MICROCAPITAL.ORG STORY: Microfinance Institutions, Advans Ghana and Advans Cameroun, Boast Increased Capital by €1m & €2.3m Respectively

Advans Ghana and Advans Cameroun, two microfinance institutions (MFIs) operating under Advans SA Sicar (Advans SA), recently reported capital increases of EUR 1 million and EUR 2.3 million respectively [1]. Advans SA is managed by Horus Development Finance, a French consulting firm that provides technical assistance to microfinance institutions in developing countries. It owns and frequently partners with Advans SA on projects. Financial data on Horus is not available on MIX Market or on the firm’s website. Co-investors on Advans SA include: Agence Française de Développement (AFD), European Investment Bank (EIB), Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (FMO), International Finance Corporation (IFC) and KfW Entwicklungsbank (KfW) [2].

Advans Ghana is a Savings and Loans company headquartered in Accra, Ghana which began its operations in October 2008. The MFI has two additional branches in central Accra as well [3]. Its current share capital is EUR 1.75 million. Advans Ghana now loans to 1500 active clients and has an outstanding loan portfolio of EUR 500 000. No additional financial information is available on the MIX Market or on the company’s website. The MFI reportedly plans to extend its services to over 15 000 clients over the next five years [4]. The International Finance Corporation (IFC), a financier of private sector investment and an advisor for Advans SA, has categorized Advans Ghana as an F1 Type 1 project. Accordingly, the MFI “must establish and maintain an Environment and Social Management System (ESMS) to the satisfaction of IFC, to ensure that it does not make investments in areas that are on IFC’s Microfinance Exclusion list” [5].

Advans Cameroun is an MFI which was founded in 2006. Its current share capital is EUR 3.8 million. After over two years of operations, Advans Cameroun serves almost 4 000 active loan clients and has an outstanding loan portfolio of EUR 2 million [6]. No additional financial information is available on the MIX Market or on the company’s website. As mentioned in a previous MicroCapital story, Advans Cameroun experienced an increase in capital in June 2008, which in turn attracted the IFC as a shareholder [7]. The MFI offers credit ranging from EUR 150 to EUR 22 000, which can be purchased both independently and in groups. Advans Cameroun plan is open a dozen branches in the cities of Yaounde, Bafoussam, Garoua, Bamenda, Maroua, and Ngaoundere over the next five years [8].

Advans SA is a Luxemburg based Venture Capital Investment Company founded in 2005, providing banking services for micro, small and medium sized enterprises (MSMEs) [6]. It has share capital of EUR 17.1 million, and total assets of EUR 6.1 million. Additional financial data on the company is not available on MIX Market or on the MFI’s website. The company’s mission is to remove the prevalent barrier MSMEs face in emerging and developing markets offering formal banking services under “fair” conditions. A MicroCapital story published on August 3, 2009 mentioned the launch of Advans SA’s fourth microfinance institution: Advans Banque Congo, in the Democratic Republic of Congo [9]. For more information on this MFI, please visit http://www.advansgroup.com

By: Diya Chopra, Research Associate

Bibliography:

[1] Social Science Research Network

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1144762

[2] MicroCapital

https://www.microcapital.org/microcapital-paper-wrap-up-microfinance-institutions-does-capital-structure-matter-by-vicki-bogan/

[3] Advans Ghana

http://www.advansghana.com/

[4] Société Générale Group and Corporate Social Responsibility

http://csr.socgen.com/Home-page/Placing-CSR-at-the-heart-of-our-business/International-Retail-Banking/Microfinance/Tanguy-Gravot-General-Manager-of-Advans-Ghana

[5] International Finance Corporation

http://www.ifc.org/ifcext/spiwebsite1.nsf/2bc34f011b50ff6e85256a550073ff1c/72719dd8a1545922852572a0006998d9?opendocument