Introduction to Yonna Islamic Microfinance Ltd: Gambia's Sharia-Compliant Pioneer
In The Gambia's evolving financial landscape, Yonna Islamic Microfinance Ltd (Yonna IMF) has emerged as a significant player, distinguishing itself as the nation's first fully Sharia-compliant microfinance institution. Since its incorporation and licensing by the Central Bank of The Gambia on April 12, 2021, under the Non-Bank Financial Institutions Act of 2016, Yonna IMF has been steadfast in its mission to provide ethical financial services aligned with Islamic principles, aiming to drive inclusive economic growth.
Located at Tippa Garage, Bakoteh, Kanifing Municipal District, Yonna IMF is a privately held subsidiary of the Yonna Group, a prominent Gambian financial services conglomerate that also includes Yonna Forex Bureau and Yonna Insurance. This affiliation provides a robust foundation and a network of expertise. The institution operates on an asset-based, profit-sharing financing model, primarily utilizing Mudaraba and Murabaha structures, to meticulously avoid interest, known as riba, which is forbidden in Islamic finance. This approach resonates deeply within The Gambia, a nation where religious principles often guide daily life and financial decisions.
Yonna IMF targets critical segments of the Gambian economy, focusing on micro-entrepreneurs, women's cooperatives, youth groups, and small businesses. Their principal target beneficiaries include women entrepreneurs engaged in agriculture value chains, youth-led start-ups, small enterprises, and informal traders and service providers. Under the leadership of key executives such as Yankuba Mamburay as Managing Director, and with the Sharia governance oversight of Alhagie Muhammed Suwanneh, a Founding Director of Yonna Foreign Bureau, Yonna IMF is well-positioned to serve these vital communities.
Sharia-Compliant Financial Solutions and Product Offerings
Yonna IMF provides a diversified portfolio of financing, savings, and investment accounts, all meticulously structured to adhere to Islamic finance ethics. For potential borrowers, understanding these offerings is crucial:
Financing (Loans)
- Murabaha Asset Financing: This involves Yonna IMF purchasing an asset (e.g., equipment, raw materials) on behalf of the client and then selling it to the client at an agreed-upon higher price, payable in installments. The markup is known and transparent from the outset, replacing conventional interest.
- Mudaraba Working Capital Financing: Here, Yonna IMF provides capital to a client for a business venture on a profit-sharing basis. The client manages the business, and any profits are shared according to a pre-agreed ratio, while losses are typically borne by the financier (Yonna IMF), unless due to client negligence.
While specific details on loan amounts, profit rates, and fees are not extensively publicized and should always be verified directly with Yonna IMF, based on industry norms and available information, potential borrowers can expect the following:
- Loan Amounts: Financing typically ranges from a minimum of GMD 5,000 (approximately USD 90) to a maximum of GMD 1,000,000 (approximately USD 18,000). These amounts cater to the diverse needs of micro and small enterprises.
- Profit Rates (Sharia-compliant markup): The profit rates, which are the Sharia-compliant equivalent of interest, generally range from 10% to 20% per annum. The exact rate depends on the specific financing product and the client segment. It is vital to understand that this is a pre-agreed markup on the asset's cost or a profit-sharing ratio, not a fluctuating interest rate.
- Tenors and Repayment: Repayment periods vary, with short-term financing typically spanning 3 to 12 months, and medium-term facilities extending from 12 to 36 months. Repayment schedules are designed to align with the borrower's cash flow cycles.
- Fees: Unverified industry norms suggest a processing or origination fee of 1% to 3% of the financed amount. A late payment penalty, also unverified, might be around 2% per month on the overdue balance. It is important to note that any such penalties in Islamic finance are often directed towards charitable causes rather than being a source of income for the institution, adhering to ethical recovery practices.
- Collateral and Guarantees: Requirements vary. Asset financing often involves a lien on the financed asset. Group loans, a popular model for micro-enterprises, rely on group guarantees, fostering collective responsibility. Individual financing may require third-party guarantees or title documents for security.
Other Financial Services
Beyond financing, Yonna IMF also offers a range of savings accounts, including Maborro (regular savings), Child Savings, and a Hajj & Umrah Fund, as well as current accounts (Safaro Business & Corporate) and investment accounts (Restricted and Unrestricted Mudaraba Investment), catering to broader financial needs.
Application Process, Digital Reach, and Regulatory Framework
Accessing Yonna IMF's services is designed to be straightforward, leveraging both traditional and modern channels.
Customer Onboarding and Application Process
Applications are accepted through various convenient channels: direct branch visits, via the Yonna Wallet app, or through the Yonna IMF website. The standard Know Your Customer (KYC) requirements include a national identification card or passport, proof of residence, business registration (if applicable), and two guarantor references. The credit scoring and underwriting process combines a qualitative Sharia-compliant assessment of project viability with basic financial analysis, including cash flow projections. A significant aspect of their risk mitigation strategy for micro-enterprises involves incorporating a group guarantee methodology, which has proven effective in reducing default rates.
Disbursement and Collections
Once approved, funds can be disbursed via bank transfer to Gambian bank accounts, through mobile money platforms like the Yonna Wallet and partners such as QMoney and M-Paisa, or as cash disbursements at any of their branch outlets. For collections and recovery, Yonna IMF emphasizes ethical and transparent practices, fully aligned with consumer protection guidelines and Sharia ethics. Recovery channels include mobile money reminders, in-branch follow-ups, and reminders during group meetings.
Technology and Branch Network
Yonna IMF embraces digital innovation to enhance accessibility. The Yonna Wallet App, available on both iOS and Android platforms, allows for account opening, mobile financing applications, wallet transfers, and bill payments. While standalone app store ratings are not publicly available, its features aim to provide a comprehensive digital banking experience. Their website also offers product information and a branch locator. Complementing their digital presence, Yonna IMF boasts a robust branch network with twelve locations spread across all six Gambian regions, including key urban centers like Serrekunda and Banjul, as well as rural areas such as Farafenni, Wassu, and Basse. This extensive reach underscores their commitment to addressing the significant unbanked adult population, with plans for targeted expansion into more rural districts.
Regulatory Status and Compliance
Yonna IMF operates under strict regulatory oversight. It is licensed as a Non-Bank Financial Institution by the Central Bank of The Gambia, with its active status confirmed through April 2025. The institution is subject to the Central Bank's comprehensive regulatory framework for microfinance, which encompasses capital adequacy, liquidity ratios, and consumer protection guidelines. Yonna IMF adheres to guidance on transparent pricing, anti-money laundering (AML) protocols, and the crucial oversight of a Sharia supervisory board, ensuring all operations remain fully compliant with Islamic law. There have been no publicly reported regulatory sanctions or penalties against Yonna IMF.
Market Standing, Customer Experience, and Practical Advice for Borrowers
Yonna IMF occupies a unique and leading position in The Gambia's microfinance sector, driven by its distinct Sharia-compliant model.
Competitive Landscape and Market Position
In the Gambian market, Yonna IMF stands as the leading Islamic microfinance provider. It competes with conventional microfinance institutions, such as Kolomoni MFI, as well as commercial banks that offer micro-loans. Its key differentiators include its full Sharia compliance, integrated value chain financing particularly strong in agriculture, and an ethical consumer protection framework. The institution's rapid growth, establishing twelve branches within two and a half years, demonstrates its ambition and effectiveness. Strategic partnerships with non-governmental organizations for agricultural projects, telecom operators for mobile money distribution, and international donors for financial literacy programs further solidify its market presence and future growth trajectory, with plans for at least three new rural branches in 2025.
Customer Experience
While standalone app store ratings are not widely available, anecdotal feedback from social media platforms suggests a generally positive customer experience, particularly regarding fast and Sharia-compliant service. Some unverified reports mention occasional processing delays, possibly during phases of rapid branch expansion. Yonna IMF places a strong emphasis on multi-channel customer support, available in-branch, through a call center, and via WhatsApp, fostering a respectful and dignity-based service culture.
Practical Advice for Potential Borrowers
For individuals and small businesses considering Yonna Islamic Microfinance Ltd for their financial needs, here is some practical advice:
- Verify Details Directly: While this article provides general ranges, it is crucial to confirm specific profit rates, fees, and repayment terms directly with Yonna IMF before committing. Publicly available information can sometimes be unverified, and direct communication ensures accuracy.
- Understand Sharia Principles: Familiarize yourself with the concepts of Murabaha and Mudaraba. Understand that profit rates are not conventional interest; they represent a pre-agreed markup or profit-sharing arrangement, which aligns with ethical financial practices.
- Prepare Documentation Thoroughly: Ensure all required KYC documents, proof of residence, business registration, and guarantor references are complete and accurate to expedite the application process. Having a clear business plan and realistic cash flow projections will also strengthen your application.
- Utilize Digital and Branch Channels: Leverage the convenience of the Yonna Wallet app for initial applications and managing accounts. However, do not hesitate to visit a branch for personalized advice, clarifications, and to build a direct relationship with the staff.
- Consider Group Guarantees: For micro-entrepreneurs, joining or forming a group for loan applications can often mitigate individual collateral requirements and may facilitate easier access to financing, fostering a community-driven approach to financial inclusion.
- Budget Responsibly: Always ensure that your repayment plan aligns with your projected income and cash flow. Timely repayments are crucial not only for maintaining good financial standing with Yonna IMF but also for building a positive credit history, which can open doors to future financing opportunities.
- Engage with Staff: Yonna IMF emphasizes a dignity-based service culture. Do not hesitate to ask questions, seek clarifications, and discuss any concerns with their customer service representatives or branch staff to fully understand your obligations and rights.
Yonna Islamic Microfinance Ltd represents a valuable and ethically grounded financial partner for many Gambians seeking to grow their businesses and improve their livelihoods within the framework of Islamic finance. Its commitment to Sharia compliance, coupled with a growing digital and physical footprint, positions it as a key driver of financial inclusion in the nation.
