Development Ratings

MicroLoan was founded in the UK in 1998 by a small group of London businessmen, including Peter Ryan, a local business executive. MicroLoan initially only made grants to a Philippine microfinance institution (MFI), after a friend of Peter’s had had a positive experience there making small loans. But, since 2002, MicroLoan has focused on establishing and expanding its own operations in Malawi. MicroLoan Foundation is a UK-registered charity, but MicroLoan Malawi is a Malawi-registered MFI. MicroLoan funds, guides, controls and manages strategy related to MicroLoan Malawi and directs the expansion of MicroLoan MFIs in other countries.

The West London-based board of trustees of MicroLoan has attracted a skilled network of volunteers and pro bono consultants who contribute expertise in country programme roll-out, fundraising, public relations, IT and risk management. Up until 2006, the trustees and volunteers absorbed most of the operating costs in the UK, ensuring that all financial donations were directed to growing the Malawi field operations. A full-time CEO for MicroLoan was hired that year to progress the charity’s development, but the reins have now been taken over again by Peter Ryan, the founder and current CEO. With his appointment and three additional staff taken on in 2007, The focus has been on tightening up the operational framework, controls and processes to ensure that the growth of both MicroLoan and MicroLoan Malawi is sustainable. At October 2009 the entire Malawi operations are 80% self-sustaining, with 100% being predicted to be reached in mid-2010.

MicroLoan Malawi has expanded from 9 branches at the end of 2007 to 20 at October 2009. These are staffed by a team of 98 employees, 59 of whom are loan officers. The Malawi operations were initially established by Kenson Chiphaka. Kenson worked for FINCA, a US microfinance institution operating in Malawi, before joining MicroLoan to set up the original Malawian office in May 2002. The Malawian activities are run by James Kajamu, hired in 2007. James has an MBA from a British University and prior experience as Operations Manager with PRIDE Malawi, another Malawian microfinance institution. Other members of the team have worked for FINCA, World Vision, Plan International and various government ministries and private sector companies. MicroLoan Malawi also hired Julius Kamanga in 2007 from the private sector as Chief Accountant. He has been strengthening the internal audit and finance function in Malawi.

Kenson is now working on repeating the start-up process in Zambia. The registration process has progressed far slower than expected and is still in the pipeline. Meetings have been taking place with authorities to try to speed things up. Staff have been identified for when approval is granted so that loan operations can begin immediately. Corporate sponsorship has been obtained for the preparation work to repeat the start-up in Namibia as well. MicroLoan has been using the voluntary support of a Mercer consultant to develop a replication manual for expanding operations, which it will be using in Zambia and Namibia. MicroLoan is discussing the recruitment of a US Director who could help replicate the UK set-up in the US and raise funds from the one third of website hits that come from the States.