MICROCAPITAL BRIEF: Advans SA Opens Microfinance Institution Advans Cote d’Ivoire, International Finance Corporation (IFC) Invests $1m in Equity

Advans SA, a microfinance investment vehicle managed by Horus Development Finance of France, has announced that it has opened the first branch of its fifth microfinance institution (MFI), Advans Cote d’Ivoire, in Abidjan, the capital of the country. The MFI, which had been in the planning stages since at least 2009, now offers credit to micro-, small and medium-sized enterprises (MSMEs) as well as current accounts, savings accounts, term deposits and money transfer services. Loans will range in size from XOF 150,000 (USD 298) to XOF 50 million (USD 99,500).

The MFI has also announced that the International Finance Corporation (IFC) has become its newest shareholder through a capital increase of XOF 499 million (USD 993,000), bringing Advans Cote d’Ivoire’s total share capital to XOF 3.75 billion (USD 7.5 million). IFC holds a 13.3 percent share in the institution. The other shareholders in Advans Cote d’Ivoire are: Advans SA with a 50 percent share; Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO) and French Investment Fund for Sub-Saharan Africa FISEA each with a 13.3 percent share; and Societe Generale de Banques en Cote d’Ivoire (SGBCI) with a 10 percent share.

Advans Cote d’Ivoire aims to reach approximately 45,000 individuals and finance 16,000 MSMEs through 12 branches across the country. Advans also holds significant stakes in MFIs in Cameroon, Ghana, Tanzania, Democratic Republic of the Congo and Cambodia, which serve an approximate total of 245,000 loan clients through 61 branches with an outstanding loan portfolio of approximately EUR 55 million (USD 75.7 million) as of 2010.

By Charlotte Newman, Research Associate

About Advans Cote d’Ivoire
Advans Cote d’Ivoire is a microfinance institution (MFI) operating in the Ivory Coast as a member of the Advans SA group of financial institutions, which is registered in Luxembourg. Advans Cote d’Ivoire was founded in 2009 and offers credit and savings services to micro-, small and medium-sized enterprises (MSMEs). It opened its doors in March 2012. Advans Cote d’Ivoire does not report data to the US-based nonprofit Microfinance Information Exchange.

About Advans SA
Advans SA SICAR (Advans SA) Sicar is a venture capital company that is registered in Luxembourg and managed by Horus Development Finance of France. The mission of Advans is to broaden access to financial services for micro-, small and medium-sized enterprises (MSMEs) in emerging economies. Its modus operandi is to invest as lead shareholder in the creation of financial institutions. In addition to equity and debt funding to microfinance institutions (MFIs), Advans SA provides technical assistance to MSMEs to promote sustainable and profitable operations. Advans’ MFIs in Cameroon, Ghana, Tanzania, Democratic Republic of the Congo and Cambodia serve approximately 245,000 loan clients with 61 branches and an outstanding loan portfolio of approximately EUR 55 million (USD 75.7 million) as of 2010. Advans SA plans to establish 6 or 7 new MFIs in Africa, Asia and the Middle East by 2013. Among these is La Fayette Microfinance Bank, which plans to open its doors in late 2012 and Advans Cote d’Ivoire which began operating in early 2012. LuxFLAG, an organization that certifies that microfinance vehicles actually invest in the microfinance sector, most recently certified Advans in April 2011.

About the International Finance Corporation
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

Sources and Additional Resources:

Advans Group: Press Release: “Advans Cote d’Ivoire Stars Activities in Abidjan and Welcomes IFC as a New Shareholder,” http://www.advansgroup.com/fileadmin/Advans/Presse_release/1204_EN_CP_Launching_AdvansCoted_Ivoire.pdf

MicroCapital.org story, February 4, 2012, “MICROCAPITAL BRIEF: Advans, International Finance Corporation (IFC), KfW Bankengruppe, FMO to Start La Fayette Microfinance Bank in Nigeria with $6.2m in Equity Investments,” https://www.microcapital.org/microcapital-brief-advans-international-finance-corporation-ifc-kfw-bankengruppe-fmo-to-start-la-fayette-microfinance-bank-in-nigeria-with-6-2m-in-equity-investments/

MicroCapital.org story, July 22, 2011, “IFC to Make Equity Investment of $1m in Microfinance Institution Advans Cote d’Ivoire,” https://www.microcapital.org/microcapital-brief-ifc-to-make-equity-investment-of-1m-in-microfinance-institution-advans-cote-d%E2%80%99ivoire/

MicroCapital Universe Profile: Advans Cote d’Ivoire
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+C%C3%B4te+d%E2%80%99Ivoire

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

MicroCapital Universe Profile: International Finance Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: FMO
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29

Browse the MicroCapital Universe Profile and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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