A New Economic Opportunity in Liberia – The Liberian Enterprise Development Finance Company

The private sector is playing an essential role in the economic regeneration of Liberia. But between micro-lending and traditional large collateral based loans, small and medium-sized enterprises (SMEs) are too often left out of private sector development. This is a problematic gap, as SMEs are recognized as the engine of economic growth. In partnership with OPIC and RLJ Companies, then, CHF International has been addressing this ‘middle market’ through the Liberian Enterprise Development Finance Company (LEDFC).

Through LEDFC, OPIC is making available US$20 million in loan capital to Liberian SMEs. So far $2 million has been disbursed, helping to finance the growth of ten clients in sectors from hospitality to transportation and agribusiness. LEDFC is now looking to disburse $18 million remaining to Liberian owned and registered companies. Loans can vary between $10,000 and $1 million.

CHF International is also looking for investors who are interested in supporting the continued operation of LEDFC, to ensure that we are able to continue reaching out to businesses in Liberia and making sure that this loan capital is used and provides maximum benefit to the Liberian economy.

LEDFC and its products represent a unique opportunity for the right investor in the future of Liberia. CHF International’s experience suggests SME investments could create as many as 900 permanent jobs and thousands more temporary jobs – an important step in developing a stable economy and helping to bring hope to a people recovering from years of civil strife.

FAQs

What types of loans does LEDFC provide?

• Loans are available for financing accounts receivable, inventory, and equipment.
• Loans can range in size from US$10,000 to US $1,000,000.
• Maximum loan term/tenor is five years.
• Interest rates are between 13 and 16 percent.

What are the eligibility requirements and how do you apply?

SMEs that meet the following requirements are eligible to apply for loans from LEDFC:

1. Liberian owned (at least 51%)

2. Registered business doing business in Liberia

3. No history of default

4. Capable and experienced management

5. Clear market opportunity

If you meet the eligibility requirements and need financing to grow your business, please contact LEDFC to request an application package or obtain additional information.

For more information on LEDFC, please contact

Mr. Abraham Ndofor, General Manager

Telephone: 231 577 0044

Email: andofor@chfinternational.org

Download the LEDFC factsheet here.