MICROCAPITAL BRIEF: Luxembourg Directorate for Development and Cooperation (LuxDev) Donates $219k to Support Microfinance Institution (MFI) Asusu Of Niger to Train 550 Young Entrepreneurs

The Luxembourg Directorate for Development and Cooperation (LuxDev), a government-owned institution encouraging international development, has awarded a donation of EUR 200,000 (USD 218,000) to ADA, a Luxembourg-based nonprofit organization formerly known as Appui au Developpement Autonome. The donation is intended to assist Asusu, a Niger-based microfinance institution (MFI).

This donation, together with a donation of EUR 35,000 (USD of 38,000) Rotary “Espoir 2005”, the Luxembourg-based arm of US-based service organization Rotary International, will be used to help young entrepreneurs set up microenterprises in both rural and urban areas of Niger. ADA’s main objective for 2016 is funding 550 young people, including 250 leavers of Niger-based training centers supported by LuxDev, where the funding will be used to provide business and financial training to the beneficiaries as well as to minimize any “unpaid bills” that the young graduates may have.

As of December 2014, Asusu reported total assets of USD 44 million, a gross loan portfolio of USD 27 million and deposits totaling USD 24 million. For 2014, LuxDev reported a total budget of EUR 595 million (USD 650 million) and disbursements of EUR 89 million (USD 97 million) in donations in approximately ten countries. As of December 2014, ADA reported total assets of EUR 3.7 million (USD 4.2 million). In 2015, ADA supported 34 microfinance organizations (MFIs) in 16 countries with services related to capacity building and product development.

By Kevin van den Brink, Research Associate

About ADA

ADA is a nonprofit organization based in Luxembourg that was formerly known as Appui au Developpement Autonome. ADA supports inclusive finance professionals in an effort to help the approximately 2.5 billion adults outside of the conventional financial system to reach their goals. ADA’s activities include providing financial services, developing new financial products, assisting in the capacity building of microfinance institutions (MFIs) and improving information on and awareness of microfinance activities. As of 2015, ADA has five focus areas: “green energy, jobs for young people, farm leasing, microinsurance and migrant savings.” As of December 2014, ADA reported total assets of EUR 3.7 million (USD 4.2 million).

About The Luxembourg Directorate for Development and Cooperation (LuxDev)

Luxembourg Directorate for Development and Cooperation (LuxDev) is the Luxembourg Agency for Development Cooperation. It is a private limited company with its head office in Luxembourg. Its shareholders are the Luxembourg Government (98 percent) and the Societe Nationale des Credits a l’Investissement, a Luxembourg-based public-law banking institution

LuxDev focuses mainly on health, education and local development programs which aim at improvements in water and sanitation infrastructure, the decentralization of government, and microfinance. As of December 2014, LuxDev reported a total budget of EUR 595 million (USD 650 million) and during that year disbursed a total of EUR 89 million (USD 97 million) in grants in Burkina Faso, Mali, Niger, Senegal, Laos, Myanmar, Vietnam, Cape Verde, El Salvador, Nicaragua, Kosovo, Montenegro, Serbia.

About Asusu Societe Anonyme

Asusu SA is a microfinance institution (MFI) in Niger that was founded in June 2005. The organization’s main mission is to provide financial services and training to entrepreneurs in both rural and urban areas of Niger. As of December 2014, Asusu reported total assets of USD 44 million, return on assets (ROA) 0.27 percent and return on equity (ROE) 1.43 percent. As of the same date, it reported a gross loan portfolio of USD 27 million divided over 114,000 active borrowers and deposits totaling USD 24 million from 251,000 depositors.

Sources and Additional Resources

[1] ADA, News, €235,000 to Get Young Entrepreneurs in Niger Working

Microfinance Universe Profile: ADA

Microfinance Universe Profile: The Luxembourg Directorate for Development and Cooperation (LuxDev)

Microfinance Universe Profile: Asusu SA

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