Advans Tunisia soon to be created to revive microfinance
24 June 2013
Read by 1550 persons
-Advans SA, a venture capital firm specializing in microfinance, announces the upcoming creation of Advans Tunisia, the group's 9th microfinance institution.
As per current regulations, an application for approval will be submitted to the Ministry of Finance to allow Advans Tunisia to launch its microfinance activities in the coming months.
Reducing unemployment and regional development
Advans SA will be the majority shareholder of Advans Tunisia. Other investors include the Sanad Fund for MSMEs, an investment fund initiated by KfW (German Development Bank) and supported by the European Union and the German Ministry of Economic Cooperation and Development; Amen Bank, the first fully private Tunisian bank; and Inaam, a holding company bringing together the interests of Tunisian social investors.
The project also received co-financing from the Swiss Capacity Building Facility – Association for Job and Income Creation (SCBF).
Successive Tunisian governments since February 2011 have prioritized economic recovery, unemployment reduction, and the development of inland regions. Microfinance has quickly been recognized as an effective tool in fighting poverty and reducing national and regional inequalities. To create favorable conditions for sector development, a new regulatory framework has been adopted, allowing companies approved by the Ministry of Finance to grant microcredits of up to 20,000 Tunisian dinars (DT) and distribute micro-insurance products.
1.2 to 1.4 million potential microcredit clients
The number of potential beneficiaries of microfinance in Tunisia is estimated between 2.5 and 3 million, including 1.2 to 1.4 million potential microcredit clients. A market study conducted by Advans SA in November and December 2011 confirmed significant demand from informal or semi-formal micro-enterprises, particularly in disadvantaged governorates.
Advans Tunisia aims to offer these micro-entrepreneurs quality financial services to support the development of their businesses. "With loans ranging from 1,000 to 20,000 DT, Advans Tunisia will offer a range of products complementary to the offerings of traditional banks and existing microcredit associations in Tunisia," says Claude Falgon, Executive Director of Advans SA.
The institution will launch operations in Greater Tunis and quickly expand to inland governorates.
To quickly and efficiently serve the largest number of potential beneficiaries, Advans Tunisia will rely on an operational partnership with Amen Bank and is also studying the possibility of using mobile banking technologies available in Tunisia.
Advans SA is based in Luxembourg and was created in August 2005. Its committed capital currently amounts to €43.6 million. Its mission: to build a network of financial institutions offering credit and deposit products as well as other conventional financial services to those with limited or no access to the formal financial system. The Advans network is present in Cambodia, Cameroon, Ghana, the Democratic Republic of Congo, Tanzania, Côte d'Ivoire, Pakistan, and Nigeria.
Advans is managed by Horus Development Finance, its founding shareholder, in partnership with the EIB, KfW, FMO, CDC Group, IFC, and the AFD Group.
More information on the company website.
Source: press release.
Kapitalis.com
Published June 24, 2013.
Online June 24, 2013.
As per current regulations, an application for approval will be submitted to the Ministry of Finance to allow Advans Tunisia to launch its microfinance activities in the coming months.
Reducing unemployment and regional development
Advans SA will be the majority shareholder of Advans Tunisia. Other investors include the Sanad Fund for MSMEs, an investment fund initiated by KfW (German Development Bank) and supported by the European Union and the German Ministry of Economic Cooperation and Development; Amen Bank, the first fully private Tunisian bank; and Inaam, a holding company bringing together the interests of Tunisian social investors.
The project also received co-financing from the Swiss Capacity Building Facility – Association for Job and Income Creation (SCBF).
Successive Tunisian governments since February 2011 have prioritized economic recovery, unemployment reduction, and the development of inland regions. Microfinance has quickly been recognized as an effective tool in fighting poverty and reducing national and regional inequalities. To create favorable conditions for sector development, a new regulatory framework has been adopted, allowing companies approved by the Ministry of Finance to grant microcredits of up to 20,000 Tunisian dinars (DT) and distribute micro-insurance products.
1.2 to 1.4 million potential microcredit clients
The number of potential beneficiaries of microfinance in Tunisia is estimated between 2.5 and 3 million, including 1.2 to 1.4 million potential microcredit clients. A market study conducted by Advans SA in November and December 2011 confirmed significant demand from informal or semi-formal micro-enterprises, particularly in disadvantaged governorates.
Advans Tunisia aims to offer these micro-entrepreneurs quality financial services to support the development of their businesses. "With loans ranging from 1,000 to 20,000 DT, Advans Tunisia will offer a range of products complementary to the offerings of traditional banks and existing microcredit associations in Tunisia," says Claude Falgon, Executive Director of Advans SA.
The institution will launch operations in Greater Tunis and quickly expand to inland governorates.
To quickly and efficiently serve the largest number of potential beneficiaries, Advans Tunisia will rely on an operational partnership with Amen Bank and is also studying the possibility of using mobile banking technologies available in Tunisia.
Advans SA is based in Luxembourg and was created in August 2005. Its committed capital currently amounts to €43.6 million. Its mission: to build a network of financial institutions offering credit and deposit products as well as other conventional financial services to those with limited or no access to the formal financial system. The Advans network is present in Cambodia, Cameroon, Ghana, the Democratic Republic of Congo, Tanzania, Côte d'Ivoire, Pakistan, and Nigeria.
Advans is managed by Horus Development Finance, its founding shareholder, in partnership with the EIB, KfW, FMO, CDC Group, IFC, and the AFD Group.
More information on the company website.
Source: press release.
Kapitalis.com
Published June 24, 2013.
Online June 24, 2013.
