IFC loans Express Union Tchad around $3m to boost access to finance for underserved communities

The International Finance Corporation, IFC, has provided a loan worth close to $3 million to Chad’s leading microfinance Express Union Tchad (EUT) to boost access to finance for underserved communities —particularly women and those in rural areas, bolster the microfinance sector, and help drive economic growth, the World Bank’s branch for private sector financing said in a statement.
“The financing comprises up to 630.7 million Central African CFA franc (or approximately $1 million) from IFC’s own account and 1.24 billion Central African CFA franc (approximately $2 million) in mobilization. The project is expected to grow its loan portfolio by 75% over three years”, the statement added.
The Washington-based institution argues that the loan deal will provide a competitive long-term local currency facility not readily available in the market and help EUT grow its lending business by diversifying its funding base, which has traditionally relied on short-term deposits.
“One of the priorities of Express Union Tchad’s 2023/2026 strategic development plan is the development of financial intermediation. This loan will therefore enable Express Union Tchad to strengthen its financial capacity to meet the financing needs of micro, small and medium-sized enterprises (MSMEs) and low-income households, to boost jobs creation and accelerate financial inclusion”, said Dongmo Djumazong Ebenezer, Express Union’s General Manager.
Chad is still lagging behind in terms of financial inclusion. In 2022, only 24 percent of adults had access to a formal transaction account and just 10 percent to credit, compared with 55 percent and 14 percent across sub-Saharan Africa, respectively, IFC notes.
EUT is a subsidiary of Cameroon-based Express Union Finance owned by business mogul Albert Kouinche.