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An MFI transforms into a limited company

Home > Success Stories > An MFI transforms into a limited company


Vola Mahasoa (VM) opened in 2000 to provide poor populations access to sustainable, client-focused financial services.

The institution is located in the Tulear region of Madagascar, where  population density is low, villages remote and infrastructures weak. Literacy rate is low and management capacities rudimentary.

To make up for these constraints, VM implemented a solidarity-group lending system that relies on social pressure to recover loans.
Loan officers are recruited locally, for their knowledge of the environment, and ride mountain bikes between villages.

In 8 years, VM has set up four branches (three rural and one urban), and has 7,500 clients with a loan portfolio of one million Euros.
VM broke even for the last few years and was the first MFI to be licensed as a category two microfinance institution, allowing it to mobilize savings.

The institution intends to expand to the whole Southern area of the island, reach more rice farmers and serve coastal fishing communities.
In urban areas, VM provides individual enterprise-loans to long-standing clients.

PAMIGA invested in Vola Mahasoa Ltd to help boost its growth.


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Madagascar is one of the poorest countries in the world despite a diversified ecosystem, high-quality agricultural production, arts and crafts, manufactured products and incredible mining resources.

The Tulear area – home to more than one million hard-working people -  is considered the poorest region of the island, regularly subject to drought, flooding and pests.

© 2021 Pamiga