Proparco is supporting financial inclusion for vulnerable populations

Multi-country Global Pakistan Cameroon Côte d'Ivoire Ghana Nigeria Democratic Republic of Congo Tunisia
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ADVANS, guichet, banque
Proparco is participating in the capital increase of Advans, which has a mission to build a network of microfinance institutions and thereby contribute to the financial inclusion of vulnerable populations in countries where access to financial services remains low.
Client presentation

Advans is an investment holding company set up in 2005 at the initiative of the consulting firm Horus Development Finance and a group of development finance institutions. Its mission is to build a network of MFIs in Africa and Asia, while maintaining a strong focus on Africa (currently 6 out of 9 subsidiaries). On a consolidated basis, at the end of June 2019, Advans Group had a loan portfolio of EUR 933m, 402,884 borrowers and almost a million clients (borrowers and depositors), with 50% located in rural areas. Advans Group employs 7,125 people. 

Project description

Recapitalization of Advans Holding, the head of the group, to implement its strategic plan: substantial investments in digital finance, recapitalization of certain subsidiaries experiencing growth. FISEA supports the group and has therefore participated in this capital increase.  

Project impact

This project will contribute to financial inclusion for vulnerable populations in countries where access to financial services remains low (Cambodia, Cameroon, Côte d'Ivoire, DRC, Ghana, Myanmar, Pakistan and Tunisia), as 64% of borrowers in the Advans network are women (meaning the project qualifies for the 2X Challenge project), and as 10,800 additional people or microenterprises are expected to benefit from access to microfinance products or services over the next 5 years as a result of the investment. 

The project should also support over 21,000 direct or indirect jobs over the next five years. The Advans network currently has 6,900 employees, 38% are women.

Finally, the investment will have a knock-on effect on the mobilization of capital from other potential investors and on raising debt. 

20/12/2019
Date of signature of the project
Sectors
Multi-country Global Pakistan Cameroon Côte d'Ivoire Ghana Nigeria Democratic Republic of Congo Tunisia
Location
Financing tool
3 000 000 Euros
Amount of funding
EUR 3m Equity investment
Financing details
Advans S.A. SICAR
Client
CES