EIB grants €12 million loan to Grameen Crédit Agricole Foundation

© EIB

The Grameen Crédit Agricole Foundation has received a €12 million loan from the European Investment Bank (EIB) equivalent in CFA francs to support the development of microfinance in West Africa. This funding in local currency is a true recognition for the Foundation, which will be able to expand its presence in Africa.

The EIB, a committed player in microfinance

The EIB has extensive experience in developing microfinance. With over €1.3 billion committed since its first microfinance operations in 1992, it supports microfinance institutions and other sector stakeholders promoting inclusive and responsible finance. Under the Cotonou Agreement signed in 2000 between the European Union and the ACP (African, Caribbean, and Pacific) group of countries, the EIB launched a Microfinance Investment Facility to promote the private sector and combat poverty in West African countries. It was under this program that a €12 million loan, equivalent in CFA francs, was granted to the Grameen Crédit Agricole Foundation.

The Foundation, an expert in the sector

As an investor, financier, technical assistance coordinator, and fund advisor, the Foundation has been supporting microfinance and social business institutions around the world for 10 years. Ten years later, it has raised more than €200 million in financing, a presence in some thirty countries, and more than 100 partners supported since its inception. In 2018, the Foundation managed €73 million in outstanding loans, and supported 75 partners in 35 countries. Following its successful results in 2018, this new funding will allow the Foundation to expand its work in Africa around microfinance and support for social entrepreneurship.

With more than 30% of financing in sub-Saharan Africa, the Foundation is positioning itself as a committed player in the fight against poverty on the continent. It focuses its action on rural populations to support financial inclusion and strengthen the resilience of the agricultural sector. This alliance between the EIB and the Foundation meets a common objective: to finance and promote a more sustainable and inclusive economy, in line with the Global Development Agenda by 2030. By providing this financing in CFA francs, the EIB allows the Foundation to continue supporting its partners in West Africa with loans in local currency.

Projects already underway

Two institutions will already benefit from this joint support: CAURIE MICROFINANCE in Senegal, which contributes sustainably to the social and economic empowerment of poor micro-entrepreneurs, primarily women; and PAM BF in Burkina Faso, which provides microcredit to finance agricultural and economic activities, such as market gardening and grain production. These two institutions have nearly 100,000 active borrowers between them.

“With this financing, the European Investment Bank confirms its commitment to financial inclusion in West Africa alongside a committed player that has just celebrated its 10th anniversary,” explained Ambroise Fayolle, Vice-President of the EIB. “The ability to finance this operation in local currency is a key element in reaching the most vulnerable populations without imposing foreign exchange risk on microfinance institutions. We particularly support the Grameen Crédit Agricole Foundation in its efforts to promote women’s employment. It is these values upheld by Europe that we are supporting today.”

“The EIB loan allows us to multiply the Foundation’s action, which concentrates more than a third of its financing in sub-Saharan Africa and is present in a dozen African countries. Africa will continue to be a priority target for the Foundation, which will concentrate more than 30% of its financing in the continent by 2022. Thank you to the EIB for being part of the human and entrepreneurial adventure that Crédit Agricole and Professor Yunus began 10 years ago,” said Jean-Marie Sander, President of the Grameen Crédit Agricole Foundation.