MICROCAPITAL BRIEF: “Partnership for Financial Inclusion” of International Finance Corporation (IFC), MasterCard Foundation Donates $2.7m to AccessBank Tanzania, FINCA Democratic Republic of Congo (DRC) for Projects Including Mobile Banking

The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently notified MicroCapital that it has launched projects with AccessBank Tanzania (ABT), a member of Germany’s Access Microfinance Holding (AccessHolding), and FINCA DRC, a subsidiary of the US-based nonprofit Foundation for International Community Assistance (FINCA International) that operates in the Democratic Republic of the Congo [1]. The projects, which include financial support totaling USD 2.65 million, have been launched under the “Partnership for Financial Inclusion,” a USD 37.4 million initiative of IFC and the MasterCard Foundation, a Canadian organization founded by the US-based payments firm MasterCard. Launched in 2012, the partnership aims to support microfinance and promote mobile financial services in Sub-Saharan Africa.

For their efforts to expand current services, promote mobile banking and develop other products to increase financial inclusion, ABT will receive a donation of USD 850,000 while FINCA DRC will receive USD 1.8 million. Both projects will be accompanied by technical and advisory services from IFC.

As of December 2012, ABT reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 50.8 million, a gross loan portfolio of USD 32.6 million, 15,800 active borrowers, deposits of USD 40.8 million, 102,000 depositors, return on assets (ROA) of 0.22 percent and return on equity (ROE) of 1.29 percent.

As of December 2012, FINCA DRC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 31.3 million, a gross loan portfolio of USD 23 million, 84,500 active borrowers, deposits of USD 13.4 million, 135,000 depositors, return on assets (ROA) of 6.02 percent and return on equity (ROE) of 22.9 percent.

At fiscal year-end 2012, IFC reported 184 member countries and total assets of USD 76 billion.

By Nisha Koul, Research Associate

About AccessBank Tanzania: AccessBank Tanzania (ABT), one of the members of German joint-stock company Access Microfinance Holding (AccessHolding), is a commercial bank based in Dar-es-Salaam that has been in operation since 2007. ABT offers financial services to micro-, small and medium-sized enterprises (MSMEs) as well as the lower-income segment of the Tanzanian population. As of December 2012, ABT reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 50.8 million, a gross loan portfolio of USD 32.6 million, 15,800 active borrowers, deposits of USD 40.8 million, 102,000 depositors, return on assets (ROA) of 0.22 percent and return on equity (ROE) of 1.29 percent.

About FINCA DRC: Established in 2003 and based in the Democratic Republic of the Congo, FINCA DRC is a microfinance institution (MFI) that serves rural and urban clients through group loans. It is a subsidiary of the US-based nonprofit Foundation for International Community Assistance (FINCA International). As of December 2012, FINCA DRC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 31.3 million, a gross loan portfolio of USD 23 million, 84,500 active borrowers, deposits of USD 13.4 million, 135,000 depositors, return on assets (ROA) of 6.02 percent and return on equity (ROE) of 22.9 percent.

About FINCA International: Founded in 1984 by Dr John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA International) is a microfinance network based in Washington, DC, that provides financial services to poor families through a network of locally managed institutions. FINCA targets its services to poor women living in the Americas, sub-Saharan Africa and Eurasia. As of 2013, FINCA International serves approximately 1 million clients through its subsidiaries in 22 countries. As of 2012, it had total assets of USD 841 million. In 2011, FINCA launched a subsidiary, FINCA Microfinance Holding LLC (FMH), with funding from the International Finance Corporation (IFC), KfW Bankengruppe (KfW), Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), responsAbility, and Triple Jump.

About International Finance Corporation (IFC): A member of the US-based 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. At fiscal year-end 2012, IFC reported 184 member countries and total assets of USD 76 billion.

About 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. 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 2012, the MasterCard Foundation reported approximately USD 4.9 billion in assets.

Sources and Additional Resources:

[1] Information provided to MicroCapital by the International Finance Corporation, December 2013.

MicroCapital Story, October 23, 2013, “Financial Inclusion 2020 Announces Roadmap to Financial Inclusion, Highlights Importance of Technology,” https://www.microcapital.org/microcapital-brief-financial-inclusion-2020-announces-roadmap-to-financial-inclusion-highlights-importance-of-technology/

MicroCapital Story, May 14, 2013, “IFC, Canadian International Development Agency (CIDA), Atlantic Bank of Belize Extend Effort to Improve Access to Small, Medium-Sized Enterprises, Increase Portfolio to $35m by 2014,” https://www.microcapital.org/microcapital-brief-ifc-canadian-international-development-agency-cida-atlantic-bank-of-belize-extend-effort-to-improve-access-to-small-medium-sized-enterprises-increase-portfolio-to-35m-by-201/

MicroCapital Story, November 30, 2012, “MasterCard Foundation, CGAP Announce $11.4m Partnership for Branchless Banking, Client Research,” https://www.microcapital.org/microcapital-brief-mastercard-foundation-cgap-announce-11-4m-partnership-for-branchless-banking-client-research/

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

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

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

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

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

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