Advans SA SICAR (Advans SA), a venture capital company specializing in microfinance and managed by Horus Development Finance of France, recently announced the signature of grant agreements with Agence Française de Développement (AFD), a public bilateral development finance institution, and Oesterreichische Entwicklungsbank AG (OeEB), the development bank of Austria, worth a total of EUR 3.1 million (USD 4.4 million) [1].

AFD will provide the following three grants to Advans SA to be passed on to its affiliated microfinance institutions: EUR 440,000 (USD 624,200) for Advans Banque Congo to increase the provision of financial services to small and medium-sized enterprises (SMEs) in the Democratic Republic of the Congo; EUR 750,000 (USD 1 million) for Advans Côte d’Ivoire, a microfinance institution that is scheduled to open to the public in 2012 in Abidjan, Côte d’Ivoire; and EUR 1.5 million (USD 2.1 million) for the creation of “three greenfield microfinance institutions, which will increase the Advans SA network in the near future.” The proposed location of the new microfinance institutions has not been disclosed, but Advans SA has previously announced intentions to begin operations in Africa, Asia and the Middle East.

OeEB will provide a grant of EUR 500,000 (USD 709,000) to Advans SA to promote the “implementation of technical activities for the benefit of existing and future institutions of the Advans network, including training, transfer of knowledge and best practices, and implementation of Management Information Systems.”

Advans SA’s MFIs in Cameroon, Ghana, Tanzania, Democratic Republic of the Congo and Cambodia serve approximately 245,000 loan clients with a total of 61 branches and an aggregate outstanding loan portfolio of approximately EUR 55 million (USD 75.7 million) as of 2010.

By Nisha Koul, Research Associate

About Advans SA SICAR (Advans SA): Advans SA SICAR (Advans SA) is a venture capital company registered in Luxembourg and managed by Horus Development Finance of France, whose mission is to “broaden access to financial services for micro-, small and medium-sized enterprises (MSMEs) in emerging economies.” It invests as lead shareholder in the creation of financial institutions and provides technical assistance to MSMEs. Advans SA’s MFIs in Cameroon, Ghana, Tanzania, Democratic Republic of the Congo and Cambodia serve approximately 245,000 loan clients with 61 branches and an outstanding loan portfolio of approximately EUR 55 million (USD 75.7 million) as of 2010. Advans SA plans to establish 6 to 7 new MFIs in Africa, Asia and the Middle East by 2013. LuxFLAG, an organization that certifies that microfinance vehicles actually invest in the microfinance sector, most recently certified Advans SA in April 2011.

About Agence Française de Développement (AFD): Established in 1941, Agence Française de Développement (AFD) is a bilateral development finance institution whose public mandate is to finance development according to the overseas development assistance policies of the French government. In 2010, AFD reportedly invested approximately EUR 6.8 billion (USD 9.6 billion) financing initiatives in the Southern Hemisphere. These investments involved providing primary schooling for 13.4 million children, improving drinking water supplies for 33 million people and granting microloans to 700,000 people.

About Oesterreichische Entwicklungsbank AG (OeEB): Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the official development bank of Austria since March 2008. In an effort to promote sustainable development, OeEB provides long-term financing for projects in developing countries that would otherwise find it difficult to raise funds. OeEB also provides technical assistance in an effort to enhance the developmental impact of these projects. As of December 31, 2009, OeEB reports total assets of EUR 106 million (USD 150 million), including investments of EUR 72 million (USD 102 million) in eight projects and participation in the creation of 6,330 jobs.

Sources and Additional Resources:

[1] Press Release, Advans SA, http://www.advansgroup.com/fileadmin/Advans/Presse_release/1108_EN_CP_Grant_Agreements_AdvansSA.pdf

MicroCapital.org story, February 28, 2011, “MICROCAPITAL BRIEF: Advans SA Launches Microfinance Institution (MFI) Advans Bank Tanzania in Dar es Salaam,” http://www.microcapital.org/microcapital-brief-advans-sa-launches-microfinance-institution-mfi-advans-bank-tanzania-in-dar-es-salaam/

MicroCapital.org stor , January 19, 2010, “MICROCAPITAL BRIEF: Advans SA Raises $33m in Second Round of Fundraising From Existing Shareholders,” http://www.microcapital.org/microcapital-brief-advans-sa-raises-33m-in-second-round-of-fundraising-from-existing-shareholders/

MicroCapital.org story, March 21, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), Agence Francaise de Developpement (AFD) Host Development Finance Institutions to Discuss Sustainable Development, Finance for Small and Medium-Sized Enterprises (SMEs),” http://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-agence-francaise-de-developpement-afd-host-development-finance-institutions-to-discuss-sustainable-development-finance-for-small-and-med/

MicroCapital.org story, June 30, 2008, “MICROCAPITAL STORY: Austrian Development Bank Oesterreichische Entwicklungsbank Makes $56m Equity Investment in Microfinance Investor European Fund for Southeast Europe,” http://www.microcapital.org/microcapital-story-austrian-development-bank-oesterreichische-entwicklungsbank-makes-56m-equity-investment-in-microfinance-investor-european-fund-for-southeast-europe/

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

MicroCapital Universe Profile: French Development Agency (AFD), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agence+Francaise+de+Developpement+%28AFD%29

MicroCapital Universe Profile: Oesterreichische Entwicklungsbank AG (OeEB), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oesterreichische+Entwicklungsbank+AG+%28OeEB%29

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