Question 1

What is Wasasa Microfinance?

Accepted Answer

Wasasa Microfinance Institution S.C. is one of Ethiopia's largest and fastest-growing microfinance institutions, classified as a "Large MFI" by the National Bank of Ethiopia. Operating primarily in rural and semi-urban areas of the Oromia Regional State, Wasasa provides financial services to low-income households whose livelihoods are based on subsistence farming and related activities.

The institution serves approximately 120,000 active client households, focusing on providing sustainable financial services to economically active poor communities who lack access to mainstream banking.

Question 2

When was Wasasa Microfinance founded?

Accepted Answer

Wasasa Microfinance Institution S.C. was established in the year 2000 and officially licensed by the National Bank of Ethiopia on September 20, 2000, under license number MFI/017/2000. The institution was formed as a share company under the Commercial Code of Ethiopia and operates under Proclamation No. 626/2009, which governs the licensing and supervision of microfinance institutions in Ethiopia.

Wasasa emerged from its parent organization, the Oromo Self-Reliance Association (OSRA), an NGO that has been actively engaged in social development and poverty reduction in the Oromia region. Since its founding, Wasasa has maintained its commitment to working with poor communities by providing accessible savings and credit services.

Question 3

Where is Wasasa Microfinance headquartered?

Accepted Answer

Wasasa Microfinance is headquartered in Sebeta, Alem Gena, located in Sheger City, Ethiopia. The head office is situated behind the condominium houses in the Alem Gena area.

In addition to the main head office, the institution operates four regional offices that coordinate activities across its extensive branch network throughout the Oromia Regional State.

Question 4

Where does Wasasa Microfinance operate?

Accepted Answer

Wasasa Microfinance operates exclusively in rural and semi-urban areas of the Oromia Regional State in Ethiopia. The institution has established an extensive distribution network consisting of one head office, four regional offices, 51 branch offices, and 24 rural banks.

These facilities are spread across remote areas in 10 zones, covering 58 woredas and over 708 kebeles. The institution strategically positions its services in underserved communities where traditional banking infrastructure is limited or non-existent, providing door-step services to clients in distant and remote locations.

Question 5

What services does Wasasa Microfinance offer?

Accepted Answer

Wasasa Microfinance provides a comprehensive range of financial products tailored to the needs of rural and low-income clients:

Loan Products: Micro loans to large groups, energy loans for biogas, solar and cook stoves, micro irrigation loans, individual loans for agricultural transformation, association and cooperative loans, honey, malt barley and coffee value chain loans, term loans, small enterprise loans, and individual loans to farmers, petty traders and low-income employees.

Savings Products: Mandatory savings for borrowers (10-15% of loan amount as collateral), voluntary savings including passbook savings accounts, time deposits, and planned time deposits. Wasasa offers competitive interest rates up to 8% on savings, generally higher than commercial banks.

Micro Insurance: Credit life insurance for borrowers to protect against various risks.

Non-Financial Services: Customer education programs, advisory services, and financial literacy training to help clients manage loans and develop saving habits.

Question 6

What makes Wasasa Microfinance unique?

Accepted Answer

Wasasa Microfinance distinguishes itself through its commitment to serving the most remote and underserved communities in the Oromia region. Unlike traditional commercial banks, Wasasa provides door-step services through a large field staff that travels to distant locations, allowing clients to conduct transactions without visiting branch offices.

The institution offers higher interest rates on deposits compared to commercial banks, provides personalized and fast service, and accepts small savings amounts suitable for low-income households. Wasasa operates as a true financial intermediary, collecting deposits from savers and channeling those funds into small loans for productive purposes.

The institution has received technical support from reputable international development organizations including the Belgian Raiffeisen Foundation (BRS), WSM, Ethio-Italian Development Cooperation, Terrafina, Cordaid, UNCDF, and the Rural Financial Intermediation Programme (RUFIP) of the Government of Ethiopia and IFAD. This support has enabled Wasasa to develop specialized products such as cash flow-based agricultural finance, microinsurance products, and innovative credit rating instruments.

Question 7

What type of financial institution is Wasasa Microfinance?

Accepted Answer

Wasasa Microfinance is a deposit-taking microfinance institution (MFI) licensed and regulated by the National Bank of Ethiopia under Proclamation No. 626/2009. In Ethiopia's financial sector classification, microfinance institutions occupy a distinct category designed to serve populations excluded from traditional banking services.

As a licensed deposit-taking MFI, Wasasa has the regulatory authority to collect both mandatory and voluntary savings from clients, which it then deploys as loan capital to serve economically active poor individuals and households. The institution is structured as a share company (S.C.) and is classified among Ethiopia's "Large MFIs" based on the National Bank of Ethiopia's ranking system, reflecting its significant operational scale and client base within the country's microfinance sector.

Wasasa Microfinance

in Ethiopia 🇪🇹

Crypto-Friendliness

All done!

About Wasasa Microfinance in Ethiopia

Wasasa Microf­inance