MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor), The MasterCard Foundation Award $900k to Advans Cote d’Ivoire, MFS Africa, Money Express for Branchless Banking Projects in Benin, Cote d’Ivoire, Senegal

CGAP (Consultative Group to Assist the Poor), a US-based nonprofit that aims to facilitate the expansion of financial access, and The MasterCard Foundation, a Canada-based nonprofit that aims to promote youth learning and financial inclusion in emerging markets, recently awarded a total of USD 900,000 to three projects in countries of the West African Economic and Monetary Union (WAEMU) to expand the availability of banking in the region. The awards went to Advans Cote d’Ivoire, a bank that was founded in 2012 to provide savings and lending services to micro-, small and medium-sized enterprises (MSMEs) in that country; Mobile Financial Services (MFS) Africa, a mobile payments firm based in South Africa, for a project serving Benin and Cote d’Ivoire; and Money Express, a Senegal-based money transfer company.

Advans Cote d’Ivoire will provide branchless banking services to cocoa cooperatives and farmers in addition to seeking new methods for providing other Advans financial services to farmers in remote areas. Advans Cote d’Ivoire is a member of Advans SA, a venture capital group registered in Luxembourg and managed by Horus Development Finance of France.

MFS Africa will promote microfinance via a “mjara” loan product that involves guaranteeing loans to customers in Benin and Cote d’Ivoire based on credit scores derived from the customer’s mobile money record.

Money Express plans to launch a mobile banking platform called Nafa that will provide financial services such as the ability to pay bills, buy goods and services, transfer money and save funds via mobile phones.

According to Estelle Lahaye, the manager of the WAEMU branchless banking project at CGAP, “The projects supported by this challenge fund are an excellent opportunity to support and power innovation in a rapidly changing branchless banking ecosystem. We are also excited about the learning potential these projects offer for deeper market development in the WAEMU region.”

As of 2013, CGAP reported operating expenses of USD 9 million. CGAP is co-located with the offices of the World Bank Group in the US city of Washington DC. As of 2014, The MasterCard Foundation reported approximately USD 9 billion in assets.

By Ananya Tiwari, Research Associate

About Advans Côte 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 but did not open its doors until 2012. The firm offers credit and savings services to 18,000 micro-, small and medium-sized enterprises (MSMEs) and reports a gross loan portfolio of EUR 10.2 million (USD 12.9 million) and total voluntary deposits EUR 4.5 million (USD 5.7 million) as of September 2014?.

About Advans Group (Advans SA):
Launched in 2005, 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 increase access to financial services for micro-, small and medium-sized enterprises (MSMEs) in emerging economies. In addition to equity and debt funding for microfinance institutions (MFIs), Advans provides technical assistance to MSMEs in an effort to assist them in achieving sustainable and profitable operations. As of 2013, the Advans network serves approximately 322,000 loan clients via 140 branches in eight countries: Cambodia, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, Nigeria, Pakistan and Tanzania. As of March 2013, Advans SA held total assets of EUR 45.0 million (USD 61.7 million) and committed capital of EUR 43.6 million (USD 58 million).

About Mobile Financial Services (MFS) Africa
Established in Mauritius in 2009, Mobile Financial Services (MFS) Africa is a for-profit firm that offers money transfer services, savings, insurance, consumer credit information services and online payment processing. MFS operates in 14 countries in Africa as of 2013.

About CGAP (Consultative Group to Assist the Poor)
CGAP (Consultative Group to Assist the Poor) is a US-based nonprofit policy and research center dedicated to increasing financial access to poor people worldwide. It is supported by approximately 40 development agencies and private foundations in its mission to provide market intelligence, promote standards and offer advisory services to governments, microfinance providers, donors and investors. CGAP reported operating expenses of USD 9 million as of 2013. CGAP is co-located with the offices of the World Bank Group in Washington DC.

About The MasterCard Foundation
Based in Canada, The MasterCard Foundation is a private foundation with the goal of enabling people living in poverty to improve their lives with increased access to microfinance and education, primarily in Africa. The foundation was established in 2006 by a gift of shares from US-based payment processor MasterCard Worldwide during the company’s initial public offering. As of 2014, the MasterCard Foundation reported approximately USD 9 billion in assets.

Sources and Additional Resources

[1] CGAP Press Release, http://www.cgap.org/news/three-new-branchless-banking-projects-waemu

MicroCapital, October 23, 2014, US Agency for International Development (AID), CGAP (Consultative Group to Assist the Poor) Award $1m to ideas42 for Financial Management Tool for Microentrepreneurs, https://www.microcapital.org/microcapital-brief-us-agency-for-international-development-aid-cgap-consultative-group-to-assist-the-poor-award-1m-to-ideas42-for-financial-management-tool-for-microentrepreneurs/

MicroCapital, July 24, 2014, CGAP (Consultative Group to Assist the Poor) Transfers Management of French-language Training to Luxembourg-based ADA, Cote d’Ivoire-based Africa Microfinance Network (AFMIN), https://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-transfers-management-of-french-language-training-to-luxembourg-based-ada-cote-divoire-based-africa-microfinance-network-afmin/

MicroCapital, June 17, 2014, International Finance Corporation (IFC), MasterCard Foundation, Tigo to Expand Mobile Financial Services in Ghana, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-mastercard-foundation-igo-to-expand-mobile-financial-services-in-ghana/

MicroCapital, May 9, 2014, Mobile Financial Services (MFS) Africa to Launch Mobile Money-based Mjara Loans, https://www.microcapital.org/microcapital-brief-mobile-financial-services-mfs-africa-to-launch-mobile-money-based-mjara-loans/

MicroCapital, March 25, 2014, MasterCard Foundation Donates $23m to Opportunity International for Agricultural Financing in Sub-Saharan Africa, https://www.microcapital.org/microcapital-brief-mastercard-foundation-donates-23m-to-opportunity-international-for-agricultural-financing-in-sub-saharan-africa/

MicroCapital Universe, Advans Côte d’Ivoire, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+Côte+d’Ivoire

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

MicroCapital Universe Profile: CGAP (Consultative Group to Assist the Poor), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29

MicroCapital Universe Profile: The MasterCard Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard+Foundation

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