First Loan to Finadev Benin

FEBRUARY 2012 - In November 2011, the Oxfam Novib Fund managed by Triple Jump disbursed its first loan to the microfinance fund (MFI) Finadev in Benin.

Finadev is a long standing MFI, which faced difficulties from 2005 to 2007 and was acquired by international investors in 2009. After restructuring its product range and reducing costs, Finadev is now showing positive financial results with approximately 5,500 clients and a loan portfolio of 6 million Euros.

Finadev’s mission is to serve the unbanked of the non-formal sector in urban and rural areas by providing them with high quality financial services. Offering group and individual loans as well as insurance services to a clientele of micro-entrepreneurs and SMEs, Finadev also recently received its license to take on and intermediate deposits. This will allow the MFI to further increase its loan portfolio and offer a wider range of services to its clients.

Benin has a developed microfinance market with a large number of MFIs, but the excessive intervention of the government in the sector until 2010 has resulted in poor portfolio quality. The sector is now recovering and modernizing.

With a 4% market share, Finadev is currently the fifth MFI in the country. Finadev’s results since 2010 demonstrate an exceptional ability for efficiency and cost control, healthy portfolio growth and above-average portfolio quality. This, together with a strong credit methodology, point out an excellent potential for Finadev to become a leading player in Benin.