| Background |
At
the Clinton Global Initiative in September 2006, President Ellen
Johnson-Sirleaf challenged participants to support the efforts of
her government to reconstruct Liberia after nearly twenty years
of civil war. In particular, President Sirleaf requested support
for Liberia’s private sector which, in her view, had a leading
role to play in the area of job creation, revenue generation and
overall economic activity. Robert L. Johnson, Chairman of the RLJ
Companies and founder of Black Entertainment Television, along with
several colleagues, responded with a commitment to mobilize $30
million to help revitalize Liberia’s private sector.
President Sirleaf emphasized that a lack of access to working capital
was a primary constraint to the effort of many Liberians to rebuild
their businesses and livelihoods. A lack of capital, and an inability
to become economically productive, was also a major obstacle to
the return of many Liberians living in the United States and elsewhere.
For this reason, the RLJ Companies joined forces with the Overseas
Private Investment Corporation and CHF International to respond
to President Sirleaf’s appeal to ensure that Liberia’s
private sector becomes an engine of sustainable development. Together
they created the Liberian Enterprise Development Finance Company
(LEDFC) to address the challenge small- and medium-enterprises are
facing by facilitating access to capital. |
| Products |
LEDFC
will provide credit to local businesses using a “relationship
banking” approach by offering a variety of credit products
that will allow local businesses to build credit histories in order
to access larger credits as they grow.
• Fixed Asset Loans: Medium term investment loans (3 to 5
years) for investment in capital equipment and other productive
assets needed to restart or expand an existing business.
• Working Capital Loans: For clients unable to access capital
from local commercial banks, LEDFC will offer short term working
capital facilities (3 to 12 months) geared to the borrower’s
needs and capacity to use short term capital. For more established
businesses with a credit repayment record, a line of credit facility
could be extended up to one year.
Loans will be made to qualified businesses with bankable projects
and meet OPIC policy requirements. |