MICROCAPITAL BRIEF: FMO, International Finance Corporation (IFC), KfW Entwicklungsbank Invest $5.4m in AccessBank Rwanda

The Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (FMO), a Dutch development bank that aims to promote growth in the economies of developing countries; the International Finance Corporation (IFC), a member of the World Bank Group that offers assistance to private companies with the goal of alleviating poverty in developing countries; and Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW), a state-owned German development bank, have invested RWF 3.5 billion (USD 5.4 million) in AccessBank Rwanda (ABR), the eighth member of Access Microfinance Holding AG (AccessHolding), a German company that invests in microfinance institutions [1]. AccessHolding of Berlin, Germany is committed to providing 50.5 percent of the initial investment to its eighth branch, which will provide microlending and small enterprise services to lower and middle income Rwandans [1].

Currently in a pre-operational stage, the bank anticipates opening its doors in the fourth quarter of 2013 and expanding to other locations in Rwanda over the next few years. The Chairman of the bank’s Board of Directors and a member of AccessHolding’s Management Board, Christoph Diehl, commends the bank’s operations in the Sub-Saharan region and its new standards in the Rwandan microfinance sector “in terms of customer service, transparency as well as speed and ease of access” [1].

As of the end of 2012, AccessHolding Group reports assets worth EUR 639 million (USD 838 million). FMO reported total assets of EUR 5.06 billion (USD 6.34 billion) by the end of 2011; IFC had approximately USD 4.5 billion in assets under management as of June 2012. KfW Entwicklungsbank’s assets totaled EUR 518 billion (USD 681 billion) on September 2012.

By Anesa Kratovac, Research Associate

About Access Microfinance Holding AG (AccessHolding)

Access Microfinance Holding AG (AccessHolding) was established in 2006 in Germany by LFS Financial Systems GmbH (LFS). It invests in microfinance institutions (MFIs) and aims to develop its investments through equity finance, holding services and management services rendered by LFS, which acts as its technical partner. AccessHolding establishes new MFIs together with external partners and transforms existing non-bank microlending institutions into microfinance banks that offer a wider range of services such as deposits. AccessHolding is a joint-stock company with committed capital of EUR 26.4 million (USD 37 million). As of March 2012, AccessHolding has investments in AccesBanque Madagascar (39.2-percent share); AccessBank Azerbaijan (16.5-percent share); AccessBank Tanzania (42.9-percent share); AB Microfinance Bank Nigeria Limited (50.1-percent share); AccessBank Liberia (52-percent share); and AccessBank Tajikistan (52-percent share). As of the end of 2012, AccessHolding Group assets were reported at EUR 639 million (USD 838 million).

About the Netherlands Development Finance Company (FMO)

The Netherlands Development Finance Company (FMO in Dutch) is a Dutch public-private partnership that aims to promote growth in the economies of developing countries by promoting entrepreneurship. Founded in 1970, FMO reports total assets of EUR 5.06 billion (USD 6.34 billion), including investments in Africa, Asia, Eastern Europe and Latin America, as of December 31, 2011.

About the International Finance Corporation (IFC)

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 that drive its policies and approve disbursements. As of June 30, 2012, IFC Asset Management Company had approximately USD 4.5 billion in assets under management.

About Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW)

KfW Entwicklungsbank (KfW) is a state-owned development bank in Germany. KfW has three goals: to reduce poverty, to make globalization “fair” and to conserve natural resources. KfW Entwicklungsbank collaborates with local financial institutions in approximately 60 countries, including microbanks, commercial banks, village savings banks, non-governmental organizations and regional microfinance funds. As of September 2012, KfW Entwicklungsbank has a portfolio of EUR 2.15 billion (USD 2.57 billion) and total assets of EUR 518 billion (USD 681 billion).

Additional Sources and Resources:

[1] FMO article, “FMO Invests in AB Bank Rwanda,” http://www.fmo.nl/k/n114/news/view/10727/179/fmo-invests-in-ab-bank-rwanda.html

MicroCapital.org Article, June 25, 2013, “MICROCAPITAL BRIEF: AccessBank of Azerbaijan Receives $60m Syndicated Loan from FMO, OeEb, PROPARCO,” https://www.microcapital.org/microcapital-brief-accessbank-of-azerbaijan-receives-60m-syndicated-loan-from-fmo-oeeb-proparco/

MicroCapital.org Article, January 7, 2013, “MICROCAPITAL BRIEF: International Finance Corporation Loans $15m to AccessBank to Aid Small Enterprises, Microentrepreneurs in Azerbaijan,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-loans-15m-to-accessbank-to-aid-small-enterprises-microentrepreneurs-in-azerbaijan/

MicroCapital Universe Profile: Access Microfinance Holding AG (AccessHolding), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Access+Microfinance+Holding+AG+%28AccessHolding%29

MicroCapital Universe Profile: Netherlands Development Finance Company (FMO), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Netherlands+Development+Finance+Company+%28FMO%29

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

MicroCapital Universe Profile: KfW Entwicklungsbank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW+Entwicklungsbank+%28KfW%29

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