MICROCAPITAL BRIEF: International Finance Corporation (IFC) Lends $1M to Cameroonian Microfinance Institution (MFI) Advans Cameroun

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, recently provided XAF 500 million (approximately USD 1.01 million) in local currency loan to Advans Cameroun, a microfinance institution (MFI) that is controlled by the Luxembourg- based investment firm Advans SA.

The loan is aimed at improving outreach of the MFI.

According to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, Advans Cameroun reported a gross loan portfolio of USD 5.6 million and 5,519 active borrowers as of 2009.

About Advans SA:

Advans SA SICAR (Advans SA) is a venture capital investment company whose mission is to broaden access to financial services for micro-, small and medium-sized enterprises (MSMEs) in developing countries and emerging economies. Its modus operandi is to invest as lead shareholder in the creation of financial institutions. In addition to equity and debt funding, Advans SA provides technical assistance intended to turn these institutions into sustainable and profitable operations. Advans MFIs serve nearly 245,000 loan clients from 61 branches, and have an outstanding loan portfolio of circa EUR 55 million (approximately USD 72 million). Advans SA plans to establish 6 to 7 new MFIs in Africa, Asia and the Middle-East by 2013. LuxFLAG, an organization that certifies that microfinance vehicles actually invest in the microfinance sector, most recently certified Advans Group as of April 2010. Founded in 2005, the company

About the International Finance Corporation (IFC):

A member of the World Bank Group, the International Finance Corporation (IFC) offers loan and debt securities, equity investments, advisory services and technical assistance intended to alleviate poverty and promote open and competitive markets in developing countries. IFC has 182 member countries that collectively determine its policies, and approve investments. In fiscal year 2009, IFC’s new investments totaled USD 14.5 billion.

By Trevor Kwong, Research Assistant

Sources and Additional Resources:

[1] Advans SA: IFC supports the Advans Network through refinancing facilities:

http://www.advansgroup.com/fileadmin/Advans/Presse_release/1010_EN_AdvansSA_IFCSupport.pdf

[2] MicroCapital Universe: Advans SA:

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+SA

[3] MicroCapital Universe: International Finance Corporation:

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)

[4] Microfinance Information Exchange: Advans Cameroun:

http://www.mixmarket.org/mfi/advans-cameroun

[5] MICROCAPITAL BRIEF: The International Finance Corporation (IFC) Invests $1.1m in Microfinance Institution (MFI) Advans Ghana:

https://www.microcapital.org/microcapital-brief-the-international-finance-corporation-ifc-invests-1-1m-in-microfinance-institution-mfi-advans-ghana/