Microfinance Focus July 05, 2011: BlueOrchard Finance SA, a microfinance investment company based in Switzerland is providing  a local-currency loan in Central African CFA Franc, equivalent to USD 1.1 million, to Advans Cameroun, a microfinance institution (MFI) licensed by the Cameroonian Ministry of Finance.

The loan is made by the Dexia Micro-Credit Fund (DMCF), a fund managed by BlueOrchard Finance, and is the first to one of the Advans affiliates.

Advans Cameroun offers credit and savings to urban micro-, small- and medium-sized enterprises (MSME) poorly served by the financial sector. It launched its operations in May 2007 and has so far opened 8 branches in Douala, Yaoundé and Bafoussam, with plans to open 6 more by 2012 .

The loan provision, intends to support MSME finance in Cameroon that accounts for 65-75% of disbursements in the region. This reinforces a long-term commitment of BlueOrchard to Cameroon which dates back to its first loan in 2008, followed by two other loans in 2009 and 2011.

The loan is provided in Central African CFA Franc, due to partnership with TCX, and underlines BlueOrchard’s focus to lend in local currency to minimize currency mismatches on MFIs and micro borrowers. On the long-term, this facility aims to enhance the expansion of Advans SA‘s outreach in their respective countries of operation.