Micro-Finance Institution

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Specialised Financial and Promotional Institution (SFPI)



( a )  General Information


Year of Establishment 


1997 and started operation in 1998


Legal Status

Specialized Financial and Promotional Institution S.C. (SFPI) was legally registered by the National Bank of Ethiopia, according to Proclamation No.40/1996.


Current Operational Area (s)

  • Addis Ababa City Administration

  • Oromiyaa Regional State  and

  • SNNP

Future Expansion Plan

SFPI intends to increase its outreach in the existing operational areas (Addis Ababa City Administration and Oromiyaa Regional State). Also, it has a plan to start operation in the Amhara Regional State within the next 3 to 5 years.


Total Number of Woredas Covered so far

20 Woredas in the Addis Ababa City Administration, four in Oromiyaa Regional State and Yirgachefe of the SNNP.


Total Number of Branches Opened so far  Four


Total Number of Clients served so far  10,524 out of which 7644, 1299 and 1141 are urban, semi-urban and rural clients respectively.


Gender Sensitivity  Male clients = 31%, Female Clients = 69%


(b)  Loan Services/Products  Group Loan


Annual Lending Rate   16%, flat


Loan Size


Amount (Birr)

1st Cycle


2nd Cycle


3rd Cycle


4th Cycle


5th Cycle



Loan Term

Maximum Loan term  = 12 months

Minimum Loan term   = 3 months


Loan Eligibility Criteria

  • Economic status: clients should be active poor;

  • Ability and willingness to work;

  • Credit Worthiness and good personal conduct;

  • Willingness to take loans on peer group collateral;

  • Permanent resident of the operational area.

Type of Collateral Needed  Group Guarantee/Collateral.


Some of the economic activities financed so far

  • Petty trade;

  • Processing and manufacturing;

  • Agriculture;

  • Services.

Grace Period  No Grace period.


Time needed to process and get loan  15 days.


Business Plan Presentation

SFPI requests borrowers to fill out application format that can also serve as business plan.


Loan Application Format

The borrower is expected to fill out an application form with the following contents:

  • General information about the borrower;

  • Analysis of the business for which loan is requested;

  • Background history of the borrower in terms of past experience in settling loans and making savings;

  • Budget or breakdown of costs for which the loan is requested.

Target Clients for Loans  urban and rural households.


Willingness to lend to new business start-ups such as high school drop-outs, college graduates and similar groups  SFPI gives financial services to new business start-ups as long as they meet the criteria set for any other borrowers.


Frequency of Revising Institutional Financial Policies

SFPI revises its financial policies whenever it found necessary.


( c ) Savings Products


Type of Saving

Annual Deposit Rate



Individual Borrower’s Compulsory Saving




Individual Borrower’s Voluntary Saving




( d ) Other Services  Training in entrepreneurship to small business owners


Service Out-let  The services of SFPI can be accessed from its branch offices.


New products to be introduced during the coming 3-5 years

Type of Product



Other Related Services

Individual (personal) loan





P.O.Box:  10689, Addis Ababa, Ethiopia

Telephone:  +251-1-622780/81 or +251-1-614804

Fax:  +251-1-614804



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