€10M partnership in favor of African entrepreneurship between the EIB and the Foundation

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FGCA/Didier Gentilhomme

February 16, 2022

Small entrepreneurs on the African continent will benefit from a €10 million partnership between the European Investment Bank and the Grameen Crédit Agricole Foundation.

  • Continued cooperation to strengthen access to microfinance for disadvantaged rural entrepreneurs affected by the COVID-19 pandemic
  • Program to support microfinance institutions in different African countries, with a focus on gender equality
  • African private sector to benefit from local currency financing and support for small microfinance institutions

Access to finance for entrepreneurs and businesses affected by COVID-19 in rural areas of sub-Saharan countries will be boosted by a new €10 million targeted financing initiative launched by the European Investment Bank (EIB) and the Grameen Crédit Agricole Foundation ahead of the first EU-Africa summit since the pandemic.

This latest cooperation between the European Investment Bank, the world's largest international public bank, and the Grameen Crédit Agricole Foundation, a leading provider of microfinance across Africa, will focus on ensuring that small businesses can access finance, create jobs, and combat poverty.

“Ensuring that entrepreneurs and communities in Africa can access finance is essential to generate new opportunities, accelerate social inclusion, and strengthen economic resilience in the face of the challenges brought about by the COVID-19 pandemic. The EIB is committed to supporting microfinance across Africa, and we are pleased to strengthen our long-standing cooperation with the Grameen Crédit Agricole Foundation. Today’s €10 million commitment will directly benefit small businesses across the continent,” said Ambroise Fayolle, Vice-President of the European Investment Bank.

“Providing targeted financing in fragile regions is essential to combat poverty, prevent social exclusion, and generate new opportunities that stimulate economic growth. This new cooperation between the EIB and our Foundation will strengthen entrepreneurs’ access to financing in sectors affected by COVID-19 and in remote and rural communities,” said Éric Campos, Managing Director of the Grameen Crédit Agricole Foundation.

The new Pan-African Microfinance Partnership was officially agreed in Brussels earlier today ahead of the EU-Africa Summit at the EU-Africa Business Forum.

Improving private sector access to finance in disadvantaged communities

The new cooperation between the EIB and the Grameen Crédit Agricole Foundation will help strengthen microfinance activity across Africa by providing long-term, local currency financing to local microfinance institutions.

The investment is expected to finance more than 147,000 loans for self-employed individuals and microenterprises, while maintaining up to 36,000 jobs. Given the importance of empowering women and girls across Africa, the program will finance approximately 98,000 loans for women entrepreneurs.

Addressing the challenges that hinder microfinance in Africa

This new initiative will support microfinance institutions smaller than those the EIB can finance directly. These microfinance partners are often unable to benefit from financing from local commercial banks and are unable to expand.

This initiative will contribute to financial and social inclusion and is expected to support entrepreneurs in remote areas, women-run microenterprises, and young people with limited or no access to financial services. These vulnerable and underserved segments are also the most affected by the COVID-19 pandemic.

Supporting fragile regions in Africa

The Grameen Crédit Agricole Foundation will be able to allocate the loan to numerous microfinance institutions in sub-Saharan Africa. The network of partner microfinance institutions covers sixteen countries in the region, including fragile states such as Benin, Togo, Niger, and Malawi.

Building on long-standing cooperation between microfinance partners

The European Investment Bank and the Grameen Crédit Agricole Foundation have been working together since 2018 to strengthen microfinance in Africa, working to improve good practices in microfinance and help entrepreneurs improve their professional skills through technical assistance projects.

The European Investment Bank is the largest international public bank and has committed more than €8 billion in new investments in Africa since the start of the pandemic.

The European Investment Bank (EIB) is the European Union's long-term lending institution, owned by its Member States. It provides long-term financing for sound investments to help achieve the EU's policy objectives.
Created in 2008 as a joint initiative of Crédit Agricole and Nobel Peace Prize winner Professor Muhammad Yunus, the Grameen Crédit Agricole Foundation finances and supports microfinance institutions and social enterprises in nearly 40 countries with technical assistance.

Plastic Odyssey Lab: Meet plastic recycling entrepreneurs

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Plastic Odyssey collects and develops plastic recycling technologies and solutions to disseminate them as open source to as many people as possible. They are embarked on a laboratory ship that will set off in 2022 for a world tour along the most polluted coasts of the planet. At each stop on its world expedition, the Plastic Odyssey floating recycling workshop will welcome entrepreneurs from around the world to help them test, prototype and develop their plastic recycling solutions.

Plastic Odyssey and its partner Crédit Agricole are organizing “PO Lab: meeting with plastic recycling entrepreneurs” at Village By CA in Paris on February 16 from 3:30 p.m. to 6 p.m.

On the program:

1 – Pitch of the winning projects of the PO Lab

Looking back at the 1st edition of the PO Lab, with the pitches of the 5 winners:

  • Conchyl'Innov, Charlotte Rhone
  • Plasti-Cycle, Daovone Sribouavong
  • Recycled plastic skateboard, Jason Knight
  • Purple Alternative Surface, Pierre Quinonero & Sebastien Molas
  • My plastic imprint, Alban Desbarax & David Le Gall

`2 – Round Table: Plastic pollution & recycling solutions in Africa and Asia: context, challenges and perspectives

With inspiring speakers:

  • Matthieu Witvoet: 27-year-old eco-adventurer, member of Circul'R, who in 2017 completed a world tour by bicycle to learn about best practices in plastic recycling.
  • Pascale Martel Naquin: Former Director of the association CEFREPADE, which has been supporting skills building and waste recovery actions for over 20 years, especially in Haiti and sub-Saharan Africa.
  • Said Benhamida: Director and co-founder of Mika, a startup that collects and recycles plastic waste along the Moroccan coast.
  • Jean-Baptiste Grassin: Director of Nomad Plastic and Head of Research and Strategy at Plastic Odyssey.

This meeting can be followed on Webex.

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Le Village by CA is a network of startup accelerators supported by Crédit Agricole. It leverages innovation ecosystems to support the transformation of regional businesses. Learn more: //www.levillagebyca.com/

Covid-19: Evolution of the crisis in some of our countries of intervention

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Since the beginning of the pandemic, the Grameen Crédit Agricole Foundation has been monitoring the evolution of the health crisis in its countries of intervention in order to better understand its effects on the microfinance institutions it supports and their clients. After Covid-19: the impact of the crisis on microfinance, this new publication compiles data and analyses from certain countries where the Foundation operates.

The Foundation has chosen to analyze accessible, quantitative and qualitative measurement tools. Quantitative indicators focus in particular on the number of Covid cases and the number of deaths, which are analyzed as an average over 7 days and as a proportion per 1 million inhabitants in order to obtain comparative data. The percentage of fully vaccinated inhabitants is also taken into account to assess the effectiveness of the vaccination campaign in the country. Qualitative measurement tools are based on the government's actions in response to the crisis, the impact of the pandemic on the economy, and the health mapping (red, orange, or green countries) developed by France.

The sources come exclusively from competent entities such as the European Centre for Disease Prevention and Control, the International Monetary Fund, the French Ministry of Foreign Affairs, the Ministry of Public Health, the Organisation for Economic Co-operation and Development, the World Bank and the World Health Organization.

With this publication, intended for public decision-makers, financiers, operators and microfinance institutions, we hope to contribute to the understanding of the effects of Covid-19 on the microfinance sector in order to better prepare, innovate and respond to the crisis.

Download the publication here (in English).

Digital at the heart of the strategic orientations of microfinance institutions

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ADA, Inpulse, and the Grameen Crédit Agricole Foundation partnered in 2020 to monitor and analyze the effects of the Covid-19 crisis on their partner microfinance institutions (MFIs) around the world. This monitoring was carried out periodically in 2020 and 2021 to gain a better understanding of the crisis's evolution internationally. The findings presented in this article follow the latest study conducted in November 2021. With this regular analysis, we hope to contribute, at our level, to the development of strategies and solutions tailored to the needs of our partners, as well as to the dissemination and exchange of information between the various stakeholders in the sector.

The results presented come from the 8th survey of the joint series (1) of ADA, Inpulse and the Grameen Crédit Agricole Foundation. The 70 responding institutions are located in 39 countries in Eastern Europe and Central Asia (EAC-24%), Sub-Saharan Africa (SSA-38%), Latin America and the Caribbean (LAC-20%), South and Southeast Asia (ASSE-9%) and the Middle East and North Africa (MENA-9%) (2).

1. Despite the resumption of operations, growth is limited by weak demand

During the second half of 2021, the Covid-19 context significantly improved for our partner microfinance institutions. Indeed, in November 2021, 64% of them indicated that epidemic containment measures in their countries had eased compared to those experienced in the summer and 70% of the respondents (49 MFIs) no longer faced Covid-19-related constraints in their activities.

Eastern European MFIs (Bulgaria, Lithuania, Moldova, and Romania) stand out as an exception to this dynamic, as some of them (7 out of 13 MFIs in this sub-region) are experiencing a more difficult context during this period, linked to the resurgence of the epidemic in the region in the last quarter. This is reflected in particular by difficulties in meeting clients in the field or in branches and therefore in carrying out activities in general (collection and disbursement of loans).

It is in this changing context that MFIs have been operating for nearly two years now. Although the trend is toward improving conditions, operational performance remains below expectations as the surveys progress: 53% of respondents (37 MFIs) report not having met their disbursement targets since the beginning of the year. This phenomenon is found across all regions, with the exception of the LAC region (where most of the partners are located in Central America).

The low disbursement levels are primarily linked to the difficulties experienced by MFI clients. Among the MFIs that are not achieving the expected growth levels this year, the two most cited reasons (54% and 49% respectively) are the deteriorated risk profile of the clientele and the reluctance of clients to take out new loans. This justification is also confirmed by the fact that 53% of the respondents still have a higher-risk portfolio than before the crisis. This persistent increase in risk and the situation of a portion of MFI clients whose needs are low or even nonexistent, therefore limits the development possibilities of MFIs.

2. Digitalization remains the top priority for microfinance institutions

Despite a gradual yet uneven economic recovery, the proactivity of MFIs in adapting to current and future challenges continues to be evident over the months. From the beginning of the crisis, we noted that the crisis had fueled reflection on strategic issues. At the end of 2021, 47% of MFIs confirmed that important avenues of work for the coming years had emerged with the crisis. Above all, the themes most mentioned at the start of the pandemic (developing agricultural products, adapting offerings, digitalization) remain at the heart of the directions that partner institutions should take.

The implementation of digital solutions (internal and external) emerges as the main area of development. Digitalization is indeed essential to overcome the difficulties of direct contact with borrowers, a subject highlighted from the start of the pandemic. We also note that the attraction to digital is found in all regions but that it is more or less pronounced depending on the size of the MFIs: 69% (9 MFIs) of Tier 1 (3) institutions are planning to launch new digital products and services, while this only concerns 47% (15 MFIs) of Tier 2 and 24% (5 MFIs) of Tier 3.

The other strategic axes mentioned are mentioned to a lesser extent. However, 30% of respondents plan to move more towards the agricultural sector. The responses on this subject do not reveal a marked correlation either in terms of MFI size or location; only the ASSE region shows particular interest (67%). This avenue echoes the testimonies we collected a year and a half ago: this sector then appeared to be one of the least affected by the Covid-19 crisis. This intention to invest more in the agricultural sector is particularly positive as this sector represents an economic, social and environmental challenge for the years to come.

Finally, another highlight among our partners' responses is client training and awareness on various topics: the use of digital solutions (27%), financial education (27%), health (11%) or environmental protection (11%). While these topics are less popular, they are linked to the MFI development areas mentioned above and highlight the need to support clients so that they adapt to these changes.

3. The capacity to implement these strategies varies depending on the size of the MFIs

We note that 76% of the MFIs have already started implementing measures related to these strategic axes and 16% plan to launch actions in this direction in the coming months. Thus, only 7% of the sample presents less obvious prospects on this point. A certain gap in the implementation of these measures emerges, however, depending on the size of the institutions: the vast majority of Tier 1 MFIs (93%) have already implemented such measures while this proportion drops to 77% for Tier 2 and 64% for Tier 3 MFIs.

These differences by MFI size (which we already noted in 2020 work on the direct consequences of the crisis on MFIs (4)) are also reflected in the level of support expected from external stakeholders (investors, donors, etc.). While technical assistance (69% of responses) and dedicated financing (66%) are the two components that stand out most for moving forward on these issues, they are much more requested by Tier 2 and 3 MFIs. Similarly, MFIs in the EAC zone are the only ones to show a certain independence on this subject, with a third of respondents in the zone not highlighting any need for support.

Larger MFIs therefore appear more equipped and autonomous after the crisis to meet their future challenges, as they were at the peak of the crisis. At the same time, albeit to a lesser extent, some smaller MFIs also confirm strong orientations for the years to come. Despite their fewer resources, they are nonetheless no less ambitious.

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(1) The results of the first seven surveys are available here: //www.gca-foundation.org/observatoire-covid-19/, //www.ada-microfinance.org/fr/crise-du-covid-19/ And //www.inpulse.coop/news-and-media/
(2) Number of responding MFIs by region: EAC: 17 MFIs; SSA 27 MFIs; LAC: 14 MFIs; SSA 6 MFIs; MEAN: 6 MFIs.
(3) Tier 3 MFIs have outstanding credit of less than USD 5 million, Tier 2 between USD 5 and 50 million and Tier 1 above USD 50 million.
(4) //www.gca-foundation.org/the-covid-19-crisis-the-impacts-vary-according-to-the-size-of-MFIs/

The African Facility: a look back at our first microfinance technical assistance program

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In 2013, alongside the French Development Agency (AFD), the Foundation launched its first technical assistance program: the African FacilityThe objective of this facility is to support small and medium-sized rural microfinance institutions with a strong social impact in sub-Saharan Africa. Eight years after its launch, the Facility's performance demonstrates the importance of providing not only financial but also technical support to partner microfinance institutions.

Through the African Facility, the Foundation and AFD supported 26 microfinance institutions, which in turn financed the income-generating activities of more than 500,000 borrowers with average loans of around €200. With 328 technical assistance missions completed, the program covered numerous areas of expertise, from developing environmental strategies to digitizing the credit granting process and strengthening governance.

The Facility has helped strengthen the risk profile and consolidate partner organizations. Although it is difficult to isolate the effects of technical assistance on performance developments, the Foundation was able to observe the impact of the Facility in the context of the study " Our technical assistance system ", carried out with the support of CERISE, an organization specializing in impact measurement. An overall increase in the number of active borrowers and outstanding credit, an improvement in operational self-sufficiency, as well as efficiency gains were visible among the beneficiary institutions.

To conclude the program, the Foundation organized the Facility's final and 6th Forum in Kigali in October 2021, on the sidelines of African Microfinance Week, with all beneficiaries and partners. This was an opportunity to take stock of the program and highlight the program's best practices.

Today, technical assistance is one of the Foundation's core activities. What began as a single, successful adventure with the African Facility is now a set of six technical assistance programs, with €7.1 million in grants under management in 2021. A vector of change and resilience, technical assistance is a key focus of the Foundation's development and will be an integral part of the 2022-2025 Strategic Plan.

Microfinance must play a greater role in helping vulnerable populations cope with the effects of climate change

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“The need to act in the face of environmental risks is a logical consequence of the mission our institution has set for itself: to help the most vulnerable populations.”

Microfinance sector stakeholders, historically organized to promote access to financing for vulnerable populations, must evolve their tools and intervention methods in a context of climate and environmental emergency that can no longer be ignored. Rural populations, living in economically fragile areas, are indeed highly exposed to these effects due to their dependence on agriculture and their difficulties in accessing basic services (access to water, energy, acceptable sanitary conditions, etc.).

To better understand these mechanisms, we conducted a series of qualitative interviews with microfinance institutions that are partners of the Grameen Crédit Agricole Foundation, supplementing questionnaires that have been regularly sent and analyzed for several months. This approach allowed us to identify the main environmental risks faced by these institutions and the means implemented to prevent and address them. Here, we share some of our analysis and the avenues of reflection that our partners have already initiated.

1. Weather risks are the most urgent to address

Weather-related natural disasters and disruptions to the seasonal cycle are increasingly impacting the activities of MFI clients. For 65% of our partners, weather risks will constitute the most significant environmental threat in the near future. Vulnerable and rural populations in particular are more exposed due to their dependence on agriculture, the fragility of their infrastructure, and their difficulties accessing healthcare. Our partner institutions share numerous examples of disruptions that impact their clients' activities. Droughts affect yields and reduce access to drinking water, and floods destroy crops and infrastructure and interrupt supply chains.

The extent and nature of environmental risks vary greatly depending on the region. Sub-Saharan Africa is the geographic area where our partners suffer the most from weather risks: it has already materialized in 40% of them. Significant risks of erosion and soil pollution are also reported in this region more than elsewhere. However, health risks linked to air pollution are more of a concern for our partners in Eastern Europe and Southeast Asia.

2. Strong awareness, but implementation still insignificant

Our partners are widely aware of the environmental risks that affect their activities. The vast majority, 88% of respondents, consider protecting their beneficiaries against environmental risks to be part of their mission. However, this does not necessarily translate into concrete actions at this time. The commitment of the institution's governance appears to be an essential prerequisite: many institutions indicate that decisions in this regard are only made and implemented when governance is truly involved in monitoring environmental issues. Among the 88% of respondents who believe that environmental aspects are included in their mission, 16% do not yet have any tangible involvement of their governance in these matters.

3. Institutions are not yet sufficiently proactive on environmental issues

One of the levers for encouraging institutional governance to take action is client demand: many institutions have observed that when clients express their expectations for specific services or financing related to the climate transition (irrigation equipment, adapted seeds, access to energy, etc.), boards of directors are more inclined to want to develop new offerings and to ask their teams for greater involvement on this topic. However, only 40% of our partner MFIs observe explicit requests from their clients on these environmental issues, which suggests real potential on this point.

The influence that donors can also exert reinforces this institutional commitment. Among our most advanced partners on these issues, many have been encouraged or supported by their own financiers to define an environmental strategy or design inclusive green finance products. This is the case for four of the seven partners of the Grameen Crédit Agricole Foundation with whom we conducted qualitative interviews.

4. Inspiring initiatives have already been implemented by certain institutions

Several of our partners have already implemented interesting initiatives to strengthen the resilience of their activities in the face of environmental risks and limit the portfolio's contribution to these risks.

To protect clients and thus their business, 51% of our partner institutions raise awareness among their clients about the vulnerability of their business to the effects of climate change (declining yields, impact of weather hazards, etc.). 35% of them have exclusion lists, which prohibit the financing of practices that weaken clients' businesses, such as the use of pesticides or over-farming, which pollute and impoverish the soil. A third of our partner MFIs train their clients in more resilient practices, particularly in the agricultural sector. Finally, one of the most common actions is that dedicated to promoting the creation of precautionary savings, proposed by 25% of the institutions. It allows small producers to provide for and anticipate potential climatic hazards (drought, floods, cyclones, etc.).

Another effective way to protect customers is to offer specific insurance products, particularly agricultural insurance, but these are often difficult and complex to implement. A smaller number offer emergency loans and loans with flexible conditions precedent to quickly meet customer needs in the event of a natural disaster.

To limit the contribution of client activities to environmental risks, 65% of our partners have adopted what could be considered "sector-specific policies." These policies exclude activities that promote deforestation, water or air pollution, or waste generation. More than 50% of our partners raise awareness among their clients about the impact of their activities, such as excessive water or energy consumption. 51% of the MFIs surveyed finance low-consumption equipment or clean energy transitions. This includes, for example, low-energy cooking methods, solar equipment, and home insulation. Finally, 47% finance environmentally friendly agricultural and livestock practices. This financing often complements client training and awareness-raising initiatives to strengthen agricultural value chains.

5. MFIs encounter numerous obstacles in implementing their environmental offerings

While we are able to provide numerous examples of initiatives from our partner institutions, these still concern a limited number of them. Although 64% of the institutions that responded to our survey have future projects on these themes, they face financial and technical obstacles: 78% of them state that they lack the financial resources and 52% the expertise to implement their projects. In terms of financial support, MFIs are seeking financing lines of more than 3 years, as well as loans at favorable rates indexed to environmental performance objectives. Technical assistance is also an effective tool to support companies in designing new products, raising awareness and training their clients, and adapting their activities towards greater resilience and respect for the environment. According to our interviews, receiving technical assistance plays a key role in their development, and MFIs have significant needs for technical assistance. In particular, many of our partners are interested in developing an agricultural micro-insurance offering, which requires significant resources and specific knowledge.

6. In conclusion

To advance the microfinance sector on environmental issues, it appears necessary to mobilize the governance bodies of microfinance institutions. Beyond the support offered by donors, which needs to be strengthened, this mobilization can be achieved by deepening and replicating existing effective practices on a large scale, sharing experiences between institutions, organizing forums and focus groups, and designing appropriate financial products such as microinsurance or financing agricultural value chains.

An "environmental protection pathway" remains to be built together with our peers and partners (similar to SPTF-CERISE's customer protection pathway) by building on existing initiatives in the sector (Green Index, ALINUS). The practice of "green loans," whose use is rapidly accelerating in other sectors, should be further promoted in microfinance. This involves, for example, offering preferential rates indexed to environmental performance objectives.

Technical assistance is essential to enable institutions to implement concrete actions. The need to adapt the offer to the needs of institutions is one of the main lessons learned from the in-depth evaluation of " Our technical assistance system ". As far as the Grameen Crédit Agricole Foundation is concerned, the need for adaptation applies particularly to missions on environmental themes: the environmental risks that weigh on the activities of partners vary greatly from one region to another, and even from one MFI to another. It is therefore a question of designing a technical assistance support system that is flexible and adaptable according to the specificities of the institutions and the economic situation, without imposing overly specific themes and standardized methodologies. This must be accompanied by a wide variety of possible financing for various types of technical assistance missions. Another lesson listed in the publication is the need to reflect on models for measuring the impact of missions around environmental issues, with the formulation of precise objectives and indicators.

To define relevant common indicators, both in terms of direct and indirect impact through portfolio activity, it is necessary to collectively agree on best practices and common definitions. In particular, the sector can reflect on supporting and developing more sustainable agriculture, which is undoubtedly one of the major challenges facing the most fragile countries on the African continent.

Crédit Agricole's Solidarity Bankers: a great success for this impactful scheme

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By Carolina Viguet, Director of Communication & Partnerships, FGCA

Three years after its launch, the success of the Solidarity Bankers program confirms the commitment of employees and the Group's desire to support projects with social impact. Since 2018, the program has launched 28 missions in some fifteen countries for 19 organizations supported by the Grameen Crédit Agricole Foundation. This represents 316 days of missions planned or completed by 34 Solidarity Bankers.

An impact project with the Grameen Crédit Agricole Foundation

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in 2018, Solidarity Bankers is a skills-based volunteer program open to all Crédit Agricole Group employees in support of microfinance institutions and impact businesses supported by the Foundation.

The "Solidarity Bankers" program has a twofold objective: it enhances the skills of Crédit Agricole Group employees and provides additional support to microfinance institutions and corporate partners of the Grameen Crédit Agricole Foundation. This is the first time that a partnership of this type has been launched by the Crédit Agricole Group.

Senegal, Morocco, Cambodia… a great success

Some emblematic missions of the program:

  • With the support of Crédit Agricole de Franche-Comté, a Solidarity Banker spent two years helping La Laiterie structure the dairy sector in Senegal. Another Solidarity Banker from Crédit Agricole CIB spent two weeks supporting KOSSAM SDE, a subsidiary of La Laiterie, in the deployment of a digital application. Other missions for La Laiterie are planned for 2022.
  • A Crédit Agricole SA Solidarity Banker carried out a mission in cooperation with Crédit du Maroc to improve the anti-money laundering and counter-terrorist financing (AML-CFT) systems of the Al Karama Foundation, which grants microcredits to low-income people in Morocco.
  • In Cambodia, a Solidarity Banker spent two weeks, with the support of Crédit Agricole Val de France, to assist Cirque Phare (PPSE), a social enterprise that promotes social inclusion and youth empowerment through Cambodian culture and arts, in its financial management and organizational structure.

"This experience undoubtedly exceeded my expectations, both in terms of the mission carried out and on a human level." Olivier Mancini, Head of Recovery at Crédit Agricole du Languedoc, who carried out a mission for OXUS in Tajikistan in September 2021. Discover his testimony here.

"I especially remember the warm welcome and the wonderful encounters." Andreas Brunner, Internal Audit Supervisor at Crédit Agricole Assurances, who carried out a mission for OXUS in Kyrgyzstan in October 2021. Discover his testimony here.

Missions to be filled

Some missions are still available and others are being scheduled for 2022:

  • “LCB-FT” mission in favor of SEF in South Africa
  • “Digital Strategy” Mission for OXUS in Kyrgyzstan
  • “LCB-FT” mission in favor of Bimas in Kenya

With this initiative, the Crédit Agricole group is strengthening its Societal Project alongside the Grameen Crédit Agricole Foundation in favor of more inclusive finance.

You will find more information on the missions here.

To apply, send your CV and a cover paragraph to Carolina Viguet: carolina.viguet@credit-agricole-sa.fr

 

The Foundation's latest funding in Europe and Central Asia

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© Didier Gentilhomme

In the second half of 2021, the Grameen Crédit Agricole Foundation granted new financing in Europe and Central Asia, including one with Furuz, a new partner in Tajikistan. As of the end of December 2021, the Grameen Crédit Agricole Foundation had 81 partners in 37 countries and manages a portfolio of €82 million, including €461 million in fragile countries.

In Moldova, the Foundation granted a new loan to the microfinance institution Smart Credit for an amount equivalent to 580,000 euros. Smart Credit is a microfinance institution created in 2010 to help clients improve their living conditions, particularly among socially disadvantaged small entrepreneurs. The institution offers loans using the individual methodology. To date, Smart Credit has 3,253 clients, including 54% women and 69% clients in rural areas.

The Foundation also granted two new loans to Lazika in Georgia for a total amount equivalent to 1.4 million euros. Lazika is a microfinance institution established in 2000 by Oxfam Great Britain. Its mission is to facilitate access to financial services tailored to the needs of low- and middle-income entrepreneurs. Currently, Lazika has nearly 15,000 clients, of which 49% are women and 69% live in rural areas.

In Kazakhstan, the Foundation also granted new funding to Asian Credit Fund (ACF) for an amount in local currency equivalent to 1 million euros. ACF is a microfinance institution established in 1997 whose mission is to provide financial and development products and services to the poorest households in Kazakhstan. ACF's financial services are designed to promote rural household development, small business growth, and home ownership. The institution has nearly 27,000 clients living in 93% rural areas, 70% of whom are women.

In Tajikistan, the Foundation has granted initial funding to Furuz, a new partner, for an amount in local currency equivalent to 500,000 euros. Furuz is a microfinance institution that began its activities in 1999 as part of the microenterprise development program of the NGO Millennium Relief and Development Services. The institution offers financial services to small businesses. Furuz has more than 5,000 clients, including 30% women and 81% clients in rural areas.

To learn more, Click here.

The Foundation grants 7 new funding projects in Sub-Saharan Africa

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© Didier Gentilhomme

During the second half of 2021, the Grameen Crédit Agricole Foundation granted seven new financings in sub-Saharan Africa. To date, the Foundation manages a portfolio of €83 million, including €341 million in sub-Saharan Africa.

In Kenya, the Foundation has granted a new loan to the microfinance institution Bimas for an amount in local currency equivalent to 800,000 euros. Bimas is a microfinance institution whose mission is to offer innovative financial and non-financial services to people living in rural areas. Bimas has nearly 18,400 clients, including 59% women and 86% rural clients. The Foundation also granted a new loan to ECLOF Kenya for an amount in local currency equivalent to 1.2 million euros. ECLOF Kenya is a microfinance institution whose mission is to enable clients to realize their projects by offering financial and related non-financial services. To date, the institution has more than 38,000 clients, including 63% women.

In Benin, the Foundation granted a new loan to the microfinance institution Renaca for an amount in local currency equivalent to 1.5 million euros. Renaca is a microfinance institution that seeks to strengthen the economic base of vulnerable rural, peri-urban, and urban populations. The institution has nearly 41,000 clients living in rural areas, 571 of whom are women.

In Burkina Faso, the Foundation also granted a new loan to the microfinance institution ACEP Burkina for an amount in local currency equivalent to 2 million euros. ACEP Burkina is a microfinance institution that offers financial services to people excluded from the traditional banking sector. ACEP Burkina primarily targets micro, small, and medium-sized enterprises (VSEs and SMEs) in urban and peri-urban areas. It finances nearly 18,000 clients, including 211 women, and operates exclusively in urban areas.

In Cameroon, the Foundation granted a loan to another institution of the ACEP network, ACEP Cameroon, for an amount in local currency equivalent to 2 million euros. ACEP Cameroon is a microfinance institution whose mission is to support the development of Very Small Enterprises (VSEs) in the country's urban centers. To date, the institution has approximately 15,000 clients, including 341VSEs of women and 281VSEs in rural areas.

In Uganda, VisionFund Uganda received a loan equivalent to €400,000. VisionFund Uganda is a microfinance institution, a subsidiary of World Vision. The institution operates nationwide in Uganda with 23 branches. VisionFund expanded its reach into the West Nile region to serve refugees and their host communities as part of a pilot project developed by the Grameen Crédit Agricole Foundation. Today, the institution has nearly 45,000 clients, 951 in rural areas and 591 women.

Finally, the Foundation granted a new loan to the microfinance institution LAPO, in Sierra Leone, for an amount equivalent to 600,000 euros. The institution mainly grants microcredits to women in disadvantaged areas. Today, LAPO is one of the largest institutions in the country, covering 80% of the national territory. It has nearly 23,000 clients, including 93% women and 84% clients in rural areas.

To learn more, Click here.

Oxus Kyrgyzstan, beneficiary of the Solidarity Bankers program

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Solidarity Bankers is a skills volunteering program launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in 2018 with a dual objective: on the one hand, to support microfinance institutions and social impact businesses financed by the Foundation with technical assistance, and on the other hand, to promote the skills of Group employees who wish to get involved in projects with a strong social impact.

OXUS Kyrgyzstan is a microcredit institution that provides financial services to the working poor and underbanked in Kyrgyzstan. Andreas Brunner, Internal Audit Supervisor at Crédit Agricole Assurances, assisted the institution in developing an annual marketing plan.

A look back at the program with an interview with Denis Khomyakov, CEO of OXUS Kyrgyzstan.

  • Presentation: Can you present your microfinance institution? (Key figures, mission, approach, clients, structure, etc.)

The company was established in 2006 by the OXUS Group and the NGO ACTED (major shareholder). Our institution's mission is to be a transparent and accountable company committed to providing financial services to the working poor and underbanked in Kyrgyzstan. The company is located in 5 of Kyrgyzstan's 7 regions, has 15 branches, and 135 employees. We currently have approximately 9,500 clients, with an outstanding loan portfolio of 800 million KGS (9.4 million USD). 50% of OXUS' clients are women, and 63% come from rural areas.

  • You benefited from the Solidarity Bankers program in 2021 to develop a marketing plan and create a customer loyalty program. Why was this important for your institution?

A well-designed and functional loyalty program will increase customer retention rates while attracting new customers. The marketing plan should enable the company to more efficiently structure the resources allocated to marketing activities. These two deliverables from the Solidarity Bankers mission will allow us to better promote OXUS Kyrgyzstan's offering.

  • How did you prepare for the mission before the arrival of the Solidarity Banker?

We spent a lot of time prioritizing the points we wanted to address with the Solidarity Banker. We prepared extensive documentation on the company, its clients, its activities, its current operations, and a list of people involved in future projects. We also had a lot of discussions with Andreas to define what we wanted to do in terms of marketing. The preparation phase was crucial to the success of the mission..

  • What did you expect from the Solidarity Banker? Did the results meet your expectations?

I expected a consulting mission with certain documents as deliverables. What we received: detailed training from a marketing specialist! Andreas, the Solidarity Banker, conducted interviews and trained everyone involved in the marketing process (from loan officers and branch managers to the CFO and COO)! The result was fantastic, and we are now using the documents created with Andreas. These documents are completely tailored to our reality. The mission was excellent and exceeded our expectations.

  • What were the priorities defined following the recommendations made?

The priority is to refine and implement the 2022 marketing plan. Work on the loyalty program is also underway, but this presupposes the implementation of the 2022 marketing plan. We look forward to implementing both projects.

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