Advans SA, a microfinance investment vehicle (MIV) registered in Luxembourg, recently announced the launch of Advans Bank Tanzania in Dar es Salaam. As reported by MicroCapital in November, 2010, the new microfinance institution (MFI) will offer products such as loans to small and medium-sized enterprises (SMEs), savings accounts in local and foreign currencies and domestic money transfers.
In the first week of operations, 220 savings accounts were opened and 48 loan applications were completed. Advans also reported that the first loan to be disbursed is in the amount of TZS 1.3 million (USD 855).
Advans Bank Tanzania is the fourth MFI launched by Advans SA and is currently staffed by 18 employees. Plans include hiring an additional 41 employees and opening a second branch in Dar es Salaam by the end of 2011. The MFI has initial capital of TZS 7.2 billion (USD 4.7 million). The three other MFIs involved with Advans SA in the Democratic Republic of Congo, Ghana and Cameroon, report an aggregate outstanding loan portfolio of EUR 55 million (USD 75.7 million) and 245,000 clients as of 2010.
By John Howard-Smith, Research Associate
About Advans SA: Advans SA SICAR (Advans SA) is a venture capital 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 to MSMEs to promote sustainable and profitable operations. Advans MFIs serve approximately 245,000 loan clients from 61 branches and have an outstanding loan portfolio of approximately EUR 55 million (USD 75.7 million) as of 2010. 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 as of April 2010. The organization reported total assets of USD 15 million as of 2009.
[1] Advans Press Release: “Advans Bank Tanzania opens its doors to the public in Dar es Salaam, Tanzania”, http://www.advansgroup.com/fileadmin/Advans/Presse_release/1102_EN_CP_StartofOperations_AdvansBankTanzania.pdf
MicroCapital.org story, November 2, 2010: “MICROCAPITAL BRIEF: Advans SA Set to Open Microfinance Bank (MFB) Advans Bank Tanzania in December 2010”, https://www.microcapital.org/microcapital-brief-advans-sa-set-to-open-microfinance-bank-mfb-advans-bank-tanzania-in-december-2010/
MicroCapital’s Microfinance Universe profile: Advans SA, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+SA
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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