Paidek beneficiary of a technical assistance mission within the framework of the SSNUP program
PAIDEK, a partner of the Grameen Crédit Agricole Foundation since 2014, is a microfinance institution (MFI) created in 1993 by SOS Faim whose mission is to contribute to strengthening the economic fabric and revitalizing the popular economy in the Democratic Republic of Congo, and in particular in the Kivu region (North Kivu, South Kivu and Maniema). To do this, the institution, which had nearly 21,000 active borrowers at the end of June 2022, including 51% women, facilitates access to financial and non-financial services for disadvantaged populations excluded from the traditional banking system by setting up a professional and sustainable financial instrument with individual and group loans.
Today, PAIDEK operates mainly in urban areas (2/3 of its clients). Despite its desire to target more small agricultural producers in rural areas, and despite the decline in the number of active borrowers in urban areas for several years, the MFI is having difficulty achieving this strategic objective due to the distance between the targeted areas and its branches, making it difficult to reach its target and posing security issues related to cash transfers. To this end, the institution wishes to adapt its service offering, in particular to provide remote access to its rural clientele, composed mainly of women, young people and small producers.
In order to achieve its objectives, PAIDEK will be able to benefit from the SSNUP (Smallholder Safety Net Upscaling) program coordinated by ADA and for which the Foundation was selected as one of the impact investors responsible for its implementation. This program aims to increase the productivity and resilience of smallholder farmers, particularly in Asia and Africa, through better risk management and the promotion of sustainable and climate-smart agricultural practices.
This project focuses on the development of digital channels for the distribution of financial products, adapted to the needs and constraints of small producers in rural areas. The technical assistance provided under the program will allow PAIDEK to define the digital solutions to be implemented to improve the distribution of financial products and strengthen its reach in rural areas, particularly among small producers operating in the coffee, rice, onion, tomato, potato, cassava, corn, and bean sectors. This project will also allow the institution to increase its reach in rural areas, reduce its operational costs, and limit the risks associated with handling cash.
For the Grameen Crédit Agricole Foundation, this project is central to one of its strategic priorities: strengthening rural economies. This technical assistance mission thus contributes to strengthening the impact of the funding already provided by the Foundation to PAIDEK.
For more information about the SSNUP program, Click here.
