Mitra Dhuafa microfinance program helping Tsunami Recovery in Indonesia with GF support

Microfinance Focus, Dec 22, 2009: Mitra Dhuafa, an Indonesian microfinance institution with the collaboration of Grameen Foundation (GF) has provided more than $2.2 million in funding to help more than 16,000 women in Banda Achenese, the region closest to the tsunami’s epicenter. The funds and support has helped their families recover from the tragedy by building new, sustainable businesses five years after a devastating tsunami swept through Indonesia, said a release.

“The scale of the devastation and suffering was overwhelming, but we knew that microfinance had a crucial role in play in the long-term economic recovery of the families and communities,” said Alex Counts, president of Grameen Foundation. “Our goal was to help give the people of Banda Aceh access to the financial resources they would need to reignite their local economy.”

Before the tsunami, there was little microfinance activity in Banda Aceh, which remains one of Indonesia’s poorest regions. Using seed funding from Grameen Foundation, Mitra Dhuafa opened its first branch in Aceh province in September 2005 and has now provided loans to more than 16,000 women through its nine branches. Grameen foundation has been providing technical assistance to help Mitra Dhuafa strengthen its local staff and overall operations so that it can grow and reach even more women in far-flung areas.

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