PVO/NGO support project, micro/small enterprise development (grant to Partnership for Productivity/Liberia)

The evaluation covered the period 1/88-7/89. PfP/L has an unusually wide base of popular support and is on track in meeting project objectives. PfP/L is currently working with 96 Saveway clubs, serving 9,421 savers in 384 population settlements in Nimba County, and 15 of these Saveways (and 4,844 new savers) have been brought into PfP/L"s system during the life of this project. So far in 1989, monthly savings mobilized averaged L$67,500 and new loans are projected to exceed L$1 million. About 83% of loans have been repaid to PfP/L on time, with the vast majority of arrears less than a year old. PfP/L is reaching the poor, but most loan clients are microentrepreneurs and progressive small farmers. Its services are especially appreciated by small business people and the rural poor, since alternative financial resources for these groups are extremely limited. Although most small business loans went to males, PfP/L has also assisted the Nimba County Association of Market Women, with 800 members, to improve its leadership and management systems, and establish savings and loan infrastructure. PfP/L"s agent-client ratio compares well with some of the best programs worldwide and is expected to further improve. The project has also experienced several problems. (1) Liberian inflation has reduced the value of some U.S. disbursements (since they were exchanged at the official rate rather than at the much higher street value) and endangered the value of loan funds. (2) PfP/L"s transaction time in disbursing withdrawals and loans has been slow, taking as long as several weeks. (3) Savers complain about PfP/L"s failure (due to heavy staff workload) to provide savings statements and to pay out interest on a regular basis -- unless requested by the client. (4) In order to achieve the transition from PVO to development bank in Liberia"s economically unstable and corrupt environment, PfP/L needs to improve accounting and control systems and increase staff financial management capabilities. It was recommended that the project be continued, and expanded to Bong and Lofa Counties, as PfP/L had requested. However, due to rebel activities, PfP has had to postpone its expansion plans and to close its office in Nimba County.