Laiterie du Berger: a promising experiment

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By Jonathan Michaud, CA Franche Comté

© Philippe Lissac

The Fulani, nomadic herders, have always produced milk primarily for self-consumption and considered a by-product of a suckler herd. The LDB's ambition is to turn this milk into a fully-fledged production, intended for sale, generating a stable income for the household.

The reason for being of the Laiterie du Berger

Processing milk collected from Fulani herders in the Richard Toll area of northern Senegal has been part of the business plan of Laiterie du Berger (LDB) since its inception in 2008. The Fulani, nomadic herders, have always produced milk primarily for self-consumption and considered a by-product of a suckler herd. LDB's ambition is to turn this milk into a fully-fledged production, intended for sale, generating a stable income for the household.

This strong idea of integrated and sustainable development through the promotion of agricultural production by a social business enterprise has brought together numerous initiatives around the LDB, whether led by research and development stakeholders or by the Dairy itself. Although sometimes suffering from a lack of coherence between them, all the actions carried out have nevertheless made it possible to learn many lessons, develop monitoring tools and thus contribute to the beginnings of a true territorial dynamic around dairy production. The Laiterie du Berger and its shareholders now wish to capitalize on and promote all this rich experience to embark on a new stage in the development of the dairy sector in Senegal.

An ambitious partnership to develop the dairy sector in Senegal

Alongside the Grameen Crédit Agricole Foundation, the Caisse Régionale de Crédit Agricole Franche-Comté wanted to get involved in supporting Laiterie du Berger in this exciting project. It is in this context that a support mission was carried out as part of the "Solidarity Banker by CA" skills volunteer program. The objective: to develop a development plan for the dairy sector aimed at reconciling Laiterie du Berger's needs, its social impact, and the expectations of farmers and the region.

The action plan proposed at the end of the two-week work was approved by the Laiterie du Berger Board of Directors last June. It is the result of collaborative work with the Laiterie and Foundation teams, and discussions with other shareholders, capitalizing on past experiences and benefiting from the analysis of key stakeholders.

The mini-farm: entry point of the strategic plan

The action plan is structured in two phases. The first phase involves deploying 15 mini-farms to test and ensure the reliability of the model while building the necessary tangible and intangible conditions (fodder harvesting site, livestock advisory services, farmer training, and stakeholder structuring). The second phase, and a gradual rollout, aims to deploy 100 mini-farms across the country to impact as many farmers as possible.

A mini-farm is a center of dairy specialization within the dominant suckler herd. It is the place where all the tangible and intangible production factors are brought together to optimize and maximize milk production: feeding, watering, monitoring of reproduction, advice. From a very practical point of view for breeders, the mini-farm consists of stabling the four best dairy cows of the herd at each moment of the year, the starting point being the purchase of four Moorish zebus (animals with better milk potential than local zebus) and a crossbred bull (a cross between a European dairy breed and a zebu). By meeting the zootechnical conditions (water, supplementation, monitoring of production and reproduction) and by supporting the farmer in the appropriation of the required breeding practices, the farmer will be able to produce 20 liters of milk daily.

The price of milk paid by the LDB will generate a return to cover the initial investment while ensuring a household income (see diagram opposite). This technical trajectory is coupled with a financial trajectory, the value of the capital being significantly improved after a 4-year cycle, the time taken for the entry into lactation of crossbred females resulting from the crossing of Moorish zebus and crossbred bulls.

The mini-farm thus makes it possible to bring together the three key factors for the success of developing a dairy sector around the LDB: temporality, by giving time to breeders and the territory to take ownership of and value the changes; trajectory, by providing material resources (animals, fodder, etc.) and immaterial resources (training, support) so that each breeder is part of a trajectory of technical progress; and the gradual removal of limiting factors in the territory (lack of access to water, difficulties in feeding livestock, etc.) to allow as many breeders as possible to improve and increase the milk production of their herd.

Towards an innovative mode of territorial development

The implementation of this development plan will only be effective and relevant if and only if the project is jointly supported by the LDB (which buys and adds value to the milk) and by the farmers (who produce the milk). This sector-based or interprofessional approach must materialize in the territory. We therefore propose the creation of an entity owned by the LDB, the farmers, and possibly other stakeholders in the territory. This company will have its own governance and will be tasked with meeting the needs of the farmers (fodder production, livestock feed trading, technical advice, training) and the needs of the LDB (sales of milk) with an obligation of results. It will be the armed wing of the farmers and the LDB in the service of balanced territorial development based on the production and promotion of milk and which could in the future broaden its scope of action to support the transition to sustainable rurality in Senegal.

The Foundation makes two new investments in the DRC

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© Philippe Lissac

In 2018, the Foundation continued its investments in sub-Saharan Africa, notably with two new investments in the Democratic Republic of Congo.

It thus financed with a loan equivalent to 698,000 euros Baobab RDC, a microfinance institution created in 2012 by OXUS and acquired by the Baobab group (formerly Microcred) in 2017. Baobab RDC's mission is to serve people excluded from the traditional financial system and to improve their living conditions by offering them a varied, simple and accessible range of products. The institution offers both group and individual loans. To date, the institution has 7,847 clients, including 50.7% women.

The Foundation also provided its first-ever grant to VisionFund DRC, granting it a loan equivalent to €900,000. VisionFund DRC offers a wide range of loans, savings programs, microinsurance, and other services. In rural areas of the country, where access to credit is difficult, these financial products significantly improve the lives of many people. To date, the institution has more than 16,800 clients, including 67,000 women. 63.3 million of VisionFund DRC's clients are in rural areas.

For more information about our partners, click here.

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Created in 2008, under the joint leadership of Crédit Agricole SA's management and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole SA Foundation is a multi-sector operator that contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. As an investor, lender, technical assistance coordinator, and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

The Foundation continues its investments in Eastern Europe and Central Asia

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© Didier Gentilhomme

In 2018, the Foundation continued its investments in the Eastern European and Central Asian regions with the granting of a total of seven loans from six partners for a cumulative amount of 7.6 million euros, representing 19% of the new investments made during the past year.

The Foundation thus invested for the first time in Bosnia and Herzegovina with the granting of a loan of 2 million euros to the microfinance institution Mi-Bospo, which offers access to credit and non-financial services to individuals, and in particular to women entrepreneurs. The institution also provides responsible financing by applying the principles of consumer protection, which play an important role in the development of women's entrepreneurship. To date, Mi-Bospo has more than 22,500 clients, including 64% women. The Foundation also granted an initial loan of 1 million euros to Mikra, a microfinance institution founded by CRS (Catholic Relief Services) and which offers the poorest working populations (and mainly women, representing 70.2% of its 13,400 clients) access to affordable and quality financial and support services.

In Kazakhstan, the Foundation granted a second loan in local currency equivalent to €608,000 to the microfinance institution Bereke, which it has been financing since 2017. Bereke, which has 5,200 clients, including 76% women, aims to contribute to improving citizens' living standards through economic support provided through loans to small and microenterprises as well as agricultural, consumer, and housing loans.

The Foundation also granted a new loan, its third since 2016, to the microfinance institution OXUS Kyrgyzstan, amounting to €687,000 over a three-year period. The institution offers individual financing and group loans, with OXUS's nearly 7,000 clients working primarily in the agriculture and livestock sectors.

In Kosovo, the Foundation also funded a new partner, AFK (Agency for Microfinance in Kosovo), with a €1.4 million loan over a three-year period. AFK is a microfinance institution that aims to improve living conditions in the country by providing micro and small businesses with access to sustainable financial services. The institution has 17,500 clients, 781 of whom are located in rural areas.

Finally, in Tajikistan, the Foundation granted two loans totaling €1.9 million to the microfinance institution Humo, a partner since 2017. The Foundation thus granted a total of three loans to this institution, whose main activity is to offer quality and affordable financial services to rural populations, as well as to promote the development of small and medium-sized enterprises in poor regions of the country. To date, Humo has nearly 50,000 clients, 81.5% in rural areas and 44.4% women.

In 2018, the Foundation consolidated its presence in West Africa with 8 new loans

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© Didier Gentilhomme

Over the past year, the Grameen Crédit Agricole Foundation has strengthened its presence in West Africa with 8 new financings, including 3 from new partners.

In Mali, the Foundation has funded Kafo Jiginew, a mutual network of savings and credit unions that offers local financial services (savings, credit, microinsurance, fund transfers, and other services) to as many people as possible in Mali to improve their living conditions. The institution currently has 48,000 active clients, including 92% clients in rural areas. The Foundation has granted it a loan in local currency equivalent to €3 million over a five-year period.

In Benin, the Foundation granted a local currency loan equivalent to €1.4 million to a new partner, PEBCo Bethesda, whose mission is to improve people's living conditions by providing quality financial and non-financial services. The institution offers group and individual loans and has approximately 95,000 active borrowers, including 641 women and 331 in rural areas.

In Togo, the Foundation also funded a new partner, Assilassimé, with a loan in CFA francs equivalent to €500,000. Assilassimé is a program created in 2012 by Entrepreneurs du Monde for marginalized people. The institution provides them with financial (microcredit) and non-financial services (training, individualized support, social referrals). It currently has nearly 30,000 clients, including approximately 95,000 women.

In Burkina Faso, the Foundation also made three new investments in 2018 with existing partners, bringing its total commitments in the country to more than €4 million, or €13.81 billion of its commitments in sub-Saharan Africa as of the end of December 2018. ACFIME received a loan in FCFA equivalent to €305,000 over a three-year period. It is a microfinance institution that helps bridge the gap not covered by large MFIs operating throughout the country, as ACFIME's loans have very strong potential for social impact. It currently has 18,600 clients, including €901 billion women. PAMF-BF, for its part, received a loan in local currency equivalent to €1 million over a three-year period. The institution, which has approximately 28,400 clients, is primarily engaged in collecting savings and granting loans in Burkina Faso, in order to help better meet the financial needs of low-income populations within a strengthened framework of protection for its members and users. Finally, ACEP Burkina received a local currency loan equivalent to €1.5 million over a three-year period. Acep is a microfinance institution specializing in financing microenterprises and very small businesses in urban centers and their inner suburbs. The loans granted are primarily intended to finance working capital and investment needs. To date, the institution has 11,000 active borrowers.

Finally, in Senegal, the Foundation granted a local currency loan equivalent to €762,000 to CAURIE Microfinance, a socially responsible and financially viable microfinance institution whose mission is to contribute sustainably to the economic and social advancement of poor microentrepreneurs, primarily women. CAURIE currently has 71,000 clients, including 98% women. The Foundation also granted €100,000 in financing to SFA (Sénégalaise des Filières Alimentaires) in the form of a shareholder current account. SFA is a social enterprise that develops an inclusive value chain based on the production and marketing of rice, and in which the Foundation has been a shareholder since 2013.

The Foundation invests for the first time in Ghana

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In 2018, the Grameen Crédit Agricole Foundation consolidated its presence in sub-Saharan Africa by investing for the first time in Ghana, where it financed three partners representing 8.1 % of the new financing set up in 2018.

ID Ghana thus received a loan in local currency equivalent to 300,000 euros. It is a Social Microfinance Institution that, thanks to its microcredit, savings, and training services, and its highly innovative social vision, helps thousands of families escape poverty sustainably. In particular, it has developed a group methodology without joint guarantees and offers a subsidy to beneficiary families to subscribe to the national health insurance system. To date, the institution has more than 10,000 borrowers, including 92% women.

Advans Ghana, for its part, received a local currency loan equivalent to €2 million. It is a financial institution that offers Ghanaian SMEs, microentrepreneurs, and individuals the opportunity to expand their businesses and improve their standard of living through accessible financial services. To date, the institution has nearly 14,000 clients, including 621,000 women.

Sinapi Aba Savings and Loans is a non-bank financial institution that offers various loan and savings products. Its mission is to be an incubator that provides entrepreneurial development and income generation opportunities to economically disadvantaged people, enabling them to improve their living conditions. To date, the institution, which has received a loan in local currency equivalent to €930,000, has more than 145,000 active borrowers, including approximately 801,300 women and 901,300 in rural areas.

For more information about our partners, click here.

Foundation invests in ID Ghana following SAM

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By MicroCapital

© Didier Gentilhomme

The majority of the Foundation's 76 partners are located in sub-Saharan Africa and "SAM is the best place to meet existing and potential partners." […] It also provides an incredible opportunity to bring together the Foundation's partners.

Philippe Guichandut, Director of Inclusive Finance Development at the Grameen Crédit Agricole Foundation, attended all three SAMs. The majority of the foundation's 76 partners are located in sub-Saharan Africa, and Philippe Guichandut noted that "SAM is the best place to meet our current and potential partners." He added, "Around SAM, we always take the opportunity to bring our partners together, which is the best way to exchange experiences among our partners and give them the opportunity to attend training sessions organized by us or SAM."

Leading and attending workshops at SAM has been essential for Philippe Guichandut's team to "share our own experience and promote topics that interest us, particularly in the areas of agro-microinsurance and agricultural finance." For example, at SAM in Ethiopia in 2017, the Foundation organized a field visit to introduce 11 MFIs to the R4 Rural Resilience initiative, an agribusiness microinsurance project of the World Food Programme and Oxfam America. Participants visited Africa Insurance, Nyala Insurance, the microbank DECIS, and two local NGOs, ORDA and REST.

Philippe Guichandut added that "the SAM Investor Fair is also a great way to meet new potential partners and better understand the different types of MFIs that might be interested in working with us." For example, his team met representatives from ID Ghana for the first time at the SAM Fair. This relationship has flourished, and the Grameen Credit Agricole Foundation now finances ID Ghana through the African Facility, a partnership established between the Foundation and the French Development Agency.

ADA, a Luxembourg-based NGO, co-organizes the SAM every two years with the support of the Luxembourg Ministry of Development Cooperation and Humanitarian Action. The members of the SAM Steering Committee are: ADA, the Luxembourg Ministry of Foreign and European Affairs, the Network of African Microfinance Institutions, the African Agricultural and Rural Credit Association, and the Federation of APSFDs of the West African Economic and Monetary Union. For more information on the SAM, click here.

SAM 2019 is part of a series of events that showcase the value of SAM (African Microfinance Week), a major conference dedicated to financial inclusion in Africa. The first three SAMs took place in Arusha, Tanzania, in 2013; Dakar, Senegal, in 2015; and Addis Ababa, Ethiopia, in 2017. The next SAM will take place at the end of October 2019 in Ouagadougou, Burkina Faso!

SAM aims to provide a unified platform to address microfinance issues in Africa by bringing together investors, MFIs, researchers, banks, networks, innovators, governments, and other stakeholders. SAM 2017 welcomed 700 participants from 58 countries (mostly African), including representatives from 200 MFIs; 25 exhibitors at the Innovation Fair; and 26 investors, who made 170 contacts with MFIs at the Investor Fair. The Week also included sessions presented by 60 speakers and 20 training courses.

The Foundation: 10 years of action for financial inclusion and entrepreneurship

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© Philippe Lissac

2018 marked the 10th anniversary of the Grameen Crédit Agricole Foundation. Created by Crédit Agricole and Nobel Peace Prize winner Professor Yunus, the Foundation aims to contribute to the fight against poverty by promoting social impact entrepreneurship and financial inclusion. Since its inception, more than €200 million in funding has been granted to over 100 partners—microfinance institutions that then provide microloans to populations excluded from the traditional banking system and social enterprises that work with low-income people—working in 38 countries.

As of December 31, 2018, the Foundation had recorded €81 million in commitments, including €75.7 million in financing to microfinance institutions and €4.5 million in investments to social impact businesses. Sub-Saharan African countries account for 37% of these commitments. At the heart of its objectives, the Foundation promotes women's entrepreneurship and rural economies through the institutions it supports: 75% of microcredit beneficiaries are women and 79% live in rural areas.

Strong partnerships with the Crédit Agricole group

In 2018, several projects were launched in partnership with Crédit Agricole Group entities and Regional Banks. In partnership with CA Indosuez Wealth (Asset Management) and CACEIS Bank, Luxembourg Branch, the Foundation launched the Rural Inclusive Finance Fund (FIR) in 2018, a social impact investment vehicle enabling Crédit Agricole Group entities to invest in microfinance. The FIR, for which the Foundation has an exclusive advisory mandate, provides financing to microfinance institutions in rural areas. With the first two fundraising rounds in September and December 2018, the participation of 15 Regional Banks of Crédit Agricole, Amundi, and Crédit Agricole Assurances was confirmed for an additional amount of nearly €8 million.

In collaboration with Crédit Agricole Group entities, the Foundation has established a skills volunteer program called "Solidarity Bankers," offering technical assistance missions to Group employees on behalf of the Foundation's partners. Three missions were carried out in Burkina Faso, Senegal, and Cambodia in 2018. Three new missions are being prepared for launch in the first half of 2019 in Morocco, Kazakhstan, and Haiti.

2018 was also the year of preparation for the Foundation's 2019-2023 strategic plan. Strengthening its offering to microfinance institutions, promoting the development of rural economies, and developing partnerships with the Crédit Agricole Group will be at the heart of the Foundation's actions in the coming years.

The Foundation works for inclusive finance in Africa

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By Mathilde Thonon and Flora Helard, In-Venture

© In venture

In Benin, more than half of the population lives in rural areas, far from the cities where most traditional banking services are concentrated. To address financial exclusion, microfinance institutions such as RENACA and ACFB have emerged across the country.

For many Beninese, it is difficult to both save and take out a loan. Lacking sufficient income and collateral, rural dwellers, as well as women and young workers, often find themselves deprived of financing that could help them start a business and contribute to Benin's economy. To address the exclusion of these populations, microfinance institutions such as RENACA and ACFB have emerged across the country.

The Grameen Crédit Agricole Foundation, a committed player in inclusive finance in rural areas, supports RENACA and ACFB in their mission to promote financial inclusion and entrepreneurship in Benin. Through its financial and technical support, the Foundation helps "restore hope to communities and lift populations out of a situation of vulnerability," explains Dieudonné Gnanvo, Director of RENACA. By offering savings, credit, and insurance products tailored to disadvantaged populations, microfinance institutions present an alternative to traditional banks and promote more inclusive and sustainable finance.

RENACA and ACFB, partners committed to the field

Founded in 2008, the National Network of Village and Self-Managed Credit Unions (RENACA) is one of the most active microfinance institutions in Benin. Since 2012, the Foundation has supported this mutual network, which has nearly 145,000 member clients, including 60% women. Present in 6 of the country's 12 regions, RENACA offers its clients individual and group loans and non-financial services such as training in personal and professional financial management. RENACA's social performance is an indicator of success, just as much as its financial performance. The institution places great importance on its customer relations and regularly monitors its contractors to ensure their gradual and sustainable exit from economic insecurity.

The Association of Grassroots Financing Funds (ACFB) emerged from a research and action NGO promoting development agriculture, which originally provided subsidies to women to help them start businesses. To sustain its impact, the NGO opted for microfinance over subsidies and gave way to the ACFB in 2004, which is now present in 44 of the country's 117 municipalities. Since 2016, the Foundation has supported the ACFB in its mission to promote women's entrepreneurship and the economic inclusion of local communities.

Modeled after Nobel Peace Prize winner Muhammad Yunus's Grameen Bank, ACFB specializes in group lending. This allows people without individual guarantees to borrow, since in exchange, the group must commit to repaying if one of its members is unable to do so. The mechanism thus draws its effectiveness from the bonds of trust and solidarity that exist between members, which encourage repayment: ACFB currently has a repayment rate of around 1,00%.

Promoting inclusive finance in Africa: a priority

The trusting and close relationships with clients, fostered by the establishment of numerous branches throughout the country, are also at the root of the success of ACFB and RENACA, which together have helped hundreds of thousands of Beninese secure a better future. With the support of the Grameen Crédit Agricole Foundation, the two microfinance institutions have enabled the development of numerous sustainable economic activities in sectors such as agriculture, access to water, renewable energy, crafts, and education in rural areas.

The Foundation works to develop inclusive finance beyond Benin's borders. Today, it focuses 35% of its commitments in sub-Saharan Africa and is present in a dozen African countries. Africa will continue to be a priority for the Foundation, which will focus 45% of its commitments on the continent by 2022.

Solidarity Banker missions to be filled in Kazakhstan and Haiti

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© Didier Gentilhomme

Solidarity Banker is a new type of volunteer mission abroad offered to employees on behalf of microfinance institutions or social businesses that are partners of the Grameen Crédit Agricole Foundation. Two missions are available: one on the theme of "Agricultural Loans" in Kazakhstan and one on "Business Model" in Haiti.

The missions to be filled

The first mission to be carried out in 2019 will be for KMF in Kazakhstan. KMF is the leading microfinance institution in Kazakhstan, with over 220,000 active borrowers and a portfolio of over €250 million. The institution aims to expand its product and service offerings by diversifying its agricultural loan portfolio.

The Solidarity Banker will be responsible for proposing a model for diversifying KMF's current agricultural loan portfolio through the introduction of a new product. They will also provide risk mitigation tools specific to agricultural loans. The assignment is scheduled for the first quarter of 2019.

The second mission will aim to support Palmis Enèji, a social enterprise in which the Foundation is a shareholder in Haiti. Created in 2013 as a program of the French NGO Entrepreneurs du Monde, its mission is to offer efficient, clean, and economical cooking and lighting solutions to Haitian households. It has developed a distribution network of 150 active resellers, spread across five regions of the country, who sell solar lamps and kits, improved charcoal stoves, and gas stoves.

The Solidarity Banker's mission will be to support the company in defining a five-year business plan based on its current position, market, and opportunities. They will also make recommendations for fundraising to support the growth outlined in the business plan. The date of the mission will be determined based on the selected candidate's availability.

How to apply?

Several missions are coming up on CA Solidaires. To discover them:

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

Spotlight on Foundation Week

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€200 million in funding awarded, 102 partners supported, 38 countries, and more than 350 participants during the Grameen Crédit Agricole Foundation's 10th Anniversary Week. Thank you so much for celebrating with us its 10 years of work for inclusive finance and social entrepreneurship. We shared unforgettable moments that mark the beginning of a new phase. New challenges will be faced, but the Foundation will continue to adapt to meet them, to innovate by strengthening its expertise, expanding its areas of intervention, and working in partnership.

The Foundation's 10th anniversary marks a magnificent collective project, but the fight against poverty continues. This new chapter in the Foundation's history—more ambitious, more committed, and more collaborative—is only just beginning, and we are delighted to be writing it alongside you.

Relive the highlights of the Foundation Week :

The Foundation and social impact entrepreneurship: here
The Grameen Crédit Agricole Foundation’s 10th Anniversary Evening: here
Investing in Africa: myth or reality: here

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Created in 2008, under the joint leadership of Crédit Agricole SA's management and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole SA Foundation is a multi-sector operator that contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. As an investor, lender, technical assistance coordinator, and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

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