5,8 M€
Wallet
3 220
Beneficiaries
52%
Women
70%
Rural
Moldova
Financial services
Funding granted
Loan of €580,000*
(local currency equivalent)
Foundation Partner
since 2019
*Outstanding at grant value
Context :
Moldova's population is still relatively rural, with 54.3% of the population living in urban areas and 22.3% in the capital. Agriculture employs approximately 26.4% of the working-age population and generates 14.6% of GDP (36.3% if the entire agri-food sector is included).
The institution:
Smart Credit is a Tier 3 microfinance institution founded in 2010 by five local professionals. SMART CREDIT's vision is to help clients improve their living conditions, particularly among socially disadvantaged small entrepreneurs.
Impact :
Smart Credit offers loans using the individual methodology. The institution serves 2,876 active borrowers (541 women and 711 rural borrowers) and manages a portfolio of €3.5 million. It operates in central and western Moldova through a network of six branches and 34 employees.
The Foundation invests in Moldova for the first time
© Didier Gentilhomme
For the first time, the Grameen Crédit Agricole Foundation has invested in Moldova, with the microfinance institution Smart Credit, providing a local currency loan equivalent to €496,000 over a three-year period. Smart Credit is an MFI founded in 2010 by five local professionals, whose mission is to position itself as the best provider of microfinance services in the region, particularly for socially disadvantaged small entrepreneurs.
The institution offers loans according to the individual methodology and currently has nearly 3,000 active clients, including 54% women and 71% clients in rural areas.
With this investment, the Foundation strengthens its presence in the Eastern Europe and Central Asia region, where it already has 17 partners spread across eight countries. This region thus represents 21% of the Foundation's portfolio.
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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 Grameen Crédit Agricole Foundation consolidates its partnerships in Europe
During the last quarter of 2020, the Grameen Crédit Agricole Foundation continued its financing from its European partners, thus consolidating its position in a region which represents 18% of its outstanding amount.
In Bosnia and Herzegovina, the microfinance institution Mikra was thus granted a new loan of €1.2 million over a period of three years. Funded by the Foundation since 2019, Mikra's mission is to provide financial services to the poorest but economically active populations. The institution promotes equality for Bosnian women by financing and supporting entrepreneurship projects. To date, Mikra has more than 15,000 active clients, including 68% women and 58% rural clients.
In Moldova, Smart Credit was granted a new loan in the amount of €500,000 in local currency. Smart Credit is a microfinance institution whose objective is to help clients improve their living conditions, particularly socially disadvantaged small entrepreneurs. The institution currently has more than 3,000 active borrowers, including 54% women and 71% rural clients, and manages a portfolio of €3.5 million.
Finally, the Foundation granted a new loan, the second since 2018, to ADVANS Holding for an amount of 800,000 euros. ADVANS, headquartered in Luxembourg, is an international group whose mission is to build a network of microfinance institutions in developing and emerging countries. The Group offers financial and non-financial services to low-income individuals in nine countries, primarily in sub-Saharan Africa. Through its network, ADVANS serves nearly 800,000 clients and manages a portfolio of approximately 780 million euros.
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The Foundation's latest funding in Europe and Central Asia
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.