MICROCAPITAL BRIEF: Développement international Desjardins (DID) to Establish 4 More Entrepreneur Financial Centers in Tunisia, Elsewhere in Africa, Latin America

Développement international Desjardins (DID), a Canadian nonprofit providing technical support and investment for the community finance sector in emerging economies, has announced that it will establish four new entrepreneur financial centers (EFCs) in Africa and Latin America. The Department of Foreign Affairs, Trade and Development Canada (DFATD) provided financial assistance for the initiative.

The first new EFC will be located in Tunisia and is to begin operations in 2015. The country’s microfinance control agency approved its creation in 2014, and subsequently it granted a provisional operating license. The EFC will be headquartered in Tunis, and it is anticipated that “branch offices and service outlets”[1] will be established in the cities of Sfax and Sousse. DID already operates EFCs in Dar es Salam, Tanzania; Kampala, Uganda; Lusaka, Zambia; and Panama City, Panama, which collectively hold assets of CAN 60.2 million (USD 47.3 million) and a loan portfolio of CAN 48.9 million (USD 38.4 million).

Shareholders of the Tunisian EFC include DID, a unit of Canada’s Desjardins Group; the Desjardins Fund for Inclusive Finance (Desjardins Fund), an investment fund established by the Desjardins Group; and AfricInvest, a Tunisia-based private equity firm. The Desjardins Group reported approximately USD 188 billion in assets as of 2013. The Desjardins Fund manages CAD 15 million (USD 13 million) in assets as of 2014. As of December 2014, AfricInvest reported USD 1 billion of assets under management in 14 private equity funds. As of 2012-2013, the development budget of DFATD was CAD 3.4 billion (USD 3.1 billion).

By Alíz Crowley, Research Associate

About Développement international Desjardins (DID)

Développement international Desjardins (DID) is a Canadian nonprofit corporation that specializes in providing technical support and investment for the community finance sector in emerging economies. It assists organizations in approximately 30 nations in Africa, Asia, the Caribbean, Central and Eastern Europe and Latin America. DID is a component of the Desjardins Group, a financial cooperative offering banking, insurance, securities and investment services, with approximately USD 188 billion in assets as of 2013. DID has two funds that provide loans and investment capital to microfinance institutions and funds specializing in microfinance: the Partnership Fund and the Desjardins Fund for Inclusive Finance. DID also organizes the Proxfin network of 30 community finance institutions and operates a network of entrepreneur financial centers (EFCs) in Dar es Salam, Tanzania; Kampala, Uganda; Lusaka, Zambia and Panama City, Panama with further four EFCs scheduled to open in Tunisia and elsewhere in Africa and Latin America as of 2015.

About Desjardins Fund for Inclusive Finance

The Desjardins Fund for Inclusive Finance, an investment fund established in 2011 by the Desjardins Group of Canada, is intended to assist in the development of microfinance institutions. The fund manages CAD 15 million (USD 13 million) in assets as of 2014.

About AfricInvest

Founded in 1994, AfricInvest (formerly known as Tuninvest) is a Tunisia-based private equity firm that invests growth capital in small and medium-sized enterprises in Africa. The group employs 50 people and operates offices in Algeria, the Ivory Coast, Kenya, Morocco, Nigeria and Tunisia. Since 2004, the company has executed approximately 112 investments in sectors including energy, hospitality, financial services and leisure products among others. As of December 2014, the group reported USD 1 billion of assets under management in 14 private equity funds.

About Department of Foreign Affairs, Trade and Development Canada (DFATD)

The Department of Foreign Affairs, Trade and Development Canada (DFATD) is a government entity that was established in 1993 to manage Canada’s international relations, consular services, international trade, international development and humanitarian assistance. As of 2014, DFATD has projects in 25 countries. As of 2012-2013, the development budget of DFATD was CAD 3.4 billion (USD 3.1 billion).

Sources and Additional Resources

[1] Développement international Desjardins (DID), DID to set up a new EFC entrepreneur financial center in Tunisia

MicroCapital, December 24, 2014, Développement international Desjardins (DID), Financière agricole du Québec-Développement international (FADQDI) to Offer Agricultural Microinsurance, Training in Colombia

MicroCapital, December 17, 2014, Développement international Desjardins (DiD) Establishes Local Group Automating Microfinance Institution Operations in Senegal

MicroCapital, November 5, 2014, Développement International Desjardins (DiD) Loans $1m to Microfinance Institution Arnur of Kazakhstan

MicroCapital Universe Profile: Développement international Desjardins (DID)

MicroCapital Universe Profile: Desjardins Fund for Inclusive Finance

MicroCapital Universe Profile: AfricInvest

MicroCapital Universe Profile: Department of Foreign Affairs, Trade and Development Canada (DFATD)

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