Question 1

What is LAPO Microfinance Company?

Accepted Answer

LAPO Microfinance Company is a pro-poor microfinance institution committed to the social and economic empowerment of low-income households in Sierra Leone. As the second-largest deposit-taking microfinance institution in the country, LAPO serves over 40,000 clients across 24 branches, covering approximately 80% of Sierra Leone's national territory.

The institution specializes in providing financial services to women in disadvantaged areas, with women representing over 90% of its clientele. LAPO is a subsidiary of the Nigerian NGO LAPO (Lift Above Poverty Organisation), which was founded in 1987 and has grown to become the largest MFI in Nigeria.

Question 2

When was LAPO Microfinance Company founded?

Accepted Answer

LAPO Microfinance Company Sierra Leone was established in 2007 by Dr. Godwin Ehigiamusoe. The institution started as a non-profit entity in Freetown and commenced full operations in March 2008.

The organization was formally incorporated in Sierra Leone on October 30, 2008, as LAPO Microfinance Company (SL) Limited. It was launched by the Nigerian NGO LAPO, bringing the parent organization's poverty alleviation mission to Sierra Leone.

Question 3

Where is LAPO Microfinance Company headquartered?

Accepted Answer

LAPO Microfinance Company is headquartered at 67 Adelaide Street, Freetown, Sierra Leone. Freetown serves as the administrative center for the institution's nationwide operations.

The head office coordinates activities across the organization's extensive branch network throughout Sierra Leone.

Question 4

Where does LAPO Microfinance Company operate?

Accepted Answer

LAPO Microfinance Company operates across Sierra Leone with 24 branches covering approximately 80% of the national territory. The institution maintains a strong presence in both urban and rural areas, with 48% of clients residing in rural communities.

Notable branch locations include Freetown (multiple branches), Bo, Makeni, Kenema, Kono, Lunsar, Waterloo, Goderich, Lumley, Kissy, Allen Town, Lungi, and Tikonkoh. This extensive network enables LAPO to reach underserved communities throughout the country, particularly in areas where traditional banking services are limited or unavailable.

Question 5

What services does LAPO Microfinance Company offer?

Accepted Answer

LAPO Microfinance Company offers a range of financial services tailored to low-income households and micro-entrepreneurs:

Lending Products: The flagship product is group loans for women in disadvantaged areas, representing 94% of customers and 41% of total outstanding loans. The average loan size is approximately EUR 368. LAPO also offers individual loan products for micro-premium customers, SMEs, and employees.

Deposit Services: Since receiving approval as a national deposit-taking microfinance institution in 2017, LAPO accepts deposits from clients, providing secure savings solutions for low-income families.

Digital Services: In August 2020, LAPO implemented a Digital Collection Sheet system that provides loan officers with flexible, timely loan repayment collection capabilities.

Non-Financial Services: LAPO maintains a dedicated team for non-profit activities, providing mandatory awareness training on health, education, and gender issues to all client groups at least once annually. The institution also organizes campaigns to raise awareness about malaria prevention, addressing a critical health challenge in Sierra Leone.

Question 6

What makes LAPO Microfinance Company unique?

Accepted Answer

LAPO's exceptional focus on women's financial inclusion sets it apart, with over 90% of borrowers being women from disadvantaged areas. This gender-focused approach addresses the significant gender inequality gap in Sierra Leone, empowering one of the country's most vulnerable populations.

The institution's extensive rural reach distinguishes it from traditional financial institutions. With coverage of 80% of Sierra Leone's national territory and nearly half of its clients in rural areas, LAPO provides financial access to communities that typically lack banking services.

LAPO has received multiple industry recognitions, including the African Consulting Group's award for Best Microfinance Institution in Sierra Leone in 2019. The organization's strong credit risk management methodology allows excellent control of credit risk and customer relationships, supported by a rigorous supervision and monitoring system.

Question 7

What type of financial institution is LAPO Microfinance Company?

Accepted Answer

LAPO Microfinance Company is a Deposit-Taking Microfinance Institution (MFI), a regulated financial institution category in Sierra Leone that specializes in serving low-income populations and micro-entrepreneurs.

The institution received initial approval from the Bank of Sierra Leone in 2015 to operate as a credit-only microfinance company. In 2017, LAPO obtained upgraded approval to operate as a national deposit-taking microfinance institution, allowing it to both lend and accept deposits.

As a microfinance institution, LAPO operates under the regulatory framework of the Other Financial Services Act 2001 and maintains licensing from the Central Bank of Sierra Leone. The institution is required to maintain a capital adequacy ratio of 8% as per Bank of Sierra Leone regulations.

Question 8

Who funds LAPO Microfinance Company?

Accepted Answer

LAPO Microfinance Company has attracted support from several international development finance organizations committed to poverty alleviation and financial inclusion.

In July 2015, LAPO received its first institutional funding from the Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA), a social impact investment fund structured to promote MSME growth. Since 2019, the Grameen Crédit Agricole Foundation has been a funding partner, providing financing equivalent to EUR 600,000 to support LAPO's mission.

The Luxembourg Microfinance and Development Fund (LMDF) also supports LAPO's operations, recognizing the institution's impact on women's economic empowerment and rural development. These partnerships enable LAPO to expand its outreach while maintaining financial sustainability and adherence to microfinance best practices.

LAPO Microfinance Company

in Sierra Leone 🇸🇱

Crypto-Friendliness

All done!

About LAPO Microfinance Company in Sierra Leone

LAPO Microf­inance Company