Nisir Micro Finance Institution, currently under formation, is set to join Ethiopia's financial sector becoming the first commercial micro-finance institution. After three years preparation, Nisir is planning to go operational with a paid-up capital of 15 million Ethiopian birr in mid December 2013.

The company floated 15,000 shares with a face value of 1000 birr each. The huge gap between the supply and demand of financial services has driven Nisir's establishment, whose focus is providing a need-based and swift credit facility, Michael Addisu, Project Manager and Lead Promoter of Nisir told Fortune.

Nisir is planning to offer high interest rates for depositors, up to 12 per cent, much higher than the 5 percent interest rate paid by most commercial banks in Ethiopia. However, the lending interest rate for long-term credits will be 18 per cent a year and two per cent per month for short-term loans.

Part of the shares floated from May 22, 2013 onwards have already been subscribed and paid, however Michael refused to disclose the number of shares sold so far.

Source: Fortune