Micro-enterprises and SMEs in the Democratic Republic of Congo will benefit from an equity investment of USD 1.1 million in Advans Bank of Congo and a technical assistance grant of EUR 650,000 (USD 970,000), approved by the Board of Directors of the African Development Bank.
Source: African Development Bank (AfDB).
Original press release available here.
TUNIS, January 30 – Advans Bank Congo (ABC) will be established as a Greenfield microfinance bank to provide financial services to the low-income population of the DRC. The project objective is to provide both micro, small- and medium-sized enterprises and individuals in the lower income bracket, with a broad range of appropriate financial services. The ultimate goal is to support the government’s efforts to develop a viable, sound and inclusive financial system that works for all in DR Congo.
The African Development Bank (AfDB) will support the creation of ABC through a financial package composed of equity and technical assistance. The AfDB equity investment accounts for approximately 17% of the bank’s initial share capital, which gives it a seat on the Board of the ABC. In addition, technical assistance funds will be utilized to strengthen ABC capacity and management information systems (MIS).
This financial assistance to ABC is well aligned with AfDB policies and strategies. ABC is a valuable instrument to implement AfDB Group policies for microfinance and assistance to fragile states. It is also in line with the AfDB’s strategy for private sector development and support strategic pillars for (i) strengthening the financial sector and (ii) supporting private enterprises. It is consistent with the AfDB’s private sector operations strategies for increasing support to commercially sustainable financial intermediaries and for collaborating with other development partners.
The AfDB currently manages two equity investments in the microfinance sector: USD 1 million in KREP Bank in Kenya and USD 840,000 in Access Bank of Tanzania in 2007. KREP is the first microfinance bank in Africa and the first NGO to transform into a full-fledged commercial Bank providing financial services to Kenya’s low-income population.
Similar Posts:
- MICROCAPITAL BRIEF: AfDB Seeking $1b for African Climate Risk Insurance Facility (ACRIFA) to Boost Microinsurance for Farms, Livestock Against Drought, Floods
- MICROCAPITAL BRIEF: African Development Bank (AfDB) Disbursing $1.6m for Green Finance in Benin, Côte d’Ivoire
- MICROCAPITAL BRIEF: AfDB, Ingenosya Create Mada Business Linkage Online Portal to Boost SME Success in Madagascar
- MICROCAPITAL BRIEF: AfDB, IFAD Launch M1-200 to Support Agricultural SMEs in Africa
- MICROCAPITAL BRIEF: Verdant Capital Hybrid Fund Lending $9m to LOLC to Finance MSMEs in Africa
