Technical assistance: green microfinance with RENACA in Benin

RENACA offers individual and group loans to a predominantly female clientele in six regions of Benin. As part of the African Facility program, RENACA received support to strengthen its inclusive green finance initiatives.

THE ORGANIZATION AND THE FOUNDATION

As part of the African Facility, RENACA received a €182,000 grant from the French Development Agency to implement 18 technical assistance missions in various areas (information systems, business plans, etc.), including a mission to strengthen inclusive green finance. The Foundation has also granted RENACA three loans since 2013, for a total amount of €1,738,000.

THE CONTEXT OF THE MISSION

Faced with the deterioration of ecosystems, RENACA wanted to engage in inclusive green financing activities, particularly through the financing of agricultural activities that preserve forests and biodiversity and activities that contribute to reducing clients' vulnerability to climate change. The institution thus benefited from the support of an international firm (YAPU Solutions) to develop a green strategy and evaluate and expand its green product offering.

THE RESULTS

This mission provided a diagnosis of RENACA's actions in the area of inclusive green finance, and the institution received advice on developing its product offering. The mission also raised awareness among staff and governance on the topic of inclusive green finance and climate-smart agriculture. An institutional green strategy and action plan were also developed, enabling RENACA to clarify its objectives in the area of inclusive green finance.

THE PERSPECTIVES

Following the mission, several priority actions were defined, including the organization of awareness-raising sessions on inclusive green finance for RENACA agents, the definition of a list of activities excluded from financing because they are harmful to the environment, the development of an environmental and social policy as well as the development of an offer of environmentally friendly agricultural products.

This article was published in "Our technical assistance system", accessible here