Fruit Seller from Tanzania

Transcription

1 Annual Report 2011

2 Fruit Seller from Tanzania

3 Table of Contents The Access Network... 4 Key Results of the Year... 5 Letter from the Chairman of the Supervisory Board... 6 Letter from the Management Board Summary of Business Development in Business Purpose Our Shareholders Corporate Governance General Meeting of Shareholders Management Team Supervisory Board History of AccessHolding Presentation of the AccessGroup AccessBank Azerbaijan AccèsBanque Madagascar AccessBank Tanzania AB Microfinance Bank Nigeria AccessBank Liberia AccessBank Tajikistan AB Bank Zambia Corporate Social Responsibility in the Holding AccessBank s Clients AccessHolding Management Report Auditor s Report Consolidated Financial Statements for the Year Ended 31 December Notes to the Consolidated Financial Statements Contact Addresses AccessHolding Annual Report

4 The Access Network AccessBank Azerbaijan AB Microfinance Bank Nigeria AccessBank Liberia AccessBank Tanzania AB Bank Zambia AccèsBanque Madagascar 4 AccessHolding Annual Report 2011

5 AccessHolding in Brief AccessBank Tajikistan AccessHolding operates a network of commercial banks in developing and transition countries with a target group focus on micro, small and medium-sized enterprises. The AccessBank network comprises seven member banks with a total of about 3,500 staff and over 500,000 clients, growing by several thousand every month. Key Results of the Year (as of 31 December 2011) Total assets (EUR) 480 m 408 m Gross loan portfolio (EUR) m m No. of loans outstanding 181, ,707 Portfolio-at-Risk 30 days in % 1.0 % 1.0% Total customer deposits (EUR) 188 m 146 m No. of deposit accounts 482, ,641 No. of staff 3,318 2,502 No. of branches

6 Letter from the Chairman of the Supervisory Board Despite the recent financial market turmoil experienced in Europe and North America the emerging markets have proved to be resilient underpinned by prudent banking, growing populations and rising real incomes. AccessHolding continued to enjoy strong growth in Total assets of network banks grew by 18%, loans by 21%, deposits by 28% and clients by 45%. This has been achieved both through organic growth and by the continued creation of new Access financial institutions. The 7th network bank was opened in October with the launch of AB Bank Zambia. The most mature bank in the network is AccessBank Azerbaijan which once again won a number of awards in It now has 30 branches spread throughout the country. Over 3,300 people are now employed across the 7 banks and collectively they serve a client base that is expected to exceed 500,000 in the first half of In 2011, the Group posted its fourth consolidated profit in a row, a significant prerequisite for building a sustainable banking network focused on the needs of micro-entrepreneurs and SME businesses. Profitability has been achieved without compromising the commitment of Access to operate in accordance with the SMART Principles of client protection and the UN Principles for Responsible Investment. Profitability is an essential ingredient in enabling Access to continue to expand by drawing capital from its current shareholder base and in due course from new private sources of capital. In order for Access to maximise its impact it must be profitable and hence sustainable over the long-term. I would like to record my thanks to all staff members. Their continued dedication and growing expertise lies behind the company s impressive performance. Hywel Rees-Jones 6 AccessHolding Annual Report 2011

7 Letter from the Management Board From its foundation in 2006, AccessHolding has grown to become a successfully operating international bank network. Network banks have evolved into significant players in the banking sectors of their respective countries of operations. At the end of 2011, we served more than 180 thousand credit customers with a total loan portfolio of more than EUR 350 million through 68 branches in seven countries, and operated more than 480 thousand customer deposit accounts with an aggregate balance of EUR 188 million. This prosperous take off phase of AccessBanks is reflected in an over-achievement of goals by AccessHolding, which has shown profitability (based on IFRS) in each year since It can be explained by the effective interplay between shareholders, supervisory board, management and staff of AccessBanks that share strong corporate values; in particular transparency, non-discrimination, open communication, performance orientation and social responsibility. The year 2011 has been another successful business year for AccessHolding. All network banks have been performing in line with (or above) expectations. The launch of AB Bank Zambia, the agreement on the strategic takeover of AccessBank in Azerbaijan and the move into new headquarter premises in Berlin to support further expansion are just some of 2011 key milestones. The building of head office structures is especially important at this stage in order to provide quality assurance and reap the synergies required for further growth. The Holding performs many functions that can normally be found in the head office of a global bank. Apart from Management, main functions are: HR development of AccessBanks, product development and support of the business of these banks (loans, deposits, and payment services), accounting, internal audit, and legal advice. Furthermore, the head office plays an important role with regard to the development of software systems and ongoing IT support of AccessBanks, and the training of the banks management and staff. This healthy structural background gives AccessHolding the confidence to achieve its mission of being a leading strategic investor in the microfinance industry and to further expand its global network of subsidiaries. With joint efforts AccessHolding will realize an interesting pipeline with further investments in the three focus regions Sub-Saharan Africa, Central Asia / Eastern Europe and Latin America. In addition to this planned market development, most AccessBanks will increasingly offer services to middle income customers and larger, more formal SMEs. They will not only be micro and small business banks but good banks that offer relevant financial services in a customer friendly way at attractive conditions. AccessBanks will play pioneering roles with regards to employment standards, environmental protection, customer protection and responsible lending. Christoph Diehl and Thomas Engelhardt 7

8 Summary of Business Development in 2011 In 2011, AccessHolding and its banking network continued to grow at a robust pace. Total assets of network banks grew by 18% to EUR 480 million, fuelled by an increase of the total gross outstanding loan portfolio by 21% to EUR 352 million. The number of outstanding loans rose by 15% to 181,902, whereas the number of customer deposit accounts soared by 45% to 482,846 (propelled by a strong client base expansion in Sub-Saharan Africa). Total balances on customer deposit accounts held by network banks increased by 29% to EUR 188 million. More than 3,300 staff were employed by the seven network banks as at year-end, an increase of 32% compared to Most importantly, this growth did not come at the cost of quality. Arrears and loan loss rates remain at equally low (i.e. strong) levels as in 2010, with a group-wide PAR 30 of 1% and cumulative annual write-offs below 1% at the end of Profitability-wise, 2011 was not as strong as the previous year, mainly because the exceptionally high 2010 net profit of AccessBank Azerbaijan returned to more customary (albeit still strong) levels. The total after-tax profit of all network banks combined was EUR 16.7 million. But even beyond the realm of financials, 2011 has seen numerous exciting developments and milestones across the AccessBank network. The timeline below visualizes some of these events along the course of the year. AB Microfinance Bank Nigeria witnesses a capital increase from NGN 1bn to NGN 1.5 bn (EUR 4.7 million to EUR 7.1 million). AccessBank Tanzania introduces M-Pesa mobile phone transfer and payment services as an agent for Vodacom Tanzania. AB Microfinance Bank Nigeria successfully implements SME lending February March April June Fitch Ratings reconfirms AccessBank s BB+ rating the highest among Azerbaijan s private banks; Global Finance magazine recognizes AccessBank as the best bank in Azerbaijan in its 2011 Awards. AccessBank Tajikistan reaches a loan portfolio of more than EUR 5 million, after just over one year of operations. 8 AccessHolding Annual Report 2011

9 AB Bank Zambia is given a prestigious microfinance award by the Bankers Association of Zambia. AccessBank wins the award for Best Bank of Azerbaijan at the annual Euromoney Awards for Excellence in London. August 2011 Both LFS and AccessHolding move into new, significantly larger office premises, thus creating sufficient physical capacity for further growth. AB Bank Zambia opens its doors to the public. AccessBank Tanzania receives a capital increase of TZS 2bn (EUR 975 thousand) to support new branch openings. AccessHolding becomes majority shareholder. AccessBank in Azerbaijan disburses its 500,000th loan. July August October November December AccèsBanque Madagascar opens its first rural branch with focus on agricultural business. The Central Bank of AccessBank Tanzania Liberia confirms that reaches the milestone AccessBank Liberia has of 75,000 customer by far the best portfolio deposit accounts. quality in terms of PAR in the Liberian banking sector. The Banker Magazine names AccessBank as the Bank of the Year in Azerbaijan in its annual awards. 9

10 Business Purpose Mission Statement Core Corporate Values and Business Model Our vision is a financial sector that offers responsible financial services to all people with equal ambition for excellence and quality. AccessHolding s mission thereby is to operate a growing global network of responsible commercial banks in developing and transition countries that provide responsible financial services to low and middle income households and in particular to micro and small businesses. In their countries of operations, AccessBanks strive to be the house bank (bank of choice) for micro and small enterprises, by offering all the financial services that they usually need. We believe that the MSE sector is vital for the development and diversification of a country s economy, the creation of jobs and the reduction of poverty. Many people in our countries of operation do not have a formal and regular source of income but live from the proceeds of micro and small enterprises, the majority of which are informal (or semi-formal) Most clients do not possess official financial documentation. Furthermore, most of the population is poor in the sense that they are not able to accumulate large savings and assets. Traditional commercial banks do not serve this important part of the population adequately because their loan business focuses on large companies and consumer loans for salary earners. In addition, they usually discourage small deposits through a variety of instruments, e.g. by asking for high minimum balances on the accounts or by requiring extensive account opening documentation. On the other side of the financial sector, nonbank financial institutions (e.g. non-governmental organizations and cooperatives) that offer services to micro enterprises are often not efficient, mainly due to the incentives generated by their ownership structure. Furthermore, they are not authorized to offer many of the services that small entrepreneurs and their families require, in particular deposit accounts and simple payment services. They often remain small and as a consequence are not able to reap economies of scale that would allow them to reduce their margins over time. Small entrepreneurs and their families are the main target group of AccessBanks. Our network banks have a full banking license (currently with the exception of our affiliate in Nigeria). This allows them to offer a sufficiently broad product range to evolve into the bank of choice of small entrepreneurs. Furthermore, all of our products have been mindfully designed in a way to meet the needs of the latter. The bank s loans are primarily based on an assessment of the borrower s repayment capacity. As a consequence, providing financial services to our customers is personnel-intensive due to the small size of transactions and because small entrepreneurs in our countries of operations are usually not able to provide documentation of reliable financial data. This requires collecting information through company and household visits. AccessBanks dedicated products and risk management technology, specifically developed to serve micro-, small-, and medium-sized enterprises, allow the banks to do this efficiently and profitably. AccessBanks build-up long term business relationships with customers based on responsibility and mutual respect. By doing so they promote a savings culture and support borrowers to build-up a credit history. 10 AccessHolding Annual Report 2011

11 Shareholders, management and staff of AccessBanks share strong corporate values, in particular: Transparency Non-discrimination Open communication Performance orientation Social responsibility Environmental protection AccessHolding s business model rests on the creation or acquisition of newly established or existing commercial banks with a target group focus on micro, small and medium-sized enterprises (MSMEs). These banks are then integrated into a group with a common brand identitythe AccessGroup. Banks in the group share a core range of standardised products (with local adaptations as required) and a joint commitment to the same principles: 1. Ease and speed of access providing financial services to previously un- or underserved parts of the population, with the aim to be faster and more efficient than any comparable operator in the country; 2. Transparency and clarity of products, services and eligibility criteria with as little room for discretion or subjective interpretation as possible; 3. Quality leadership in all our countries of operations, we strive to set industry standards with respect to customer orientation and service quality. At the same time, all member banks are committed to ensuring the highest possible quality of their loan portfolios through adherence to international best practices with respect to their underwriting standards and credit risk management. 4. Training and staff development one of the vital elements of the build-up strategy for each member bank is the recruitment and training of fresh staff on a large scale. Our recruitment concept places strong emphasis on identifying talented and motivated staff that not necessarily has prior relevant work experience. Qualifying them to assume more responsible roles over time is achieved through regular training and coaching as well as frequent staff exchange between network banks. 5. Strong business ethics All members of the AccessGroup adhere to a joint set of principles of good corporate behaviour, covering among others areas such as responsible lending practices, adherence to international and local social and environmental standards, as well as a stringent code of conduct for all member bank employees. Hence, AccessHolding s role goes beyond that of a project incubator or conventional strategic investor. 11

12 Our Shareholders AccessHolding is currently owned by eight shareholders, hereafter presented in alphabetical order: CDC is the UK s development finance institution that supports the building of businesses and infrastructure in the poorest parts of Africa and South Asia, creating jobs and making a lasting difference to people s lives. Working in some of the world s most demanding business environments CDC s three core areas of business are: Private equity funds investing; Direct equity investing in companies, banks and infrastructure; and Direct lending to companies, financial institutions and infrastructure projects. Investing from its own balance sheet, CDC has returned a profit of 1.7bn since The European Investment Bank (EIB) is the European Union s financing institution. Its shareholders are the 27 Member States of the Union, which have jointly subscribed its capital. The EIB s Board of Governors is composed of the Finance Ministers of these States. The EIB s role is to provide long-term finance in support of investment projects. Outside the EU, the EIB is active in over 150 countries (the pre-accession countries of South-East Europe, the Mediterranean partner countries, the African, Caribbean and Pacific countries, Asia and Latin America, Central Asia, Russia and other neighbours to the East), working to implement the financial pillar of EU external cooperation and development policies (private sector development, infrastructure development, security of energy supply, and environmental sustainability). FMO is the Dutch development bank. It finances companies, projects and financial institutions from developing and emerging markets. At the heart of FMO s strategy stands the belief that entrepreneurship is key in creating sustainable economic growth and improving people s quality of life. FMO is specialized in sectors where its contribution can have the highest Ownership Structure of AccessHolding The current ownership structure of AccessHolding is shown in the table below. 14,12 % 16,12 % 3,26 % 14,12 % 14,12 % 14,12 % 14,12 % 10,03 % LFS Financial Systems GmbH (LFS) CDC Group plc (CDC) The European Investment Bank (EIB) Netherlands Development Finance Company (FMO) International Finance Corporation (IFC) KfW Entwicklungsbank MicroAssets The Omidyar-Tufts Microfinance Fund (OTMF) 12 AccessHolding Annual Report 2011

13 long-term impact - financial institutions; energy & housing; and agribusiness, food & water. They also foster capacity development, such as financial administration & planning skills, and sustainable business practices. The International Finance Corporation (IFC), a member of World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital and providing advisory and risk mitigation services to businesses and governments. The corporation s new investments totaled USD 12.2 billion in fiscal year This was spread over 518 projects; USD 4.9 billion went to the poorest countries eligible to borrow from the World Bank s International Development Association. IFC also mobilized an additional $6.5 billion to support the private sector in developing countries. KfW Entwicklungsbank finances investments and accompanying advisory services in developing and transition countries on behalf of the German government. Its aim is to build up and expand the social and economic infrastructure of the respective countries, and to advance sound financial systems while protecting resources and ensuring a healthy environment. KfW Entwicklungsbank is a leader in supporting responsible and sustainable microfinance and is involved in target group-oriented financial institutions around the world. It is an integral part of KfW Bankengruppe, which is the leading promotional bank in Germany. LFS Financial Systems GmbH (LFS), which has founded AccessHolding in August 2006 and which is also the technical partner and manager of the company as well as its investees. LFS is an advisory and management firm based in Berlin, specializing in banking and financial sector projects in developing and transition countries with focus on micro, small and medium enterprise (MSME) finance MicroAssets, a Berlin-based investment company that has been established to enable LFS and staff of the Access network to invest in AccessHolding. The Omidyar-Tufts Microfinance Fund, invests in the financial services sector in emerging markets and developing countries. The fund seeks to demonstrate the viability of commercial investment in microfinance to institutional investors. The fund is housed within the Tufts University endowment. The fund was established in November 2005 through a gift to Tufts University by Pierre Omidyar, founder of ebay, and his wife, Pam, co-founder of Omidyar Network with her husband. Tufts University ( located on three Massachusetts campuses in Boston, Medford/Somerville, and Grafton, and in Talloires, France, is recognized among the premier research universities in the United States. Tufts enjoys a global reputation for academic excellence and for the preparation of students as leaders in a wide range of professions. The owners of AccessHolding and the Access- Banks share the objectives and corporate values of the Group as well as the fundamentals of our business model (see page 10 11). In particular, they are convinced that providing responsible financial services to small enterprises and lower income strata can be done on a profitable and sustainable basis. They provide patient capital that allows us to pursue a long-term approach in investing in training and building up a significant customer basis. Furthermore, all of our Shareholders place high emphasis on the Group s corporate social responsibility. To this effect, they have formulated a comprehensive set of policies for our network banks that includes responsible lending practices, good employment standards, a code of conduct for all staff at bank and holding level, and a stringent social and environmental management system. All member banks of the Access Group strive to be recognised not only as excellent financial service providers, but more generally as employers and stakeholders of the highest integrity in their local communities. The mix of public and private investors of AccessHolding supports the mission of the company. While public investors add to the reputation and solvency of AccessHolding and strengthen long term commitment to development goals, private investors are expected to ensure commercial success. Common Objectives and Values 13

14 Corporate Governance Governance Structure Legal Form/Form of Shares Bodies AccessHolding has established a governance structure that allows well informed and strong decision making. In particular, the Supervisory Board of the Holding is actively steering the business while management has full responsibility for day-to-day decisions. With the successive development of globally standardised policies, products and systems (solutions) across the AccessBank network, the Management of AccessHolding is also responsible to ensure that member banks are operating in consistency with these standards, so as for the Group to reap network synergies and facilitate the exchange of personnel and other resources between banks. AccessHolding is a Joint Stock Company (Aktiengesellschaft) in accordance with the German Joint Stock Company Law (Aktiengesetz) and other applicable laws, further referred to as German Corporate Law. The Company is registered in Berlin and shares offices with its technical partner LFS. The shares of AccessHolding are ordinary registered non-bearer shares, which can only be sold with prior approval of the other shareholders. AccessHolding has the three main corporate bodies of a Joint Stock Corporation under German Corporate Law: the General Meeting of Shareholders, the Supervisory Board and the Management Board. The following enumerations provide an overview of the tasks, rights and responsibilities of each body. All of these provisions are defined more comprehensively in the Company s Articles of Association and Shareholder Agreement. 1. General Meeting of Shareholders In the General Meeting of Shareholders (GMSH), all investors have voting rights in proportion to their respective shareholdings. The body s main tasks and rights are: To approve or amend the company s Articles of Association; To appoint members of the Supervisory Board; To appoint the external auditor of AccessHolding s financial statements; To determine the use of AccessHolding s profit. 2. Management Board With the successive development of globally standardised policies, products and systems (solutions) across the AccessBank network, the management of AccessHolding is also responsible to ensure that member banks are operating in consistency with these standards, so as for the Group to reap network synergies and facilitate the exchange of personnel and other resources between banks. Within the governance structure of AccessHolding, the Management Board is responsible for the day-to-day operations (including the formulation of investment proposals) and supports the Supervisory Board in its control and decision making functions. The Management Board of AccessHolding is currently composed of two members, both of which have served at AccessHolding since its inception: Thomas Engelhardt (Chairman) Born in 1971, Mr. Engelhardt is one of the three partners in LFS, and has been with the company since its foundation in He has 15 years of working experience in the area of MSME finance, including various senior management positions in consultancy projects in Central Asia and South Eastern Europe. Between 2002 and 2006, Mr. Engelhardt served as the first General Manager of AccessBank Azerbaijan (then named Micro Finance Bank of Azerbaijan ), thus playing the leading role in building up AccessHolding s flagship bank from scratch. He is the Chairman of the Supervisory Boards of AccessBanks in Tajikistan and Liberia respectively, and is a Supervisory Board member of AccessBank Azerbaijan. Mr. Engelhardt holds an M.Sc in Economics, and speaks German, English, Russian and Serbo-Croat. 14 AccessHolding Annual Report 2011

15 Christoph Diehl has been working for LFS since 2000 and is responsible for LFS projects in Africa. With the foundation of AccessHolding in August 2006, Mr. Diehl was seconded to the Management Board of the Holding. In this capacity, he serves as the Chairman of the Supervisory Board of AccessBank Tanzania and AB Bank Zambia and is a member of the Audit Committee of AccessBank Azerbaijan. He has three years professional experience as General Manager of a former LFS-managed Microfinance Bank in Mozambique, and ten years experience in senior management and team leader positions in MSME and housing finance institution building projects in various countries. From 1992 to 1996, Mr. Diehl served as an auditor in the overseas department of C&L Deutsche Revision. Mr. Diehl has an M.Sc. in Economics, and speaks German and English. Joint head office of AccessHolding and LFS Financial Systems in Berlin, exterior view and below, lobby entrance hall. 15

16 Corporate Governance/Organization 3. Supervisory Board Within the governance structure of Access- Holding, the Supervisory Board is responsible for the determination of the general business strategy, the appointment of the Management Board members, the monitoring of operational activities and the decision on all investments or divestments. The Supervisory Board is not involved in the day-to-day operative business of the Holding. It currently consists of the following seven members nominated by the seven major shareholders of AccessHolding. Edvardas Bumsteinas is a Senior Investment Officer at the European Investment Bank (EIB), being responsible for microfinance operations in the Africa, Caribbean and Pacific (ACP) region. He is a member of governance bodies and investment committees of various microfinance investment companies. Prior to joining EIB in 2005, he worked as consultant and team leader in operative micro lending projects. Mr. Bumsteinas holds a M.Sc. in Transition Economics from the London School of Economics and Political Science. Frank Bellon is a Principal Sector Economist at KfW. He is responsible for microfinance and environmental finance within KfW s Competency Center for Sustainable Economic Development and Global Funds. He served also as Director of KfW s Country Offices for Bolivia and Chile as well as for Bosnia-Herzegovina. Frank Bellon has more than 20 years of experience in development banking and project finance and is a member of several governance bodies of financing institutions. Frank Bellon holds a Master Degree in Economics from the University of Tübingen. Bernd Zattler is Chairman of the Supervisory Boards of AccèsBanque in Madagascar and AB Microfinance Bank Nigeria, and Director on the Supervisory Board of AccessHolding. Before the foundation of LFS, he worked for a multinational firm and in institutions engaged in development finance. He founded LFS, AccessHolding s technical partner in 1997, and has since then been Managing Director and majority owner of the firm. 16 AccessHolding Annual Report 2011

17 Members of the Supervisory Board: (left to right) Edvardas Bumsteinas, Frank Bellon, Bernd Zattler, Hywel Rees- Jones, Eltjo Kok, Syed Aftab Ahmed, Tryfan Evans Hywel Rees-Jones is a Managing Director at CDC with primary responsibility for global sector private equity funds, microfinance and debt. His entire career has been focused on the emerging markets where he has worked as a development economist, lender, private equity investor and fund of funds investor. He has lived for more than 20 years in emerging markets both in Africa and Asia. He has been a director of businesses in the agribusiness, financial, FMCG, and property sectors. Eltjo Kok is a corporate financial advisor. He functions as Boardroom Advisor and is specialised in improving personal, team and corporate performance and effectiveness. He works currently with Directors and Boards of multinational and family owned companies. He has been in various positions in his corporate life such as Finance Director, Divisional Regional Director and Global HR Director. Syed Aftab Ahmed worked with the International Finance Corporation (IFC) in various capacities from August 1989 until his retirement in December The last position held at IFC was as Senior Manager in charge of the Global Micro and Small Business Finance Group. In this capacity, Mr. Ahmed led the development of IFC s global microfinance business practice and related investment portfolio. Since his retirement, IFC has nominated him on the Board of Directors and the investment committees of various portfolio banks and financial institutions. Mr. Ahmed holds a Master s degree in Economics. Tryfan Evans is Director of the Omidyar-Tufts Microfinance Fund and responsible for investment strategy, and portfolio construction and management. Mr. Evans also serves as Director of Investments in the Tufts University Investment Office where he is responsible for the endowment s international private equity program. He has investment experience in over 20 developing countries in Africa, Latin America, Eastern Europe, and South and Southeast Asia. 17

18 History of AccessHolding Main Events and Milestones Summary Since its establishment in 2006, AccessHolding has invested in eight commercial microfinance banks. Two had already been co-founded by LFS prior to the establishment of the Holding: Micro Finance Bank of Azerbaijan (which was later renamed into AccessBank, ABA ) and Socremo Banco de Microfinanças in Mozambique. The investment in Socremo was however sold in 2008 as the shareholders of the Bank could not reach agreement on its integration into the AccessBank network. The banks founded after the establishment of AccessHolding are AccèsBanque Madagascar (February ), AccessBank Tanzania (November 2007), AB Microfinance Bank Nigeria (November 2008), AccessBank Liberia (January 2009), AccessBank Tajikistan (April 2010) and AB Bank Zambia (October 2011). The foundation of these banks was spearheaded and coordinated by AccessHolding as the lead investor, in collaboration with other international and local investors. All seven member banks of the AccessBank network have been developing in line with (or ahead of) investor expectations. This successful performance has enabled AccessHolding to become profitable (based on IFRS) already in 2008, only two years after its foundation. While the total network s gross outstanding loan portfolio grew to EUR million at the end of 2011, 97% of outstanding loans amounted to less than EUR 10,000, indicating a clear focus on the microenterprise clientele. LFS has also been significantly expanded since AccessHolding s creation in 2006, enabling each network bank to draw on professional support of its IT operations at any time. Moreover, the AccessBank network has also maintained an excellent loan portfolio quality, with a consolidated Portfolio-at-Risk greater 30 days (PAR 30) ratio around 1% and annual write-off ratios of below 1% in every year since inception. These quality indicators are currently unrivalled among globally operating microfinance bank networks with similar lending methodologies. However, the impact of AccessBanks is by far not limited to their lending activities. Over the last years, the network banks have evolved into significant retail banks in their respective countries of operations, with a total of more than 3,300 staff spread over 68 branches in seven countries, they have built up a total of 482,846 customer deposit accounts with aggregate balances of EUR million. The total client base will exceed 500,000 in the first half of 2012, and is projected to reach one million clients by the year In parallel to the development of its banking network, AccessHolding (in collaboration with LFS) has built up its head office structures in Berlin. Since 2010, network banks are comprehensively supported by central personnel working in areas such as credit, retail, product development, internal audit, human resources, learning & development, or accounting & finance. The information technology arm of LFS has also been significantly expanded since AccessHolding s creation in 2006, enabling each network bank to draw on professional support of its IT operations at any time. 1 The dates in brackets refer to the months in which the respective banks opened their doors to the public, not when the respective legal entities were created. 18 AccessHolding Annual Report 2011

19 AccessHolding is founded Preparation of first round of investments Investments in existing banks in Azerbaijan and Mozambique Foundation and launch of network banks in Madagascar and Tanzania CDC joins the shareholder group AH becomes profitable Divestment from Socremo Bank (Mozambique) Launch of AB Microfinance Bank Nigeria Launch of AccessBank Liberia FMO joins the shareholder group Launch of AccessBank Tajikistan Significant expansion of head office structures Launch of AB Bank Zambia Move into new premises to support further expansion Agreement on strategic takeover of AccessBank in Azerbaijan 19

20 Watchmaker from Azerbaijan

21 AccessBank Azerbaijan Branch Network (30) Zaqatala Khachmaz Gazakh Sheki Guba Ganja (2) Mingechevir Barda Goychay Sumqayit Khirdalan Baku (14) Imishli Salyan Jalilabad Lenkoran Capital Baku Inhabitants 9.2 m Area 86,600 km 2 GDP per capita (US$) 5,722 Key industries Extractive industries (oil and natural gas) 20,0 % 20,0 % AccessBank Azerbaijan was founded by LFS Financial Systems and a multinational group of partners (the Black Sea Trade and Development Bank, the European Bank for Reconstruction and Development, the International Finance Corporation, and KfW Entwicklungsbank) in late 2002 under the original name of Micro Finance Bank of Azerbaijan. AccessHolding was admitted as a shareholder after its foundation in In 2008, it was renamed into Access- Bank and has since then been the premier bank of the AccessBank network. Overview 3,5 % 16,5 % 20,0 % Shareholders 20,0 % 21 AccessHolding Annual Report 2011

22 AccessBank Azerbaijan Business Development AccessBank has demonstrated strong growth from the beginning and has recently opened its 30th branch. It has quickly evolved into the leading provider of financial services to micro, small and medium-sized enterprises (MSMEs) in Azerbaijan. As of January 2012, AccesBank has disbursed 528,882 loans for USD 1,853,365,972 since its inception. But even beyond the realm of MSME finance, AccessBank is a recognized quality leader in the country s banking sector, holding the highest rating in the banking sector (Long Term IDR BB+/viability rating b+, Fitch). In terms of total banking assets, AccessBank s market share was 2.81% at the end of 2011 with USD 373, It is ranked 7th out of all banks in the country. In addition, in terms of total loan portfolio, AccessBank s market share is 3.12% at the end of 2011 with USD 289, loans, housing and agricultural loans, different types of customer deposits, a variety of money transfer services as well as payment cards. A growing number of larger SMEs are also using advanced banking services, such as salary payment facilities and up-to-date trade financing products, such as letters of credit (L/C) and letters of guarantee within the framework of the European Bank for Reconstruction and Development s Trade Facilitation Program. The bank has won various prestigious awards (by different international institutes) as the best bank in Azerbaijan in the past years. Products In its pursuit to be a house bank for its target clientele of MSMEs and general lower/middle income groups in Azerbaijan, ABA has successively broadened its range of products. It now offers various types of business and personal 22 AccessHolding Annual Report 2011

23 Key data 2011 Total assets (EUR) m Gross loan portfolio (EUR) m No. of loans outstanding 119,501 Portfolio-at-Risk 30 days in % 0.76 % Total customer deposits (EUR) m No. of deposit accounts 220,594 No. of staff 1,344 No. of branches 30 AccessBank Head Office 137 Alofsat Guliyev Str. Baku, AZ1000, Azerbaijan Phone: (+99412) Fax: (+99412) Contact 23

24 AccèsBanque Madagascar Overview Business development Products AccèsBanque Madagascar (ABM) was established in October 2006 by AccessHolding in partnership with a group of international and local co-investors. The bank opened its first branch in the country s capital Antananarivo in February 2007 and has since then built up a network of 14 branches in the capital and other towns of the country. With more than 560 employees and over 70,000 clients, ABM has evolved into a significant player and a leading employer in the Malagasy banking sector. Despite a clear focus on the core target group of micro, small and medium-sized enterprises (MSMEs), the bank caters for a broad variety of clients and aspires to become a house bank for the lower/middle income strata of the Malagasy population. ABM s product range comprises loans to micro and small enterprises but increasingly also to medium entrepreneurs. Banking services comprise current and savings accounts as well as term deposit facilities and a variety of payment services (checks and national wire transfer services). Key data 2011 Total assets (EUR) 25.4 m Gross loan portfolio (EUR) 14.3 m No. of loans outstanding 20,883 Portfolio-at-Risk 30 days in % 4.43% Total customer deposits (EUR) 17.8 m No. of deposit accounts 71,183 No. of staff 561 No. of branches 14 Capital Antananarivo Inhabitants 21.9 m Area 587,041 km 2 GDP per capita (US$) 421 Key industries Agriculture and tourism Shareholders Antananarivo (11) Ambatolampy Betafo Antsirabe 13,6% 13,6% Contact AccésBanque Madagascar Immeuble Bir Hackeim Lot IBG 21 Ter, Antsahavola Antananarivo 101 Madagascar Phone: (+261) info@accesbanque.mg 12,0% 44,0 % 16,8% 24 AccessHolding Annual Report 2011

25 AccèsBanque Madagascar

26 Seamstress from Tanzania

27 AccessBank Tanzania Capital Dodoma Inhabitants 43.2 m Area 945,203 km 2 GDP per capita (US$) 527 Key industries Agriculture tourism and mineral exploitation (gold) Shareholders Dodoma Dar es Salaam (7) AccessBank Tanzania (ABT) was established by AccessHolding and four international co-investors as the third member of the AccessBank network on 21st November The bank operates under a full commercial bank license and has by now opened seven branches in the commercial capital Dar es Salaam and its wider perimeter. Since opening its doors in late 2007, ABT has evolved into one of the significant providers of loans and other financial services to MSMEs and the lower/middle income segments in Dar es Salaam. ABT has also emerged as one of the quality leaders in the Tanzanian microfinance sector, with arrears rates consistently below most of its competitors. The bank has more than 80,000 clients and is among the ten largest employers in the Tanzanian banking sector. ABT now plans to expand its geographical footprint to other regions of Tanzania in its long-term pursuit to become one of the leading retail banks in the country. ABT s product portfolio comprises micro and SME loans on the credit side. Banking services include deposit products, but also account products including current accounts, savings accounts, savings plan accounts and student accounts. A variety of money transfer systems are also offered. Key data 2011 Overview Business development Products 10,7% 14,4% 15,8% 8,3% Total assets (EUR) 25.1 m Gross loan portfolio (EUR) 15.0 m No. of loans outstanding 12,305 Portfolio-at-Risk 30 days in % 1.20% Total customer deposits (EUR) 18.2 m No. of deposit accounts 77,356 No. of staff 342 No. of branches 6 50,7% AccessBank Tanzania Ltd P.O. Box 95068, Dar-es-Salaam, Tanzania Tel: Fax: info@accessbank.co.tz Contact 27 AccessHolding Annual Report 2011

28 AB Microfinance Bank Nigeria Overview Business development Compared to many other countries in Sub-Saharan Africa, Nigeria s financial services sector is more developed and diversified, offering a good variety of products and services for corporate and high net worth clients. However its microfinance sector is still at an infant stage, with very few operators of significant scale. This impedes the development of the country s micro and small business sector and its ability to generate employment and income. AB Microfinance Bank Nigeria (ABN) was established by AccessHolding and Impulse Microfinance Fund in May 2008, with three other shareholders (as listed below) joining shortly after its foundation. The bank opened its doors to the public on 10th November 2008 after several months of preparation. In just over three years of operations, ABN has built up a solid branch presence across the greater metropolitan area of Lagos, covering all districts of significant microenterprise activity. ABN s vision is to become the leading microfinance bank in Nigeria and to set new standards for the Nigerian microfinance sector in terms of professionalism, transparency and efficiency. By delivering appropriate financial services to the target group, AB Microfinance Bank Nigeria seeks to contribute to private sector growth and investment, thus helping to create new business and employment opportunities for the Nigerian population. Lagos (8) Abuja Capital Abuja Inhabitants m Area 923,768 km 2 GDP per capita (US$) 1,222 Key industries Extractive industries (oil and natural gas) Key data 2011 Total assets (EUR) 20.2 m Gross loan portfolio (EUR) 17.1 m No. of loans outstanding 16,930 Portfolio-at-Risk 30 days in % 0.95% Total customer deposits (EUR) 2.2 m No. of deposit accounts 44,460 No. of staff 467 No. of branches 8 Shareholders Products Aside from providing business loans to micro and small enterprises, ABN also collects deposits from the public and provides current accounts and a basic range of payment services. 10,0% 15,0% Contact AB Microfinance Bank Nigeria Ikeja (Head Office) 0, Oba Akran Avenue, Ikeja, Lagos Nigeria Tel: info@ab-mfbnigeria.com 12,5% 50,1% 12,5% 28 AccessHolding Annual Report 2011

29 AB Microfinance Bank Nigeria

30 Client AccessBank, Liberia

31 AccessBank Liberia Capital Monrovia Inhabitants 3.5 m Area 111,369 km 2 GDP per capita (US$) 247 Key industries Agriculture Shareholders Monrovia (5) Access Bank Liberia - the Microfinance Bank (ABL) started operations in January 2009 with its headquarters in the capital Monrovia, which accounts for about a third of Liberia s total population of 3.5 million. ABL is a licensed and regulated fully-fledged commercial bank, whilst being the first Liberia bank to focus specifically on the micro and small business clientele. Access to banking services was until recently (with the market entry of ABL) limited to a small number of mostly high-value, wellconnected customers. AccessBank Liberia, The Microfinance Bank was founded by four reputable international shareholders in a joint effort to support the Liberian banking sector in general and the country s microfinance industry in particular. ABL s mission is to become the bank of choice for the low and middle income strata of the Liberian population, and the country s leading provider of financial services to micro, small and medium enterprises. Within just over three years of operations, the Bank has signed up more than 80,000 clients, demonstrating that its product offering of loans and deposit services has hit the right spot in this still underserved market. Overview Business development 17,7% 13,3% 13,3% ABL provides micro and SME loans to eligible business owners. Regarding banking services current and savings account as well as a term deposit option are offered. All accounts can be held in Liberian Dollar and US Dollar. Products Key data ,7% Total assets (EUR) 13.5 m Gross loan portfolio (EUR) 4.2 m No. of loans outstanding 7,078 Portfolio-at-Risk 30 days in % 5.15% Total customer deposits (EUR) 5.2 m No. of deposit accounts 67,418 No. of staff 290 No. of branches 5 Monrovia Head Office 20th Street, Sinkor, Tubman Boulevard, Monrovia, Liberia Tel: +231 (0) (0) Contact 31 AccessHolding Annual Report 2011

32 AccessBank Tajikistan Overview Business development Products Contact Tajikistan s financial sector is not yet highly developed but since the end of the Civil War in 1997, political stability and foreign aid have allowed the country s economy to grow. Nevertheless, Tajikistan s per capita GDP is by far the lowest in the CIS region. AccessBank Tajikistan is a joint venture of AccessHolding and three of its partners with long-standing experience in the sector: the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and KfW Entwicklungsbank. The bank was inaugurated on 29 March 2010 and has its head office as well as four branches in the capital Dushanbe. AccessBank Tajikistan s vision is to become the leading microfinance bank in Tajikistan and to set new standards for the Tajik banking industry in terms of professionalism, transparency and efficiency. By delivering appropriate financial services to its target group, the bank seeks to contribute to private sector growth and investment, thus helping to create new business and employment opportunities for the Tajik population. In order to facilitate access to finance also in other parts of the country, AccessBank Tajikistan aims to develop a strong regional presence in the coming years. Operating under a full banking license, Access- Bank offers a broad range of financial services to micro, small and medium-sized enterprises (MSMEs) in Tajikistan as well as the general lower and middle income strata of the Tajik population. Despite its current focus on MSME lending, the bank will successively introduce a range of other financial products including agricultural, housing and consumer loans, as well as foreign exchange and other banking services in the coming years. AccessBank Tajikistan 61/1 Firdavsi str. Dushanbe, Republic of Tajikistan Phone: Capital Dushanbe Inhabitants 7.6 m Area 143,100 km 2 GDP per capita (US$) 820 Key industries Production of aluminum growing of cotton Key data 2011 Total assets (EUR) 15.4 m Gross loan portfolio (EUR) 9.6 m No. of loans outstanding 4,798 Portfolio-at-Risk 30 days in % 1.32% Total customer deposits (EUR) 450,639 No. of deposit accounts 402 No. of staff 237 No. of branches 4 Shareholders Dushanbe (4) 18,0% 12,0 % 52,0 % 18,0% 32 AccessHolding Annual Report 2011

33 AccessBank Tajikistan

34 AB Bank Zambia s First Customer

35 AB Bank Zambia Lusaka AB Bank Zambia (ABZ) opened its doors in October 2011 and is the seventh and currently youngest member of the AccessBank network. It was founded by AccessHolding in collaboration with four of its longstanding partners: KfW Entwicklungsbank, the International Finance Corporation, the Dutch development finance institution FMO, and the Belgium-based Impulse Microfinance Fund. ABZ aims to evolve into one of the leading providers of financial services to this target group in Zambia and to set industry standards in terms of the speed, ease and quality of MSME banking. ABZ s branch network is currently limited to Lusaka but the bank plans to expand to other regions in the coming years. It has had a good start of operations. Overview Business development Capital Lusaka Inhabitants 13.5 m Area 752,618 km 2 GDP per capita (US$) 1,253 Key industries Agriculture and copper industry ABZ offers a range of loan and deposit products focusing on the core clientele of micro, small and medium-sized enterprises as well as the general lower-/middle income groups of the country. Banking services include term deposit, saving and current accounts as well as a saving plan and payment services such as a salary project, mobile payment and money transfer systems. Products Shareholders Key data ,5% 12,5% 12,5% 12,5% Total assets (EUR) 3.9 m Gross loan portfolio (EUR) 380,123 No. of loans outstanding 407 Portfolio-at-Risk 30 days in % N/A Total customer deposits (EUR) 83,821 No. of deposit accounts 1,433 No. of staff 84 No. of branches 1 51,0% Stand No. 7393, Ground Floor, Chainda place off Cairo Road, Lusaka. Monday- Friday 08:00-16:00 Tel: (+260) /36/38/40 customercare@abbank.co.zm Contact 35 AccessHolding Annual Report 2011

36 Corporate Social Responsibility in the Holding Our Philosophy Responsible Lending/ Client Protection As an internationally operating bank network, we feel that our responsibility is manifold. As a consequence we have over the years elaborated an individual and comprehensive profile of this responsibility. This profile comprises all activities and guidelines in areas in which AccessHolding is determined to take on a role that goes beyond compliance with legal obligations and basic ethical standards. AccessHolding attributes high importance to considering and acting in the interest of our different stakeholders (such as clients, communities, shareholders, the environment) in order to do business in a sustainable and responsible way. We are aware that we operate in countries where it can seem especially important that the private sector takes on its responsibility to contribute to sustainable development. Our network banks therefore not only consider their profitability and growth but are committed to the interests of the societies and environments they are operating in. As such, our banks not only stand out because of their microfinancebanking expertise but also because their business model is backed by a corporate culture that has a strong ethical and moral basis. Operating in the microfinance sector makes it especially important for AccessHolding to grant the sustainable incorporation of responsible practices into business. We are doing business in developing countries and target social groups usually excluded from the traditional banking system. Therefore our engagement is focused on: Our internal guidelines The commercialization of microfinance isincreasingly accompanied by the risk that some players in the market are seeking short-term profit on dispense of the customer. The latter is more and more threatened by over-indebtedness and other immoral/unethical practices. Therefore AccessHolding is stressing its dedication to responsible finance. It is at the core of AccessHolding s CSR philosophy to make a contribution towards a sustainable development of the microfinance industry worldwide. Consequently protecting the client by lending in a responsible fashion is one of our key principles. In addition, it is an integral part of AccessHolding s CSR philosophy to make a contribution towards a sustainable development of the microfinance industry worldwide. Consequently protecting the client by lending in a responsible fashion is one of our key principles. The following guidelines have been formulated on this behalf and are of foremost importance not only on the holding level but for each individual bank. In order to avoid over-indebtedness and protect our clients we are: building long-term relationships with our clients; conducting a thorough and integral analysis of payment capacity which also includes for example the respect of family related payment obligations; making sure installments represent only a limited component of the borrower s monthly free cash flow, guaranteeing that receiving loans is not conditional on the client depositing money in the bank Responsible collection of overdue installments Endorsing the SMART Campaign AccessHolding is striving ever new ways to emphasize the importance of avoiding overindebtedness. As such, we are a convinced follower and endorser of the SMART campaign which is supported by all banks in the network. The Smart Campaign is a global effort to unite microfinance leaders around a common goal: to keep clients as the driving force of the industry. A certification program is in progress. Smart Microfinance encompasses the following core Client Protection Principles to help microfinance institutions practice good ethics and smart business: Appropriate product design and delivery Prevention of over-indebtedness Transparency Responsible pricing 36 AccessHolding Annual Report 2011

37 All clients of AccessBank should be better off using the bank s products than not. Fair and respectful treatment of clients Privacy of client data Mechanisms for complaint resolution In order to demonstrate the (long-term) importance attributed to responsible lending and client protection, AccessBank in Azerbaijan has already been audited by the SMART committee with the reassuring result of being extraordinarily good at avoiding over-indebtedness compared to industry standards. AccessHolding is convinced that the key to any successful organization is motivated and satisfied employees that strive for excellence. Therefore and to set standards in our countries of operations with often insufficient legal safety for the employee, we apply the following HR policies across the network to safeguard the wellbeing and satisfaction of our staff: Clear job descriptions and open communication channels Employee-friendly working conditions and a variety of motivational schemes such additional insurance packages, team building days, sports events, and others. Employment opportunities for recent graduates giving young, inexperienced talents the opportunity to have a fullscale job entry and develop their potential Highly transparent, merit and performance based internal promotion policies, with many vertical and lateral development opportunities in all departments, and a relatively fast transfer of responsibilities. Employment of long-term staff with tailored career development through classroom training, training on the job, and support from colleagues Performance-oriented pay packages Promotion of equal opportunities Living up to social and environmental standards is of high moral importance to AH. We have developed our own Social and Environmental Management System (SEMS) to ensure social and environmental responsibility throughout the network. The SMES is based on a core social and environmental policy and provides individual AccessBanks with a set of core procedures and guidelines. These Social and Environmental Performance Standards (SEPS) that AccessHolding seeks to implement in all AccessBanks follow the International Finance Corporation (IFC) s Microfinance Exclusion List that forbids investments in potentially hazardous projects. In addition, AH follows the CDC Investment Code that sets out general guidelines for ethical investment practices. It requires responsible business management of environmental, social and governance ( ESG ) matters and also features an Exclusion List, which specifies businesses and activities in which CDC (and thereby AH) will not invest. In day to day business operations, AH is committed to a responsible use of office supplies and other scarce resources such as water and energy. Human Resources 37

38 Corporate Social Responsibility in the Holding Community development/ CSR on site Each AccessBank has its individual way of translating the corporate principles. All of our network banks strive to be good corporate citizens by giving back to the communities they are operating in. Besides working hard on their profitability, the following two examples from practice show AB s commitment to being a good corporate citizen. ABA: Building inclusive communities AccessBank in Azerbaijan plays an important role not only in the economic development of local communities across the country. It also supports, sponsors and encourages staff to become involved in charitable and community projects that both benefit and promote the evolution of inclusive local communities. Examples of such projects in 2010 included: sponsoring the Girls Leading Our World (GLOW) summer camp for schoolgirls from the regions of Azerbaijan, with participation of an AccessBank female manager; distribution of food to needy families for the holidays by Bank staff; regular visits by staff to various homes for orphans, disabled, pensioners and veterans to distribute goods, and provide entertainment and company; sponsorship and judging of the Azerbaijani portion of the Writing Olympics, an international English language writing competition; sponsorship of the Seeing in Color art exhibition and workshop for young Azeri artists organized by the British Council; financing and printing of a handbook for doctors, caregivers and relatives of people with Down s syndrome; as well as many more. Besides from having a strong focus on community development, ABA is also the only bank in Azerbaijan to subscribe to the United Nations Global Compact. ABT: Children dental care campaign Access Bank Tanzania sponsored the launch of a campaign focusing on Children dental care. It was held in capital Dar es Salaam on the grounds of a local school. The event which was sponsored by ABT was attended by five schools. It reached a significant audience of 500 students and their teachers. The campaign focused on convincing children to brush their teeth on a regular basis to avoid all kinds of dental diseases. In her speech Miss Janeth, manager for Marketing and Public Relations at ABT, advised the children to take good care of their teeth if they want to pursue a successful career in marketing or teaching. Mr. Kalabu, the chairman of the forum thanked the ABT for its sponsorship. The campaign is to be continued and ABT will sponsor more similar campaigns across different schools in Tanzania. ABM: Towards a cleaner environment AccèsBanque is very conscious about its social responsibility and has defined a core focus area for its engagement. ABM wants to make a contribution to providing a healthy and clean environment to the population of the island and therefore participates in the clean up of the areas they are active in. As such ABM has recently donated cleansing kits to approximately 40 fokontany (traditional Malagasy villages). Each kit contained a combination of boots, wheelbarrows, blades and grates. In the first phase of this environmental offense only fokontanys situated close to an AccèsBanque branch have received cleansing kits whereas an estimated population of 80,000 people could benefit from the project. From 2012 on, ABM is going to enlarge its focus and will reach out to even more villages. In addition to this environmental initiative ABM also invests in the area of education. As such, at the beginning of the last school year, a large number of school kits containing exercise books have been distributed to over 40 public primary schools. 30,000 pupils were reached by this initiative. 38 AccessHolding Annual Report 2011

39 ABL: Empowering children in the community Through a number of measures ABL strives to emphasize the special importance of children to their communities. On this behalf, ABL organizes and sponsors a number of events that target children directly such as the following: A drawing competition was organized and carried out by ABL staff at Head office. 15 school kids came from 12 different schools to draw what they think about a bank and explain their drawings. The winners got prizes and were featured in ABL S 2011 Calendar. All the kids were given a tour of the ABL facility by our staff, showing them how banking works. This was done to educate Liberian kids about the importance of banking. A Football Tournament was hosted for around 200 school kids whose schools are banking with ABL. The event was coordinated by 10 ABL staff that played the roles of referee, lines men and match commissioners. Winners were given prizes and were encouraged to take their education seriously. ABL aims to discourage kids in the community from early school dropout. Mother Wleh s Orphanage consists of 46 children desperately in need of help; it was visited by ABL staff on Christmas. Kids were given Christmas presents like toys and clothes. The orphanage was given detergents and disinfectants, beddings and food for the children. 39

40 AccessBank s Clients 1. Liberia Henry Wellington, Producer of Cement Blocks AccessHolding and its network banks are guided by responsible and sustainable business practices. By building and maintaining a close relation to their clientele, AccessBanks are in the position to tailor their products and services to the needs of the target group. The following selected client stories provide a good impression of the positive impacts of our business approach on those micro and small entrepreneurs that we serve. Henry Wellington, 34 years old, started the production of cement 12 years ago after his grandfather had passed on to him the experience and passion for this profession. The income generated from the business allowed him to finance his studies in Accounting at the University of Liberia. However, Mr. Wellington could hardly meet the demand of his growing customers on time because of his financial constraints that limited the purchase of required cement. As a consequence he was often forced to ask customers to pay in advance before delivering the full order. This in turn limited the number of potential clients. Through a first loan of USD 800 from AccessBank Liberia, Mr. Wellington was able to pre-finance his purchases which helped him to increase his sales. Due to his increasing income after the first loan and an excellent repayment behavior he received a repeat loan of USD 1,400 for a longer maturity. This enabled him to buy more shovels and wheelbarrows for his workforce which increased from 10 to 35. He recently opened a third production point in Sinkor, Monrovia, and is able to purchase higher quantities of cement at a lower price. Mr. Wellington has also started to produce blocks of different designs to meet the increasing competition by a wider choice of products and better quality. AccessBank Liberia, says Mr. Wellington, has helped me to grow my business and gave me the confidence to think bigger. 40 AccessHolding Annual Report 2011

41 Agnes Jacob Mollel is a hard-working business woman growing mushrooms and raising pigs in her premises in Mbesi beach, a residential area with emerging small business activity around 15 km outside Dar es Salaam. A 56-year old widow of Masai origin with two children living abroad, Agnes has just received her second loan from Access Bank s Kijtonyama branch, which has excellent transport links to the northern periphery of Dar es Salaam. Both loans amounted to TZS 1.6 million (around 900 ) each; the first was used to construct more shades for her pigs, whereas the second serves to purchase a larger number of pigs and add more shelves for her mushrooms, which Agnes sells to supermarkets and a number of individual customers. 2. Tanzania Agnes Jacob Mollel, Pig Farmer In the Northern Azerbaijan town of Shabran, Ilhalma Alyeva works with seven other women from her community to make carpets in the traditional Shirvan style. It takes three to four women two months to produce the high quality carpet. While this high level of labor ensures an excellent quality, it also means that an expensive product is being made. Finding buyers can take some time, leaving Ms. Aliyeva with little income she needs to purchase the materials for her next carpet. With loans of Access Bank, Ms. Aliyeva has been able to purchase the needed materials and also repair her loom. This has led to an increase in salary for the women working for her, these positions being some of the only positions available to women in her town. 3. Azerbaijan Ilhalma Aliyeva, Carpet Maker 41

42 AccessBank Customers