$15m anti-poverty initiative launched in Sierra Leone, Liberia

MicrofinanceFocus, July 23, 2009: BRAC, a non-profit organisation, is leading a $15 million initiative to rebuild war-torn communities in Sierra Leone and Liberiaon on a long-term sustainable strategy, including microfinance, with support from the Soros Economic Development Fund, Open Society Initiative for West Africa, Omidyar Network and Humanity United, said a statement on Wednesday.
The two-year pilot program is being funded through a combination of grants and equity. BRAC is also negotiating to raise additional debt capital to finance the loan portfolio.
“People desperately need to earn a living,” said Fazle Hasan Abed, founder and chairperson of BRAC. “Despite the many challenges these countries face, Liberia and Sierra Leone are uniquely positioned to become models for successful development in West Africa. We are committed to providing training and resources so that the poor, especially women, can unleash their capabilities as entrepreneurs and improve their livelihoods.”
“This investment in the people of West Africa comes at a critical time,” said Stewart Paperin, president of the Soros Economic Development Fund. “With their countries emerging from devastating civil wars, this support gives people the tools to rebuild.”
BRAC, one of the global anti-poverty groups, is providing microfinance, health, and agricultural support in Sierra Leone and Liberia. It aims to benefit at least 500,000 people from these programs.
“In the face of overwhelming need, BRAC’s work has real potential to create opportunities for hundreds of thousands of families to stabilize their lives and build for the future,” said Matt Bannick, managing partner of Omidyar Network. “Our investment will help catalyze this economic and social impact.”
Since March, BRAC has opened 20 new microfinance branches in Sierra Leone and Liberia and will add 20 more by the end of the year. BRAC began lending from June this year. Over the next two years, it wants to provide financial services to mostly women in the form of agricultural supplies and training to small crop and livestock farmers. BRAC also wants to train 400 community-based health volunteers to give healthcare to fight diseases like malaria, tuberculosis and cholera.
The Soros Economic Development Fund (SEDF) is a nonprofit private foundation by investor George Soros. Established in 1997, the fund makes investments — in the form of equity, loans, guarantees and deposits — in selected banks, microfinance institutions, cooperatives and social enterprise projects worldwide.
The Open Society Initiative for West Africa (OSIWA) collaborates with advocacy groups, governments and donors to create initiatives that enhance civil society, especially human rights, good governance, media and communication, and economic reform.
Omidyar Network is a philanthropic investment firm dedicated to harnessing the power of markets to create opportunity for people to improve their lives. Established in 2004 by eBay founder Pierre Omidyar and his wife Pam, the organization invests in and helps scale innovative organizations and has to date committed more than $290 million to for-profit companies and nonprofit organizations in microfinance, property rights, government transparency and social media.
Humanity United is an independent philanthropy committed to fight mass atrocities and modern-day slavery, supporting efforts that empower affected communities, and addressing the root causes of conflict and injustice.
BRAC was launched in Bangladesh in 1972 and currently touches the lives of more than 110 million people through its programs addressing  micro-loans, education, health services, self-employment opportunities and human rights education. BRAC has provided $5 billion in micro-loans to nearly seven million borrowers, mostly women, and created 8.5 million self-employment opportunities in Asia and Africa. BRAC has 73,000 community health promoters providing basic health services to nearly 93 million people.

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