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Supporting vulnerable pouplations and women's entrepreneurship in Africa and Asia through microfinance
Project
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Signature date
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Location
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Multi-country Global, Burma, Cambodia, Pakistan, Cameroon, Côte d'Ivoire, Ghana, Nigeria, Democratic Republic of Congo, Tunisia
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Financing tool
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Financing amount (Euro)
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4560000
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Financing details
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Participation in the capital increase for EUR 2.5m in 2019 and EUR 2m in 2023, 60,000 EUR of Technical Assistance
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Customer
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Advans S.A. SICAR
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Type of customer
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Company
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Country of headquarters
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Luxembourg
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Project number
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IZZ1087 / IKH1000
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Environmental and social ranking
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IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco contributes to the capital increase of Advans, in order to support their network of 9 microfinance institutions in Africa and Asia operating mostly in rural areas and towards women. The project contributes to the financial inclusion of vulnerable populations in countries where access to financial services remains low.
Client presentation
Advans SA SICAR is an investment holding company created in 2005 by the Advans group, at the initiative of the consulting firm Horus Development Finance and a group of development finance institutions. It is currently operating in Africa (Cameroun, Côte d'Ivoire, Tunisie, Ghana, Nigéria, RDC) and in Asia (Myanmar, Cambodge, Pakistan) through its 9 subsidiaries. On a consolidated basis, at the end of June 2019, Advans Group had a loan portfolio of 933 million euros, 402,884 borrowers and almost a million clients (borrowers and depositors), with 50% located in rural areas. Advans Group employs 7,125 people. The holding company is financing mostly microfinance loans for clients living in rural areas and for women who represent 64% of borrowers.
Project description
A first investment was made by FISEA (the facility founded by AFD and implemented by Proparco) in 2019 in order to support vulnerable population's financial inclusion. FISEA, siding with Advans Invest, FMO and IFC invests in 2023, into the recapitalization of Advans Holding. The goal of the project is to help Advans SA SICAR implementing its strategic plan: globally investing in digital finance and recapitalizing of its subsidiaries experiencing growth.
Project impact
Proparco's first investment in 2019 was aiming to give access to 10 800 persons or SMEs to microfinance products or services within 5 years. It also aimed to encourage other potential investors to increase deft reliefs and to mobilize capital.
FISEA's investment in 2023 will complete the previous one. It will enforce many positive impacts of Advans Holding's activities :
- supporting financial inclusion for vulnerable populations and especially women.
- supporting more than 21 000 jobs directly or indirectly over the next 5 years.