serving with love

1.  Introduction

Dire Microfinance Institution Share Company was established in February 2002 in accordance with Proclamation No 40/2005 enacted by the Ethiopian Government with a capital of Birr 1,000,1000 .

Dire Microfinance Institution currently in full implementation of Management Information Systems (Core Banking) to increase its competitiveness and modernize its operations.

Currently, it is working in Dire Dawa City Administration, Somali and Hareri Regional States by focusing on the following groups of clients using savings (voluntary and mandatory) and credit products:

• Plays vital role in alleviating unemployment and poverty in urban and rural areas of Dire Dawa City Administration by organizing micro and small entrepreneurs.
•  Targeting the active poor of the society.
• Cooperatives in the city Administration.
• Assist the unemployed graduates from Universities and TVETs to change their lives positively.

Currently, Dire MFI has more than 9,023 credit and 54,537 Saving clients, 10 branches, 7 sub-branches,3 satellite bracnch  and more than 172 employees. It is also getting strong support from the council of Dire Dawa City Administration.  

ownership

DMFI is a legal share company whose governance includes General Assembly Board of directors and managing Director. Its ownership is divided in to shares and it is owned by eleven share holders namely,

• Dire Dawa Administration.
• Biftu Dinsho S.C
• Dire Dawa Business Women Association
• Kebele 09 Womens’ Development Association
• Asnaketch Womens’ Association
• Kebele 06 Yedilfire Womens’ Association
• Mr. Solomon Hailu
• Mr. Adem Farah
• Dire Dawa Micro and Small Enterprises Dev’t Agency
• Dire Dawa TVET Agency
• Dire Dawa Women, Children and Youth Bureau.

97% of the capital was owned by Dire Dawa City Administration. Currently, there are 11 shareholders. The board of directors consists of eight members.

• DMFI’s Mission, Vision & Core Values

The DMFI’s consisting of mission, vision and Shared Values of DMFI are as stated here below:

Mission:

The mission of the Dire Micro Financing S.C. is to increase the economic potential of the low and middle class of society, especially women and young people, who are engaged in small and small income-generating activities.

Vision:

In the year 2025, DMFI aims to become a competitive bank that efficiently supports small and medium business operators. 

Core Values

• We give due respect to our customers.
• We provide quality credit services.
• We work with integrity to satisfy customers.
• We pay special attention to savings services for financial self-sufficiency.
• We adhere to the principles of good governance.
• We make change our culture to ensure growth.

3.     Objectives and Products of the Company

The objectives of the company, according to its Memorandum of Association, are stated as follows:

1. Delivering credit services to the unemployed youth, women, farmers and others who shall engage in small-scale production, petty trade, service activities and similar income generating activities residing in urban and rural areas of Dire Dawa region as per proclamation No 40/1996.
2. Accepting savings as well as demand, current accounts and time deposits.
3. Purchasing income generating financial instruments which could be paid in Ethiopia.
4. Borrowing money against the security of its assets and finding money grants from the donors for its business purposes.
5. Drawing and accepting draft payable within Ethiopia.
6. Creating and transferring ownership right and right of possession over immovable and movable properties to perform its activities.
7. Rendering consultancy services to clients.
8. Encourage Micro and Small-scale producer cooperatives and as conditions permit granting credit and cooperate with others who are engaged in such types of activities.
9. Products 

The company provides savings and credits (ranging from Birr 500 to 1% of capital or 2.5% for lease financing) products.

4.1 Credit products include:

• Conventional Loan Products,
  • Group loan,
  • Individual loan,
  • Cooperative loan,
  • Housing loan,
  • Personal loan,
  • Machinery lease,
• Interest free loan
  • Murahaba
  • Ijara
• Lease financing focusing on Machinery financing

4.2 Savings Products

• Conventional Savings Products,
  • Voluntary Savings,
  • Mandatory savings,
  • Child Savings,
  • Joint savings,
  • Time deposit,
  • House to house savings,
  • Box savings.
• Interest free savings,
  • Wadia (deposit savings),
  • Mudareba (investment savings),
• Life insurance for conventional credit risk,
• Self-help insurance for interest free loan (Tekafel Teawni).