Cross-perspectives: 2020, a year marked by the Covid-19 crisis

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By Jean-Marie Sander, President of the Grameen Crédit Agricole Foundation until March 2021 and
Raphaël Appert, President of the Grameen Crédit Agricole Foundation since March 2021 &
Vice-President of Crédit Agricole SA and National Federation of Crédit Agricole

A little over 30 years ago, Michel Serres shared with us the need for a "Natural Contract" analogous to the "Social Contract," which called for reconciliation between humans, nature, and all living things. The year 2020 was a terrible one for fragile economies.

The good health of the Foundation, which has adapted throughout the year to the economic effects of this crisis, does not reflect the tragedies that have played out and are still playing out in the territories of our partners where social safety nets are almost non-existent. Faced with the pandemic and its impact on daily life, family solidarity was often the rare relief found by populations on very low incomes.

Although its anthropocentric origins remain to be demonstrated, this health crisis invites us to become aware of our inclusion in nature, reminds us of our humility in the face of the natural order and entrusts us with the care not only of developing humanity but also of maintaining it.

The economic effects of the pandemic have affected the entire world, but particularly vulnerable populations: according to World Bank figures, they could quickly push 150 million people into extreme poverty. As far as we are concerned, we must avoid complacency about the likely ability to regain some semblance of economic growth, which we all know will not quickly and equitably reach the most vulnerable populations.

In this economic recovery, the Foundation will mobilize its entire force in 2021, as much work remains to be done to try to change the machine that creates inequality in the face of tragedy. To achieve this, we will need to rely on our professionalism, our determination, and the values that guide our daily actions.

It is with this ambition that we created the Foundation with Professor Yunus in 2008. It is with this same ambition that we will continue to engage in the coming months.

The Foundation publishes its 2020 Integrated Report

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The Grameen Crédit Agricole Foundation has published its 2020 Integrated Report, which highlights the highlights and key figures of this year marked by the health and economic crisis linked to Covid-19. Thanks to close monitoring and collaboration with its partners and other stakeholders in the inclusive finance sector, the Foundation ended the year with a solid balance sheet.

As of December 31, 2020, the Foundation managed €81.2 million in outstanding loans for 75 microfinance institutions and 12 social enterprises in 39 countries. Women's entrepreneurship and the development of rural economies remain at the heart of the Foundation's work: 73% of the 7.3 million beneficiaries of the institutions supported are women, and 85% live in rural areas.

Since the beginning of the crisis, the Foundation has conducted surveys among the organizations supported to understand the impact of the crisis and better respond to their needs[1]. The Foundation has also initiated global coordination with other actors around the key principles to protect microfinance institutions and their clients in the face of the crisis. To date, 30 lenders, investors, and platforms have signed the Coalition's commitment.

Thanks to this ongoing dialogue with its partners and peers, the Foundation has implemented several tailored measures to support the sector. It has granted deferrals to 29 partners, mainly microfinance institutions, for a total amount of €9.4 million. In 2020, the Foundation also supported organizations with 93 technical assistance missions[2], on priority topics such as continuity plans but also on themes such as digitalization, which is essential for the resumption of their activities.

The Foundation was able to count on the support of its donors to strengthen its action in 2020. It obtained financing from Proparco, the European Investment Bank (EIB) and Crédit Agricole CIB to create a Covid-19 envelope and support the economic recovery of its partners.

In 2020, the Foundation also worked alongside the Crédit Agricole groupThrough a new cooperation plan with Crédit Agricole Romania, new financing granted through the FIR – the Group's Microfinance Fund – and the Solidarity Bankers skills volunteer program, the Foundation and Crédit Agricole have strengthened their efforts to promote the financial inclusion of the most vulnerable populations. This mission will remain a priority in this year of recovery that is 2021.

Download the Report

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[1] Survey results and other resources are published in the Foundation's Covid-19 Observatory: //www.gca-foundation.org/observatoire-covid-19/
[2] More information on the Foundation's technical assistance offer: //www.gca-foundation.org/technical-assistance/

The role of the Grameen Crédit Agricole Foundation in responding to the crisis

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©Godong

Soukeyna Ndiaye Bâ has been a member of the Foundation's Board of Directors since its inception. Committed to promoting women entrepreneurs for over 20 years, she is also the Executive Director of INAFI (International Network of Alternative Financial Institutions), a global network of organizations supporting microfinance programs. Abdul Hai Khan is a member of the Board of Directors and Managing Director of Grameen Trust. He also serves on the boards of various microfinance and social enterprise organizations in Australia, Bangladesh, China, France, India, Kosovo, Italy, the United States, and Yemen.

1/ As Foundation directors, you are both international experts and microfinance practitioners. Can you share with us your analysis of the crisis, particularly regarding the areas you know well?

Soukeyna Ndiaye Bâ: In Africa, the death toll today stands at nearly 100,000 and more than 3.7 million people infected, figures that do not reflect the reality on the continent because there is no mass screening due to a lack of resources. Due to restrictions and border closures to contain the pandemic, the African continent has not escaped the crisis. In this context, small entrepreneurs, farmers, and informal sector actors are obviously directly affected. On the front line: women, in both rural and urban areas, who are very active in the informal sector. In Senegal, for example, 94% of women entrepreneurs operate in the informal sector. In rural areas, in addition to the seriousness of the economic situation, the already alarming health precariousness and difficulty accessing healthcare are likely to worsen.

Abdul Hai Khan: The death toll in Asia is currently estimated at around 417,000, while the number of infections stands at over 26 million. Schools in East Asia and the Pacific have been completely closed for over 25 million children for almost an entire year. Covid-19 has slowed growth in East Asia and the Pacific (EAP) by significantly reducing economic activity, including tourism and trade. Growth in the EAP region, excluding China, is forecast to slow to 1.31t/yr in 2020, down from 4.71t/yr in 2019. Millions of households have been affected by the loss of jobs and income (including remittances), while they still have to cover their basic necessities or service their debts. As a result, the percentage of poor people has increased.

2/ How do microfinance and social entrepreneurship mitigate the effects of the economic crisis?

AHK: By facilitating access to essential services, microfinance institutions and social enterprises strengthen the resilience of low-income populations, particularly small entrepreneurs working in the formal and informal sectors and smallholder farmers. They are therefore essential for protecting the most vulnerable populations, who have been severely affected by the effects of the economic and health crisis during the Covid-19 pandemic. To cope with this pandemic, many microfinance institutions have innovated and strengthened their support for their clients. For example, they have restructured loans to better support the most affected clients and accelerated their digital transformation, introducing or improving cashless transactions via mobile banking channels and creating online branches.

3/ What can we expect in the coming years?

AHK: The extent of the damage caused by the Covid-19 pandemic worldwide is considerable. However, it offers us a unique opportunity to improve, even redefine, our economic structures by building on social and environmental awareness. We should not speak of a “recovery” program, but of a “reconstruction” program. In this comprehensive reconstruction plan, social entrepreneurship can play a vital role, as it can be a lever to transform unemployed people into entrepreneurs. Financial inclusion can help ensure that economic recovery is accompanied by social development.

SB: The world is threatened by recession and food and social crises. Building the "post-Covid" world must therefore also be multisectoral and focused on innovation. We must learn from the problems encountered during this crisis: better assess and anticipate risks, strengthen our socioeconomic models, and rethink our public policies to better protect the most vulnerable populations. Women entrepreneurs will have a key role to play in boosting the economy. Supporting female entrepreneurship will be a lever for strengthening women's empowerment and the development of rural and urban economies. Digital technology will be a major tool for promoting entrepreneurship, modernizing, developing, and innovating.

The Grameen Crédit Agricole Foundation signs the Climate Manifesto

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Following the official launch of the French Coalition of Foundations for Climate on November 18, the Grameen Crédit Agricole Foundation signed, alongside 80 other organizations, the Manifest of the news French Coalition of Foundations for the Climate (CFFC).

Launched by the French Foundations Center and its partners, the Climate Coalition brings together foundations and endowments with a common goal: to act together in the fight against climate change. The Coalition will promote the signatories' best practices, produce research on the philanthropic sector's engagement, and mobilize human and financial resources to support initiatives to address the climate crisis.

The Foundation and its action for the resilience of rural economies

Through funding for microfinance institutions and investments in rural businesses with a strong social and environmental impact, the Grameen Crédit Agricole Foundation positions itself as a player that promotes the resilience of rural economies in the face of climate change.

With a portfolio of €87 million as of the end of March 2021, the Foundation primarily supports organizations that contribute to rural development in Africa, Asia, and Europe. Of the more than 7.3 million beneficiaries of funded microfinance institutions, 851 live in rural areas. The Foundation also provides technical assistance to companies that promote more sustainable agricultural practices.

With the signing of the Manifesto and also membership in the French Center for Funds and Foundations (CFF), the Grameen Crédit Agricole Foundation reaffirms the inclusion of the climate issue in its practices and strategy and calls on other players in the inclusive finance sector to engage together in this global issue.

Online Solidarity Banker missions to be filled

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Three online Solidarity Banker positions are currently available. Solidarity Bankers is a skills volunteer program launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA, open to all Crédit Agricole Group employees. The objective is twofold: first, to provide technical assistance to microfinance institutions and social impact businesses funded by the Foundation, and second, to promote the skills of Group employees who are interested in getting involved in projects with a strong social impact.

Missions can take place during the Solidarity Banker's working hours (sponsored by the Solidarity Banker's employer) AND/OR during vacations (volunteering). For the 3 missions below, the Solidarity Bankers will dedicate a total of 15 working days to the mission. Each selected expert will work remotely and dedicate the equivalent of 1 day per week, for 15 weeks, to their mission.

“Digital Strategy” Mission for OXUS (Kyrgyzstan)

OXUS Kyrgyzstan (OKG) is a microfinance institution that provides financial services to the working poor and underbanked in Kyrgyzstan. The institution serves 8,000 active borrowers (481 women and 621 rural borrowers) and manages a portfolio of €6.4 million. The average outstanding loan amount is €798.

A Solidarity Banker mission is planned for July 2021 to support OKG in evaluating its digitalization processes and developing a new digital strategy. The expert sought is a Crédit Agricole employee who is fluent in English and has experience in IT project management (knowledge of Russian is a plus).

“Financial Management” Mission for FATEN (Palestine)

FATEN is a microfinance institution in Palestine. The institution serves 26,244 active borrowers (34 women and 68 rural borrowers) and manages a portfolio of €108 million.

The selected Crédit Agricole expert will support FATEN in updating financial procedures, policies, and tools. The Solidarity Banker must be fluent in English and have knowledge of international financial reporting standards, particularly the latest changes to IFRS 16 and IFRS 9. The position is available as soon as possible.

“Digital Strategy” Mission for Smart Credit (Moldova)

Smart Credit is a microfinance institution that provides financial services to socially disadvantaged people and small entrepreneurs in Moldova. The institution has over 3,000 active borrowers (54% women and 69% clients in rural areas) and manages a portfolio of EUR 4.4 million.

The Solidarity Banker will be responsible for helping build Smart Crédit's digital strategy. The expert is a Crédit Agricole Group employee who is fluent in English and has experience in IT project management. The position is available as soon as possible.

How to apply?

To discover the detailed mission offers:

  1. 1. Go to the CA Solidaires website “Finding your mission“
  2. 2. Enter “Grameen Foundation” in the search bar. All Solidarity Leave offers will appear!
  3. 3. Click on the offer of your choice, you will find all the information necessary for your application.

More information: carolina.viguet@credit-agricole-sa.fr

KOSSAM and digital payment for breeders in Senegal

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Supported by the Grameen Crédit Agricole Foundation, CA Franche Comté and Amundi, Kossam SDE is a subsidiary of Laiterie du Berger which aims to structure and strengthen the dairy sector in Senegal. In February 2020, Kossam SDE successfully launched the dematerialization of "payroll" for more than 850 breeders, thus contributing to the improvement of their living and working conditions. Spotlight on the interview for Portail FinDev with Jonathan Michaud (former Solidarity Banker [1] of CA Franche Comté) Director for 3 years of Kossam SDE), and Mamadou Fall, its Deputy Director, who look back on this transformation.

1. What was a typical payday like before the transition to digital payroll?

Jonathan Michaud & Mamadou Fall: Until February 2020, all farmers were paid in cash on one or two specific paydays. Farmers traveled to the factory in Richard Toll to collect the money owed to them. First, being paid in cash was restrictive for farmers. They had to arrive early in the morning and sometimes wait all day in high temperatures. Furthermore, farmers were forced to travel to Richard Toll on a specific day to be paid, without being able to schedule it around their other trips. It was also laborious for Kossam SDE, since the teams had to handle cash for two days under pressure due to farmers' waiting times, which could lead to errors.

In November 2019, the Kossam SDE team made the decision to digitize and the first digital payroll took place in February 2020.

2. What are the concrete benefits of digitalization for breeders?

JM & MF: We have identified 5 benefits for breeders:

  • Time saving. Today, a farmer no longer needs to wait hours to receive his pay.
  • Security. Everyone knew which day the farmers received their pay, which could potentially create a context of insecurity with risks of theft.
  • Flexibility. Now, all breeders receive their money on the same date but can collect it whenever they want.
  • Cost. Most farmers don't live in Richard Toll, and getting there comes at a cost. They can now optimize the cost of their journey by deciding which day they'll withdraw their money.
  • Traceability. Each breeder is identified in our database with their phone number and ID card. This ensures that the breeder is indeed receiving the money, since we know which phone number the funds are being sent to.

3. What solution have you implemented with Wizall Money to pay breeders?

JM & MF: The vast majority of our breeders don't have smartphones. They have a basic phone that can only receive and make calls and send text messages. So we opted for a code sent directly to the breeders' phones. Armed with this code and their ID, the breeders go to the Wizall Money kiosk of their choice to withdraw their money. The fees associated with this service are borne by the beneficiaries (the breeders).

Implementing this solution has clearly removed a considerable number of constraints for breeders, particularly in terms of time and organization. Furthermore, we were concerned that breeders might be reluctant to pay to receive their money. However, the issue of cost was not addressed. On the contrary, it costs them much less than paying for transport to get to Richard Toll on a specific day of the month. We have not received any complaints in this regard.

4. More than a year after implementing digitalization, where are you now? What's next?

JM & MF: The digitalization of payroll was implemented just before the arrival of Covid-19 in Senegal in March 2020, where drastic measures were quickly taken: curfew, banned gatherings, etc. Without digitalization, farmers would not have been able to travel and would not have been able to be paid. Today, we are moving on to the second and final stage of payroll transformation. Indeed, there are two drawbacks to the SMS codes that our farmers receive on their phones: you have to have your own phone, which is not the case for all our farmers, as well as the network. The main problem encountered is that some people never received the code, so we had to continue paying them in cash.

To address this situation, we have provided all our breeders with an individual NFC card. Their pay will be sent to this card in an electronic wallet. Breeders can then go to a Wizall Money kiosk, hand over their card, enter their PIN, and withdraw all or part of their money. There are therefore no longer any network constraints and no longer any obligation to withdraw the entire amount paid. This is a major innovation that allows us to enter into new uses and services that are a form of micro-savings and passive savings.

We will now work on various topics that digitalization allows us to address with greater efficiency and peace of mind: access to health insurance, development of savings and financial education.

Full interview on FinDev
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[1] The Grameen Crédit Agricole Foundation and Crédit Agricole Franche Comté, shareholders of Laiterie du Berger, supported the creation of Kossam SDE as part of a Banquiers Solidaires technical assistance mission, a skills volunteer program of the Crédit Agricole group. An agricultural engineer from the Regional Bank who led the mission in 2018 left for 3 years to coordinate the launch of Kossam SDE. This is Jonathan Michaud, now Managing Director of Kossam SDE.

Solidarity Banker missions to be filled in Georgia, Kyrgyzstan and South Africa

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Launched in June 2018 at the initiative of the Grameen Crédit Agricole Foundation and Crédit Agricole SA, Solidarity Bankers is a skills-based volunteer program open to all Crédit Agricole Group employees, supporting microfinance institutions and social impact businesses supported by the Foundation. Three new assignments are available in 2021 in Georgia, Kyrgyzstan, and South Africa.

“Marketing Strategy” Mission in Georgia

Lazika Capital, one of the leading microfinance institutions in Georgia. Established in 2000, Lazika provides financial services to low-income individuals, smallholder farmers, and microentrepreneurs. The organization operates through 18 branches, primarily in rural areas of Georgia (70% of clients are rural).

The Solidarity Bankers mission aims to support Lazika in developing a marketing plan for mid-2021-2022. If the health situation permits, the mission will be carried out in June or July 2021 in Georgia; otherwise, it will be postponed.

“Social and environmental performance” mission in Kyrgyzstan

Salym is a microfinance institution that provides affordable loans and deposits to support income-generating activities for low-income populations in Kyrgyzstan. The organization currently has 23 branches across Kyrgyzstan and serves more than 18,000 clients, including 521 women and 701 rural clients.

A two-week Solidarity Bankers mission is planned to support Salym in managing its social and environmental performance. If the health situation permits, the mission will take place in September or October 2021 in Kyrgyzstan; otherwise, it can be carried out online.

“AML-CFT” mission in South Africa

SEF is a microfinance institution established in 1992 that provides financial and non-financial services to poor populations in South Africa. The institution has 225,317 active borrowers (1,00% women in rural areas).

A Solidarity Bankers mission is available to support SEF in framing and training its key employees on the risks associated with money laundering and terrorist financing. The field mission will take place in South Africa for two weeks, if Covid-19 health conditions permit.

Two online missions are still available

A first “digital / IT” mission is to be filled for the benefit of Smart Credit, a microfinance institution in Moldova. The Solidarity Banker will be responsible for helping to build Smart Crédit’s digital strategy. A second “financial management” mission is available for FATEN, a microfinance institution in Palestine. The Crédit Agricole expert will support FATEN in updating its financial procedures, policies, and tools. These missions will be carried out remotely, one day per week, for 15 weeks.

How to apply?

To discover the detailed mission offers:

  1. Go to the CA Solidaires website “Finding your mission“
  2. Enter “Grameen Foundation” in the search bar. All Solidarity Leave offers will appear!
  3. Click on the offer of your choice, you will find all the information necessary for your application.
More information: carolina.viguet@credit-agricole-sa.fr

OSHUN strengthens its action to promote access to water in Senegal and Burkina Faso

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More than 2 billion people worldwide do not have access to safely managed drinking water(*). In sub-Saharan Africa, 40% of the population does not have access to water, mainly in rural areas and 135 million people, mainly women and girls, travel more than 30 minutes per day to access drinking water.

It is in this context that society OSHUN, created at the end of 2017 and a partner of the Grameen Crédit Agricole Foundation since 2018, is deploying an innovative solution for accessing water in rural areas. Based on a business model based on local entrepreneurship, OSHUN provides a high-quality, affordable water service through solar-powered water kiosks. These kiosks are managed by local entrepreneurs working as franchisees and incorporate a digital component that optimizes their efficient management. The service, which is expected to expand more widely in West Africa, has started in rural and peri-urban areas of Senegal and Burkina Faso.

Today, in addition to the kiosks, OSHUN is also working to install water treatment systems in schools and health centers funded by public, private, and solidarity partners. Thus, in collaboration with the NGO Marseille Provence Afrique Coopération, OSHUN has installed 120 water treatment systems in schools and health centers in Senegal since 2018. To date, this project has benefited approximately 40,000 beneficiaries with access to free drinking water. In addition to installing and maintaining the equipment, OSHUN, in conjunction with community relays, implements awareness-raising activities to help change behavior. In the same vein, the German International Development Cooperation Agency (GIZ) has just commissioned OSHUN to undertake a turnkey project to install 30 devices in health centers located in areas without electricity in Senegal.

In Burkina Faso, OSHUN is strengthening its action alongside the Société du Canal de Provence (SCP) as project managers in the rehabilitation of water pumps and the installation of water kiosks in 27 villages in the commune of Bobo Dioulasso (2e city in the country). This will allow people to have access to raw water for domestic use and treated water for consumption in the same place. This project, which will be completed in April 2021, will reach nearly 70,000 beneficiaries.

More information about OSHUN here.

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(*) United Nations

The Grameen Crédit Agricole Foundation works for financial inclusion in India

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©Crédit Agricole/Getty

With 190 million unbanked adults, India has the second-largest unbanked population in the world after China (World Bank). The microfinance sector has become a key tool in combating financial exclusion in the country by providing financial and non-financial services to people excluded from the banking system. The sector has shown spectacular growth, reaching 60 million borrowers with a total portfolio of €27 billion.

To support the development of microfinance in India, the Grameen Crédit Agricole Foundation has granted a €3 million loan over three years to Pahal Financial Services Private Limited, a microfinance institution located in Ahmedabad, Gujarat. Since its inception in 2011, Pahal has served nearly 750,000 clients, mostly women entrepreneurs (98%), through 167 branches with total assets under management of €81 million. Today, Pahal is one of the fastest-growing microfinance institutions in India, thanks to its innovative and diversified product offering for low-income individuals.

“With this partnership, the Grameen Crédit Agricole Foundation is strengthening its work to promote financial inclusion and women’s empowerment in India. This financing is our first direct operation in India, using the external commercial borrowing facility recently opened by the Reserve Bank of India. This microfinance institution has demonstrated great resilience on numerous occasions, and we are confident that Pahal, its clients, and the entire sector will recover quickly from the crisis,” said Caroline Brandt, Investment Officer at the Foundation.

“The loan from the Grameen Credit Agricole Foundation is a validation of Pahal’s business model and demonstrates the resilience of the microfinance sector in India,” said Kartik Mehta, Co-founder and Managing Director. “At Pahal, we are committed to being part of the financial inclusion agenda for the most vulnerable in our society. This money will be used to provide loans to Pahal’s women beneficiaries,” added Purvi Bhavsar, Co-founder and Managing Director.

The Foundation's financial support comes as the microfinance sector emerges from the Covid-19 crisis. Following the lifting of the lockdown, anticipated microcredit applications are expected to trigger a rapid recovery in the sector. Pahal, in partnership with the Foundation, will support its borrowers to help them restart their activities.

SINAPI Aba and its action for female entrepreneurship in Ghana

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Launched by the Canadian government in 2017, the FINEDEV (Financial Inclusion for Enterprise Development) program promotes business development through financial inclusion in Ghana. This program is implemented by Sinapi Aba Savings and Loans, a microfinance institution supported by the Grameen Crédit Agricole Foundation.

FINEDEV aims to improve access to finance, financial education, and entrepreneurial training, with a focus on small and medium-sized enterprises (SMEs), women, and vulnerable groups in Ghana. For Sinapi, the focus is on women's entrepreneurship, as 70% of its clients are women.

Networking and entrepreneurship training

The program consists of two components. The first component is networking through events and training sessions for women entrepreneurs. Through these meetings, participants have the opportunity to share their experiences, learn about entrepreneurship, and connect with other local entrepreneurs. Since the program began, Sinapi has organized 310 networking events and 447 training sessions for more than 30,000 participants.

A second component is the "Women Mentorship" mentoring project. It brings together women entrepreneurs who have already received business training from Sinapi Aba, with less experienced women. Each female mentor advises and supports other entrepreneurs in strengthening their businesses. The mentoring program has already attracted 156 participants, including 52 female mentors and 104 supported entrepreneurs.

With FINEDEV, Sinapi is strengthening its work in favor of women's financial inclusion in an innovative and sustainable way. Initially planned for a duration of 4 years, FINEDEV has been extended for an additional year and is expected to end in 2022. After the official end of the project, Sinapi Aba plans to continue supporting its clients' projects by continuing to organize mentoring and networking activities for women.

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