Dire Micro-Finance: Championing Financial Inclusion
Dire Micro-Finance is an institution that focuses on financial inclusion and financial access, benefiting underserved segments of society, especially women and youth.
Recognition and Achievement
The institution was recognized and awarded in the 3rd African Job Creation Forum held in Addis Ababa in 2025, providing financial support and advisory services to small and micro enterprises, and it has also had a successful year in its institutional performance.
Performance Highlights – 2025 Fiscal Year
The effective performance of the institution in the 2025 fiscal year is presented below.
Dire Micro-Finance – 2025 Fiscal Year Performance Highlights
- Loan Disbursement Success: The institution exceeded its planned targets by disbursing loans totaling over 1 billion birr to 3,871 loan service clients.
- Support for Small and Micro Enterprises: In the sector of small and micro enterprises, 3,259 entrepreneurs received financial support through loan disbursements amounting to approximately 1 billion birr, significantly boosting their business activities and contributing to economic empowerment.
- Outstanding Loan Recovery: With a recovery target of 370 million birr, Dire Microfinance achieved a loan repayment of over 380 million birr, surpassing expectations and demonstrating exceptional performance in credit recovery.
· Savings Mobilization: The institution planned to mobilize over 900 million birr in savings and successfully collected more than 1 billion birr, exceeding its target and demonstrating strong performance.
- Focus on Women and Youth: Women and youth were the primary beneficiaries of the institution’s services. In 2025, 1,943 women received loans totaling over 400 million birr.
This represents 91% of total clients and 85% of total loan disbursement, highlighting the institution’s commitment to women’s financial inclusion and participation.
- Youth Empowerment: Nearly 3,000 young people benefited from loan services, with over 700 million birr disbursed to support youth-led initiatives.
- Total Loan Outstanding: By the end of the fiscal year, the institution’s total outstanding loan portfolio exceeded 1.5 billion birr.
- Capital Growth: As of June 30, 2025, Dire Microfinance’s capital surpassed 580 million birr, reflecting consistent capital growth over time.
- Client Base Expansion: By June 30, 2025, the institution had over 10,000 loan service clients, Over 90,000 savings clients, A total of more than 100,000 clients served across loan and savings services
- Portfolio at Risk (PAR): The institution maintained strong credit control, reducing its PAR (loans at risk of default) to 0.95%, indicating high portfolio quality and operational success.
- Net Profit: As of June 30, 2025, Dire Microfinance recorded a net profit of 136 million birr. The report indicates that the institution could have earned even more had it not absorbed interest expenses on borrowed funds.
- The institution has been expanding its service accessibility both in the surrounding areas and among its clients. Currently, it has begun offering sanitation and solar energy services. If partner organizations working in sanitation and solar energy collaborate closely with the institution, it will create an opportunity to further expand services and reach a larger population.
Additionally, the institution operates with a focus on women as its central beneficiaries. In connection with its women’s employment creation program, if it partners with other stakeholders—including the Development Bank of Ethiopia—it can significantly enhance its service delivery. By working with Dire Micro-Finance, which has demonstrated effectiveness across multiple metrics, the institution can empower many women to become beneficiaries
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