Harbu in the Spotlight

Harbu Ethiopia

MicroNed looks back on the 2010 European Microfinance Week with great joy and pride, as this years microfinance award on the topic of Value Chain Finance was won by a partner MFI of Terrafina Microfinance: Harbu Ethiopia. Value Chain Finance has been the central topic of MicroNed's Rural Financial Services working group for the past years, of which Terrafina is the coordinator. Terrafina is Co-funded by two Microned members: Rabobank Foundation and ICCO.

On 31 November 2010, Harbu Microfinance Institution Ehtiopia was selected as the winner of the 3rd European microfinance award on Value chain finance, during the European Microfinance week 2010 in Luxembourg. The winner was chosen by a high jury in a ceremony hosted by the European investment Bank. Her Royal Higness the Grand Duchess of Luxembourg, known for her staunch support to microfinance, presented the Award and the 100,000 euro prize. 

Harbu Microfinance Institution Share Company was established on February 2005. This MFI serves as "banking for the poor" both in rural and urban areas of Ethiopia. Is mission is to take part and play an important role in the struggle against poverty  and food insecurity, through facilitation so as to bring about sustainable economic development throughout the country by providing financial services that will stimulate individual initiatives for self-reliance and fair economic development.

In a comment on winning the prize, Tesfaye Befekadu, the CEO of Harbu MFI, notes:

"Harbu MFI, as a micro finance institution operating in Ethiopia, is very happy and proud of the new product that brought us to this level. We know that it is not only our effort that put us at his level, but it is the contribution of our mother NGO (Facilitator for change) who is the master mind of the innovative idea to this product, as well as the donors behind us like Terrafina Microfinance and SOS FAIM, and many more. In general we want to express our deep and warm appreciation to all individuals, organizations & stake holders who supported us to reach to win this prize"

Harbu's initiative involves the financing of a soybean value chain as a response to a market demand generated by a shortage of cow milk in Jimma city, zone of Oromia regional state. The initiative started with 240 farmers and it was built on the basis of strengthening horizontal linkages with farmer marketing organizations and vertical linkages with retailers and women's associations in charge of processing and producing soya milk. The initiative created market opportunities for producer farmers and employment opportunity for urban women and youth. Simultaneously, it contributed to the improvement in the nutritional constituents of families, specially children and women. Harbu MFI provides financial services for most of the actors across the chain starting from the individual producers to retailers. It provides seed capital and lease financing for the purchase of soymilk machines. 

Terrafina Microfinance was involved with advise and finances from the start of the soybean value chain, and is therefor one of the contributers to this success.

Read the interview with Tesfaye Befekadu in the European Microfinance Platform Spring newsletter 2011, and an article on the collaboration between Harbu and Terrafina in the European Microfinance Platform Summer newsletter 2011.