saving products are amended  here under:

1. Mandatory saving- 12% of the loan disbursement before loan disbursement, its deposit interest rate is 6%.

2. Regular Saving – Minimum of Br.30 for first cycle clients and its amount will be increased as clients transferred from one cycle to another cycle. The minimum additional amount shouldn’t be less than Br. 10 for each cycle. Its deposit interest rate is 6% clients are encouraged to deposit more than the minimum deposit amount.

3. Voluntary saving for adult minimum opening balance will be Br. 50; its deposit interest rate is 6.25%. Clients are encouraged to deposit more than the minimum deposit amount.

4. Lenege  Child  &  youth saving minimum opening balance is Birr 10, deposit interest rate is 6.25% ( For a child whose age from one day to 24 years old ). Clients are encouraged to deposit more  than  the minimum deposit. Parents of custodians can bring birth certificate, or evidence of birth from hospital, Clinic or health center.

5. Special purpose saving for children. Deposit for children and youth up to 18 years age, the deposit interest will be 8% annually. This saving is on agreement and will not be withdraw able before the children age reach 18 years. If the deposit is withdraw able before the age of child is 18 years of age the interest rate will be changed to 6.25%. The minimum account opening amount will be Birr 500.

6. Box saving . Box will be distributed for potential and able clients to facilitate their daily saving at home. They will get into special agreement with branches to make permanent deposit at their convenient place. The deposit interest rate for this box saving will be 6.25% per annum.

7. Time deposit: Its opening balance will be Br. 2000.

Ø For a period of six months’ time for Br. 2000 – 10000, deposits interest rate will be 7% per annum.

Ø For a period of  12 months’ time for Br. 2000 – 10000, deposits interest  rate  will be 7.15%  per annum.

Ø For a period of six months’ time for Br. 10001 – 100000, deposits interest rate will be 7.25% annum.

Ø For a period of six months’ time for Br. 100001 – 500000, deposits interest rate will be 7.5% per annum.

Ø For a period of 12  months’ time for Br. 100001 – 500000, deposits interest rate will be 7.75% per annum.

Ø For a period of Above  12  months’ time for Br. 500001  up Birr  1000000, deposits interest rate will be 8% per annum.

Ø For the amount deposited above Br. 1000000 for the period of 12 months and above, the deposit interest rate will be decided by negotiation and the interest rate ranges from 8.5% per annum.

8. Special event saving : It is a saving that will be deposited on regular basis monthly with a fixed amount of money regularly starting from Br.100. It is a block account for agreed period of time between the client the clients and the Institution. The minimum agreed time will be for six months and the maximum will be agreed with clients.

In this saving type the deposit interest will be calculated 6.5% per annum on the existing balance which the client deposited.

All borrowers must pay the cost for passbook sales at time of account opening, while all other voluntary and time deposit savers will not require paying at time of opening. However, if savers close their account, the cost of passbook cost must be deducted from their balance.

This above is policy is approved by the Board of Directors to be effective from September 9, 2016.

PEACE MFI currently uses group lending. Group lending is classified into Solidarity Group (SG), Intermediate Group (IG) and Association of Groups (AG).
  • Solidarity Group consists of 3 to 8 members.
  • Intermediate Group consists of 9 to 14 members.
  • Association of Groups consists of 3 to 8 federated groups whose total number ranges from 15 to 40 members.
  • Individual lending through material collateral


Women Activities

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Voluntary Saving
  • Some are satisfied with the promotion of PEACE and the services
  • Inability to withdraw the saving amount instantly
  • Less promotion (for instance by informing the customers/public that PEACE’s saving interest rate is higher than the banks etc) despite the demand for it
  • Requirement of separate book other than the one for compulsory savings.
  • Low saving interest rate
  • Easy/unconditional withdrawal of saving and increment in saving interest rate
  • More work on awareness creation (build public confidence to save), and allow (if possible) to use the same book for both savings
Reason for recommendations
  • So as to withdraw the money on demand (the moment it is required by the saver) and attract voluntary savers.
Compulsory Saving Products
  • The clients liked the convenience, safety and proximity of PEACE MFI for handling saving services. They also liked it for settling their loan.
  • They are satisfied with the current saving interest rate and withdrawal condition of PEACE as well as the promotion (training) made by its staffs.
  • Happy in having their saving balance increased without noticing it.
  • The biggest dissatisfaction is that the savers cannot withdraw their money (cannot not get access to the saving they mobilized for successive years) until they exit
  • Some said they do not know the saving interest rate/the balance of their savings. The pass book of one group had stayed with the staff for relatively longer time
  • They also complained that they don’t use their savings as a collateral for the next rounds of loan (asked additional savings)
  • For some the saving interest rate is too low
  • The complaint raised by this focus group is that the file of one of their peers has been seen by external person who is an outsider.
Recommendations for improvement
  • Saving balance and its computation should be regularly disclosed to the clients
  • Try to ask collateral proportional to the amount required for the loan.
  • Allow limited amount of saving withdrawals after full repayment of the loan.
  • Keep the files (including the pass book) of clients/groups in a confidential manner.
  • Suggest increment in interest rate on savings.
  • Some recommended the reduction of the amount required for saving
Reasons for the Recommendations
  • Some don’t know the amount of their saving balance. To build trust and confidence among this group disclosure is a good step.
  • This same group said unable to use their saving as collateral and required to add more money as a saving to get more loans.
  • To avoid any negative consequence on clients, it is better if files are kept  confidential
  • Withdrawals are needed for re-investment/to do business with the money withdrawn or to repay the loan. If the saving interest too is low better to invest in business.
  • To ease the burden of higher savings at the initial loan cycle.

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Partners & Linked Organizations

Agriservice Ethiopia


Women's World Banking


Microfinance Information Exchange

Planet Rating 

Micro Finance African Institution Network (MAIN)

Association of Ethiopia Microfinance Institution

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.