Out of the ashes of communism, CAPA takes wing
In 1989, Andi (Adrian) Chindras was
among the student leaders who stood between the police and the
protestors to keep the peace as the Romanian communist dictator
Nicolae Ceausescu was brought down, ending a repressive regime and
creating the new Romania.
Today, Andi is CEO of CAPA Finance SA,
a leading microfinance institution that has helped bring Romania out
of communism, through the economic wilderness, and to a promised land
of prosperity in one of the fastest-growing economies in Europe.
But the transformation did not happen
over night. Andi and his team of compatriots – inheritors of the
new Romania – worked hard to serve people and make CAPA successful.
"To Andi and his colleagues," reports MEDA director
investment fund development Gerhard Pries, "providing loans to
build and grow the businesses of budding entrepreneurs has not been
just a job – it has been a commitment to their country and to
Romania's future.
"The way Romania has developed is
just astounding – amazing development," says Gerhard. "In
Cluj, where CAPA is headquartered, construction cranes crowd the
skyline – more than you see in bustling downtown Toronto. Romania
is a country on the move – it's a dramatic change." Romania
joined the European Economic Union in 2007, and plans to convert its
currency to the euro by 2014.
CAPA – Creditare
Assistenta Pregatire Afaceri – began in 1995 under World
Vision when they began to move from post-revolution relief work to
community development. MEDA was hired to provide its microfinance
expertise to help CAPA grow and develop. Later, MEDA joined CAPA’s
Board of Directors to provide governance assistance.
After two decades of steady growth,
MEDA and partner World Vision sold CAPA to the Romanian-American
Enterprise Fund (RAEF) on Nov. 1, 2007, and the CAPA Management team
was rewarded with a small piece of the ownership.
Out of the ashes of communism, CAPA,
now with a staff of 100, has grown to have total assets of $30
million and 6,300 borrowers at over 30 branches. MEDA's early
investment of $5,000 and a subsequent equity injection of $282,000 in
2006 have reaped a $1.3 million reward with the sale of its 24 per
cent share. It's a windfall that will be invested in other developing
economies around the world.
Under its new owners, CAPA will
continue to grow, using RAEF's infusion of $15 million to springboard
to a new level.
