FINADEV TCHAD’s mission is to provide long-term access to credit for people who are not eligible for traditional bank credit. Thanks to the micro-credits that it provides and to its vision of development through economic means, FINADEV TCHAD plays an active and permanent role in the struggle against poverty and inequality.

The specific features of FINADEV TCHAD compared to the rest of the micro-finance sector in Tchad can thus be summed up as follows: it is a private independent institution, managed in a professional and practical manner, which seeks to achieve three main aims: maximum impact, sustainability and profitability.

Mrs Elisabeth SINDE has a clothing stall at Dembé Market. Her sixth Moufta loan of 900,000 CFAF over eight months has enabled her to finance a larger stock than previously in advance of the New Year holidays.

Shareholders. FFINADEV TCHAD was established on 1 January 2003 and has been approved as an Etablissement de Micro-Finance(EMF, i.e. Micro-Financing Institution) by the French Ministry of Economics and Finance and the Commission Bancaire de l’Afrique Centrale (COBAC) since December 2003. On 30 June 2006, its shareholders’ equity amounted to 300,000,000 CFAF, divided as follows:

• Financial BC Togo S.A. = 73,3 %
• Compagnie Sucrière du Tchad = 10 %
• SOMDIAA –Groupe JL VILGRAIN = 10 %
• Lafayette Participations = 6,7 %

Partnerships. FINADEV TCHAD has set up financial and technical partnerships to support the operation of its activities in Tchad:

• Société Financière Internationale (SFI) – World Bank Group, which finances technical assistance;
• Horus Development Finance, a French development engineering consultancy that provides technical assistance
• Financial Bank Tchad
• Commercial Bank Tchad.

Activity and products. FFINADEV TCHAD carries out its activities in Tchad’s two main cities: N’Djamena (since January 2003) and Moundou (since June 2003).

FINADEV TCHAD offers its customers the following credit products:

Moufta al-Nadja (‘key to success’) loans for micro-enterprises in trade or services that do not have access to bank credit. Such loans provide for short-term financing needs (less than six months in general) for amounts of from 30,000 CFAF to 1 million CFAF. The loan is generally granted to groups of two to five persons and secured by a group guarantee.. Micro-entrepreneurs who do not wish to borrow as a group must be able to secure a loan by a guarantee given by a salaried employee.

Mr Ngarhormen MIANDJINGAR runs the Shanghaï joinery workshop. With a first TPE (very small enterprise) loan of 1 million CFAF, repayable in nine months, he was able to buy enough materials to make wardrobes and thus fulfil an order from a hotel.

 Social credits  for Tchadian employees of large local companies or institutions (international organisations, NGOs, embassies) who do not have access to bank credit. Social credits, medium term loans for a maximum of 5 million CFAF over 24 months, finance access to ownership of property (purchase of plots of land, house construction), improvement to housing (works), purchase of means of transport (such as motorcycles or bicycles), and the development of supplementary economic activities and similar projects. They are not intended for the financing of consumption. Social credits are set up under a three-sided arrangement between FINADEV TCHAD, the employees borrowing the money and their employer.

TPE Credits  (très petites entreprises) aimed at very small semi-formal enterprises in the craft, trade and services sectors. These are short-term loans (six to 12 months) for the financing of investments or working capital requirements ranging from 700,000 to 3 million CFAF. 

Resources in 2006. Resources stem mainly from refinancing granted by FINANCIAL BANK CHAD. The debt’s total amount has registered an increase of +58 % for the period in question. 

Loans in 2006. Overall, the number of active customers has risen by 14% (39% for jointly liable loans to merchants, the institution’s flagship product). The value of outstanding debt is up by 32% for jointly liable loans, and by 7% for worker loans. For the whole year, overall At-Risk Portfolio dropped from 4.1% to 2.5%.

Turnover and profitability in 2006. There was a 10% increase in banking products, taking the total to 84 million CFA francs. Net Banking Product went down by 20%, owing to the increase in financial fees and funding of commercial activities. Net Income is negative, standing at -155 million CFA francs.