Access Microfinance Holding AG is a holding company specializing in microfinance investment based in Berlin, Germany. AccessHolding was established in 2006 by an international group of private and public investors and currently invests in microfinance institutions in the developing world. Over time, AccessHolding hopes to become a controlling parent company of a network of banks.

It now announces its entrance into the Tanzanian microfinance sphere with the creation of Access Bank Tanzania Ltd (ABT). This new bank will start with 9 branches and will provide loans to medium, small, and micro-enterprises throughout the country. David James, the general manager of ABT, said the bank will support its investors through a combination of growth capital, holding services and on-site technical assistance rendered by its partner, LFS Financial Systems, a German consulting and management company. This new bank is part of a wave of new investments on the part of AccessHolding, which is currently investing in microfinance banks in Azerbaijan, Madagascar and Mozambique. As well, it is preparing a series of new investments in Sub-Saharan Africa and other developing or transition regions for implementation in the 2007/2008 financial year, according to an article in The East African on nationmedia.com.

ABT meets the requirement for a minimum equity capital of USD 5 million set by the Bank of Tanzania for operating a commercial bank in the country. According to Thomas Engelhardt, chairman of the board of directors of Access Holding AG, ABT will be a private limited liability firm incorporated in Tanzania and licensed to carry out banking business. “The bank will help the Tanzanian government to develop a strategy for promoting micro and small enterprises and gradual integration of the informal sector into the formal sector,” he said.

The bank’s shareholders include Access Microfinance Holding AG, which will have 38% shares, African Development Bank (AFDB) (15.8%), Belgian Investment Company for Developing Countries (BIO) (15.8%), International Finance Corporation (IFC) (15.8%), Germany Development Bank-Kreditanstalt fur Wiederaufbau (KfW) (15.8%). According to Mr Engelhardt, in addition to equity, ABT will also require debt funding for the refinancing of its growth loan portfolio.

Access Microfinance Holding AG (AccessHolding), established in 2006, is a commercial microfinance holding company. Its business purpose is to invest in microfinance institutions (MFIs) and concentrates on start-up and early-stage MFIs. It has fund assets at €2.7 million and 3 active microfinance investments as of end February 2007.

–Chryssa Rask, MicroCapital Writer

Additional Resources:

AccessHolding

NationMedia.com: Now German micro lender enters Tanzania

MIX Market: AccessHolding Profile