Advans SA SICAR incorporates microfinance bank in Tanzania

Microfinance Focus, Oct 29, 2010: Luxembourg based Venture Capital Investment Company, Advans SA has announced the incorporation of its sixth microfinance institution, Advans Bank Tanzania, in the United Republic of Tanzania. It will be the Advans SA’s second microfinance institution with a full banking status.

The first branch will open in December 2010 in the administrative ward of Manzese in Dar es Salaam, the country’s capital city. Advans Bank Tanzania was incorporated in July 2010. Its initial investors are: Advans SA as majority shareholder and FMO (the Netherlands Development Finance Company). Advans Bank Tanzania’s initial share capital is of TZS 7.2 billion (around EUR 3.7 million at current exchange rate).

As a fully-fledged bank, Advans Bank Tanzania will offer a complete range of financial products such as loans to micro, small and medium sized enterprises (MSMEs), as well as current and saving accounts in local and foreign currency for MSMEs and households. Additional services such as cheques and money transfer will also be offered shortly after the launch of operations.

Advans SA is headquartered in Luxembourg and was launched in December 2005. Its network currently spans six countries including Cambodia, Cameroon, Ghana, the Democratic Republic of Congo, Tanzania and Côte d’Ivoire. Advans MFIs serve nearly 245,000 loan clients from 61 branches, and have an outstanding loan portfolio of circa EUR 55 million. Over the next three years, Advans SA plans to establish 6 to 7 new MFIs in Africa, Asia and the Middle-East.

Two microfinance institutions of Advans SA group have also received local currency refinancing loans from International Finance Corporation (IFC), the World Bank’s financial arm. Advans Cameroun received a XAF 500 million loan (circa EUR 762,000), while Advans Ghana benefited from a GHS 1.58 million loan (circa EUR 840,000). Both institutions will use the funds to increase their outreach.

Advans Cameroun launched its operations in May 2007 and has thus far opened 6 branches in Douala and Yaoundé. It serves more than 11,000 clients and has a loan portfolio in excess of EUR 7 million. Advans Ghana opened its first branch in Accra in October 2008 and serves more than 7000 active clients and has loan portfolio of EUR 2 million.

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