MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loaning $2.5m to La Fayette Microfinance Bank, Nigerian Member of Advans Network

The International Finance Corporation (IFC), a member of the World Bank Group, is investing NGN 400 million (USD 2.5 million) in La Fayette Microfinance Bank, one of eight members of the Advans Network of microfinance institutions, which is based in Luxembourg and managed by Horus Development Finance of France. The investment will support the growth of La Fayette, which was created in June 2012 and target micro-, small and medium-sized enterprises in Nigeria’s urban areas.

Zine Otmani, Managing Director of La Fayette, commented that, “Partnering with IFC will not only bring in much needed capital but will give us access to technical expertise that will help us achieve our goal of building a network of highly effective microfinance [service locations] that help grow the nation’s economy” [1]. La Fayette has a gross loan portfolio of USD 5.8 million, with the average loan amount being USD 1200, an ROA of -2.43 percent and ROE of -5.32 percent [2].  La Fayette has received USD 786,166 in deposits from 8,432 depositors.

As of 2015, the Advans network serves approximately 537,233 loan clients via 140 branches in eight countries: Cambodia, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, Pakistan, Tanzania, and Nigeria. 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).

By Jeff Pierce, Research Associate

About 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 2015, the Advans network serves approximately 537,233 loan clients via 140 branches in eight countries: Cambodia, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, Pakistan, Tanzania, and Nigeria. 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 International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported net income of USD 1.4 billion, total assets of USD 84.1 billion, return on assets of 1.8 percent and total investment mobilization of USD 38.1 billion.

Sources and Additional Resources:

[1] International Finance Corporation (IFC) Press Release: “IFC Invests in Lafayette Microfinance Bank to Expand Access to Finance for Small-Scale Businesses,” http://ifcextapps.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/CEA092B38FFF055485257DDA00520E30?opendocument

[2] Advans Group: “La Fayette MFB (Advans Nigeria),” http://www.advansgroup.com/the-advans-group/la-fayette-mfb-advans-nigeria/

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+(IFC)

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