
The Foundation grants a loan to a new partner in Zambia

The Grameen Crédit Agricole Foundation is pursuing its investments in East Africa with a first loan in local currency equivalent to €1.5 million granted to the microfinance institution Entrepreneurs Financial Center (EFC) in Zambia, over a three-year period.
EFC is a microfinance institution founded with the intent to provide working capital solutions for Micro, Small and Medium Enterprises (MSMEs), with a focus on product innovation tailored to meet client’s needs. The institution, which also takes deposits, serves around 3,000 borrowers, 42% of whom are women and 6% of whom live in rural areas.
With this loan, the Foundation now has an outstanding amount of €32 million in the sub-Saharan African region, or 39% of the outstanding amount monitored by the Foundation.
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Created in 2008, under the joint leadership of Crédit Agricole SA and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business actor which contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. Investor, lender, technical assistance coordinator and Fund advisor, the Foundation supports microfinance institutions and social enterprises in 39 countries.
For more information on the organisations supported by the Foundation, click here.

[INTERVIEW] The Foundation’s actions to face the Covid-19 crisis
Hélène Keraudren Baube & Edouard Sers, Grameen Crédit Agricole Foundation
To overcome the effects of this unprecedented health and economic crisis, the Foundation has had to innovate, adapt and coordinate with other key players in the sector of inclusive finance and social impact entrepreneurship. Transversal work that involves the whole Foundation team. To find out more, spotlight on the testimonials of two Foundation experts, Hélène Keraudren-Baube, Administrative and Financial Director, and Edouard Sers, Risk, Compliance and Social Performance Director.
1.How has the Covid-19 crisis impacted the internal organisation of the Foundation and that of supported organisations?
Hélène: We used telework overnight, but since it was already a possible modality at the Foundation, the transition was very fluid. In addition to providing the equipment for teleworking, we have also adapted the schedules to take into account the context of confinement with children at home. We have had a very special year, with no field mission for the team based in France since February, as usually investment officers all go on field missions several times a year. The Foundation’s Board of Directors conducted regular updates to monitor the situation and determine the best measures to support the teams and organisations funded. In addition, we spoke on a more regular basis with our governance to keep them informed of developments in the situation and activity.
2. What responses did the Foundation give to deal with it?
Edouard: The Foundation’s first response was to establish a rapid and permanent dialogue with the organisations it supports to understand the effects of the crisis, the measures implemented and their needs. The investment manager teams have remained in very close contact with all the organisations we support, and we have conducted regular surveys with them to understand the impacts of the crisis in the various countries of intervention. In addition, we launched the Covid-19 Observatory in which we regularly publish articles in order to share our analyses and inform stakeholders of developments in the situation. At the same time, we led an international coordination of lenders and inclusive finance players to act in close cooperation, to protect microfinance institutions and their clients and prevent any liquidity shock that would have destabilised the sector.
Hélène: We have adapted our monitoring and analysis tools and our requests for information, particularly with regard to business continuity plans and short-term cash flow plans. On the financial front, we have granted deadline extensions to around 30 Foundation partner organisations, mainly microfinance institutions. These extensions, from 6 to 12 months according to the different cases, took the form of amendments to loan contracts, and revised deadlines. This volume of postponement requests is completely unprecedented and has “stressed” our liquidity. We have refined our projection and monitoring tools to track the financial impact for the Foundation.
3. Regarding the international coalition, what are the first results?
Edouard: Six months after the signing of the Commitment, along with all the signatories, we drafted a joint publication presenting the status of implementation of 10 principles of the Commitment. Among the conclusions of the publication, we can highlight the strong coordination between international funders to agree in terms of extension of deadlines, avoiding a liquidity crisis in the microfinance sector. We have also made progress in the area of technical assistance, including webinars and joint field surveys with end customers. Finally, we have encouraged the coordinated collection of information on staff management and client monitoring of microfinance institutions and are promoting initiatives to strengthen the protection of clients and staff. In 2021, we will pursue our efforts to support the gradual recovery of microfinance institutions supported with technical assistance, appropriate financing and regular exchanges between the various players in the sector.
4. In relation to the Foundation’s donors, what common actions have been taken?
Hélène: We very quickly kept our funders informed of developments, with detailed presentations. Since the strat of the crisis, we understood that the main impact in 2020, for the Foundation, would be on our liquidity management. The requests for extensions from our partners weigh on the Foundation’s cash flow, and we wanted to preserve our ability to support our partners and avoid a liquidity crisis at all costs. To do so, we have asked for extensions of delays from our funders, and envisaged new “special Covid-19” financing lines to support the resumption of the activity of the microfinance institutions that we support.
5. Finally, what are the prospects for 2021? What will the Foundation’s priorities be?
Hélène: After a year 2020 marked by an operating result supported by the growth of the portfolio in previous years and substantial savings in 2020, particularly on travel costs, the year 2021 will be severely impacted by the contraction of the loan portfolio of the Foundation, following the crisis. The Foundation’s activity should continue its gradual and cautious recovery that began in recent months.We believe that the first semester will still be strongly constrained by the pandemic and its consequences, and hope to be able to resume our trips in the field, as close as possible to our partners, beggining from the second half of ther year. It will probably take another year for the Foundation to return to the level of activity it had before the crisis.
Edouard: A large part of the organisations supported have been able to cope with the crisis and are eligible for the funding offered by the Foundation according to standard risk criteria. On the other hand, a significant portion of them still carry a significant risk inherited from 2020 in their balance sheets. It is crucial that we continue to strengthen our support system to offer solutions adapted to the different levels of risk, combining new financing, technical assistance, deadline extension or, more exceptionally, debt restructuring.
At the sector level, lenders coordinated in 2020 in order to avoid a liquidity crisis and we will continue on this path in 2021. This year will also be crucial for investors to support microfinance institutions in accordance with their shareholder responsibility. Finally, we will continue to promote initiatives to protect the clients and staff of microfinance institutions in these times of crisis. For example, we actively participate in the Social Performance Task Force (SPTF) working group to define new certification criteria relating to customer protection in the sector. A permanent dialogue with our partners and coordinated actions will be key factors for the success of our commitments.

Microfinance In India: The Story Of Resilience
By Devesh Sachdev, CEO, Fusion
The microfinance model of providing small collateral free loans to the ‘bottom of pyramid’ clients hitherto overlooked by the formal sector, has established itself as an effective & sustainable model for financial inclusion.
Financial inclusion has rightfully been the key focus area for policy makers in the last few decades given the sheer size of our population that remained unserved and underserved. It needs no complex analysis to know that if India as a country has to improve its per capita income and graduate people above the poverty line – then access to finance has to be the key.
Despite policy push through the mainstream banking system, few factors acted as impediments to this critical national objective of financial inclusion. First and foremost being the fact that our formal Banking system largely designed its policies and reach (be it brick and mortar or digital) to cater to the urban/semi-urban population with established track record/income and collateral that fit into their defined Risk/Reward matrix as an Asset Class. Secondly, the ‘cost of delivery’ for bite size transactions in BOP market became a dampener for the Banks. Lack of financial literacy also acted as a constraint.
The microfinance model of providing small collateral free loans to the ‘bottom of pyramid’ clients hitherto overlooked by the formal sector, has established itself as an effective & sustainable model for financial inclusion. It was conceptualized to transparently deliver financial services and products at the doorstep of these very customers in a very simple to understand manner. The concept of Joint Liability leveraging social capital combined with doorstep delivery has helped microfinance gain trust & acceptability.
The Microfinance ‘journey’ of the last decade has run on two broad themes. On one side, it has weathered serious setbacks like the one of 2010 Andhra crisis, 2016 Demonetization crisis, the NBFC liquidity and credibility crisis and is currently battling the Covid-19 global pandemic. All these events created a perception in the minds of stakeholders that microfinance per se is a risky asset class because unfortunately for the sector – it has been impacted by such unforeseen events once every 3-4 years.
However, there is another side to the sector which is its brighter side:
- Today, the sector serves around 6 crore unique customers with a combined portfolio size of Rs 2,31,000 Crore across 620 districts in 28 states and 8 UTs. This makes it the 2nd largest sector after Mortgages. However, what has been even more commendable is that the sector has grown @30% CAGR in the last 3 years vs the overall Retail Sector’s 17% CAGR
- Another highlight of the Microfinance sector has been delivering financial products and services via a prudent amalgamation of ‘Touch and Tech’ at the lowest cost amongst all its global peers. The sector leverages advances in technology to constantly deliver greater transparency, data security and privacy and affordability for its rural customers at their doorstep.
- With both reach and operational effectiveness, Microfinance today is a sustainable business model, calibrated to leverage its network to deliver other goods and services to the rural masses contributing to India’s phenomenal growth story
- The sector also generates significant employment opportunities not only by hiring from the hinterland but also enabling its customers provide employment opportunities to others via financial support extended.
The sector has demonstrated remarkable resilience across the last decade and this has been made possible due to some key contributory factors:
- The ‘inherent’ need for such a model in aspirational India where a large unserved /underserved population still needs to be brought onto the financial bandwagon, ensured that Microfinance remained a ‘preferred’ vehicle for both the policy planners and the practitioners across the years
- The phenomenal support and conducive policy framework provided by the RBI which has been a catalyst in furthering Microfinance’s mission of financial inclusion. The sector has been accorded a special category under the larger NBFC category of RBI – lending it a distinct identity and strong credibility by having country’s first RBI recognised Self-Regulatory Organisation.
- The functioning of MFIN (the sector association) as an SRO since 2010 has enabled the sector to build its growth on strong pillars. Key pillars of MFIN’s work have been customer protection, industry code of conduct and policy advocacy, all of which contribute towards building of a Responsible Finance ecosystem.
- Microfinance being a high touch model, it has ensured highest degree of customer centricity and familiarity. Response time in crisis situations is much quicker and the resolutions proposed are very focused. This aspect helped the sector tide over the challenges brought about by Demonetization in 2016 but more recently this model has proven its resilience and sustainability in the ongoing Covid 19 crisis. The frontline soldiers ensured that the wheels of financing kept moving when the customers needed them the most during pre and post lockdown periods. Operating platforms were quickly modified to work on remote basis delivering loan services digitally Field processes were altered to incorporate all health and hygiene guidelines.
The strong bond with customers stood the test of time and brought about a high degree of mutual understanding and cooperation. Most of the financial pundits were proven wrong when the microfinance portfolio delivered better than expected portfolio metrics post Covid and RBI mandated moratorium period.
Today, the Microfinance Sector is partnering with the government to roll out various social schemes be it Shishu loans under Mudra or Pradhan Mantri Svanidhi scheme. The importance of the sector has been recognised by PM in his United Nations General Assembly speech by terming it as instrumental in furthering women entrepreneurship.
As they say “It’s not the number of punches that you land that make you a winner, it’s the fact that you still get up strong after taking a lot of punches and emerge a winner” and this is an apt description of a ‘Resilient’ Microfinance Sector in India thus far ……but the journey has just begun!!
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Source: BW Businessworld

Microfinance: a tool for a more inclusive economy
Interview with Eric Campos, CEO, Grameen Crédit Agricole Foundation
Probably because it is a very effective lever in the fight against poverty, microfinance is a central topic for rethinking the global economy. The health crisis and its effects on the poorest populations have only reinforced this urgent need for financial inclusion. Spotlight on an interview of Paperjam Luxembourg to Eric Campos, CEO of the Grameen Crédit Agricole Foundation.
Why is microfinance a subject of interest for you?
Today 1.7 billion people, the majority of whom live in rural areas, lack access to funding and the financial sector has a key role to play in addressing this global challenge. The Foundation is one of the Crédit Agricole Group’s levers to promote financial inclusion and the development of rural economies in emerging countries. This was the ambition Crédit Agricole established when it launched the Foundation 12 years ago, along with Professor Yunus, 2006 Nobel Peace Prize laureate: to contribute to the fight against poverty by promoting microfinance and social impact entrepreneurship around the world. The Foundation is a committed player in poor countries in line with the “Raison d’être” of CA Group: “Working every day in the interest of our customers and society”.
Our mission takes on even more significance in the current context. The Covid-19 pandemic particularly hits the most vulnerable populations and microfinance is a lever to strengthen their resilience during the crisis. In this context, we had to adapt our methods of intervention and to innovate. We have set up very regular monitoring with funded institutions to understand the effects of the crisis and their needs. We have also implemented many rollovers to allow these institutions to support their own clients and to accept, themselves, rollovers of microloans. Since March, we have also coordinated an international movement of donors, investors and inclusive finance actors to commit to preventing a liquidity crisis in the sector and providing coordinated responses to cope with the economic effects of the crisis.
Can you present the Grameen Crédit Agricole Foundation and its objectives?
The Foundation is a cross-business player: investor, lender, technical assistance coordinator and fund advisor, the Foundation finances and supports microfinance institutions, enterprises and projects that promote inclusive finance and the development of rural economies around the world.
The Foundation now accompanies and supports 86 partners (74 microfinance institutions and 12 social impact enterprises) in 40 countries with nearly 100 million outstanding loans. The Foundation seeks to promote women empowerment through the economy, 88% of final beneficiaries are women, and primarily targets rural populations: among the 7.3 million clients supported by the institutions the Foundation finances, 84% live in rural areas.
How does the Foundation work with the CA Group today?
The Foundation has set up several partnerships with the Regional Banks and Crédit Agricole entities. We have established cooperation plans with the International Retail Banking in Romania, Egypt, India and Morocco, which allows Group entities to finance microfinance institutions in local currency with the guarantee of the Foundation. We have launched with CA Indosuez Wealth (Asset Management) and CACEIS Bank Luxembourg Branch, the Fund for Inclusive Finance in Rural Areas (FIR), the first microfinance fund of Crédit Agricole to which 21 Regional banks, Crédit Agricole Assurances and Amundi have already subscribed. Finally, since June 2018, along with Crédit Agricole SA we set up “Solidarity Bankers”, a skills-based volunteering programme through which we propose technical assistance missions to CA Group employees on behalf of organisations financed by the Foundation.
Furthermore, in response to the Covid-19 crisis, the Foundation has worked with Crédit Agricole SA, Crédit Agricole CIB, Crédit Agricole Wealth (Asset Management) and other key players in inclusive finance on a Common pledge to protect microfinance institutions and their clients. The commitment, which gathers 30 signatories, is based on a set of principles intended to protect the microfinance sector and their clients from the economic effects of the health crisis. Thanks to this coordinated action, liquidity defaults have been avoided and we have supported partner organisations through technical assistance missions.
What subjects will be addressed in the years to come within the Foundation?
Climate change, demographic growth, food security, digital transformation … there are many challenges at the centre of our concerns. It is urgent to act, to innovate with new means of action, to strengthen cooperation. This belief is at the heart of the Foundation’s actions and of its 2019-2022 Strategic plan. Its objectives are: consolidate the sustainability of organisations that provide essential services with appropriate funding and technical assistance; strengthen the resilience of rural economies by supporting social impact enterprise; and promote inclusive finance within the banking sector, in particular through the partnerships set up with the Crédit Agricole Group.
In response to the Covid-19 crisis, the Foundation will continue to support, alongside its institutional, private and solidarity partners, microfinance institutions and social enterprises with targeted funding and technical assistance to strengthen their resilience in this unprecedented crisis. We will continue to monitor the effects of the health crisis and take action to strengthen the resilience of microfinance and impact entrepreneurship, in concert with other stakeholders.
Source : Paparjan.lu

Taking the floor: Advocacy for a more inclusive and sustainable economy
For 12 years, the Grameen Crédit Agricole Foundation has positioned itself as a player committed to the fight against poverty by promoting financial inclusion and social impact entrepreneurship. With more than 200 million euros in funding and over 100 organisations supported in some forty countries since inception, the Foundation has been able to build a solid history in the field of inclusive finance, particularly microfinance, financial engineering, financing of family agriculture and support for social entrepreneurship.
To promote good practices and contribute to the advocacy of the sector, the Foundation shares its experience through various publications, organises events and exchanges with other key players in the field of inclusive finance. This is why the Foundation has decided to share its main leading articles published since 2018 in this new publication “Taking the floor: Advocacy for a more inclusive and sustainable economy”.
For this first edition, this document is organised around four chapters with topics that marked our sector:
- The first chapter contains general reflections on the need to shape a more inclusive economy.
- The second one shares our various experiences on the development of rural areas, in particular, by supporting impact entrepreneurship.
- The third chapter presents more specifically the work of the Foundation on the programme for the financial inclusion of refugees launched with the UN Refugee Agency and the Swedish Cooperation.
- The last chapter focuses on the impact of the global economic crisis generated by the Covid-19 pandemic on microfinance institutions and their clients and the action of the Foundation to coordinate a concerted approach by donors, investors and others microfinance players to support the sector.
The “Raison d’Être” of Crédit Agricole is Working every day in the interest of our customers and society. With this publication, the Foundation fully plays its advocacy role to support microfinance, impact entrepreneurship and to shed light, alongside other key stakeholders, on good practices for a more inclusive, responsible and sustainable economy.

AFD Group reiterates its support for microfinance by renewing a €10M guarantee to the Foundation
A guarantee of € 10 million has just been granted by the Agence Française de Développement (AFD) Group, represented by its subsidiary Proparco, to the Grameen Crédit Agricole Foundation. This funding will allow the Foundation to pursue its support to microfinance institutions in Sub-Saharan Africa. Proparco has also granted a new € 5 million loan to the Grameen Crédit Agricole Foundation, which will allow it to consolidate its support to its microfinance institutions partners in the exceptional context of the crisis linked to Covid-19.
A historic partnership to support microfinance
The partnership between AFD Group and the Grameen Crédit Agricole Foundation is long standing. One of the emblematic joint projects is the African Facility programme (1) launched in 2013. It allows the Foundation to offer funding and technical assistance suited to small and medium-sized rural microfinance institutions in Sub-Saharan Africa.
AFD also supports the Foundation in the loans it grants to its partner microfinance institutions, through a portfolio guarantee mechanism, the ARIZ guarantee, which covers up to 50% of the loans granted. This mechanism has just been renewed for the sixth time, providing coverage for loans that the Foundation will grant to microfinance institutions in Sub-Saharan Africa over the next two years. Together, AFD and the Foundation have adapted the eligibility criteria, in particular to be able to include less mature microfinance institutions with a very social vocation.
A special Covid-19 funding envelope of € 5M
The health and economic crisis generated by Covid-19 particularly affects the poorest populations. According to the World Bank, the crisis could push 150 million people into extreme poverty by 2021 (2). This issue is at the heart of the action of the Grameen Crédit Agricole Foundation, which, for 12 years now, has contributed to the fight against poverty through financial inclusion and entrepreneurship. The Foundation finances and supports microfinance institutions that serve populations excluded from the traditional banking system, mainly women (88%) and rural populations (84%), in around 40 countries.
“AFD Group is a major partner of the Grameen Crédit Agricole Foundation. It has been with us for many years and allows us to increase our impact, mainly in rural areas of emerging countries. In the context of Covid-19, the Foundation’s mission takes on a very particular significance. We work to enable vulnerable populations to lift themselves out of poverty by providing them access to financial services through socially performing microfinance institutions. The health crisis has strained local economies. Alongside AFD Group, we innovate, adapt and provide reinforced support to these institutions to strengthen their resilience and their capacity to face the economic effects of this global crisis”, says Eric Campos, Managing Director of the Grameen Crédit Agricole Foundation and Head of CSR at Crédit Agricole SA.
“After 10 years of cooperation at the service of financial inclusion, Proparco and the AFD Group are delighted to once again support the Grameen Crédit Agricole Foundation at the heart of this year 2020, which has seen the microfinance institutions supported by the Foundation strongly affected by crisis. A leading player in access to funding particularly for vulnerable populations in rural areas, the Foundation plays a major role in supporting its partner institutions and their clients during this difficult period. The renewal of the portfolio guarantee envelope granted by AFD Group to the Foundation, as well as the financing lines granted in 2020, aim to strengthen the Foundation in its social mission in favour of financial inclusion”, affirms Guillaume Barberousse, Head of Banking and Financial Markets Division at Proparco.
These new mechanisms will strengthen the collective action of AFD Group and the Foundation to promote the resilience of microfinance institutions and their clients in the face of this unprecedented crisis.
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(1) //www.gca-foundation.org/en/technical-assistance/african-facility/
(2) Acces World Bank’s presse release here

ZEP-RE and ACRE Africa: a partnership to reinforce agricultural insurance in Africa
ZEP-RE, an African leading reinsurance company will acquire a 56% controlling stake in ACRE Africa (Agriculture and Climate Risk Enterprise Ltd.), a social impact company supported by the Grameen Crédit Agricole Foundation since 2014. CA Indosuez Wealth (Asset Management), the Management company of the Grameen Crédit Agricole Fund that holds an equity stake in ACRE Africa, validated the equity operation.
ACRE Africa provides crop insurance services to smallholders, and consulting services to development organisations and insurance regulators associations in Kenya, Tanzania and Rwanda. This agreement paves the way to expand agricultural insurance in favour of smallholder farmers in Africa as it will reinforce ACRE Africa’s wide range of products and technology platforms for agriculture and microinsurance. “Our goal is to expand insurance coverage and improve financial inclusion throughout Sub-Saharan Africa. The safety nets we are building will make a large number of disadvantaged smallholders more confident in farming», declared George Kuria, CEO of ACRE Africa, at the signing ceremony.
ZEP-RE (PTA Reinsurance Company) is a regional organisation that promotes development and integration within the Common Market for Eastern and Southern Africa (COMESA) through insurance and reinsurance business trade. It is based in Kenya, with regional and country offices in Zimbabwe, Ivory Coast, Uganda, Zambia, Ethiopia, Sudan and the Democratic Republic of Congo.
As shareholder of ACRE Africa, the Grameen Crédit Agricole Foundation is excited about the cooperation between ZEP-RE and ACRE Africa. “The COVID-19 pandemic emphasizes the importance of microinsurance in helping low-income rural people build resilience. ZEP-RE’s expertise and its alignment with ACRE Africa’s mission of advocating smallholder farmers will open a new chapter for ACRE Africa to enter new markets, to increase its social influence and to help strengthen the rural microinsurance industry”, affirmed Eric Campos, CEO of the Foundation.
Another important partnership was announced in parallel. With the financial support of Chainlink Community, ACRE Africa and Etherisc (designer of online insurance platforms) will develop a platform for 250,000 smallholder farmers to insure them against climate change risks in Kenya. The outlook for ACRE Africa and the smallholder agricultural insurance in Africa is encouraging.
More information on ACRE Africa

COVID-19: a gradual recovery of MFIs in sync with their clients’ recovery
ADA, Inpulse and the Grameen Crédit Agricole Foundation have joined forces to monitor and analyze the effects of the Covid-19 crisis on their partner microfinance institutions around the world. This monitoring is done on a regular basis and will be carried out throughout 2020 in order to obtain better insights of developments. We hope this regular and in-depth analysis will contribute to building strategies and solutions adapted to the needs of our partners, and also to the dissemination and sharing of information among the various players in the industry.
In Summary
The results presented in this article are drawn from the fourth survey [1] in a joint series by ADA and the Grameen Credit Agricole Foundation, Inpulse having chosen to join the initiative one time out of two. Responses were collected between October 1st and October 20th from 73 microfinance institutions (MFIs) in 38 countries in Sub-Saharan Africa (SSA-37%), Latin America and the Caribbean (LAC-25%), Eastern Europe and Central Asia (ECA-18%), Asia (15%) and Middle East North Africa (MENA-4%) [2].
Given that previous surveys had revealed that the main financial difficulty for MFIs was the increase in their Portfolio at Risk (PAR), the new survey took a closer look at how MFI clients and their businesses were doing as this is what MFIs mainly depend on. Above all, the results of this survey confirm the gradual resumption of MFI activity, along with a reduction in most of the operational constraints initially encountered. The major remaining constraint has to do with loan recovery which explains the increase in PAR as the main financial difficulty for MFIs.
This difficulty in loan recovery may be due to external constraints, such as mobility or moratoria imposed by authorities, or to difficulties encountered by the clients themselves whose activities have not yet restarted or are slowed down by the impact of the crisis. Indeed, even if the peak of the health crisis has passed and it has affected to a lesser extent regions such as sub-Saharan Africa or South-East Asia, thus allowing a number of business sectors to restart, it is all too soon to expect a return to normal. Especially, the restrictive measures and the overall economic situation have negatively impacted — and still do — activities in a certain number of industries, thus restricting the sources of income of the populations. Consequently, this affects MFIs and their financial situation which is why it seems crucial to monitor closely how the crisis is experienced by their clients in order to be responsive in adapting to their needs by offering solutions allowing everyone — clients and MFIs alike — to survive this crisis.
1. THE RECOVERY OF MFIS IS STILL CONSTRAINED BY THE DIFFICULTY IN COLLECTING LOANS
The responses collected during the month of October show that most MFIs are gradually resuming their activities (Fig. 1). Only those of some MFIs in Myanmar remain very limited by the constraints represented by containment measures currently in place in the country, as are the activities of a minority of MFIs in sub-Saharan Africa (one MFI in Mali and one in Malawi). In Europe and Central Asia, the share of MFIs having achieved their normal activity level is most significant.
One of the constraints being encountered by MFIs that previous surveys have revealed was that part of their staff and client base were affected by Covid-19. Hence, we focused on the prevalence of the Covid-19 disease among staff and clients. Fig. 2 and 3).
The situation is mixed in this respect: The Sub-Saharan Africa region appears as the least affected with just a small proportion of MFIs reporting that their staff (15%) or their clients (22%) are affected. Moreover, this proportion remains very small (between 0.1 and 5%) with 70% of the region’s MFIs reporting that neither their clients nor their staff have been affected by the virus. On the other hand, the Latin America and the Caribbean region is the most affected, followed by Europe and Central Asia with a larger share of MFIs concerned by the virus (just 11% of MFIs in the LAC region reporting that neither their staff or clients were affected), and it shows a larger prevalence rate for some of those MFIs [3]. Nevertheless, even if the health situation is more problematic in those regions, it still remains for the time being a relatively minor constraint for MFIs.
Moreover, on a global scale a relatively important proportion of MFIs report that they do not encounter any constraints. (Fig.4), mainly in the Europe and Central Asia regions (62%), while those facing some constraints are fewer with every survey, thus showing a gradual recovery.
The major remaining constraint (32% of MFIs in the sample) is about the difficulty in collecting loan repayments. This implies an increase in the portfolio at risk which is the main financial difficulty encountered by MFIs everywhere. It is reported as such by 77% of MFIs while other difficulties show a diminishing pattern in every survey.
This difficulty or impossibility of collecting loan repayments can be explained by mobility constraints, mainly in countries or internal regions where containment measures are still in place, but also by the implementation of moratoriums – be they initiated by authorities or by the MFIs themselves if the clients needed them. Indeed, these moratoriums concerned the majority (84%) of MFIs surveyed in the sample (Fig. 5), and they are still in place for almost a half of MFI clients (48%) in total. Asia is the region where this situation is more frequent (83% of MFIs included in the sample).
Among clients having benefited from a moratorium, those repaying normally their loans once it ended are a minority (Fig. 6). The majority of MFIs (86% of the sample) report that some or all of the clients needed a new moratorium, or even ended up in the portfolio at risk with 39% of MFIs in the sample affected by the latter situation. In Europe and Central Asia, and in Sub-Saharan Africa, more than half of MFIs report a move to their portfolio at risk of part of their clients having benefited from moratoria.
Nevertheless, globally speaking, the majority of MFIs in every region report that at least 70% of clients repay their loans. (Fig. 7). In South and Central Asia and Europe, more than 80% of respondents show repayment levels above 70%. On the other hand, the situation is not as good in Latin America and Caribbean and Sub-Saharan Africa regions: 34% and 45% of MFIs respectively with less than 70% of clients repaying their loans, and 17% and 15% where this proportion is less than 50%.
2. THE RECOVERY OF MFI CLIENTS IS FACING CONSTRAINTS
These repayment levels, being both volatile and lower than the pre-crisis normal, can be explained partially by the fact that not all customers are still able to resume their activities: Once again, excepting the Europe and Central Asia regions, only a minority of MFIs report that 90% or more of their clients have resumed their activity. However, for a majority of MFIs in the sample (54% in total), between 50 and 90% of clients have resumed their activity. The overall trend therefore points towards gradual recovery.
However, even if customers do resume their activities, some sectors are more affected by the crisis than others. The business activity most often mentioned as being most affected is tourism in regions other than sub-Saharan Africa, where it is retail (reported by 48% of MFIs in the region). The services sector is second in most regions except in Asia where the production and crafts sector is more affected. On the other hand, agriculture is reported only once. Overall, the agriculture sector appears to have been less affected than others by the Covid-19 crisis, as our previous work already showed, where a number of MFIs stated that they wanted to focus more on agriculture as it was less affected by the crisis.
When looking at the constraints faced by customers, by sector, it appears that these constraints are specific to each of them (Fig. 10). Regarding the tourism industry, it is the decrease in the number of clients of entrepreneurs working in it that is the main source of difficulty, followed closely by the loss of employment, mentioned by 60% of MFIs who identified tourism as the most affected sector. On the other hand, in other sectors, the loss of jobs by clients does not appear to be among the main constraints identified. The decrease in the number of customers remains one of the major constraints, for the retail sector as well as for services or production and crafts. The same result is found in other surveys directly targeting MFI customers, such as those using the tool developed by SPTF where the reduction in demand is identified as the main reason for the decline in revenues [4]. Finally, the lack of business opportunities is the first constraint for the retail sector (reported by 72% of MFIs identifying this sector as being the most affected), while the difficulty in producing or offering products is typical of the production and crafts sector.
By focusing on the specific constraints faced by their clients depending on their industry, but probably too on other factors, MFIs would thus be able to better anticipate their financial situation in the short term, and respond appropriately to the needs of their different customer segments: This would allow them all to better navigate this crisis. This responsiveness seems to have already been adopted by some MFIs, given that, and beyond the priority given to the repayment of credits or their restructuring, some of them have introduced not only new channels of digital communication and distribution, but also new credit policies or new products (Fig. 11).
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[1] The results of the first three surveys of ADA partners, Inpulse and the Grameen Agricole Foundation are available here: //www.ada-microfinance.org/fr/crise-du-covid-19 and //www.gca-foundation.org/en/covid-19-observatory/
[2] The number of MFIs responding by region is as follows: SSA: 27 MFIs; LAKE: 18 MFIs; EAC: 13 MFIs, Asia: 12 MFIs; MENA: 3 MFIs. In spite of the small number of MFIs participating in the MENA region, we considered useful to share the inputs of MFIs that took the time to respond to these surveys. However, we urge caution in interpreting the results in this region, which might have limited representativity.
[3] As the MENA region is represented by only 3 MFIs in the sample surveyed, the high numbers in this region should be considered with caution.
[4] The results of these surveys are available here: //app.60decibels.com/covid-19/financial-inclusion#explore

Kafo Jiginew, resilient in the face of the Covid-19 crisis in Mali

The Covid-19 crisis has impacted the activity of Kafo Jiginew, a microfinance institution funded by the Grameen Crédit Agricole Foundation since 2018. Firstly due to the slowdown in international economic activity which impacted the growth of savings, but also in relation to the demand for loans which has also decreased. This panorama was presented by David Dao, Director of Kafo Jiginew, during an interview given on the occasion of the presentation of donations worth 25 million FCFA to the widows and orphans of the Malian soldiers who are part of the membership. of the institution.
The Covid-19 has also affected the Malian cotton sector, largely financed by the institution, which has seen its demand drop on the international market. Credit demands from cotton producers have decreased, which for the institution represents a significant drop in financial income. Another consequence is the increased risk of non-repayment of loans which could weigh on Kafo’s financial profitability in 2020. David Dao, however, expects a positive result for 2020 and asserts that the situation will not weigh on the existence of the institution that is strong.
Kafo Jiginew remains the leader in the microfinance field in Mali with at least 40% of the market share, 430,000 clients and a portfolio worth FCFA 68 billion. Since 2014, the institution has entered a phase of profitability which still continues. In 2015, Kafo Jiginew also initiated a global rating operation with MFR – Microfinanza Rating, an international audit firm that assesses and scores its financial and social performance. These good practices ensure transparency towards international funders such as the Grameen Crédit Agricole Foundation, which will continue to support its partners to face the current crisis.
Source: Bamada.net

The Foundation publishes its Impact Newsletter
The Grameen Crédit Agricole Foundation publishes its Impact Special Newsletter which presents the evolution of the figures for the Foundation’s direct and indirect impacts and an “Impact Focus” with the first results of the international coalition, initiated in May 2020 by the Foundation, to protect microfinance institutions and their clients in the context of the Covid-19 crisis. These results attest to real cooperation and coherence of action between the 30 signatory organisations of the pledge. Due to the prompt action taken, liquidity defaults have so far been avoided and technical assistance, coordinated and focused on essential actions, has made it possible to support institutions during all these period.
We also present the joint interview of the Directors of Crédit Agricole Normandie-Seine and Center-France, two Regional banks that have invested in the Inclusive Finance in Rural Areas Fund (FIR), the first microfinance fund of Crédit Agricole which reinforces the action and the Group’s impact in favour of financial inclusion.
You will discover the key figures of Solidarity Bankers, the Crédit Agricole Group’s voluntary skills programme implemented in favour of organisations funded by the Foundation, as well as a travel diary from a Solidarity Banker of Crédit Agricole SA who conducted a mission in Senegal for the benefit of SFA, a social enterprise supported by the Foundation.
Download the Newsletter # 37 Impact Special here.

Signatory organisations report on Covid-19 Pledge implementation and lessons learned
Over the past months, the financial inclusion sector has embarked on a journey to face the Covid-19 crisis. On the field, microfinance institutions have taken measures to face the health risks, lock downs and the economic recession. In the meantime, lenders, investors, support organisations and technical assistance providers had to adapt their intervention principles and coordinate their actions (1). By signing the Pledge on Key principles to protect microfinance institutions and their clients in the COVID-19 crisis (the “Pledge”), 30 organisations committed to complying with some key principles.
Six months after the signature of the Pledge, a working group of signatories (ADA, Cordaid Investment Management, Frankfurt School Impact Finance, Grameen Credit Agricole Foundation, Microfinance Solidaire, SIDI and the Social Performance Task Force) draws lessons from the implementation of the pledge principles. In a common publication, the signatories present the progress on 10 principles mostly related to rollovers and early stages of voluntary debt workouts, as this is what we can observe in the first months of the crisis.
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We conclude to a very good coordination between international lenders who have agreed on terms of handshake agreements, avoiding lengthy restructuring discussions in the majority of cases. This prompt reaction has proved instrumental to avoid a liquidity crunch in the sector as most investees have maintained sufficient levels of liquidity. In rare cases when individual non-coordinated behaviors threatened the fair burden sharing amongst international debt providers, peer pressure has been effective.
We have also seen an unprecedented coordination on technical assistance that already resulted in some collaboration between technical assistance providers, such as the organisation of a common webinar on liquidity management, the provision of tools on business continuity and the implementation of field surveys on final clients. Coordination was however not up to our initial objective notably due to need to prioritise issues that were more pressing. Given the important challenges that microfinance institutions will face on the field, we believe that we should pursue our efforts on this front to avoid duplication and steer efficiency.
Our pledge to client and staff protection lives on. We have encouraged initiatives to promote continued client and staff protection in these times of crisis and need to pursue such efforts to make sure that they remain at the center of the table of discussions. Many microfinance institutions will have to turnaround a business intimately linked to the financial health of clients, staff behaviors on the field and staff treatment. For that purpose, we encourage coordinated collection of information on staff treatment and client outcome throughout the crisis and beyond. We also encourage deepening sector initiatives that contribute to efficient reporting under these exceptional circumstances (2).
New debt funding has drastically slowed down during the crisis but has not completely stopped. As some economies begin to restart, many of our investees have shown promising signs of regrowth since July 2020, with significant differences among countries and sectors of activities. Acknowledging the opening of this new chapter, we commit to accompany and consolidate the economic recovery in a timely and responsible manner.
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[1] //www.covid-finclusion.org/investors
[2] The Social Investor Working Group of the SPTF has issued Lenders’ Guidelines for Defining and Monitoring Responsible Covenants in the Covid-19 context.

Sinapi Aba wins Best Bank for Women Entrepreneurs Award
Sinapi Aba, has been adjudged the Gold Winner for the Best Bank for Women Entrepreneurs 2020 for the Global SME Finance Awards. Launched in 2018, the Global SME Finance Awards was set up to recognise the commitments and distinguished achievements of financial institutions and Fintech companies in delivering outstanding products and services to their SME clients.
In 2018, the Grameen Crédit Agricole Foundation consolidated its presence in Sub-Saharan Africa by investing in particular in Ghana for the first time, where it financed three partners who account for 8.1% of the new loans granted that year. Sinapi Aba as one of them, has so far received from the Foundation a loan in local currency equivalent to €931,000.
Sinapi Aba is a microfinance institution created in 1994 in Ghana by Opportunity International to serve as an incubator that provides business development and income generating opportunities to economically disadvantaged people who can thereby improve their living conditions. Sinapi is a partner of the Foundation since 2018. Trough savings and loan products, Sinapi Aba promotes entrepreneurial development, particularly women entrepreneurship that represents 78% of its clients. The institution also contributes to the development of rural areas, as 76% of its clients launch income-generating activities in rural areas.
More information on Sinapi Aba here.

The Foundation grants a new loan to OXUS Tajikistan
The Grameen Crédit Agricole Foundation granted a new loan to the microfinance institution OXUS Tajikistan. The loan, for an amount equivalent to € 465,000 euros, is the 4th granted to this Tajik institution which mainly targets microentrepreneurs and farmers in rural areas. Its social mission is clear and aims to improve the economic and social conditions of the low-income population who are not served by the banking sector.
With this new loan, the Foundation has an outstanding portfolio of € 24.5 million in the Eastern Europe and Central Asia region for a total of 19 partners in 10 countries. This represents 26% of the total outstanding portfolio monitored by the Foundation at the end of September 2020.
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Created in 2008, under the joint leadership of Crédit Agricole SA and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business actor which contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. Investor, lender, technical assistance coordinator and Fund advisor, the Foundation supports microfinance institutions and social enterprises in 40 countries.
For more information on the organisations supported by the Foundation, click here.

Crédit Agricole’s Solidarity bankers in images
Launched in June 2018 at the initiative of the Grameen Crédit Agricole Foundation and Crédit Agricole S.A., Solidarity bankers is a skills volunteering programme open to all Crédit Agricole Group employees on behalf of microfinance institutions or social impact enterprises supported by the Foundation.
The aim of Solidarity Bankers is twofold: on one hand, it values the skills of Crédit Agricole Group employees who wish to get involved in solidarity projects and, on the other hand, it strengthens the support for microfinance institutions and companies financed by the Grameen Crédit Agricole Foundation.
Two years after its launch, discover the testimonials and highlights of the missions in Senegal and Cambodia in 3 video clips that present the results of the programme.
First destination: Senegal
The programme’s first mission is emblematic: the mission led by Jonathan Michaud, an agricultural engineer from Crédit Agricole Franche Comté, in Senegal for La Laiterie du Berger. With the support of the Regional Bank, the Solidarity banker left for 2 years to help La Laiterie to structure the dairy industry in Senegal. Today, he is Director of KOSSAM SDE, the Dairy’s subsidiary created as a result of his mission, which contributes to structuring the milk sector in Northern Senegal by providing material resources and training to breeders and developing an innovative model of pilot “mini-farms”. It supports 1,230 local breeders, who have seen their income increase by more than 50% between 2018 and 2019.
Another mission was carried out in Senegal in 2020. Michèle Kouam, IT Project Manager at Crédit Agricole SA, left at the beginning of the year to support the Société Sénégalaise des Filières Alimentaires (SFA). Her mission was to work on digitizing the rice collection of SFA, a company that produces white rice from paddy grown by small farmers in the Senegal River Valley. By enabling access to credit, providing technical support and guaranteeing a fair price, SFA currently supports 3,200 small farmers and promotes the development of an inclusive rice sector in Senegal.
Heading to Cambodia
A final mission completes this record in images: the mission of François Galland, Head of International HR at Crédit Agricole SA, to the microfinance institution Chamroeun. François worked for 2 weeks on Chamroeun’s Human resources strategy. The institution offers financial products and services to more than 33,000 low-income people in Cambodia, who are also supported with a range of training and social support services.
What’s next?
Since the launch of the programme, 20 missions have been launched, 12 of which have been carried out. For the first missions launched in 2020, the selection process has been finalized, but two mission are still to be filled in Morocco and Egypt.
With Solidarity Bankers, the Regional Banks and Crédit Agricole entities in France and abroad are stepping up their actions in favor of inclusive finance and strengthening the human and social projects of the Group/PMT 2022 Strategy.

Solidarity Bankers and Plastic Odyssey: missions to be filled in Egypt and Morocco
THE PLASTIC ODYSSEY ADVENTURE
Every minute, 19 metric tons of plastic enter our oceans and 80% of marine pollution comes from coastal towns and cities in the world’s poorest countries. In the face of this global challenge, Plastic Odyssey aims to make recycling plastic waste into a profitable business that creates new jobs.
The project is based on a round-the-world voyage aboard a boat that acts as an ambassador for open-source recycling technologies. The boat will be making stops in emerging countries where these solutions will be used to recycle available waste to help create and grow plastic recycling microbusinesses. The expedition is due to set sail at the end of January 2021.
Crédit Agricole S.A., CA Regional Banks and subsidiaries support the project since 2018 by financing the construction of a prototype boat and the expedition with €1.2 million over 5 years. Grameen Crédit Agricole Foundation supports Plastic Odyssey in the development of its business model and the project of structuring a social impact recycling branch during the expedition.
MISSIONS TO BE FILLED IN EGYPT AND MOROCCO
Plastic Odyssey will start its journey through the Mediterranean Sea, and needs to update its knowledge of the plastic waste value chain and to identify partnerships opportunities with social entrepreneurs. In the framework of the Solidarity Bankers Programme, Crédit Agricole SA and Grameen Crédit Agricole Foundation, publish two missions to support Plastic Odyssey’s development. The missions are open only to Crédit Agricole employees based in Egypt and Morocco.
The Solidarity Bankers’ objectives will be to identify the key actors of the plastic recycling value chain in Egypt and Morocco, to analyze the business model of targeted social enterprises and their success factors and to identify development opportunities for Plastic Odyssey.
The duration of each mission is one day per week for sixteen weeks, which can be during the Solidarity bankers’ working time (skill-based sponsorship by the Solidarity bankers’ employers) and/or holidays (volunteering). The missions can be done in pairs or by a team of expert of Crédit Agricole based in Egypt and Morocco. The mission in Egypt will take place from the last quarter 2020 and the mission in Morocco in the first quarter 2021.
APPLY TO THE MISSION IN EGYPT
APPLY TO THE MISSION IN MOROCCO
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(1) Alpes Provence, Aquitaine, Atlantique Vendée, Charente-Maritime Deux-Sèvres, Finistère, Nord de France, Normandie-Seine and Provence Côte d’Azur
(2) CA Assurances, CACEIS, Crédit Agricole CIB, CA Immobilier, BforBank, CAMCA Mutuelle, Crédit Agricole Poland and Crédit Agricole Italy

RENACA, finalist for European Microfinance Award 2020
In the Covid-19 pandemic, encouraging savings activity is critical in providing resilience to vulnerable people. Savings allows, among other things, consumption smoothing in the face of income volatility, minimises the impact of financial and other shocks, encourages long term planning and offers opportunities for productive investment.
The European Microfinance Award 2020 (EMA 2020) will reward with a €100,000 prize the organization that better encourages effective and inclusive savings. Among 70 applications from 37 countries, three finalists were announced: Buusaa Gonofaa Microfinance, Muktinath Bikas Bank and RENACA, partner of Grameen Credit Agricole Foundation. These organisations offer savings products and services based on a genuine understanding of clients’ needs and behaviour, reach under-served populations, and ensure that the savings are accessible, affordable and useful.
RENACA is a union of cooperatives in Benin supported by the Foundation since 2013, which targets low income and vulnerable populations in rural areas. RENACA offers a wide range of saving products (‘tontine’ doorstep models, term deposits and demand deposits) and promotes community savings and credit groups. Its savings offer is supported by a mobile application and the use of tablets, for secure and trustworthy client transactions. RENACA also provides financial education and other non-financial services.
After the announcement of the finalists, the Luxembourg Minister for Development Cooperation and Humanitarian Affairs, Mr. Franz Fayot, said: “The extraordinary response to this year’s Award is strong evidence of the impressive reputation it has gained for rigour and quality as well as for the exposure benefits that those who do well in the process can reap. The diverse applications highlight not only how important responsible inclusive financial services are during crises, but also how especially savings can strengthen resilience of vulnerable communities”.
The winner will be chosen by a High Jury and announced on November 19th at an online ceremony during EMW 2020.
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More information on e-MFP

New programme to strengthen smallholder households
SSNUP (Smallholder Safety Net Upscaling Programme)
In collaboration with the Swiss Agency for Development and Cooperation and the Luxembourg Directorate for Development Cooperation and Humanitarian Action, ADA is launching a new program to support small farmers in Africa, Latin America and Asia. SSNUP (Smallholder Safety Net Upscaling Programme) will run for ten years with a budget of 55 million euros.
The program will draw on the technical assistance expertise of impact investment funds to design, test and develop financial and non-financial solutions for the mitigation and transfer of agricultural risks of different actors in value chains.
A partnership to strengthen the technical assistance offer
Based on its experience in the management of technical assistance programs, the Grameen Crédit Agricole Foundation was selected as one of the impact investors in charge of setting up the SSNUP.
The Foundation will thus coordinate technical assistance missions for the organizations it supports – microfinance institutions and social enterprises – on various themes such as the development of new financial and non-financial products/services for small producers, agricultural microinsurance and the digitalization of operations. The SSNUP expands the Foundation’s offer of technical assistance and represents a tremendous opportunity to strengthen its impact on the organizations it supports in Africa and Asia and on the small producers supported by its organizations in the field.
In addition to the Foundation, four impact investors have joined SSNUP: Incofin, Oikocredit, responsAbility and Symbiotics. Other actors will be invited to join the program as it develops.
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For more information: ADA.

Event: Lidia, entrepreneur supported by Solidarity Cents
SOLIDARITY CENTS
Launched in 2018 by the Grameen Crédit Agricole Foundation, Crédit Agricole SA and CA Centre-est, Solidarity Cents aims to finance entrepreneurial projects by mobilizing Crédit Agricole employees, who are invited to make a donation of 50 cents when they pay for their meals in the restaurants of Crédit Agricole Campuses.
Entrepreneurs du Monde, NGO financed also by Fondation Crédit Agricole Solidarité et Développement, has been the beneficiary of the operation since the first edition. The NGO has already received €15,651 to strengthen the ICI (Incubation, Creation, Inclusion) programme, which supports entrepreneurship projects for refugees, single parents and homeless people in Lyon. In 2 years, more than 100 people have been guided to structure their entrepreneurial projects.
2020 will be the 3rd and final year of support for Entrepreneurs du Monde, which will receive an additional €11,000 in subsidies.
MEETING LIDIA
To close the 3rd edition of Solidarity Cents, the Foundation and Crédit Agricole welcome Lidia, an Italian entrepreneur supported through the operation, to CA Campus in Montrouge on October 29th, 2020.
Arrived in France 12 years ago, Lidia is an Italian entrepreneur, mother of 3 children and beneficiary of the RSA. Thanks to the support of Entrepreneurs du Monde through ICI programme, she was able to create her own catering service. The next step: bringing an old grocery store to life in Lyon, in a street steeped in history with Italy.
Come to share with Lidia and taste her culinary specialties!
Event reserved exclusively for employees of the Crédit Agricole Group.
To register, contact carolina.viguet@credit-agricole-sa.fr

The Foundation grants a first loan to MLF Zambia
The Grameen Crédit Agricole Foundation pursues its investments in Subsaharan Africa and has just granted a first loan in local currency equivalent to € 250.000 to the Zambian microfinance institution MicroLoan Foundation Zambia (MLF-Zambia), over a of three-year period. This loan has been granted within the framework of the African Facility programme which aims at reinforcing smal microfinance institutions.
MLF Zambia is a microfinance institution that was established in 2008. Its activities are overseen by the Microloan Foundation which has its headquarters in the UK. MLF-Z’s main activity is providing low-income women living in predominantly rural areas of Eastern, Southern and Central Provinces of Zambia with short-term loans of between 4-6 months for productive purposes. The institution lends exclusively to women.
With this loan, the Foundation now has an outstanding amount of € 36.4 million in the sub-Saharan African region, or 38% of the outstanding amount monitored by the Foundation.
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Created in 2008, under the joint leadership of Crédit Agricole SA and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business actor which contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. Investor, lender, technical assistance coordinator and Fund advisor, the Foundation supports microfinance institutions and social enterprises in 40 countries.
For more information on the organizations supported by the Foundation, click here.

Three Solidarity bankers missions are available
Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole S.A, Solidarity bankers is a skills volunteering programme open to Group employees for microfinance institutions or impact businesses. The objective of this programme is twofold: it is a way of acknowledging the skills acquired by Crédit Agricole group employees and provides additional support to microfinance institutions and partner companies of the Foundation. Thanks to this scheme, the Crédit Agricole group reiterates its commitment to support employees’ solidarity initiatives.
Missions to be filled!
1. “Financial Audit / Reporting” mission for Kossam in Senegal
A subsidiary of Laiterie du Berger, Kossam’s mission is to develop an inclusive and sustainable dairy industry in Northern Senegal. Created in 2019, after a Solidarity Bankers mission, Kossam collects milk from 450 local breeders, to whom it provides market services (food, fodder), advice and training. The Solidarity bankers mission [which could be carried out by 2 Solidarity bankers] aims to support Kossam and Laiterie du Berger in strengthening the financial team and reporting. Depending on the health context, the mission will be carried out at the end of 2020 or early 2021 in Senegal.
2. “Fundraising” mission in favor of PPSE in Cambodia
Phare Performing Social Enterprise (PPSE) is a Cambodian social enterprise created in 2013 that produces circus shows and has recently launched an animation and graphic design studio. PPSE employs art graduates from PPSA, a non-profit organization that supports underprivileged children and youth. An online Solidarity bankers mission will aim to consolidate the new PPSE business plan (developed in response to the Covid-19 crisis) and to support a fundraising and merger process. The mission is planned for the last quarter of the year.
3. “Human resources” mission in favor of Oshun in Senegal
Created in 2018, Oshun is a social enterprise that provides quality water services for the most vulnerable populations in rural Senegal. As part of a structuring process after a strong development, a Solidarity bankers mission will help simplify Human resources management, recruitment and general management. The mission is planned for the last quarter of the year in Senegal, but the calendar will depend on the context generated by the Covid-19.
How to apply?
- Click on the link “Find a project“
- Enter in the the search bar: “Fondation Grameen”. All the Solidarity bankers missions will appear!
- Click on the offer of your choice, you will find all the information requested for your application.
Contact: Carolina VIGUET
Head of Communication & Partnerships
carolina.viguet@credit-agricole-sa.fr

The Foundation grants a new loan to Mikra in Bosnia-Herzegovina
The Grameen Crédit Agricole Foundation continued to invest in Eastern Europe and Central Asia and has just granted a new loan in local currency equivalent to € 1.2 million to the Bosnian microfinance institution Mikra, over a of three-year period. This is the second loan granted to the institution following the 1 million euro loan in 2018.
Mikra is a Tier 2 microfinance institution founded by Catholic Relief Services (CRS) that started operations in 1993. Its mission is to provide responsible access to financial services to the poorest but economically active population, mainly women (70.2% of its 13,400 clients). The institution offers the poorest gainfully employed population access to affordable and quality financial and support services in order to reduce poverty and encourage entrepreneurship. The institution promotes the equality and freedom of Bosnian women, which are necessary preconditions for the success of their businesses and their social emancipation.
With this loan, the Foundation now has an outstanding amount of € 24 million euros in the Eastern Europe and Central Asia region, which represents 25% of the outstanding amount managed by the Foundation.
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Created in 2008, under the joint leadership of Crédit Agricole SA and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business actor which contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. Investor, lender, technical assistance coordinator and Fund advisor, the Foundation supports microfinance institutions and social enterprises in 40 countries.
For more information on the organizations supported by the Foundation, click here.

Supporting financial inclusion of refugees in Uganda
In November 2019, the Swedish International Development Cooperation Agency (Sida), the United Nations High Commissioner for Refugees (UNHCR) and the Grameen Crédit Agricole Foundation launched a three-year programme to promote access to financial and non-financial services for refugees and host communities in Uganda. This is a unique programme designed to inspire microfinance investors and microfinance institutions to extend their financial services to refugees.
Within this framework, the Grameen Crédit Agricole Foundation is in charge of managing technical assistance and support for microfinance institutions so that they develop a range of products and services tailored to refugee populations. The Foundation also grants loans to institutions to provide them with the necessary resources for loans to refugees and host communities.
UGAFODE: First funded institution
The first institution supported under this programme is UGAFODE Microfinance Limited. Thanks to a loan equivalent to € 540,000 and the technical support provided, UGAFODE has opened an agency in the Nakivale refugee camp, in the district of Isingiro, which will help strengthen the resilience and autonomy of refugees in the host communities.
For UGAFODE, this programme follows a successful pilot financial inclusion project for refugees in Kampala. Thanks to the support offered under the programme, and the loan from the Grameen Crédit Agricole Foundation, thousands of refugees will be able to access credit and money transfer services.
Refugees will also receive training in entrepreneurial management that will equip them with essential skills such as developing business plans, financial management, pricing and marketing.
Funding for other microfinance institutions is being analysed within this programme to support refugees and host communities. In total, nearly 100,000 Ugandan refugees and hosts are expected to be able to access financial services and training through the programme, 70% of them women. The project will support the creation and development of small businesses in sectors such as agriculture, crafts, catering and commerce.
For more information on the programme, click here.

A resumption of activities under operational and financial constraints
ADA, Inpulse and the Grameen Crédit Agricole Foundation have joined forces to closely monitor and analyze the effects of the COVID-19 crisis among their partners around the world. This monitoring will be carried out periodically throughout the year 2020 with the purpose of evaluating the evolution of the crisis. Through this regular and close analysis, we hope to contribute, in our own way, to the structuring of strategies and solutions tailored to the needs of our partners, as well as the dissemination and exchange of information among the different actors in the sector.(1)
In short
This article is based on the answers provided between July 23rd and August 6th 2020 by 91 partners located in 42 countries, split between Europe, Africa, Asia and Latin America (2). Feedback from these microfinance institutions (MFIs) allows us to observe the continuous evolution of the sanitary crisis linked to the COVID-19 virus. While the measures to reopen borders and to revive the economy have multiplied during the month of July, our partners mention significantly that the virus now directly affects their customers and employees.
In such an uncertain and evolving context, MFIs have been braving the challenges they face for more than a quarter now. With operational difficulties still ongoing, institutions remain vigilant about their portfolios and the risk they carry, which seems to have stabilized overall, albeit at a much higher level than before the crisis. Nevertheless, some signals are encouraging on other issues. For example, the vast majority of MFIs believe that they can survive the crisis without major strategic changes. In addition, it appears that the issue of liquidity has been rather well managed since the beginning of the crisis.
However, the battle against the virus is not won, and its repercussions are particularly strong on the informal sector of the economy. It appears that clients in the informal economy are more affected, particularly as they do not ultimately benefit from the aid measures that states can provide. Nonetheless, MFIs are sensitive to these needs and some of our partners are considering providing specific services to help their clients cope with the crisis.
1. Operational constraints remain relevant for MFIs
In general, our partners are reporting progress regarding the easing of containment measures in their countries, following the first relaxations that took place in some regions of the world in June (notably in Eastern Europe, Central Asia and Sub-Saharan Africa). Comparing the responses of our partners who answered to our July and June surveys (3) (graph below) reflects the improvement of operational difficulties. Moreover, these figures are in line with the general results obtained for the month of July.
MFIs in each region report an improvement in travel opportunities for their staff. However, this remains a major constraint in Latin America and the Caribbean, while less than 20% of MFIs in other areas are affected by this issue. Moreover, even if mobility is improving, meeting clients in the field remains an important issue for more than 30% of MFIs. Finally, with the exception of Latin America, meeting clients in branches seems to be the least problematic solution today.
In fact, while there has been an overall enhancement in interaction with clients in all regions, collecting loan repayments or disbursing new loans at standard pre-crisis levels remains very difficult, with such challenges being encountered by more than 50% of the MFIs surveyed in each region (70% and 66% respectively overall). Such difficulties are ultimately linked to national or local regulatory constraints.
“Though other MFIs start operating their process, we still wait for full release by the regional government” – Partner in Myanmar
Especially as MFIs are still busy restructuring client loans in July (80% of respondents).
“Communication on the postponement of instalments is a barrier to the repayment of loans” – Partner in Senegal
Although we have been observing the singularity of the Latin American zone in the responses collected over the last few months due to a particularly difficult COVID-19 sanitary context, the information we gathered shows that the situation is not settled yet in the other regions.
In fact, doubts about a potential normalization of MFIs’ activities have not been dispelled for now, as the health crisis remains the central issue of the current period and as it persists. The news in July were notably highlighted by the punctual resurgence of a number of cases in some countries. For the first time in our surveys, this is significantly demonstrated by a sharp increase in the proportion of partners who are affected by the health crisis, both among their staff and their clients (see graph below (4)).
Thus, at the global level of the survey, 51% of our partners told us that among their customers, some have contracted COVID-19. Almost a third indicate that this also concerns their employees. Although we do not have data to know the respective proportions of customers and employees concerned, this trend is still meaningful. More specifically, more than three out of four MFIs in Central Asia and Latin America reported having clients infected with the virus (one out of two in June). While Latin America is largely affected on both the client and staff sides, the figures are also slightly higher for the staff of MFIs in Europe and Central Asia. South Asia and Sub-Saharan Africa seem to be generally less affected on this point, but figures encourage us to remain vigilant.
“More than 10 clients have died from Covid-19” – Partner in Honduras
2. MFIs continue to face major financial issues
As we witnessed since the beginning of our surveys, the increase in portfolio at risk and the reduction in outstanding portfolio are the two main direct consequences of the crisis for a microfinance institution. Other financial difficulties are to a lesser extent and are stable from June to July (figure below5). This is the case in all regions except Central America, where our partners who responded to all of our surveys indicate problems and growing fears regarding equity, lack of liquidity or increased expenses.
The details of the analysis show that the contraction of the credit portfolio is a heterogeneous phenomenon. Among all respondents, 39% of Central Asian MFIs indicate that they are suffering from a reduction in their portfolio, compared to 55% in Sub-Saharan Africa, 71% in South Asia and 88% in Latin America during the same period.
On the other hand, it appears that the increase in portfolio at risk is a common problem for all MFIs, regardless of their region or size, and concerns more than 80% of our partners. However, if the PAR 30 of microfinance institutions has deteriorated since the beginning of the crisis, it is no longer undergoing major changes between June and July, although it remains at a much higher level than before the crisis. As shown in the graph below, the PAR30 structure of the partners in the sample of 54 MFIs is stable from one month to the other. Moreover, we observe this trend across all of the surveyed MFIs: between 15 and 20% of the MFIs see their PAR30 decreasing or remaining stable, while around 40% have seen their PAR30 increase without doubling since the end of 2019. Finally, the riskiest cases represent between 30 and 40% of the respondents.
“[It is difficult] to cover the expenses of provisions for doubtful debts” – Partner in the Democratic Republic of Congo
Luckily, all these difficulties should not be too harsh for our partners. When asked about possible strategic changes because of the crisis, 93% of respondents do not anticipate any changes in the short or medium term. Therefore, our partners do not feel concerned by potential sales of a part of their assets, being placed under administrative supervision or being liquidated, which is a sign of a certain confidence in the future.
Finally, the latest information from our partners indicates that a liquidity crisis seems to have been avoided, with 24% of respondents highlighting this problem (compared to almost 40% in our May survey). In details, the proportion of MFIs raising this point in each region does not exceed one third.
The first explanations lead us to the many extensions of maturities granted to MFIs by their foreign and local investors, but also to the reduced levels of disbursements since the beginning of the crisis. We also note the low proportion of MFIs that have suffered from significant withdrawals of savings, which has helped cash management. Among the MFIs reporting this difficulty, most are from Sub-Saharan Africa and Asia and do not show significant additional liquidity needs compared to other MFIs. These different factors influence the liquidity needs of MFIs. Thus, on a global scale, 47% of the respondents have no additional funding needs for 2020. For almost a quarter of the MFIs outside Sub-Saharan Africa, these needs even decreased. Last, only 25% of those surveyed report significant additional needs.
3. In July, the informal sector is exposed
Microfinance institutions are still exposed to the crisis, and so are their clients. In fact, 92% of our partners indicate that clients in the informal economy are either moderately affected by the crisis or are the most affected ones. Like all other entrepreneurs and clients of MFIs, they face reduced activity, but also suffer from the consequences of the major international and national measures to manage the pandemic, for instance in the tourism, textile or cultural sectors… With limited means of relief and a reduced activity that cannot generate sufficient income, they would be more vulnerable. This point is raised overwhelmingly in Central Asia and Latin America (two thirds of respondents from these regions) while in Sub-Saharan Africa, the feedbacks indicate that clients in the informal economy are affected in the same way than those in the formal economy.
“Due to prevailing market and economic conditions, it is hard for the small businesses to revive their usual economic activities to the level they were before COVID-19 crisis” – Partner in Sri Lanka
The reasons given by our partners are mostly about financial matters: the vulnerability of workers in the informal sector would come from the lack of financial support from governments to the sector. This explanation is given by a vast majority of surveyed MFIs (78%), which also note (57%) that clients in this sector do not have access to adapted non-financial services (business development, financial education, health education, etc. ). The lack of insurance services is also underlined by 50% of MFIs. In contrast, the lack of access to savings services is hardly mentioned.
MFIs are already thinking about how to meet the needs of their clients. Thus, 48% of MFIs reporting a vulnerable informal sector say they plan to launch financial education programs, and 33% imagine supporting clients in the management of their activity. However, only a small proportion of them forecasts launching micro insurance products (maximum 11%). MFIs justify such motivations with two main reasons: getting closer and focusing on under-served populations, but also to respond to a demand for adapted offers during a particular period. For some MFIs, this could translate into other initiatives, such as the development of the agricultural segment (still strongly mentioned by MFIs) or by the development of digital solutions for clients. As a partner in Latin America tells us:
“The financial education and business management program is being planned by digital means to introduce customers to the use of social networks to sell their products, since the main problem they have had is that their places of sale have been closed down or customers are not arriving because of the risk of contagion”
The results of this article highlight the operational and financial difficulties encountered by MFIs during this first semester, but also their first steps in understanding the problems and finding solutions. In this context, the future challenges us to continue questioning ourselves about the best recovery actions for each region, how they can be implemented and how the various actors in the microfinance sector can directly and indirectly contribute to its revival.
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1 The results of the previous surveys are available here for the first one and here for the second one.
2 The total number of MFIs that responded to the survey for each region is as follows: South Asia (“Asia”) 14, Latin America and the Caribbean (“LAC”): 24, Europe and Central Asia (“ECA”): 18, MENA: 6, and Sub-Saharan Africa (“SSA”) 29 (total: 91 institutions). The small sample from the MENA region does not allow for the monitoring of the figures for the zone.
3 This comparison is based on a sample of 54 MFIs: 12 in Asia, 7 in EAC, 13 in LAC, 22 in SSA.
4 This comparison is also based on the sample of 54 MFIs.
5 This comparison is also based on the sample of 54 MFIs.

Solidarity bankers: a new mission in Senegal
Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole S.A, Solidarity Bankers is a skills volunteering programme open to Group employees for the benefit of microfinance institutions or impact businesses. The objective of this programme is twofold: it is a way of acknowledging the skills acquired by Crédit Agricole group employees and provides additional support to microfinance institutions and impact companies supported by the Foundation. Thanks to this scheme, the Crédit Agricole group reiterates its commitment to support employees’ solidarity initiatives.
What are the Solidarity bankers missions?
International volunteer assignments are available to employees on behalf of microfinance institutions or social impact companies supported by the Grameen Crédit Agricole Foundation.
The missions are carried out within the framework of philanthropy or volunteer work. Crédit Agricole S.A. covers airline ticket and insurance. The beneficiary institution pays any internal transport costs, catering and accommodation expenses. The Grameen Crédit Agricole Foundation will prepare and coordinate the mission.
Since the programme was launched in 2018, fourteen missions have been carried out, both in volunteering and in skills sponsorship.
A mission to fill!
A ten-day field mission in terms of HR support is to be provided to Oshun in Senegal for the last quarter of 2020.
Oshun Senegal was created in March 2018, shortly after its parent company Oshun in France. Oshun proposes inclusive solutions allowing the most sensitive populations access to water while promoting the establishment of a virtuous and community-based local ecosystem. The company distinguishes itself by its innovations in terms of rural development, connectivity and water treatment.
Oshun Senegal has grown from 1 to 20 employees in just over 2 years (June 2018 – August 2020). Oshun Senegal is completing a process of structuring with the recruitment at the end of August of an Administrative and Financial Manager (AFM) whose mission will be to manage all the support functions of Oshun Senegal (accounting, finance, HR, logistics, purchasing) and allow the company to gain administrative autonomy from the parent company.
Mission objectives:
- Organization and training of the team
- Definition and mastery of HR rules and processes
- Implementation of monitoring tools
How to apply?
- Click on the link “Find a project“
- Enter in the the search bar: “Fondation Grameen”. All the Solidarity bankers missions will appear!
- Click on the offer of your choice, you will find all the information requested for your application.
Contact
Carolina HERRERA
Head of Communication & Partnerships
carolina.herrera@credit-agricole-sa.fr

The Foundation finances for the first time Thitsar Ooyin in Myanmar
The Grameen Crédit Agricole Foundation has just granted a first loan in local currency equivalent to € 1.3 million to Thitsar Ooyin, in order to enable this microfinance institution to continue its action, particularly with rural populations in Myanmar.
Thitsar Ooyin is a microfinance institution based in Hakha, Chin State, a rugged and isolated mountain area in northwest Myanmar. This institution is active in some of the most difficult to access regions of the country. It provides microcredits to the poorest and underprivileged communities in rural areas, and in particular to women. Its methodology has enabled the institution to build a solid client base despite difficult conditions, thus creating a significant impact on the livelihoods of rural populations.
Thitsar Ooyin offers both group and individual loans, mainly to women. To date, the institution has a loan portfolio of € 7.3 million and has over 30,000 borrowers, 79% of whom are women and 92% of whom live in rural areas. It currently employs over 100 people through a network of twelve branches located in Chin State and Sagaing region.
With this loan, the Foundation now has three partners in Myanmar.
For more information on the organisztions supported by the Foundation, click here.

The Fondation grants a new loan to Caurie in Senegal

In July, the Grameen Crédit Agricole Foundation granted a new loan to the microfinance institution Caurie, in Senegal, for an amount in local currency equivalent to €1.2 million. This new loan further consolidates a partnership started in 2009 between the Foundation and Caurie.
The Coopérative Autonome pour le Renforcement des Initiatives Economiques par la MicroFinance (CAURIE-MF) was created in 2005 by Relief Services (CRS) and CARITAS Senegal. Over 60% of CAURIE-MF’s activity develops in rural areas and in 13 administrative regions of Senegal. To date, the institution serves over 80,000 clients, 97% of whom are women and 61% of whom live in rural areas.
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Created in 2008, under the joint leadership of Crédit Agricole SA and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business actor which contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. Investor, lender, technical assistance coordinator and Fund advisor, the Foundation supports microfinance institutions and social enterprises in 40 countries.

Faten, partner of the Foundation in Palestine, awarded with the Smart Certification
In June 2020, the Smart Campaign recognised the action of FATEN, partner of the Grameen Crédit Agricole Foundation, in terms of customer protection by granting the institution the Smart Certification. The Smart Campaign is a global initiative to incorporate strong client protection principles into the financial inclusion industry. The Smart Campaign’s Client Protection Certification programme publicly recognizes those institutions providing financial services to low-income households whose standards of care uphold the Smart Campaign’s seven Client Protection Principles. These principles cover such important areas such as pricing, transparency, fair and respectful treatment and prevention of over-indebtedness.
The certification programme contains a rigorous set of standards against which institutions are evaluated by independent, third-party raters that are licensed by the Smart Campaign. The raters are established, specialized rating agencies with extensive experience, having analyzed hundreds of institutions to date.
In 2019, the Smart Campaign already publicly recognised the action of three other microfinance institutions, partner of the Foundation, as Client Protection Certified for meeting strong standards of client care: Musoni (Kenya), Chamroeun (Cambodia) and Salym Finance (Kyrgyzstan). These institutions have thus joined almost 120 others in over 40 countries that have been certified since the programme was launched in January 2013.
For further information about Grameen Credit Agricole Foundation partners, please click here.

The Grameen Credit Agricole Foundation invests again in Moldova

The Grameen Credit Agricole Foundation is pursuing its investments in Moldova with the granting of a loan to the microfinance institution Microinvest. This loan, in local currency equivalent to € 2 million, is the first one granted to this institution which grants microcredits and support for business creation to small entrepreneurs in many regions of the Moldova Republic.
Many of the beneficiaries of Microinvest loans are entrepreneurs living in rural areas, in this landlocked country between Ukraine and Romania. It is one of the main MFIs in Moldova with its head office located in Chisinau. To date, Microinvest serves over 35,000 active borrowers, of which 47% are women and 66% are clients located in rural areas.
With this investment, the Foundation consolidates its presence in the region of Eastern Europe and Central Asia, where it already has 19 partners in 10 countries. This region thus represents 26% of the portfolio monitored by the Foundation.
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Created in 2008, under the joint leadership of Crédit Agricole SA and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business actor which contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. Investor, lender, technical assistance coordinator and Fund advisor, the Foundation supports microfinance institutions and social enterprises in 40 countries.

A Solidarity banker in Kenya
By Eva Hoglund, CFO at EFL (Poland)
Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in June 2018, Solidarity Bankers is a skills volunteering programme aimed at all Crédit Agricole group employees for the benefit of microfinance institutions or impact businesses supported by the Grameen Crédit Agricole Foundation. Read the interview with Eva Höglund, Crédit Agricole’s Solidarity banker, who left for Kenya in 2019 to support Musoni, a microfinance institution funded by the Foundation.
Beginning of the adventure
When I discovered the Solidarity bankers mission in favour of Musoni, a microfinance institution in Kenya, it was immediately obvious to me: it was made for me. The objective of the mission was to accompany Musoni in the implementation of a strategic planning and monitoring system. Not only it was a beautiful solidarity and sharing mission, in a country that I did not know, but I also had the impression that the qualities and experience requested were a description of my own professional career. I immediately gathered as much information as possible about Musoni and the Grameen Crédit Agricole Foundation.
Soon after I applied, I was informed that my application had been accepted and I immediately started preparing my mission. The Grameen Crédit Agricole Foundation team was very supportive during this first phase: together we established the mission’s objectives and agenda. This was followed by reading sessions of Musoni’s presentation documents and strategic plan.
During the summer preceding the mission, I also had numerous exchanges and conference calls with Musoni to ensure that we shared the objectives and had a common vision of the working method to be followed. From my point of view, good preparation is essential and this phase was the key to the success of my mission.
Heading to Kenya
On 26 October 2019, departure for Kenya for a 15-day field mission. I was leaving for a mission in line with my skills and knowledge of the microfinance sector, but in a structure and cultural context different from my daily life. It was therefore not without a little apprehension that I landed in Nairobi. The welcome I received from David Camara, Investment Advisor at the Foundation, who I had previously met in Montrouge, was reassuring.
On Monday morning, we started with the meeting to launch the field mission with all Musoni’s employees who were going to contribute to establishing the strategic planning and monitoring mechanism. The presence of Stanley Munyao, CEO of Musoni, and David, representing the Foundation, was important to underline the importance of the project. Musoni gave itself all the means to succeed by sending Amina Jaberney, a consultant who was going to accompany me during my field mission in order to ensure afterwards the operational implementation once my mission was over.
During the first week, Amina and I conducted interviews with Musoni’s management, as well as agencies’ employees. We compiled the key points to remember and translated them into vectors consistent with Musoni’s mission and vision. The second week consisted of validating and ensuring the adherence of Musoni’s teams to the proposed strategic management system. In order to ensure that the mission was going according to expectations, we held Steering Committees with the CEO every 2 days. On my last day in the field, we were able to present a complete set of the system validated by Musoni’s management.
Back to Paris
Once my mission was over, Amina took over with Judy Ndungu, Musoni’s Human Resources Director. The final implementation meeting, gathering all the employees, was held on 13 July 2020. The performance evaluation of the first half of the year will be carried out based on our work. What a satisfaction!
I am very pleased to have taken this opportunity offered by Crédit Agricole and the Grameen Crédit Agricole Foundation. This assignment will remain an unforgettable experience. It allowed me to experience from the inside how a microfinance institution operates in a fast-changing market. I met some very nice people and I am proud of the result we were able to achieve, together, in such a short period.

The Foundation publishes the Newsletter N.36
The Grameen Credit Agricole Foundation publishes its Newsletter N.36. The end of July marks the fifth month of the global health and economic crisis. All countries have been affected but, like the impact of extreme weather events, the health crisis is profoundly unequal in that it affects the most vulnerable populations most severely.
Since the end of February, the Grameen Crédit Agricole Foundation’s teams have been working on several major initiatives. First, we have established a rapid and ongoing dialogue with the organisations we support so that we can understand the effects of the crisis, the measures taken and their needs accordingly. Secondly, we have adapted our monitoring and analysis tools and our requests for information, particularly with regard to business continuity plans and short-term cash flow plans. At the same time, we led an international coordination of lenders and players in inclusive finance to act together, in consultation, to prevent any liquidity shock that would have destabilized the sector. Finally, we regularly published articles on the Covid-19 Observatory and on social networks to share our analyses and inform stakeholders.
Five months after the beginning of the crisis, we feel that this first wave has been well managed by the microfinance institutions, which have all shown great professionalism. We would also like to highlight the remarkable support and attentiveness of our own financiers: Agence Française de Développement, Proparco, the European Investment Bank, Crédit Agricole and its entities Crédit Agricole CIB and Amundi. The sector’s remarkable resilience has undoubtedly been strengthened thanks to these concerted and convergent actions between donors and microfinance institutions operating in all parts of the world.
In this edition of the Newsletter, you will discover, among other things, details of the International Coalition coordinated by the Foundation in response to the Covid-19 crisis and two projects that we launched during this complex period: the new website and the Foundation’s first Impact Report. This new website and this Report are yours: administrators, the Grameen network, the Regional Banks and Crédit Agricole entities, donors, technical partners and supported organisations. It is also our way of paying tribute to you.
We continue to monitor closely the effects of the health crisis and our mobilization, on which you know you can count, is constant.

The cooperative capital company: a model for the “World after” Coronavirus
By Éric Campos , CEO, Grameen Crédit Agricole Foundation & Bagoré Bathily, Chairman and CEO, Laiterie du Berger
The global shock of 2020 shows the absolute necessity to rethink our economic system. Health and climate emergencies no longer leave us any choice. Without structural change, the risks of social, political or environmental tensions will become more and more important every day.
We would like to submit the idea of a socially different model of company for the collective discussion: the cooperative capital company, a company whose capital remuneration is shared by and between shareholders and employees thanks to an arrangement under which employees receive part of the dividends directly when there is a payout. The ownership of capital is a factor of exclusion of populations, particularly with regard to the younger generations — the labour force. If we wish to build a sustainable and harmonious future, it is crucial to resolve the issue of a fair redistribution of the value created by growth and therefore by the company.
Today, capital is owned by the shareholders and leveraged by the employees. Their fates are inextricably related, yet no direct link really exists between them. We think it is possible to bring them together by establishing a convergence of their interests, thanks to new rules where employees become usufructuaries of part of the company’s capital. The shareholders provide the funds, the employees deliver the added value. And finally, everyone deserves their share.
The idea is there. It may sound iconoclastic but it is realistic in fact, i.e. a company whose dividends are now shared between shareholders and employees in a fundamental way by giving employees a share in the use of the capital.
This is what we call the cooperative capital company. In order to become one, the company must include a special provision in its articles of association that allows for employees to receive a share of the profits if dividends are triggered. It thus grants them a place as usufructuary shareholder. For their part, the shareholders remain equity holders and owners of the shares, but with the difference that they opt to become bare owners for a specific part of the capital, the yield value of which they transfer to the collective wage earners. To that end, they must accept a reduction in the nominal value of their share – for example through the effect of a capital increase by issuing securities – and transferring the difference to those who “manufacture growth” — the employees. Idealistic? Astonishing? Bizarre? Far from it.
The shareholder-investor must admittedly bear a certain “cost.” He is asked to pay a sort of “ticket of admission” to productive capital. But there is nothing confiscatory about this. With no loss of ownership, he opts to invest in another form of value: human beings. His wager is that, supported by reinforced cohesion, the company will be able to grow better and be better valued in the long term. It is an entrepreneurial reasoning of dynamic reconciliation.
Such a system has many advantages. For employees, it obviously provides direct access to a new channel for redistributed value in a spirit of socially equitable cooperation. This is essential in a global context where the gap between the richest and the middle classes has been widening steadily in recent decades.
For shareholders, there is an innovative pre-emptive role so that labour value can be included in the creation of capital wealth, thus giving investment an entrepreneurial and societal dimension beyond its financial purpose. It has been shown that investments that are steered in environmental, social and governance terms (ESG criteria) have performance potential – and above all a future.
Finally, for companies, and in particular those whose projects are part of a corporate social responsibility mission, this is an instrument of resilience. They put themselves in the position of no longer considering employment as an adjustment variable but rather as a legitimate, structuring gene. By accepting to put shareholders and employees on equal footing, a new balance and a promising dialogue will be established. It is, in a way, the City that enters the Company.
The cooperative economy has long been a response to the excesses of the times it goes through. Its longevity can be explained by its capacity to adapt and hybridize. It has sprung many branches. Our proposal is a current translation, a step aside, a bud on the tree.
The cooperative capital company goes far beyond the mechanisms of profit-sharing and employee participation, which consist of paying a bonus linked to the enterprise’s performance or representing a share of its profits. Cooperative capitalism acts on the cornerstone of the company and its capital, by having the stakeholders share responsibilities. The wage earners join the ranks of shareholders whose governance is part of a process of openness and convergence of interests, without sacrificing their prerogatives. Transparency in terms of social and environmental impact is imperative for the cooperative capital company, whereby the instrument consists of the measurement and control of what is known as extra-financial performance as well as the publication thereof.
We can see in social businesses or mission-based enterprises in which we intervene as managers or directors the extent to which the concern for economic inclusion pushes the company to combine its interests with those of its ecosystem. This is true in many places around the world where we are involved, particularly in sub-Saharan Africa, where we work with livestock farmers and agri-food chains. Economic inclusion is unquestionably a way to pursue in order to restore to human societies the enlightened paths and hope they need. There is no utopia in such vision, but the free and civic conviction that the world cannot be built otherwise than with and for each other.
Read the complete article here
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Éric Campos is the General Manager of the Grameen Crédit Agricole Foundation, a foundation specializing in microfinance and social entrepreneurship, and Head of CSR at Crédit Agricole S.A. Bagoré Bathily is the founding Chairman and Chief Executive Officer of La Laiterie du Berger, a social business that promotes the dairy industry in Senegal.
(Co-editor: Julien Foulc)

Covid-19 affects microfinance institutions of different sizes in different ways
@Designed by pikisuperstar / Freepik
ADA, Inpulse and the Grameen Crédit Agricole Foundation have joined forces to closely monitor and analyse the effects of the COVID-19 crisis among their partners around the world. This monitoring will be carried out periodically throughout the year 2020 with the purpose of evaluating the evolution of the crisis. Through this constant and close analysis, we hope to contribute, in our own way, to the structuring of strategies and solutions tailored to the needs of our partners, as well as the dissemination and exchange of information among the different actors in the sector.
The results presented in this article come from the second wave of a joint (1)survey by ADA and Grameen Crédit Agricole Foundation, Inpulse having decided to join the initiative for odd-numbered waves. The responses were collected from 18 June to 1 July from 108 microfinance institutions (MFIs) based mainly in Latin America and the Caribbean (LAC, 46%), Sub-Saharan Africa (SSA, 29%), Asia (14%) and Eastern Europe and Central Asia (EECA, 10%), with a single MFI from the Middle East and North Africa (MENA) region. This panel of respondents spans a relatively diverse range of MFI sizes, with 49% of Tier 2 MFIs,(2) 35% of Tier 3 MFIs and 16% of Tier 1 MFIs. Figure 1 shows their regional distribution.
Figure 1. Respondents by region and tier
MENA Tier 2
In short:
The latest wave of the survey reveals that the crisis faced by MFIs has laid bare the structural strengths and weaknesses specific to their sizes: the biggest MFIs (Tier 1) appear better equipped to overcome the financial difficulties resulting from the health crisis and epidemic containment measures, as well as to take crisis management measures and make use of the specific measures put in place by local authorities. Smaller MFIs (Tiers 2 and 3), on the other hand, are more likely to offer their clients non-financial services to help them cope with the situation and are eager to continue developing non-financial services in the future. More generally, if they are considering launching new products or services, it is mainly to meet the needs of their clients rather than following their strategy or reducing risks. While big MFIs appear to be more resilient in times of crisis, small ones are also rising to the challenge and staying true to their powerful social mission. This is a real strength for these institutions, which should not be neglected in favour of more autonomous structures during the current crisis.
The biggest MFIS are less exposed to financial difficulties…
Since June, epidemic containment measures have been relaxed in certain regions, particularly Eastern Europe, Central Asia and Sub-Saharan Africa. As a result, the operational difficulties faced by microfinance institutions have ebbed in these regions since May,(3) but they are still very much present in Latin America and the Caribbean, where containment measures are still in place and a higher percentage of MFIs still find it difficult to move around, meet clients in agencies and, therefore, to disburse loans and collect loan repayments, as can be seen in Figure 2. For example: 76% of MFIs in the Latin America and the Caribbean region report that their staff is finding it difficult to move around, compared to 23% in Sub-Saharan Africa.
Figure 2. Operational difficulties faced by MFIs by region:
As explained in our previous article, these operational difficulties are having an impact on the portfolio and its quality in all MFIs. However, the resulting financial difficulties vary by MFI size. Overall, the biggest MFIs are less likely to face these types of problems, with lower percentages of Tier 1 MFIs reporting difficulties in repaying funders (12% versus 22.5% of Tier 2 and 3 MFIs), insufficient equity capital to cope with the crisis (6% versus 29% of Tier 2 and 3 MFIs) or lack of liquidity (2% versus an average of 29% of Tier 2 and 3 MFIs), as can be seen in Figure 3. Tier 1 MFIs appear better equipped to absorb the impact of the crisis on their financial situation.
Figure 3. Financial difficulties faced by MFIs by size
Although an increase in the portfolio at risk is the main difficulty faced by all MFIs, this increase varies by MFI size. Tier 1 MFIs have experienced smaller increases than other MFIs, as can be seen in Figure 4: only 12% of Tier 1 MFIs report that their portfolio at risk at 30 days has doubled or more than doubled compared to end 2019, versus 44% of Tier 2 MFIs and 57% of Tier 3 MFIs. In contrast, 35% of Tier 1 MFIs report a stabilisation or decrease in this indicator, versus 17% of Tier 2 MFIs and 8% of Tier 3 MFI.
Figure 4. Changes in the PAR30 of MFIs compared to end 2019 by MFI size
…and more likely to implement crisis management solutions…
The governments of most countries have taken measures to help microfinance institutions to weather the crisis. However, not all MFIs are benefiting from these measures. While the exact percentages vary from one region to the next, probably due to differences in the communication and implementation of these measures (e.g. MFIs in Asia are more likely to report making use of a certain number of measures), geographic location does not appear to be the sole determining factor for making use of certain government measures: bigger MFIs are also more likely to benefit from them, as can be seen in Figure 5.
Figure 5. Government measures from which MFIs have benefited by MFI size
This size effect is real because it cannot be explained by a specific distribution of MFIs by region. For example, when it comes to rescheduling or cancelling the payment of taxes and the non-provision of loans affected by COVID-19, a regional analysis shows that MFIs in Asia are more likely to benefit from these measures despite Tier 1 MFIs being in the minority in this region. Similarly, when it comes to liquidity lines, MFIs in Sub-Saharan Africa are among the most likely to benefit from them despite Tier 1 MFIs being few and far between in this region. As for the operational and crisis management measures implemented, the types of measures again vary by MFI size (Figure 6): For example, 100% of Tier 1 MFIs in the sample restructured client loans, versus an average of 69% of other MFIs. They are also more likely to engage with supervisory authorities to explore the possibility of suspending prudential regulations during the crisis. In contrast, Tier 3 MFIs are less likely to use their liquidity plans or implement new digital solutions.
Figure 6. Operational and crisis management measures taken by MFIs by size
…while small MFIS continue to focus on their clients’ needs
In contrast, despite facing significant challenges, the smallest MFIs continue to focus on their clients’ needs: for example, they are more likely than Tier 1 MFIs to have surveyed their clients to better understand the impact of the crisis (Figure 7). On the other hand, although they were less likely to disburse emergency loans to their clients, they were more likely to implement measures that went beyond their core business to better meet the needs of their clients during the health crisis. For example, more of these MFIs launched hygiene awareness campaigns on hygiene or provided clients with emergency kits. Bigger MFIs were less likely to offer these types of direct services to clients, instead forging partnerships with specialised
organisations.
Figure 7. Crisis response measures for clients by MFI size
More Tier 1 MFIs reported interest in launching new products or services in the medium term; as shown above, these MFIs have fewer financial constraints and, therefore, more room for manoeuvre in this regard (Figure 8). More specifically, while few MFIs overall are planning to launch microinsurance products in the future, Tier 1 MFIs are the most likely to do so. They are also more likely to want to increase their focus on agriculture or launch new digital products and services. The smallest MFIs, on the other hand, also want to start offering non-financial services such as financial literacy and business development services.
Figure 8. New products, services or markets that MFIs wish to develop in the medium term, by size
The motivations for MFIs to focus on new markets or develop new products or services also vary by size (Figure 9): Among those that reported wanting to launch at least one new product or service and stated their motivations (76 out of 108 respondents), the desire to meet the new needs of clients and/or follow new market trends was more frequent among Tier 3 MFIs than among MFIs in other tiers. In contrast, there are fewer that base this choice on following their strategic plan or striving to reduce risks.
Figure 9. Main motivations for MFIs to focus on new markets, products or services by size
The focus of the smallest MFIs on their clients’ needs will probably become one of their strong points during this crisis.
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(1) The results of the first wave of the survey of ADA, Inpulse and the Grameen Crédit Agricole Foundation’s partners
can be found here: //www.findevgateway.org/paper/2020/06/beyond-difficulties-posed-covid-19-crisis-newopportunities-are-emerging-microfinance
(2) Tiers are defined according to the value of their total assets: over USD 50 million for Tier 1, USD 5 to 50 million for
Tier 2 and under USD 5 million for Tier 3.
(3) See the results of the first wave of the survey, available via the above link.

The Foundation finances microfinance institutions in Mali and Romania

The Grameen Crédit Agricole Foundation funded two new partners, including one in a new country. With these two new partners, the Foundation currently supports 83 organisations in 40 countries.
It thus granted a first loan for a total amount in FCFA equivalent to €1.5 million to Cofina Mali, a subsidiary of Cofina SA which provides inclusive financial services. The institution offers loan, savings and money transfer services to micro and small businesses but also to individuals. It also provides financial education and business development trainings. Cofina Mali has over 2,500 active borrowers, 28% of whom are women.
The Foundation also invested for the first time in Romania, in the form of a guarantee of a total amount in local currency equivalent to €1.5 million granted to the microfinance institution VITAS. VITAS provides loans to near 2,000 clients, mostly micro- and small enterprises and to individuals, for home improvements. The institutions has its roots in the CHF Romania, an NGO that was founded in 1995 as one of the first microfinance institutions in Romania. Today, Vitas is one of the main players in the Romanian microfinance market.
See all the organisations supported here.

Impact of COVID-19 on Refugee Saving Groups in Uganda
VisionFund Uganda has been working in Obongi district since May 2019 and has disbursed US$ 92,000 to 100 savings groups, supporting 2,264 individual group members. VisionFund started training saving groups in Yumbe district late 2019, but has not financed any group yet. Savings groups have been operating in both districts for some time and all the interviewed groups have been in existence for at least two cycles (or two years). VisionFund Uganda is the first MFI to offer loans into those groups. Between April and May, a study was conducted to understand the effect of COVID-19 on savings group (SG) on both host and refugee communities.
Savings Group Meeting Behavior
The majority (81%) of the groups are still meeting; only 19% of groups have stopped meeting. The main strategy has been to keep meeting (65%), but in small groups as per government requirements on social distancing. One explanation for the stronger resilience of the refugee groups may be that these groups had more support in their formation than host groups. Almost all refugee groups are still saving (some are saving less) while 24% of host groups have stopped saving. The conclusion is that refugee groups have not only adapted to the new meeting guidelines but have also found ways to continue meeting, showing higher levels of resilience.
When asked about the future of the group, of the overall 417 participants 65% expected to continue to save. However, it is worrying that 28% of all respondents expected to drop and for host communities this was up to 39% of respondents. It is important to better understand what this means long term.
Impact on Households
Households were stressed on two fronts. 88% of all respondents reported an increase in staple food prices, which puts pressure on household budgets. Almost all refugee respondents (96%) reported the increase, which probably reflects the reduction of their WFP rations. At the same time, 92% of all respondents reported some level of financial stress due to either lower business activity (34%), decreased income (23%), challenges to save (25%) and food insecurity (11%). It’s safe to conclude that all households were stressed by the COVID-19 pandemic, but even though refugees were stressed at a higher level, they proved to be more resilient.
Despite these stresses, households are not resorting to increased demand for the SG social fund or selling their assets (87% haven’t had to sell any assets). In terms of demand on the savings group social fund, 58% of the groups reported no change in number of requests (with little difference between host and refugee), but did note that those who did request use of the social fund, the amount was significant.
Business impact
Savings group members engage in multiple economic activities. Similar to other studies on the impact of COVID-19, 93% of all respondents reported some level of reduced income. More than half of the groups reported either a big reduction in income (47%) or a complete stop to income (11%). Interestingly, 6% reported an increase in income reflecting that there are business opportunities even in a crisis.
Resilience
A last question asked how groups were adjusting their businesses due to the COVID-19 crisis, this shows a range of different activities that households are doing to survive. This again shows how refugees are adjusting in various creative ways to the stresses they are facing.
In conclusion, the three following points can be highlighted:
- Refugee savings groups are resilient: The demonstrated resilience of these refugee savings groups (compared to host groups) continues to support the thinking that the formation and support for refugee savings groups is a key response to livelihoods for long term refugee communities.
- COVID-19 is having a dramatic impact on the livelihoods of the rural poor: This survey was undertaken in a remote part of Uganda which supports anecdotal evidence that rural communities are as much impacted as the more visible impacts of COVID-19 on people livelihoods.
- Surveys can be done safely in a lockdown situation: Finally, this report shows that even in a lock down situation, using a simple digital tool and practicing social distancing guidelines surveys can be done quickly.
Further information on VisionFund’s Refugee Microfinance programme in Uganda here.

The Grameen Agricole Foundation approved as a new CSAF global affiliate

The Council on Smallholder Agricultural Finance (CSAF) is an alliance of social lending institutions, also referred to as impact-first agricultural lenders, targeting agricultural businesses in the “missing middle” in low- and middle-income countries, and focused on creating a thriving, sustainable and transparent financial market to serve the financing needs of small and growing agricultural businesses in low- and middle-income countries worldwide. CSAF members include AgDevCo, Alterfin, Global Partnerships, Impact Finance, Incofin Investment Management, Oikocredit, Rabo Rural Fund, responsAbility Investments AG, Root Capital, Shared Interest Society, SME Impact Fund, and Triodos Investment Management
Its mission is to facilitate market entry and increase lending to agricultural businesses in the missing middle, focus the agriculture finance sector on reaching and supporting the livelihoods of the world’s 450 million small-scale farmers and promote responsible lending principles, including social, environmental and corporate governance standards, among all financial institutions serving this market.
In June, the Grameen Credit Agricole Foundation has been unanimously approved by the CSAF global members as a new global affiliate. The Foundation and the Council will work together in the years ahead to strengthen CSAF and its efforts to build a growing and high-impact financial market serving agricultural enterprises globally.
Further information on the Foundation’s mission here
Further information on the CSAF here

The AFD Group grants a €10 million loan to the Foundation to promote microfinance

A €10 million loan has just been granted by the Agence française de développement Group (AFD), represented by its subsidiary Proparco, to the Grameen Crédit Agricole Foundation. This loan will enable the Foundation to develop its support for microfinance institutions, which provide guidance and support, mainly in Africa, to populations excluded from the traditional banking system. The AFD Group has also pledged to support the Foundation with a €900,000 grant that will enable it to set up a microinsurance technical assistance programme.
Nearly 4 out of 10 adults in the world do not have a bank account. This means that 1.7 billion people are excluded from the traditional banking system. This problem is at the heart of the Grameen Crédit Agricole Foundation’s action. For nearly 12 years, it has been financing and supporting microfinance institutions that serve populations excluded from the traditional banking system, mainly women (85%) and rural populations (82%), in some 40 countries.
The Agence française de développement Group, which has been supporting the Foundation since 2013, has granted a €10 million loan to the Foundation in order to bolster its action in favour of small and medium-sized microfinance institutions based mainly in Sub-Saharan Africa.
€900,000 grant to support microinsurance
The insurance penetration rate in Africa is well below the global level. Yet, insurance is a lever for economic and human development. It has a significant impact on improving the quality of life and protects human capital from certain risks, so as to preclude the need for emergency adjustment strategies.
Since 2011, the Grameen Crédit Agricole Foundation has been supporting microinsurance through research activities and technical assistance projects for the institutions it guides and supports.
A €900,000 grant from the Agence française de développement Group will enable the Foundation to develop its microinsurance technical assistance offering to the organizations it supports.
“We share the AFD’s ambition to help the fight against poverty and inequality throughout the world. We are very proud of the trust that the AFD Group has placed in us over many years. This new funding will enable us to strengthen our action in favour of microfinance institutions, particularly in Africa. We will also be able to bolster our capacity to support the development of insurance products and services, including agricultural insurance. This partnership will in turn enable the clients of such institutions –low-income households, women, small farmers and micro, small and medium-sized enterprises– to protect themselves better, to be more resilient”, affirms Eric Campos, Managing Director of the Grameen Crédit Agricole Foundation and Head of CSR at Crédit Agricole SA.
“At a time when the coronavirus crisis could jeopardize the activity of many African entrepreneurs, access to financial services is an essential lever more than ever before for supporting the private sector and reducing inequalities. Against this background, I am proud of the mobilization by the Agence française de développement to support the most vulnerable African businesses, particularly in the informal sector. This is what the partnership with the Grameen Crédit Agricole Foundation is all about, through which the AFD Group is pursuing its commitments in favour of financial inclusion. By enabling the Foundation to increase its portfolio of loans, capital, guarantees and technical assistance to microfinance institutions, the AFD is taking action to support Africa’s population, which is the most entrepreneurial in the world”, says Rémy Rioux, Chief Executive Officer of the Agence française de développement.
Further information about AFD here
Further information about the Foundation here

A Consortium to support microfinance in Africa during Covid-19 crisis

In the economic crisis linked to Covid-19, the occurrence of a liquidity and / or solvency crisis turns out to be one of the main risks microfinance institutions are facing. To deal with this, the Grameen Crédit Agricole Foundation, the Microfinance African Institutions Network (MAIN), International Solidarity for Development and Investment (SIDI) and the ACTES Foundation are creating a consortium to better support the organizations supported in Africa.
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In April 2020, MAIN sent a questionnaire to all its members in order to gather their needs and find out what type of support the network could offer them. The results of this survey show that most of the institutions questioned encounter difficulties in managing their liquidity and wonder how to continue to serve their customers in a sustainable manner in such a context.
It is in this context that the Consortium was formed, which brings together the Grameen Crédit Agricole Foundation, MAIN, SIDI and the ACTES Foundation. The objective of the Consortium is to provide the organizations supported with risk analysis and management tools in order to anticipate and better manage the impact of the crisis on their liquidity and solvency.
The Consortium will thus offer 50 microfinance institutions, including 31 partners from the Grameen Crédit Agricole Foundation, mainly in West and East Africa, support on the theme of liquidity and solvency risks management. The target organizations are mainly small institutions (Tiers 3: loan portfolio <10 million dollars), very present in rural areas.
The support will take the form of a cycle of three online training courses for each institution, workshops and personalized coaching, which will be provided by Cabinet Senbumo. In addition to liquidity and solvency management, institutions will be trained on the subject of resumption of activities following the Covid-19 crisis. The programme will start on July 06, 2020 and will last for 6 weeks.

Grameen Crédit Agricole Foundation publishes its 1st Impact Report
In order to give more insight to and share the results of its action, the Grameen Crédit Agricole Foundation is publishing its first Impact Report, a financial and extra-financial assessment based on 2019 activity data. The impact assessment was carried out with CERISE, an independent firm specializing in impact and social performance measurement. The purpose of this report is to provide a concise and objective overview of the Foundation’s contribution and its forms of action in favour of impact entrepreneurship and access to essential services.
Humanity is going through a period in history that it has never known. The crisis generated by COVID-19 has shaken our societies, economies, and activities. In a world where inequalities are growing and low-income populations are affected disproportionately, financial inclusion and entrepreneurship are factors for enhancing the resilience of such vulnerable populations. These are the levers of action of the Grameen Crédit Agricole Foundation, which has for nearly 12 years been contributing to the reduction of inequalities and poverty through financial inclusion and impact entrepreneurship.
Today the Foundation is publishing its 1st Impact Report, produced with methodological support from CERISE, a pioneering organization that specializes in the promotion of responsible finance. It aims to provide an objective and concise overview of the Foundation’s contribution and its forms of action. Defining its impact model, objectives, beneficiaries and action levers is the first step towards a more active management of the Foundation’s impact and social utility.
Direct impact of the Foundation
The Foundation aims to create sustainable value by reconciling social, economic and environmental impacts. Its value creation model is based on long-term support for socially efficient microfinance institutions and social impact enterprises that promote access to essential services. The Foundation moreover encourages the emancipation of women by promoting women’s entrepreneurship (85% of microcredit beneficiaries through the supported organizations are women), mainly in rural areas (where 78% of microcredit borrowers live). Sub-Saharan Africa (37% of its portfolio) and South and South-East Asia (29%) are its two geographical areas of reference.
The impact of supported organisations
The Foundation also provides technical assistance and support to the organizations financed to bolster their social and environmental performance. On the social side, the Foundation’s portfolio is assessed by using ALINUS, a tool for managing the social performance of microfinance. The microfinance institutions supported outperformed the sector benchmark (with a score of 65% vs. 53% for the sector) in all the areas assessed. The environmental performance monitoring is more recent, but is progressing. For example, 84% of the supported institutions have established a list of banned environmentally hazardous activities and 42% offer green products to fund environmental friendly practices.
Finally, the Foundation is reinforcing its impact through its cooperation with Crédit Agricole and other major players in development aid. In 2019, the Foundation worked with 51 private, public and community stakeholders in some 40 countries.
In 2020, the Foundation will continue its impact measurement work with the operational deployment of tools and a field study to verify whether its impact model is solid. It will continue to write the chapters of its history in a more collective, committed and sustainable way.

Microfinance lenders and platforms endorse principles in Covid-19 crisis
July 2020. Two groups of lenders and microfinance stakeholders published a set of principles to support the microfinance sector and fragile clienteles in Covid-19 crisis. Both groups have coordinated their efforts for complementarity and consistency.
Microfinance institutions (MFIs) have an important role in the fight against poverty. They offer financial and non-financial products and services to support income-generating activities for low-income populations. In Covid-19 crisis, supporting the microfinance sector is then essential to protect the most vulnerable populations. This calls for a collective approach within the sector.
That is why, we, Leading microfinance lenders, impact funds, platforms and networks covering markets in Africa, Asia, Central Asia, The Middle East, Eastern Europe and Latin America, have established two complementary agreements. They frame a series of principles to support MFIs in order to avoid credit crunch, which would be extremely harmful for microfinance’s fragile clienteles. We published both documents as guides for the investment teams, investors, investees, and other stakeholders.
- “Key principles to !protect microfinance institutions and their clients in Covid-19 crisis”: In this agreement, the pooling of available information, analyses and anticipations, as well as the concerted implementation of shared decisions are the fundamental principles. The signatories, including lenders, impact funds, platforms and networks, agree to coordinate policies, technical assistance and resources to help microfinance institutions face the crisis. The objective is to protect the microfinance institutions and their clients to ensure the continued access to funding in the best possible conditions and to look out for clients’ and staff well-being.
- “Coordination among microfinance MIVs in response to Covid-19 crisis”: This Memorandum of Understanding (MOU) addresses the impact on the liquidity flows within financial institutions as a result of Covid 19 and related actions to prevent spreading. The MoU among MIVs further acknowledges the importance of timeliness and cooperation among lenders and other stakeholders and presents a framework for managing Covid related debt rescheduling.
Subscribers to the Pledge and MoU acknowledge and express support for both documents as they are considered complementary serving a similar purpose. Other public and private actors in the financial inclusion sector are invited to support, endorse and act in line with the principles presented. In particular, the signatories believe that it is essential that the public sector aligns with private sector practices to strengthen the impact-investing sector and its social impact on low-income households and small businesses.
The participation of all stakeholders is vital to enhance the impact of microfinance. We are committed to continue to support our partners’ action to promote financial inclusion all around the world.

Covid-19 crisis: New opportunities are emerging for microfinance institutions
ADA(1), Inpulse(2) and the Grameen Crédit Agricole Foundation have joined forces to closely monitor and analyze the effects of the COVID-19 crisis among our partners around the world. This monitoring will be carried out periodically throughout the year 2020 with the purpose of evaluating the evolution and trend of both the effects of the crisis and the financial needs and adaptation measures implemented by our partners. We hope with this constant and close analysis to contribute, at our level, to the structuring of strategies and solutions according to the needs of our stakeholders, as well as the dissemination and exchange of information between the different actors in the sector for the joint construction of comprehensive and systematic solutions.
This article is based on the responses provided between May 18 and May 27, 2020 by 110 partners. Which are present in 47 countries distributed between Europe, Africa, Asia and Latin America, 5 Regions(3) and 13 Sub-regions of the world(4). In our analysis, we addressed 46% of very small MFIs, with less than 5 million assets (Tier 3), 47% of medium size, with an amount of assets between 5 and 50 million (Tier 2) and 7% with a size greater than 50 million assets (Tier 1)(5).
In Summary
The current period leaves no MFI or region of the world indifferent. The crisis related to COVID-19 has struck at the heart of most microfinance activities. All of the institutions surveyed have faced common problems because of the crisis: difficulties in disbursements, collection of reimbursements and meeting with clients, among others. These deeply operational activities, which are closely linked to client contact and meeting with customers, have financial consequences for MFIs. Portfolio and risk management are among the first short-term challenges raised by the crisis according to more than 80% of our partners.
However, pronounced regional differences emerge from this research. The health crisis, which is constantly evolving, does not have the same impact on all regions of the world, and not with the same intensity. On the operations side, for instance, the difficulty or impossibility to collect savings is not an issue for all. This concerns 56% of the surveyed MFIs in Sub-Saharan Africa and 60% of those in South Asia, whereas the matter is hardly mentioned in other regions, if not even mentioned. This depends on the constitution of the local market, and on the capacity for institutions to offer this product to their customers, according to the legislation in force. On the restrictions caused by the crisis, we note that a high proportion of MFIs in LAC, Central Asia and the MENA region witness that it is difficult for employees to move around or to meet clients in branches, contrary to MFIs in South East Asia or Sub-Saharan Africa.
The increase in the portfolio at risk is also having diverse impacts depending on the region. For instance, only 17% of MFIs in Central Asia, Europe and LAC record a PAR 30 + R that has more than doubled, while this is the case for 41% of MFIs in Sub-Saharan Africa, 27% of those in South Asia and 33% of those in MENA. However, none of the MFIs in the regions analyzed are free from the negative impact on their portfolios. This is due to the fact that globally, 80% of the respondents indicated a deterioration in portfolio quality, this impact represents a challenge for the entire sector in the short and medium term.
To address these issues, the financial needs of MFIs also vary. While 58% of the surveyed MFIs express additional funding needs, this is not as true for the EAC region. Indeed, 57% of the MFIs in this region report having no additional needs, and 22% consider that their funding needs have decreased. On the other hand, about 30% of the institutions in the MENA, SSA and LAC regions have funding needs that are between 20% and 50% higher than their expected.
In a broad way, the information collected demonstrates the proactivity of MFIs facing the crisis. All around the world, MFIs have multiplied adjustment measures to adapt to the crisis. The institutions have chosen not to remain passive when facing the consequences of the global economic downturn, for which they have constituted crisis management and monitoring committees, elaborated continuity plans and established debates with all interested parties. Finally, beyond the conjunctural difficulties, the reflections led by most of our partners are also directed towards new opportunities for the future, with for example the targeting of new markets or the development of new products. This could contribute in the future to greater flexibility for our partners, although this remains to be confirmed.
The impact of the COVID-19 crisis on the microfinance sector: the view of different MFIs around the world
The rigor of the containment measures is still variable between the different countries. 44% indicated that in their countries there are almost total lockdown and total restriction of movement. 46% of our partners, mainly those located in the SSA and LAC region, reported limited lockdown and partial movement restrictions. In contrast, 10% of the partners, mainly those located in LAC, stated that there are no or very few containment measures (no lockdown and no travel restrictions). The context of each region is different and largely, or totally, determined by the actions established by government authorities. While in the EAC region there seems to be greater uniformity in containment measures, it is not the same in Latin America where restrictive containment measures have been established in some countries while in others this type of measure has not yet been contemplated.
Another important aspect to consider is that the process of spreading the pandemic has been gradual between the different regions of the world. The COVID-19 crisis did not affect all regions at the same time. At the end of 2019, the virus was widely spread in China, in March it had been controlled in Asia, however, at the same time, Europe was becoming the new epicenter of the pandemic and the World Health Organization (WHO) declared the virus as “global pandemic”(6). Currently, America and Africa are being strongly affected. The evolution of the pandemic in the different regions of the world also determines in a significant way the type of responses provided by our partners, their level of affectation and surely the evolution of some of its most relevant indicators. Trends on which we will be paying attention in our next surveys and analyzes.
The COVID-19 crisis caused net slowdown to even impossibility of carrying out essential activities by our partners
82% of our partners reported having difficulty/impossibility to collect loan repayments as usual. This difficulty seems to impact partners from all regions but more significantly those located in MENA (100%), SSA (85%) and LAC (81%). The second most relevant difficulty, pointed out by 80% of our partners, is the impossibility of meeting clients in the field. Partners in the MENA region continue to be the most affected (100%), followed by those located in the EAC region (91%) and LAC (81%).
The third most relevant difficulty, manifested by 74% of our partners, relates to the disbursement of loans. This difficulty is a little more relevant among partners located in the MENA (89%), LAC (81%) and SSA (78%) regions.
On the other hand, for 94% of our partners, communication with clients does not seem to be a significant difficulty. This may be due, as detailed below, to the significant use of digital systems and technology for remote communication. Likewise, 94% of MFIs reported that their employees are not contaminated with COVID-19. This represents a very satisfactory result of the measures taken at the beginning of the crisis by our partners for the protection of their staff. (8)
MFIs have faced different financial difficulties due to COVID-19
For 91% of our partners, the increasing portfolio at risk is the most significant financial difficulty they have had to face due to the pandemic. This is a difficulty present in all regions and all sizes of MFIs, however, it concerns 100% in partners located in the MENA region, 93% in those present in SSA and Asia, 91% and 86% of those located in the EAC and LAC regions respectively.
The outstanding portfolio reduction is also a relevant difficulty for 80% of our partners. This is mainly important for 93% of those located in the SSA region and 86% of those present in LAC.
The increase in the costs of materials and equipment and the lack of liquidity were difficulties faced by 46% and 39% of partners respectively.
“We think we may not have adequate funds for disbursements end of June if the situation improves in the field” – Partner in South Asia
PAR 30 is already at this stage a major concern
80% of our partners indicated that their PAR 30 has increased due to the COVID-19 crisis. However, for 12% of the partners it has increased twice and for 25% of partners the PAR 30 has more than doubled. For 43% of the partners it has increased without being double. The partners mainly located in Asia, LAC and EAC are those who consider that their PAR 30 has increased without even reaching double, while most of the SSA partners reported an increase in PAR 30 of more than double, followed by partners in the MENA region.
Strategies used to mitigate the crisis: From credit restructuring to the use of technological means
Our partners implement different financial measures and operations to mitigate and adapt to the crisis. 75% of them, mainly those located in Asia (87%), have carried out the credit restructuring with their clients. 65% of partners have slowed down or stopped the disbursement of credits. This measure has been mainly implemented by partners located in the LAC region (78%) and less used by those located in the MENA region (44%).
“Analysis of rescheduling requests in order to be able to accompany them with emergency loans but this is really on a case-by-case basis”- Partner in West Africa
Another relevant strategy is the orientation of loans to clients in sectors less impacted by the crisis (for example, agriculture). This is a measure carried out by 51% of the partners, mainly those located in the SSA and EAC region. In addition, 50% give priority to repayment of credits.
Likewise, communication with customers is a priority strategy among our partners. 73% have increased communication with clients and 50% have hygiene awareness campaign for clients (by SMS, video, etc.).
Technology is used as an important tool to face the crisis. Partners use existing digital solutions (by 48% of partners) or new solutions (by 31% of partners) for communication with customers as well as the management of financial products and services.
“We plan to improve the use of digital approaches to service provision, help clients for product marketing and business diversifications (…)”- Partner in South Asia
Strategies for the management of human talent: From hygiene measures to the use of technological means
90% of the partners have made the provision of sanitary equipment to staff. Office hygiene and disinfection measures are carried out by 82% and 70% of partners, respectively.
The organization of work times and travels to the field is indicated as another measure of great importance. 71% of the partners, mainly those located in the MENA, LAC and Asia region, implemented telework as much as possible. 66% of partners restricted or prohibited movement in the field. 54% of the partners, mainly located in the MENA and LAC region, have reduced working hours and 52% of them have reduced customer service hours in the agencies.
The use of digital to maintain communication and work activities with employees is also relevant. 82% use online meeting solutions and 57% use an online document sharing solution (mainly MENA and LAC partners). In addition, 46% provided their employees with work laptops or tablets (mainly those located in the MENA region, 78%).
“We established 2 WhatsApp communication groups with the staff (one for Singhala speaking and one for Tamil speaking). Then we had regular communications with them during the lock down” – Partner in South Asia
Crisis management measures
It can be considered that our partners carried out two main types of measures to manage the crisis COVID-19 in a relevant way. The first group contemplates the development of the following internal actions for the analysis, monitoring and follow-up of the effects of the crisis: 78% of the partners established an ad hoc management committee to monitor the crisis. These measures were particularly priority among partners in the SSA and MENA region. 75% of the partners, mainly those located in the Asia and SSA region, prepared a Business Continuity Planning. 74% of the partners, primarily those located in the EAC and MENA region, updated the Liquidity Plan. Furthermore, 65% carried out worst-case scenario simulation, this action being carried out more in the MENA region than in the SSA region.
In the second group are management measures aimed at requesting support from third parties. 53% of partners, mainly those located in MENA and LAC, requested financial support from funders / partners. 52%, notably those located in the MENA region, negotiated with Lenders to arrange loan repayment. Additionally, 37% of partners, particularly those located in Asia and SSA, requested technical support from funders / partners. These three actions have been less developed by partners located in the EAC region, of which the request for technical assistance seems to be the least relevant.
Additional funding needs from lenders: What is expected in the coming months?
30% of our partners stated that they had no additional financing needs and 12% indicated that their needs have decreased. These responses come mainly from partners located in the EAC region.
In contrast, 58% of the partners indicated that they would need financing for amounts greater than expected. Of these, 28%, mainly those located in the Asia and MENA region, reported that they would need between> 0% and 20% more funds than expected. 24%, mainly those present at MENA, stated that they would need between 20% and 50%. And 6% of partners, particularly those located in Asia, reported that they would need> 50% more funds than expected.
Looking forward to the near future: new markets or products
At this stage, the majority of our partners, equivalent to 57%, expressed interest in focusing their activities more on the Agricultural sector. This purpose seems to be particularly more relevant among partners in the SSA, Asia and EAC regions. This may be due to the increase in the needs of customers in this sector or to its identification as one of the production sectors least affected by the COVID-19 crisis (aspects already envisioned in the articles elaborated by Inpulse and the Grameen Credit Agricole Foundation) (9).
This assumption will be important to investigate in the following survey since the Agricultural sector let converge relevant economic, social and environmental factors, such as the allocation of an important part of the portfolio of our partners; the generation of significant amounts of jobs in some countries and the potential negative effects of climate change.
On the other hand, 37% of our partners plan to launch financial education programs and 27% plan to focus more on female clients.
“We plan to promote digital education for women clients (digital culture)” – Partner in South America
These are sectors that are traditionally addressed in the microfinance sector, however, 25% of our partners also indicated the interest in launching “green” financial products related to environmental protection. Could this interest demonstrate the increased awareness of our partners about the environmental problems linked to their actions? Does this represent the boost of green microfinance due to the COVID crisis? What type of green products would our partners be targeting? These are questions that could also be relevant to investigate in our next survey.
In contrast, the launch microinsurance related to hygiene, life, health or environmental risks does not seem relevant among our partners. Finally, 22% of our partners do not plan at the moment to focus on new markets or develop new products.
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(1) //www.ada-microfinance.org/fr
(2) //www.inpulse.coop/
(3) The regions and subregions addressed are: Asia (South Asia and South East Asia), EAC (Eastern & Southern Europe and Western and Central Asia), LAC (Caribbean, Central America and South America), MENA (Middle East and North Africa), SSA (Central Africa, East Africa, Southern Africa and West Africa).
(4) The total number of MFIs that responded to the survey for each region are Asia:15, EAC: 23, LAC: 36, MENA: 9, SSA: 27. For a total of number of 110 institutions.
(5) This classification corresponds to the one traditionally used in the microfinance sector, more information here
(6) “Propagation analysis and prediction of the COVID-19” here
(7) These measures according to Inpulse and the Foundation articles were mainly focused on hygiene awareness campaigns as well as teleworking
(8) Idem

The Foundation launches its new website
A new decade is dawning in 2020, and the Grameen Crédit Agricole Foundation is broaching it with enthusiasm and modernity. Created nearly 12 years ago, the Foundation now supports 85 microfinance institutions and social impact enterprises in emerging countries, particularly in Africa and Asia. In order to communicate better on its action and to enhance the value of joint actions and projects with its partners, the Foundation is publishing a brand new, more modern, dynamic and ergonomic website.
HEADINGS
This new website will keep you informed of the Foundation’s key figures, activities and news. A special section is dedicated to Banquiers solidaires [Solidarity Bankers], a skills volunteer programme open to all Crédit Agricole Group employees to support microfinance institutions and social enterprises financed by the Foundation.
QUICK ACCESS
The “Quick Access” menu is used to access the projects developed with the Crédit Agricole Group as well as the platform of organizations supported by the Foundation. The platform maps out all the partners and devotes a file to each organization supported to highlight their action and impact. It was carried out with the financial support of CA Life Insurance Europe (CALIE), which chose the Foundation as the beneficiary project for its 20th anniversary.
This is website for all of you: directors, the Grameen network, Regional Banks and Crédit Agricole entities, donors, technical partners, supported organizations, etc. It is also a token of our appreciation.

[Interview] The FIR promotes the values at the very heart of CA Normandie Seine
Interview with Nicolas Denis, CEO, CA Normandie-Seine

Launched by the Grameen Crédit Agricole Foundation, the Fund for Inclusive Finance in Rural Areas (FIR) enables the entities of the Crédit Agricole Group to invest in microfinance and social entrepreneurship in emerging countries. The Caisse Régionale Normandie-Seine, which contributes €500,000 to the fund, sees it as a responsible approach in line with the actions it pursues in its region.
– What objectives does your Bank pursue by investing in the Fund for Inclusive Finance in Rural Areas?
Nicolas Denis, General Manager of Agricole Normandie-Seine: The values of social responsibility are at the very heart of our Regional Bank’s corporate project – they are in our DNA. It is natural for us to join the FIR supported by the Grameen Crédit Agricole Foundation because it promotes these same values. The expected impact is to fight poverty by opening up access to financial services for rural communities in developing countries. This will further the actions already undertaken by the Regional Bank, for example by supporting and financing responsible businesses such as the ecological oil producer Olvea, the manufacturer of sustainable acacia gum Nexira, or the scheme for the prevention of malnutrition in rural areas Nutriceps.
– How do you see these new investments with a social impact?
As a Regional Bank our economic action makes a full contribution to the social life of the regions. We play a guidance and support role in many initiatives with beneficial effects at the local level. Microfinance and social and responsible entrepreneurship are realities whose development we support. Our Bank supports ADIE, a specialist in entrepreneurial microcredit, the Réseau Entreprendre [Enterprise Network] and the Plateformes d’Initiatives Locales [Local Initiative Platforms] for loans on trust. We also take part in Plateformes de financements Participatifs [Participatory Financing Platforms] such as Tubigo, Babyloan and Miimosa. In addition, we are also present alongside the AFDI in Normandy, an organization that forges links between French agricultural professionals and projects in Cambodia and Mali in particular.
– Do these models represent hope? A future?
What strikes me personally is the extent to which these models abound and are promising. When put in practice, crowdfunding and microcredit turn out to be much more than new ways of financing. They are also excellent vehicles for information and social integration through projects which bring the offer and the public closer together more rapidly. In addition to the FIR, this year we are supporting the Femmes & Challenges Fund, intended for women entrepreneurs endeavouring for gender equality. We see it every day: in direct contact with the real economy and society, these approaches are powerful tools for a positive social transformation.
Source: Integrated Report 2019, Grameen Crédit Agricole Foundation. Dowload it here

New signatories to protect microfinance from the Covid-19’s economic effects
In response to the health and economic crisis caused by the Covid-19, a group of lenders, platforms and key players of the inclusive financial sector committed to a common pledge: “Key principles to protect microfinance institutions and their clients in the Covid-19 crisis”. Initiated by the Grameen Crédit Agricole Foundation, this pledge was built in consensus between all original signatories. The objective is to protect both the microfinance institutions and their clients to ensure the continued access to funding in the best possible conditions and to look out for clients’ and staff well-being.
The pledge aims to guide stakeholders to better support microfinance institutions and vulnerable clients during this crisis. The main principles of the pledge are the pooling of available information, analyses and anticipations, as well as the concerted implementation of shared decisions. The signatories agree to coordinate policies, technical assistance and resources to help microfinance institutions in this unprecedented crisis.
Since its publication in May, six new organizations have signed the pledge. This initiative now counts 26 signatories active in Africa, Asia, Eastern Europe and Latin America: ADA, Alterfin, Azerbaijan Micro-finance Association, Bamboo Capital Partners, CERISE, CIDR Pamiga, Cordaid Investment Management, Crédit Agricole CIB India, CA Indosuez Wealth (Asset Management), Crédit Agricole S.A., European Microfinance Network, FS Impact Finance, GAWA Capital, Grameen Crédit Agricole Foundation, InFiNe.lu, Inpulse, Kiva, Luxembourg Microfinance And Development Fund, MCE Social Capital, Microfinance African Institutions Network, Microfinance Centre, Rabo Foundation, SIDI, SIMA, Social Performance Task Force and Whole Planet Foundation.
The signatories welcome additional stakeholders to join this common initiative. The coordination of efforts to support microfinance institutions’ actions is essential to overcome this crisis.

Microfinance institutions’ responsible approach to the effects of Covid-19
By Grameen Credit Agricole Foundation
Last April, Africa’s Pulse, an analysis published by the World Bank Group, estimated that economic growth in sub-Saharan Africa would fall from +2.4% to a level between -2.1% and -5.1%, which would constitute the first recession in the region in 25 years. This recession is expected to hit countries dependent on mining and oil exports, while countries without natural resources are expected to post slower but positive growth.
In permanent contact with its network of 80 partner microfinance institutions (MFIs) and social enterprises in 40 countries, the Grameen Crédit Agricole Foundation is continuing its work of collecting information, analysing and sharing its observations. The privileged testimonials of our partners enable us to continue our monitoring of the crisis and its consequences. In this last questionnaire we focused on two particular aspects: the operational adaptations of MFIs and the role of loan officers during this crisis.
In summary
The economic crisis has become a reality for the vast majority of microfinance institutions supported by the Grameen Crédit Agricole Foundation. Almost all of them have implemented massive maturity extension programmes to facilitate the economic recovery of their borrowers.
The loan officers of these institutions are the privileged point of contact between clients and microfinance institutions. They spend almost half of their working time studying requests for loan maturity extensions and implementing such extensions.
The institutions were quick to adopt programmes intended to reduce their costs while ensuring the social protection of their employees and safeguarding jobs. Only 12% of them have resorted to economic redundancies, which is relatively low compared to national averages. On the other hand, the institutions are postponing their recruitment programmes as well as a large part of their investments. They also seem to be seeking to direct their funding towards sectors that are now considered less risky. This is particularly the case in agriculture, in what is a recent phenomenon.
It remains to be confirmed and will be followed up closely in our next news items.By looking proactively for bulwarks against the crisis and by adopting responsible approaches, MFIs are on the right track: today’s innovative solutions can be tomorrow’s successes as well.
Institutions are henceforth focusing on risk management
Whereas the health crisis seems to be slowing down in the countries that have adopted the most effective measures, the plans for exiting from the lockdown point to a very gradual recovery in economic activity. Our latest results confirm what we have been observing for several weeks: a remarkable adaptability on the part of microfinance institutions in the face of an unprecedented crisis.
Nearly 90% of the institutions have set up a crisis committee, chaired by the Chief Executive Officer and bringing together the management committee, to steer the various decisions and deal with the effects of the crisis. This committee usually meets every week.
“[We created] a “Crisis Management Team” composed of the Executive Committee members and supported by the Chairperson of the Board whenever required. [We have] weekly meeting with the Board of Directors to update on the situation and validate the main decisions”– Partner in Myanmar
The effects of the crisis are now being felt by 81% of the partners surveyed, who report an increase in risks to their customer portfolio. The efforts of microfinance institutions are now focused mainly on responding to this challenge, to the detriment of other activities that are currently considered less essential (nearly one out of two were providing this type of service at the beginning of April, compared to one in three today). Intended to provide non-financial services (awareness and information campaigns, provision of equipment, etc.) this reduction in activity has fuelled strong growth in activities dedicated to credit restructuring.
“To support our clients during the coming months, proposition of suspension of principal and interests instalments to all customers that were not in PAR as of March 1st. To date, 75% of the customers called have accepted. The process will continue.” – Partner in Ivory Coast
Institutions are adapting on the financial and economic activity fronts
The table below shows the progression of the difficulties encountered and the mitigation measures implemented to address them.
On the financial front
Against this background, the volatility of currencies is weighing heavily on the treasuries of institutions: 64% of respondents outside the CFA Franc zone are thus faced with a strong devaluation of their local currency against the dollar. This devaluation has a direct impact on institutions that have taken on debt in that currency since the vast majority of them receive microcredit interest in local currency.
“The situation is becoming even worse with significant KGS devaluation over the last months, contributing to increase the hedging cost” – Partner in Kirgizstan
The information provided by our partners in this survey also confirms the quasi-mandatory measures taken by MFIs during the crisis: 67% of the MFIs surveyed have reduced or stopped microcredit disbursements. In the same proportion, institutions have started to restructure loans to small borrowers on a massive scale by granting maturity extensions of 3 months on average. These moratorium periods constitute a truly essential element of crisis management at all levels. Whether mandated by local regulators or proposed spontaneously by the MFIs, they enable borrowers to benefit from a reduction in charges before resuming their activities. Similarly, the many processes of maturity extensions for investors enable the MFIs to retain valuable liquidity in a period of uncertainty. The Grameen Crédit Agricole Foundation consequently granted numerous maturity extensions in April, in full and effective consultation with other lenders.
For all that, the crisis has not affected MFIs’ proactivity, but is encouraging them to adapt. To do so, some are looking for more resilient sectors in the current economic crisis. For example, we have noted that 40% of institutions are considering turning to the agricultural sector — a sector that has been rather neglected because it was considered riskier before the crisis. This point will be followed up in particular in the next questionnaires as this percentage seems to us to mark a notable change in attitude. This new direction is being considered by more than half of the MFIs whose agricultural loans do not exceed one third of their portfolio, but also by very rural and agricultural MFIs. It is still too early to say, but the current crisis could encourage institutions to discover traditionally neglected sectors.
“[We] move ahead with plans on Rural & Agriculture Finance” – Partner in Sierra Leone
On the economic activity front
As to economic activity, the difficulties in moving teams around are diminishing somewhat: 55% had difficulties in May, compared with nearly 80% in April. Conversely, group meetings are still banned, and such prohibitions are on the increase, which penalizes the relationship processes of the institutions, especially with clients who have no alternative to solidarity loans.
“Group meeting was weekly or bi-weekly for repayments and social network. Without group meeting you cannot enforce the repayment any more”. – Partner in Kenya
In social terms, only 12% of those surveyed have had to part with employees since the beginning of the crisis, which is quite low, however, compared to the national average growth in unemployment figures. Our partners seem to follow the first principle set up by SPTF (1) “Keep staff employed” according to which “today’s employees will be tomorrow’s assets”. For a large number of our partners, parting with employees in critical times seems to be more of a loss than a slight short-term economic gain. On the other hand, expectations are already weighing on the growth and development projects of our partners since almost one institution in two has put these ongoing recruitment projects on hold. This uncertainty weighs also on organisational projects, with 41% of the MFIs surveyed having decided to postpone this type of internal project.
The protection of staff is always a point of vigilance with 90% of the MFIs that continue to provide them with significant resources and remind them of barrier gestures. Since the beginning of the crisis, our partners have taken quick decisions to reduce the weight of their fixed costs and limit the risk of exposure to the health crisis: mandatory paid holidays (52%), teleworking (62%), team rotation, reduced working hours (57%) and reduced branch opening hours (52%). The level of progress in internal digitization in some institutions has favoured these organizational changes. This is particularly the case for our partners in Europe and Central Asia, who benefit from numerous electronic and online tools.
“Most of us from the head office have been working distantly, thanks to our proper remote IT system which enables all the departments continue smooth working.” – Partner in Georgia
The current crisis, which, as we have seen, limits the “business as usual” capacities of MFIs, has led us to explore how to adapt the job of loan officer, which is at the heart of the microfinance business. Certain tasks remain the same, particularly for MFIs in the least affected countries: loan disbursement (43%), repayment monitoring (38%) or client file analysis (43%).
The restructuring of loans in progress is taking an increasingly important place in the daily life of loan officers (43%), with the encouragement to use mobile payments (36%) and the drafting of amendments relating to maturity extensions (31%).
Just as in the retail banking sector, where the client officer has clearly demonstrated its importance in times of crisis, the loan officers of microfinance institutions are the privileged link for clients. 81% of respondents say that the key role of loan officers is to maintain contact with clients and/or credit group leaders.
“[We] maintain contact with all individual clients, group leaders and Village Bank Presidents through digital and phone channels.” – Partner in Zambia
“Strengthening client interaction by (smart) phone or other digital devices and collecting through group leader where possible.” – International MFI network
This essential and massive approach is to be favoured all the more as it is recognized by the Social Performance Task Force (SPTF) in its crisis management principles as being essential in times of client fragility. It is also worth noting that 33% of the MFIs have initiated surveys of their clients to gain a better understanding of their needs and propose adapted offers and services. For nearly half of the MFIs (43%), the advisors also play the role of “health advisor” by reminding them of good hygiene measures, which is the case in West Africa and Europe in particular.
”One of the best investments you can make right now is to maintain close contact with your customers. Many can’t make payments, but they are valuable assets just the same.” – SPTF
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(1) STPF is a non-profit association that engages with stakeholders from the inclusive finance sector to develop and promote standards and good practices in social performance management.

Crédit Agricole and Dai-ichi Life partner to support microfinance and gender finance

May 14, 2020. Of the 1.7 billion adults worldwide who are unbanked, women are overrepresented: about 980 million do not have an account, 56% of the world’s unbanked (World Bank). That is the target population of the microfinance sector, which provides a set of financial products and services to people excluded from the banking system.
To support the development of microfinance and gender finance, the Dai-ichi Life Insurance Company Limited, Crédit Agricole CIB, Tokyo Branch, and the Grameen Crédit Agricole Foundation have set up an innovative scheme. The Dai-ichi Life Insurance Company has invested 2 billion Yen in a 10-year Microfinance and Gender Loan scheme by Crédit Agricole CIB, which will benefit the Grameen Crédit Agricole Foundation to support microfinance institutions focusing in women and social enterprises in rural economies of developing countries.
This is the first ever Microfinance and Gender Loan scheme arranged by the Crédit Agricole Group. “This one of a kind transaction is a perfect illustration of the ambitions of the Group’s Project 2022. It reaffirms our customer-focused model and our efforts to provide innovative solutions to our Asian clients, while strengthening our commitment to responsible investment”, says Michel Roy, Senior Regional Officer for Asia-Pacific of Crédit Agricole CIB.
With this partnership, Dai-ichi Life Insurance Company reinforces its commitment to high social impact investments. “We are honored to financially support the Grameen Crédit Agricole Foundation and its action in favour of women financial inclusion and entrepreneurship in developing countries. As a responsible institutional investor, Dai-ichi Life will continue an active engagement in ESG investment and contribute to forming sustainable social framework around the world”, affirms Tetsuya Kikuta, Director, Managing Executive Officer of the company.
For the Foundation, it is a great opportunity to strengthen its action in developing countries. “Alongside Crédit Agricole CIB and Dai-ichi Life, we will step up our support for women empowerment through microfinance and female entrepreneurship. It is a real pride for the Foundation to be part of this innovative and unique partnership in the history of the Crédit Agricole Group”, says Eric Campos, CEO of the Grameen Crédit Agricole Foundation.

An international coalition to protect microfinance institutions and their clients in the Covid-19 crisis
By the Grameen Credit Agricole Foundation

At the initiative of Grameen Crédit Agricole Foundation, a group of microfinance lenders and key players in inclusive finance worked on a set of principles to better support the microfinance sector in the health and economic crisis caused by the Covid-19. Grameen Crédit Agricole Foundation, ADA, Alterfin, Cerise, CIDR Pamiga, Cordaid Investment Management, Crédit Agricole CIB India, CA Indosuez Wealth (Asset Management), Crédit Agricole S.A., European Microfinance Network, FS Impact Finance, InFiNe.lu, Inpulse, Luxembourg Microfinance And Development Fund, MCE Social Capital, Microfinance Centre, Rabo Foundation, SIDI, SIMA and Social Performance Task Force are the first signatories of a common pledge that aims to support microfinance institutions and fragile clienteles during this crisis.
Worldwide, microfinance institutions provide financial and non-financial products and services to over 140 million low-income clients [1]. Microfinance is key to finance income-generating activities, not only in the formal but also in the informal sector. In the Covid-19 crisis, both micro-enterprises in the informal economy and small businesses overall form an essential basis for social and economic recovery. Supporting microfinance institutions in this context is therefore of vital importance to protect the most vulnerable borrowers.
In response, this group took on the challenge and established a common pledge: “Key principles to protect microfinance institutions and their clients in the Covid-19 crisis”. It aims to guide lenders and other stakeholders to better support microfinance institutions and fragile clienteles during this crisis. It is inspired by best practices and tools of the microfinance sector, such as the work done by the Social Performance Task Force [2] and the IAMFI Microfinance Voluntary Debt Workout Principles [3].
In this pledge, the pooling of available information, analyses and anticipations, as well as the concerted implementation of shared decisions are the fundamental principles. The signatories agree to coordinate policies, technical assistance and resources to help microfinance institutions face the crisis. The objective is to protect both the microfinance institutions and their clients to ensure the continued access to funding in the best possible conditions and to look out for clients’ and staff well-being.
As individual obligations and mandates may influence the way the provisions of the pledge are implemented, it is not intended as a legally binding agreement. This is not a frozen document; it could be improved if necessary to better respond to the evolution of the crisis. The pledge’s signatories will maintain open communication with their peers, to share their decisions and to comply with these principles.
The signatories welcome additional stakeholders to join this common and engaged initiative. The involvement of private, public and solidarity players is key in the global assessment and support to the microfinance institutions’ actions. It is essential to reinforce the impact of financial inclusion to fight poverty in this unprecedented context.
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[1] Microfinance Barometer 2019
[2] //sptf.info/resources/covid19
[3] Charting the Course: Best Practices and Tools for Voluntary Debt Restructurings in Microfinance, IAMFI, Morgan Stanley, 2011. The document is available on Findev Gateway

[Interview] CA Centre-est reinforces its support to the Solidarity Cents operation
Interview with Aurélie Bellemin, Director, Fondation Solidarités by CA Centre-est

The Solidarity Cents operation is taking off within the Crédit Agricole Group. After a successful inaugural edition in 2018 on the Montrouge and Saint-Quentin campuses, the new edition was held from 18 to 22 November 2019. Organized by the Grameen Crédit Agricole Foundation, Crédit Agricole SA and Crédit Agricole Centre-Est, the operation has changed scale and has been extended to the three company canteens of the Crédit Agricole Centre-Est: Lyon-Champagne-au-Mont-d’Or, Bourg-en-Bresse and Mâcon.
With more than €8,600 collected at all the sites, the funds will finance the ICI d’Entrepreneurs du Monde [Incubation – Creation – Inclusion project of Entrepreneurs of the World] which guides and supports entrepreneurship projects carried out by refugees, single parents and homeless people.
— What is the Solidarity Cents operation?
Aurélie Bellemin, General Manager: It is a great collective adventure at Crédit Agricole to finance projects with a social impact. Employees at 5 sites of the Group can, if they wish, make a donation of 50 cents (or more!) when they pay for their meals at the canteens. The warm welcome extended to the initiative in 2018 in Montrouge and Saint-Quentin encouraged Crédit Agricole Centre-Est to join the operation and organize it on our three sites in 2019.
— How would you sum up this edition?
The generosity of our employees, our service provider and the Regional Bank enabled us to collect €1360, supplemented by additional financing from the regional bank. Solidarity Cents is an action that disseminates the Crédit Agricole’s mutual assistance spirit. Employees participate and feel concerned about the concrete effects of the operation.
— What exactly are the funds collected used for?
For the second year, we are donating the funds collected by the NGO Entrepreneurs du Monde to finance its project Incubation, Creation, Inclusion (ICI) – a programme aimed at helping vulnerable people get integrated through the creation of micro-enterprises. The beneficiaries are trained and supported by volunteers and experts to give concrete form to professional projects, with an emphasis on digitization on the one hand and sustainable catering on the other. Some forty training schemes have already been financed thanks to the donations made in 2018.
— Do you have examples of beneficiaries?
Yes, when the operation was launched in November, Crédit Agricole employees from Montrouge and Lyon met Rania, supported by Solidarity Cents, who came to present the entrepreneurial project she has created. Rania is a Syrian refugee who has managed to launch her catering business based on Syrian specialities, thanks to guidance and support from the Entrepreneurs du Monde. This type of meeting helps to change the way we look at refugees and to understand that there are inspiring human destinies that transcend preconceived notions.
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Source: Integrated Report 2019, Grameen Crédit Agricole Foundation. Dowload it here

[Interview] Palmis Enèji: For clean and accessible energy in Haiti
Interview with Jean-Farreau Guerrier, Coordinator, Entrepreneurs du Monde Haiti

– Tell us about Palmis Enèji. How is this social enterprise adapted in Haiti?
Jean-Farreau Guerrier, coordinator: Palmis Enèji is a Haitian social enterprise that specializes in the distribution and maintenance of clean cooking and lighting equipment for the most disadvantaged households in Haiti. The situation is critical in our country, so action is needed. Already one of the poorest countries on the planet, Haiti is going through a crisis that is severely affecting its population. Street demonstrations are frequent, the security situation is deteriorating, and some areas are completely inaccessible. Hit by an inflation rate of nearly 20%, households are losing purchasing power, 62% of them remain without access to electricity and up to 85% are in rural areas. As a result, families use candles or kerosene for lighting and charcoal for cooking. With its stoves and solar lamps, Palmis Enèji offers solutions to replace these rudimentary methods.
–What are the socio-economic impacts of your actions?
Thanks to partnerships with microfinance institutions, Palmis Enèji provides financing solutions that facilitate the acquisition of equipment. Many households and professionals are thus switching to cooking using LPG, which is far less harmful than charcoal cooking. The poorest families in rural areas have practically no access to LPG, so they use our improved charcoal stoves, which consume 20% to 30% less than traditional stoves. Our solar lamps also provide them with lighting, which is healthier and more comfortable than candles. These solutions enable the poorest families to save money while reducing their ecological footprint: we estimate that we have helped save over 153,000 tonnes of forest timber and reduced harmful CO2 emissions by more than 203,000 tonnes. Finally, Palmis Enèji supports economic activity with a network of franchised micro-businesses. As one of our resellers aptly summarized the social utility: “I am proud to see light shining in our families.”
– What upcoming developments do you foresee?
We are pursuing the strong objective of making devices, which are beneficial to health and to the environment, accessible to everyone in every village. To that end, we are prioritizing three projects: access to LPG through distribution centres in the centre of the country and in the Grande-Anse department; the development of the after-sales service and diversification of our product range; and the expansion of our partner network.
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Source: Integrated Report 2019, Grameen Crédit Agricole Foundation. Download it here

[Interview] CA Val de France supports a Solidarity bankers mission in Cambodia
Interview with Laurence Lebrun-Renoult, General Manager, CA Val de France

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA, Banquiers solidaires [Solidarity Bankers] is a skills volunteer programme that offers Group employees technical assistance assignments with organizations supported by the Foundation. In 2019, the Caisse Régionale Val de France supported a Solidarity Banker assignment in Cambodia. Dominique Rombczyk, a risk analyst with the Regional Bank went to Cambodia on a 10-day “financial management” assignment in September for Cirque Phare (PPSE), a social business in which the Foundation is a shareholder.
– What motivated your Bank to take part in the Solidarity Bankers programme?
When one of our employees took the initiative to apply for a Solidarity Banker assignment, our Bank naturally supported his request and granted him a week of skill-based sponsorship. Dominique Rombczyk was thus able to bring his skills to bear in the financial management of the Cirque Phare (PPSE). PPSE is a Cambodian social business which promotes the social integration and empowerment of young people through the arts and culture. It is a source of pride for us, because this approach is fully in line with our guidance and support values.
– What feedback do you get from this experience?
Solidarity Bankers is one of those programmes that make us more sensitive to the social consequences of our banking activities. It is making a difference for a sustainable vision of finance in both theory and practice. The initiative carried out by our employee enabled us to share and disseminate in our Bank the human qualities of openness and commitment which we promote. In addition to communication at Group level, his experience made headlines in internal communications, for instance. Fur us bankers, knowing how to mobilize our skills in the service of others, opening up and adapting to a different context and to different issues are soft skills that must be part and parcel of our line of business.
– What other actions does your Regional Bank take to promote social inclusion?
Social cohesion in regions is a strategic priority for a Regional Bank such as ours. The Crédit Agricole Foundation – Val De France is pursuing initiatives in favour of local or regional associations endeavouring for the inclusion of young people on the one hand and for intergenerational support on the other. We provide skills-based sponsorship for these associations on a voluntary basis, following the same model as the Solidarity Banker assignments. For example, we are launching a youth training project for which all the expertise of our staff is welcome for support assignments: assistance for financial management, leadership, advice, etc. We also work with young people to support isolated, often elderly persons, which fosters the inter-generational dialogue. This effort as a whole is part of a broader approach aimed at promoting the socio-economic autonomy of populations.
Source: Integrated Report 2019, Grameen Crédit Agricole Foundation. Dowload it here

[Interview] “With the FIR, CA Centre-France opens-up to microfinance”
Interview with Jean-Christophe Kiren, CEO, CA Centre-France

Reserved for the Regional Banks and the entities of the Crédit Agricole Group, the Fund for Inclusive Finance in Rural Areas (FIR), supported by the Grameen Crédit Agricole Fund, is used to invest in microfinance in emerging countries. Crédit Agricole Centre France subscribes thereto for an investment of €700,000 and reinforces its mission as a bank that promotes economic inclusion.
– What is your Bank’s approach to investing in the Fund for Inclusive Finance in Rural Areas?
The new fund open to the Regional Banks is fully in line with our mutual assistance and cooperative action. First of all, its general mission, i.e. to promote economic and social inclusion in rural areas, already requires our undivided attention at Crédit Agricole Centre France, given the specific rural features of our regions in Auvergne and Limousin. Secondly, I was particularly touched by the issue of the financial empowerment of women, which the FIR is intent on strengthening. Finally, this cooperation is an opportunity for the Regional Bank to open up to microfinance by drawing on the expertise of the Grameen Crédit Agricole Foundation and to develop new tools to serve the territories.
– Which actions on financial inclusion and entrepreneurship with an impact does the Regional Bank pursue in the region?
The entire Regional Bank – elected representatives and salaried employees – is committed to and takes part in actions with a social impact. It carries out many operations ranging from initiatives led by the Crédit Agricole Foundation – Centre France to equity investments in social enterprises. In this respect, the Regional Bank has a broad banking organization to support projects with a strong social impact. Furthermore, I would like to see the Regional Bank endowed with a €2 million fund by the end of 2019 to support projects that promote inclusion. There are plans to have some of the financed projects identified directly by employees so as to involve the teams.
– How do you see these new inclusive and responsible approaches?
We are bankers… but not just bankers. We are also men and women committed to the life in the regions, driven by the cooperative and mutual assistance values of Crédit Agricole. The investment of Crédit Agricole Centre France in the FIR supported by the Grameen Crédit Agricole Foundation is fully in line with this spirit. Mutual aid, sharing, and solidarity are commitments for the benefit of all.
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Source: Integrated Report 2019, Grameen Crédit Agricole Foundation. Dowload it here

The Foundation publishes the Newsletter #35
The Grameen Credit Agricole Foundation publishes its Newsletter #35, marked by the crisis linked to the Coronavirus that continues to expand and intensify. The Foundation, in permanent contact with its network of 75 partner microfinance institutions (MFIs) in 40 countries, has undertaken since early March information gathering, analysis and sharing of its observations. This information is very important. It allows us, at our level, to take the most relevant decisions for the Foundation’s management, the support of our partners and the effectiveness of our action in line with their difficulties and expectations.
The economic crisis is expected to be hard, undoubtedly beyond our first forecasts in early March, but the institutions are preparing to face its effects. No stress model had anticipated it. The answer must therefore be systemic if we want to avoid a major failure in this sector.
To do so, donors organise their action by adapting funding plans but also by offering monitoring tools, technical assistance plans or training to strengthen the capacities of MFI teams to deal with this sudden and exceptional situation. All of these elements remind us how this crisis concerns all microfinance stakeholders. The involvement and rigor of local institutions, the coordination of international networks, the support of public and private donors and the confidence of investors will be the key values of our collective capacity to overcome the challenge presented by this health tsunami.

The Grameen Crédit Agricole Foundation publishes its 2019 Integrated Report

For the third consecutive year, the Foundation experienced dynamic growth in its activity: the outstanding portfolio reached 96 million euros in favor of 75 microfinance institutions and 12 social enterprises in 39 countries. Women’s entrepreneurship and the development of rural economies are at the heart of the Foundation’s action: 85% of the clients of the institutions funded are women and 78% live in rural areas.
Stronger partnerships
In 2019, the Foundation reaffirmed its position as a lever for the Crédit Agricole Group to promote inclusive finance. Already working closely with Crédit du Maroc and Crédit Agricole Egypt, the Foundation has partnered with Crédit Agricole CIB in India to support Indian microfinance institutions. The Fund for Inclusive Finance in Rural Areas (FIR) brought together no less than 21 Regional Banks, as well as Amundi and Crédit Agricole Assurances. Furthermore, Solidarity bankers, Crédit Agricole’s skills volunteering programme for Crédit Agricole programme on behalf of the Foundation’s partners, celebrated a first year of success: since the launch of the programme in 2018, 13 missions were launched, for a total of 123 days of Solidarity bankers’ missions.
Last year, the Foundation also developed numerous projects with institutional and technical partners. The programme with Agence Française de Développement (AFD) [French Development Agency] is in its second phase and supports 22 microfinance institutions in Sub-Saharan Africa. The Foundation also received a loan from the European Investment Bank for an amount of 12 million euros equivalent in CFA francs and funding to develop a technical assistance programme to support microfinance in West Africa.
In 2020, the Foundation will continue to work with its partners to support impact entrepreneurship and financial inclusion. Faced with the Covid-19 crisis, the Foundation is organizing its action with other donors, by adapting funding and technical assistance plans to strengthen the capacities of the organisations supported. 2020 will be a milestone year and the Foundation will continue to contribute to the fight against poverty, with ambition and commitment.

Travel diary of a Solidarity Banker in Cambodia
By Dominique Rombczyk, CA Val de France

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in June 2018, Solidarity Bankers is a skills volunteering programme aimed at all Crédit Agricole group employees for the benefit of microfinance institutions or impact businesses supported by the Foundation. Discover the article written by Dominique Rombczyk, Solidarity banker of CA Val de France, who travelled in 2019 to Cambodia to support Phare Performing Social Enterprise (PPSE), a social enterprise in which the Foundation is a shareholder.
When I discovered the Solidarity Bankers programme, I remember looking for as much information as possible on the Grameen Crédit Agricole Foundation as well as on Professor Yunus, on inclusive finance, on social entrepreneurship … All well-known notions, shared values but which seemed to be part of another world. The opportunity offered by Crédit Agricole and the Foundation to step into this world was too exciting to be overlooked.
I therefore decided to apply and was selected to carry out the Solidarity Bankers mission with Phare Circus (PPSE), a social enterprise that aims at promoting social inclusion and the empowerment of young Cambodians through art. The objectives of the mission were to identify the roles of the financial and managerial team, to train and propose a training plan on management concepts and financial strategy, and to propose monitoring and financial management tools.
The preparation phase was essential. After initial discussions with the Grameen Crédit Agricole Foundation team, there was quite a reading of PPSE presentation documents, financial data and general information to better understand the mission. In the weeks prior to the departure, several meetings took place with the Foundation and the enterprise to finalise the planning of the mission. Telephone exchanges allowed me to feel the enthusiastic state of mind of all interested parties.
A fascinating field mission
The departure for the 15-day field mission in Cambodia took place on September 7, 2019 with Hélène Kéraudren-Baubé, Administrative and Financial Director of the Foundation. The Managing Director of PPSE himself came to greet us at the airport, along with his family, creating a very familiar atmosphere that lasted during our whole stay there.
During the first four days of the mission, we had several meetings with the Managing Director and the heads of departments to analyse the functioning and organisation of PPSE in order to reflect together on ways for optimising the structure. The presence of Ms. Keraudren-Baubé during the first days of the mission was a true added value for proposing a relevant strategy planning for PPSE.
We also had the chance to attend the show offered by Phare Circus. A show mixing theatre, folk music and Cambodian stories. The incredible performance of young artists from difficult social and economic backgrounds was one of the highlights of my mission.
The second part of the mission was mainly based on the training of the Financial Unit teams. There were training sessions in the field of accounting, analysis and financial strategy, that helped consolidate, within the PPSE financial team, certain concepts. These trainings also allowed detecting training needs and thus helping to develop a training plan that the institution will be able to implement later.
Back in France
After the return from the mission, many projects were under way. The training plan, the strategic planning project, the drafting of a support for financial communication with the PPSE Board of Directors, the implementation of a financial monitoring tool … Several weeks after the return, I sent my final report to PPSE. Interactions in the meantime have been positive, and elements established during the mission are already being used and implemented.
I am back in France with the joy of having been able to share the daily life of so many passionate, enthusiastic and brilliant people within the Grameen Crédit Agricole Foundation and PPSE. This mission allowed me to experience from the inside the functioning of a social enterprise and the beautiful dynamic that animates these structures. The idea of living this daily is extremely tempting.
A sense of pride also exists: that of being part of a Group that acts concretely, on the ground, with commitment, to promote social values.
Incidentally, but it is worth mentioning, the visit of the Angkor Wat temple, an emblematic place of Cambodia (which appears on its flag), can only leave an indelible mark on all visitors who go there.
Newsletter #35 to download here

The dairy sector favours the emergence of territorial dynamics in Northern Senegal
Interview with Bagoré Bathily, Founder and CEO, Laiterie du Berger

A committed player to the professionalization of the dairy sector, from its dairy factory located in the Saint-Louis region in northern Senegal, Laiterie du Berger is based on a local supply organisation considered a model in Sahelian Africa. A social impact company in which the Foundation is a shareholder, it continues to flourish thanks to the implementation of its subsidiary Kossam SDE, a livestock development company. This is an interview with Bagoré Bathily, Founder, Chairmain and CEO of Laiterie du Berger.
– You created Kossam SDE, a subsidiary of Laiterie du Berger. What is it?
Bagoré Bathily, CEO of Laiterie du Berger: The Kossam project started in 2017 with a Solidarity Bankers mission, a a skills volunteering programme of Crédit Agricole, carried out by Jonathan Michaud, an agricultural engineer from Crédit Agricole Franche-Comté, who today heads Kossam.
The objective of Kossam is to strengthen and structure the dairy sector in Northern Senegal. It operates through fifteen mini-farms that test and make the model more reliable.
– What exactly are these mini-farms? What is their impact on the region?
They are pools of dairy specialisation. In practical terms, farmers place the best milk-producing cows of their herds in the stables at any time of the year. Kossam provides them with the best production conditions in terms of feeding, watering, reproduction monitoring, advice.
These actions give coherence to the sector, enhance the sector and slow down transhumance. The sector is getting organised and becoming more attractive. Young people get involved, train in new professions, gain responsibilities. It also has an impact on families. Thanks to the income from dairy farming, they settle down, improve their living conditions, and send children to school. Around Kossam, an entire territorial dynamism is being established.
– With Kossam, Laiterie du Berger expands its scope of expertise. What balance and prospects do you draw from the Senegalese dairy sector?
Today, our local milk production level has reached industrial levels. With higher income prospects, the industry is now structured and our social entrepreneurship model continues to demonstrate its effectiveness. We have found outlets for our products in the Dakar region. When it was launched ten years ago, Laiterie du Berger had a turnover of € 30,000. Now it reaches € 10 million. We plan to reach 2,000 families by 2022 and deploy 100 mini-farms nationwide. Each progress represents a new challenge!
– Laiterie du Berger benefits from the support of the Grameen Crédit Agricole Foundation, Crédit Agricole Franche-Comté and Amundi. How important are your partners?
Laiterie du Berger and Kossam are companies based on the social impact entrepreneurship model, one for the production and distribution of dairy products, the other for the raising of livestock and milk production. Our model goes hand in hand with a culture of alliance and cooperation. All of our stakeholders commit themselves with mutual understanding: local communities, farmers, financial partners. We all work with the same objective: allow Fulani breeders in the sahelian zone, who represent more than half of the population, to make a living of their activity. This is essential to the stability of the region.
What are the next steps for Laiterie and Kossam?
Kossam received a USD.5 million grant from Mastercard Foundation. It will help speed up the dairy’s activity and generate over 5,000 jobs in the dairy sector in Senegal. The grant will be used to increase milk collection to 4,000 tonnes and to capitalise on the restructuring of the collection system.
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Solidarity Bankers: Discover the video testimony of Haoly Basse, Solidarity Banker of Crédit Agricole CIB, who travelled to Senegal to support Kossam for the implementation of a digital application.

Digital and microfinance sector in the face of the health crisis
By Grameen Credit Agricole Foundation
The deployment of an ad hoc observatory to monitor the effects of the health crisis in relation to 80 microfinance institutions (MFIs) and social business partners in some forty emerging countries enables us to collect information regularly so as to share it and draw the best lessons from it.
This week we have monitored more specifically how microfinance institutions used their digital channels to overcome their difficulty of direct contact with borrowers which traditionally takes place either in the MFI branch or in group meetings or even during the disbursement of funds (microfinance uses mostly cash when disbursing the borrowed sums) or the monitoring of the projects financed.
According to the survey we conducted in the beginning of April, 68% of partner microfinance institutions indicated that they have made greater use of digital channels to overcome contact difficulties, as a result of lockdown or group gathering prohibition measures. This strong growth in use observed in the traditional finance sector can be seen also in the microfinance sector which has had no alternative but to adapt.
The technological means and processes, including digital tools, are being developed rapidly by institutions of all sizes (the smallest with client portfolios of up to $10 million, and the largest well over $100 million). Since the beginning of the crisis, institutions have been producing business continuity plans, as the basis of new discussions and exchanges for their funding backers, in which they frequently include new digital applications.
For most institutions, the first step entails raising awareness among clients about the possibility of using remote payment methods. This step is implemented through SMSs (which are particularly suitable for 2G network coverage) but also through the social media – the telephone network permitting.
“[We] encourage clients through SMSs to utilize mobile money platforms for repayments as it is the safest mode at the moment.” – Partner in Uganda
”[We] start informing our clients by social media and SMS on possibility of repayment via terminals, mobile wallets, plastic cards and Internet banking” – Partner in Tajikistan
For many MFIs which did not yet have it in their range of services, the first process developed rapidly at the beginning of this health crisis was that of electronic money payments. This practice of remote payments is encouraged by many regulators, such as the Bank of Central African States (BEAC) for the countries under its authority or the Central Bank of West African States (BCEAO), which decided to reduce transfer and use fees for this form of currency. This implementation of remote payment is accompanied by mass mailings of information to clients to explain the new procedures.
“Sending bulky texts to customers to remind them how to use the mobile money code to make their loan repayments and also the hotline they can call for help or complaint.” – Partner in Uganda
These remote services enable customers to pay their instalments without having to travel (and therefore to use public transport) by using the pay station network of telephone operators which is generally dense and available even in rural areas.
The implementation of these means of payment also makes it possible to disburse loans to the electronic portfolios of clients, as the latter go to said pay stations not to pay their instalments but to obtain cash disbursements of their microcredits. The use of mobile money therefore makes it possible to continue the financing activity during a lockdown period.
“The Palestine Monetary Authority is urging all MFIs to start disbursing loans to income generating projects through digital channels with lower interest rate.” – Partner in Palestine
Yet, as astonishing as it may sound, this crisis is seen by some institutions as a real opportunity to accelerate the deployment of digital platforms and to launch new services in order to make headway in operational optimization and even excellence in customer relations. For the managers of these partner institutions, having to invest in digital tools for reasons that are “vital” for their institutions at this time seems to be a means of accelerating investment plans that they had been thinking about before the crisis broke out. It thus enables them to embark on modernizing their distribution mode and their processes, which has come as a pleasant surprise to us, even though we are well aware of the vitality and capacity for innovation of our partners.
“This was contemplated prior to the COVID issue […]. However, discussions are ongoing with regard to the possibility of [the mobile payment solution] being launched to all clients.” – Partner in Sri Lanka
“In times like this when anything can be a source of transmission for the deadly virus, it is prudent that less physical cash is handled. [We] used the opportunity to pilot [our platform] in order to look out for the shortfalls and the loopholes in the system.” – Partner in Ghana
The economies of certain countries that were already highly digitized, as is the case in East Africa, for instance, seem to be more resilient to the effects of the crisis. Microfinance institutions operating in these areas have shown remarkable adaptability. By way of example, the Kenyan economy, which is particularly open to payment, financing and investment operations using digital wallets, is running according to remote uses that minimize the risk of spreading the virus.
”Kenya is better prepared than others because of the high penetration of mobile money. The concept is accepted widely by the public” – Partner in Kenya
Many institutions tell us that they will be more structured and more effective in the aftermath of this crisis. These experiences, which are sometimes vital to the continuation of their activities, seem to be very useful to them for operational performance gains in the future.
”Our team will tailor mobile app to add a feature enabling to apply for loan restructuring remotely. […] We introduced a new criterion in our monitoring tool – “emergency (coronavirus)” meaning the loan officers will have to monitor their customers remotely, and get information and enter monitoring data into the software” – Partner in Kazakhstan
“The new strategy will focus on transforming [our] current mode of operations to embrace more digital solutions, decreasing the need for physical interactions between employees and customers, and replacing cash transactions with mobile payment functionalities.” – Partner in Georgia
These positive effects of digitization, which have been achieved by microfinance institutions thanks to forcibly imposed developments can also be found in social enterprises in our equity portfolio. The digitization of the operational processes is a very effective means for combatting the constraints of the lockdown for companies that have to deal directly with the public or with suppliers of raw materials. This is the case, for instance, of a Senegalese company which, thanks to digital payments, has managed to continue its milk collection and sale of dairy products and to generate growth that has exceeded the forecasts.
For another social enterprise specializing in drinking water treatment, the health crisis has also led to the development of home water delivery following an order placed online.
Our partners are aware that the use of digital technologies is not a global solution to all the issues raised by this systemic crisis. They expect their customers and their operations to run into economic recovery problems in fact, where the digital dimension can only be of an altogether relative help. Despite the more and more intensive use of digital channels, the commercial activity of microfinance institutions is slowing down. They are all focusing on providing guidance and support to their customers by taking care to cope with the increasing number of requests for maturity extensions, while maintaining risk control and a good operational quality.
In some areas, the supervisory authorities have issued directives or strong recommendations for MFIs to grant moratoria to their clients that could last for several months, which entails a very high level of activity for the institutions.
In the majority of the testimonials we have collected, however, the health crisis is seen as a sequence that requires the different Management Committees of our partners to give serious thought to the operational performance under constraint. Our partners are convinced that the experiences they have gone through and the solutions found to deal with the health crisis will prove very useful “the day after.”
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Discover more articles on: COVID-19 Observatory.

A partnership between the Foundation and CA Romania to support microfinance

“After Egypt, India and Morocco, we are implementing a new cooperation agreement with a Group entity, Crédit Agricole Romania. This partnership fits perfectly within the framework of the Group’s project which integrates the societal dimension, in this case supporting low-income population, at the heart of development activities”, says Eric Campos, Managing Director of the Foundation and Head of CSR of Crédit Agricole SA.
With this partnership, the Foundation strengthens its positioning as one of the sector’s key players in the region, while forging its links with the various entities of the Group.
“Our focus on the Romanian market is to grow our presence in financing the agriculture sector and contribute to economic and social development benefiting from the expertise of our Group. This partnership is a great support in achieving these objectives”, says Luc Beiso, CEO of CA Romania.
The first beneficiary microfinance institution is Vitas Romania, which received a loan of €1.5 million, guaranteed 100% by the Foundation. Founded in 1996 by CHF International, a USA-based international development organisation, Vitas provides financial products and services to support the development of income-generating activities. The institution has 1,970 active borrowers, 45% of whom are women and 45% live in rural areas. It manages a portfolio of over €15.5 million. It operates in Western Romania, with its headquarters in Timisoara, through a network of 9 branches.

International microfinance institutions anticipate the first effects of a recession
By Grameen Credit Agricole Foundation
The crisis is beginning to take its economic toll
A few days after our last publication, the impact of the coronavirus continues to expand and intensify. The milestone of one million infected people worldwide has been passed and new outbreaks of the epidemic are being confirmed.
In constant contact with its network of nearly 80 partner microfinance institutions (MFIs) in 40 countries, the Grameen Crédit Agricole Foundation continues its work of collecting information, analysing and sharing its observations. Over the past few days, we have focused our monitoring efforts on the consequences of the crisis and the work of the MFIs to deal with it. Such information is very important. It enables us to take the most relevant decisions at our level for the management of the Foundation, for the support of our partners and the effectiveness of our action as close as possible to their difficulties and anticipations. It also contributes to the sharing of information by and between the stakeholders of this sector who are getting collectively organized in these times of crisis.
The results we have obtained confirm the trends identified in the information provided in the first weeks: the crisis is very hard, undoubtedly beyond our initial forecasts in early March, but the resistance is being organized. The effect of the health crisis is systemic. No stress model had anticipated it. The response will therefore have to be systemic, too, if we want to avoid a major failure in this sector.
Small-scale outreach activities are sliding into recession
78% of our partners are seeing the first effects of the economic recession on their areas of activity.
In the first feedback we received, rural areas seemed to be escaping the first effects of the crisis, especially in food-producing regions. By now, irrespective of the size of the institutions (the smallest have a financing portfolio of less than $10 million, and the largest over $100 million)) and their geographic location, they are all, more or less, faced with similar problems: the inability to travel (74%), the drop in disbursements to borrowers (77%), and the ban on group meetings (63%) are the reasons most cited by our partners for the slowdown of their activity.
“As indicated in the first analysis, the expected direct impact (up to 6 months) is a possible deterioration in the quality of the portfolio in the tourism, transport and hotel sectors, as well as loans financed by remittances from abroad. A medium-term impact is also expected due to the general slowdown in the economy and the reduction of solvent customers.” – Partner in Georgia
More than a third of our partners are under almost total lockdown (36%) and the rest are adapting to restrictive pre-lockdown measures.
“[Our] activities have been significantly affected so far, with client businesses primarily affected by general public fears and more directly by the strict guidelines implemented by the government in an effort to control the spread of the virus. An increase in the cost of living is also expected […]. Imports are declining, production costs are going up. Kenya’s GDP is likely to fall and inflation will most probably rise, which will affect the country’s economy.” – Partner in Kenya
“We see that the government is taking increasing measures to limit travel and commercial activities. For example, a regional government has specified that all microfinance activities in the region should be suspended in April. We are getting similar requests from village authorities in other regions.” – Partner in Burma
Effects that now impact the accounts of institutions
These difficulties are starting to be reflected in the figures of MFIs. For instance, 74% of the institutions explain that their portfolio at risk (PAR 1) has increased compared with the end of 2019. This increase is currently contained to less than 10% in absolute value for 8 out of 10 institutions.
The institutions are clearly accelerating and intensifying the use of digital technologies in order to make up for the fact that sales teams cannot travel and organize out-of-pocket payments. For example, 68% of the respondents say they are making greater use of digital services to carry out their activities remotely.
Loan restructuring operations have already started in nearly one out of two MFIs (43%). The intervention announced by regulators and legislators in the financial sector is confirmed: almost half of the respondents (44%) are encouraged to take the initiative in proposing moratoriums and restructuring operations for the benefit of their borrowers (the countries which have imposed these measures include in particular Kazakhstan, Kyrgyzstan, Sri Lanka, Cambodia, India, Uganda, Burkina Faso, Rwanda, Senegal, DRC, Egypt, Morocco and many countries in Eastern Europe). New initiatives are also being considered such as the introduction of emergency products (such as minimum subsistence) in the coming months.
Institutions are implementing crisis plans
This systemic crisis calls for an in-depth review of MFI business planning and financing needs. Upon closer scrutiny, the increase in maturity extensions granted to borrowers does not yet translate significantly into additional financial resource requirements for the MFIs surveyed. At the time of the survey, 48% of them did not yet see any change in their liquidity needs compared with the projections made for the year, and a third even envisaged a decrease in their needs due to a significant drop in their activity.
At this stage, only one out of five MFIs (19%) is expecting an increase in its financial needs, linked to the increase in the price of inputs (seeds, fertilizers, raw materials …) which will trigger an increase in the financial needs on the part of borrowers, mainly in rural areas of our intervention territories. This prospective analysis has been spearheaded by the major international microfinance networks.
“In addition to the Covid-19 crisis, Kazakhstan has been affected by the sharp drop in oil prices which has weakened the national currency by 380 tenges to 445 to the dollar” – Partner in Kazakhstan
The responses from our partners reveal other factors of concern, in particular their ability to finance their activity: a quarter of them foresee a loss of value of their local currency against the dollar (26%) and a substantial increase in currency hedges in their future funding (23%). One out of five MFIs is already experiencing funding difficulties with their usual donors.
In order to be able to monitor the rise in risks and funding developments as closely as possible, more than half of the MFIs (55%) declare that they have finalized (or that they are in the process of doing so) a Business Continuity Plan that includes precise liquidity monitoring. This responsiveness is remarkable and such plans are an essential element in helping MFIs cope with and manage the consequences of the crisis.
Our analysis shows an apparent correlation in the quality of the Business Continuity Plans following the Coronavirus crisis and the past experience of a serious crisis that has already affected the MFI. The lessons learned from past crises thus seem to play a very important role in the resilience of institutions in the face of a crisis, be it financial, political, health, etc. Many less experienced institutions however also show a remarkable willingness to innovate and an equally remarkable capacity to anticipate.
Donors reacted very quickly also. Drawing on the lessons of past crises they have shown remarkable capacity in the past few weeks to intervene and anticipate in a sector that, all things considered, is still young. International lenders, foundations, investment funds, and local banks in all regions of the world are thus working on joint action plans. A number of meetings are being held around the world to get ahead of the crisis and absorb its effects that would be absolutely devastating without such awareness and rapid and determined commitment. There is agreement across the board on the need for effective information sharing and coordination by and between the various stakeholders. Donors are organizing their action around responses adapted to the funding needs of MFIs impacted by the crisis, but also by providing monitoring tools, technical assistance plans or training to strengthen the capacities of MFI teams in the face of a situation that is as sudden as it is exceptional.
All of these elements remind us to which extent this crisis is a shared concern for all microfinance stakeholders. The involvement and rigour of local institutions, the coordination of international networks, the support of public and private donors and the confidence of investors will be the key values of our collective capacity to overcome the challenge of this health tsunami.
Read more articles on : Covid 19 Observatory.

ADA releases a guide to ensure business continuity of MFIs during the crisis

The health and economic crisis generated by the Covid-19 strongly affects microfinance institutions and their clients. To support the microfinance sector in this very particular context, the NGO ADA pursues its mission to promote inclusion for all by leveraging its knowledge and expertise in risk management with a guide of good practices for the continuity of microfinance institutions.
Available in French, English and Spanish, this guide offers recommendations to microfinance institutions to organize crisis management and ensure business continuity.
The document can be downloaded from the ADA website, in a page exclusively dedicated to the management of the Covid-19 crisis, a space which offers partner articles, guidelines, testimonials and videos in order to provide a place to exchanges and sharing of experiences between professionals in the sector.
This guide describes certain points of attention for the analysis and the measures to be taken to organize appropriate crisis management and ensure business continuity in the face of the COVID-19 pandemic.

[INTERVIEW] “Life must go on, we should not lose hope”
Interview with Dara Huot, CEO, Phare Performing Social Enterprise

The CambodgeMag interviewed Dara Huot, Managing Director of Phare “Performing Social Enterprise”, partner of the Grameen Crédit Agricole Foundation. He expressed his concerns and hopes regarding the Phare Circus social enterprise.
Since March 17, performances of the Phare circus, one of the main attractions in Siem Reap, but also in Battambang, have been suspended …
Indeed, we had to apply a government decision taken against performance halls. Before that, we had implemented all the necessary measures to disinfect the premises between each performance and respect the distances between the spectators. The temperature was controlled for each person entering the tent, and distributors of alcoholic solution were located everywhere. However, the number of spectators was gradually decreasing. The government decree only precipitated a closure that would have been inevitable.
How did staff react to this closure?
Phare is a very large social enterprise, split between Siem Reap and Battambang. Here we have 40 artists and 70 employees. The Battambang school, which provides circus training, but also graphic animation, dance, painting and theater training, has 110 teachers for 1,200 students. When the closure was decided, we took the opportunity to resume our list of “things to do”, you know, all those little things that accumulate over time and that we generally reserve for the off-peak season.
We cleaned everything, redid the paintings, carried out all the maintenance work… And then, when we finished all this, everyone went home. The vast majority of the staff are from Battambang, so many have joined their families there. All the artists continue to train hard, for the resumption of the shows, but also for the next tours. Some have been canceled, but we hope to be able to carry out the one planned in France for this winter.
Are wages still being paid?
The full wages were paid throughout the month of March. As for April, the wages have been reduced by 50%, and this will be the case for the following months. It is unthinkable to leave our employees without any income, and we do not hesitate to draw on our cash for this. But how much longer can we continue like this? After 3 or 4 months, there won’t be enough money … Especially since we have to keep paying the rents.
Do your employees receive support from institutions?
No, it’s not like in France, where compensation is granted to people who find themselves unemployed. Nothing is planned for them here, and the situation is made worse by the fact that many employees have contracted debts with banks and microfinance organisations. The interest they have to pay back every month is very high, and I don’t see how they will manage. The only hope would be for more flexibility from these organisations in terms of reimbursement. Maybe cutting interest rates, spreading out the due dates or, why not, hanging them off until things get back to normal. A moratorium on rents could also allow many Cambodians to see the crisis pass. As it stands, paying off a loan, paying rent and supporting your family when you have a low salary or, worse, when you are unemployed will be a big problem for a whole part of the population.
How will this crisis change Siem Reap?
Since the city opened to mass tourism, that is to say twenty years ago, the number of visitors has only grown exponentially. The infrastructure did not necessarily follow. The environment has suffered a lot from the increase in traffic, waste is not always well managed, access to water and its quality are still problematic in certain districts. Electricity needs have increased, but there are still many cuts. Why not take advantage of this involuntary “break” to renew yourself, to question yourself and, thus, to embellish the city? We have to stay positive, try to see what we can get out of this ordeal. Life must go on, you must not lose hope, and continue to be positive despite the circumstances. More than ever, we must take care of ourselves and our loved ones, and stay strong. This is important for you, but also for those around you. Everyone hopes that this pandemic will last as short a time as possible. 2019 will have been a difficult year, and 2020 will be much worse. But we will get out of it, and come back, I hope, hardened by this ordeal. Although it will, of course, be very difficult to go up the hill.

The microfinance sector prepares to face health crisis’ effects
By Grameen Crédit Agricole Foundation
The COVID-19 virus continues to spread around the world with over 450,000 confirmed cases as of March 26, 2020. Governments, even those who deny it, are taking more and more stringent steps to contain the epidemic. As the situation evolves more quickly every day, microfinance players are preparing themselves to face this crisis by taking the first salutary steps.
Following its enquiry launched two weeks ago, the Grameen Crédit Agricole Foundation has established an observatory to constantly update the information collected through daily exchanges with its partner microfinance Institutions (MFIs). The goal is to better understand how to support them, but also to share its analysis with other financial players in the inclusive finance and development aid sector.
Adapting to slow the spread of the virus
MFIs quickly realised the health issue of the crisis. They immediately sought to adjust their operating methods to the contamination risks by adopting recommended barrier actions and launched awareness campaigns among customers and employees.
“Hand washing is mandatory in all branches, with the provision of buckets and soap for everyone entering the office. Hand sanitizers are provided over the counter for all customers who transact with cashiers. […] The process of acquiring protective masks for cashiers is underway. It is strongly recommended that all staff members experiencing symptoms stay at home during the follow-up. We strongly recommended all staff to avoid going to the branches in the light of developments, unless it is absolutely necessary.” – Partner in Sierra Leone
MFIs also had to adapt to decisions taken by local authorities to curb the spread of the virus. Organisations in the most risky areas were therefore forced to partially or completely cease their operations and to close some of their local agencies.
“All operations will be closed as of 12:00 noon on March 26, 2020, in accordance with the announcement made by the President on Monday, March 23 and to allow personnel to return home for the period of confinement. […] Disbursements to customers have been postponed until the end of the period of containment.” – Partner in South Africa
The vast majority of our partners have rapidly implemented teleworking or staff rotation systems. Faced with the numerous prohibitions on groupings, institutions are now working with a representative of solidarity-based credit groups and remain in contact with their customers through instant messaging services.
Digital solutions are particularly adapted to this context. They allow the continuation of microcredit disbursement activities and remote recovery. In a dairy in Senegal, for example, the payment for milk collection to breeders has not experienced any disruption because it has been done for a few weeks via a mobile phone payment device.
“We encourage by SMS our customers to use mobile payment platforms for refunds because it is the safest method of payment at this point in time.” – Partner in Uganda
If MFIs have been able to adapt quickly their operating methods, it is also the time to prepare for the looming economic slowdown. Crisis meetings are increasing in head offices, or through video conferences from managers’ homes, in order to set up continuity plans.
New regulations
A growing number of countries are introducing new credit regulations to cushion the economic shock and the likely insolvency risk of vulnerable customers. Regulators are urging financial institutions to grant deferred payments to their crisis-affected customers, as well as to restructure loans. Such decisions are already beginning to be implemented.
“The government is also implementing measures to help local businesses, such as reducing interest rates. For example, the borrowing rate for secured loans has been lowered by 1%” – Partner in Myanmar
“The Central Bank of Kyrgyzstan has taken the following support measures: 1) cancel the accumulation of penalties for all borrowers; 2) review the conditions for repayment of loans and provide for a delay in payment of at least 3 months upon the borrowers request; 3) when restructuring loans related to changes in borrowers’ cash flows due to coronavirus, institutions should not consider them as bad debts if the cause is health crisis “- Partner in Kyrgyzstan
“The Central Bank has announced that financial institutions must accept all requests for deferrals until April 30.” – Partner in Kosovo
The microfinance sector shows a high degree of responsibility and maturity to face this global crisis. The partner institutions of the Grameen Crédit Agricole Foundation produce regular financial statements and forecast analysis of their financing needs in the coming months. Although we have not yet observed any particular increase, the evolution of portfolio at risk (PAR) levels is systematically subject to a very high degree of vigilance. Multiple exchanges between lenders, specialised non-governmental organisations and microfinance institutions are now organised daily.
The Grameen Crédit Agricole Foundation is in regular contact with its partners and colleagues in a reciprocal effort to pool ideas and resources. We share with our partners, with responsible investment players and with our peers our analysis and best practices implemented by microfinance institutions.
The pooling of available information, analysis and anticipations, and then the concerted implementation of shared decisions are principles that are vital today for our sector. At the cost of this transparency, this concertation and a necessary adaptation of our intervention principles, we should be able to overcome the effects of this exceptional health crisis, which could knock down many microfinance institutions, leaving fragile populations in desperate situations. Because we know the crisis will hit the most deprived populations in the first place. Hard. Let’s work together to live up to the issues of this humanitarian challenge.
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Discover other articles at: Covid-19 Observatory.

The Grameen Crédit Agricole Foundation continues to invest in Kosovo

The Grameen Crédit Agricole Foundation has just granted a new loan in local currency for a total amount equivalent to € 1.5 million to the Kosovar microfinance institution Kreditimi Rural i Kosoves (KRK) which it has supported since 2009.
KRK is a project initiated in 2000 by ADIE International as the Rural Finance Program of Kosovo (RFPK). The project turned into a microfinance institution shortly after, when the new regulations on financial institutions came into force in Kosovo. KRK’s mission is to provide access to financial services in rural areas of Kosovo in a sustainable manner, giving priority to the agricultural sector. To date, the institution has nearly 17,000 clients, including 16% women and 84% rural clients.
With this investment, the Foundation now has, in the Eastern Europe & Central Asia region, an outstanding portfolio of € 22 million, which represents 23% of its portfolio, and has 18 partner organisations supported, that is 21% of the microfinance institutions and impact businesses it finances.
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Created in 2008, under the joint leadership of Crédit Agricole SA and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business operator which contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. Investor, lender, technical assistance coordinator and Fund advisor, the Grameen Crédit Agricole Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

A TA programme to strengthen the impact of microfinance in West Africa

Actors committed to microfinance
With almost 12 years of experience in the microfinance sector and over €200 million in funding, the Grameen Crédit Agricole Foundation finances and supports with technical assistance microfinance institutions worldwide. This support aims at promoting sustainable and innovative microfinance services which, in turn, will have positive social and economic impacts for low-income populations and the development of small and micro enterprises.
With 37% of its investments in Sub-Saharan Africa, the continent is at the heart of the Foundation’s action and its mission to contribute to the fight against poverty. Alongside the European Investment Bank (EIB) and the Luxembourg Government, the Foundation will strengthen its support to microfinance institutions in West Africa, within the framework of a new technical assistance programme.
Both partners of the Foundation have strong experience in the development of microfinance: the EIB has already committed over € 1.3 billion for the sector since its first microfinance operations in 1992, a key objective of EIB support for private sector investments in Africa, and Luxembourg concentrates 61% of global assets under microfinance management.
Strengthening the impact of the Foundation in West Africa
After granting in 2018 to the Grameen Crédit Agricole Foundation a loan equivalent to €12 million euros in CFA francs, in order to support microfinance in West Africa, the EIB allocated, on behalf of the Government of Luxembourg, a grant of € 332,000 to provide technical support to five microfinance institutions supported by the Foundation.
This two-year programme will allow the Foundation to support Caurie (Senegal), Kafo Jiginew (Mali), Graine (Burkina Faso), ACEP Burkina Faso and ACEP Niger in order to facilitate their digital transformation, improve risk management or even strengthen the social performance management. Thanks to this partnership with the EIB and the Government of Luxembourg, the Foundation is increasing its presence in West Africa and strengthening its value proposition to its partners in the region. This will strengthen the impact of microfinance in rural and urban areas of West Africa, including in the Sahel States. Moreover, consolodating private sector access to finance will be key to bolster Africa’s resilience and recovery from the expected impact of the Corona virus.

UGAFODE, partner of the Foundation in Uganda, extends services to refugees
UGAFODE Microfinance Limited (MDI) has opened a mini-branch in Nakivale Refugee Settlement in Uganda in the framework of a programme to foster financial inclusion of refugees launched by the UN Refugees Agency, the Swedish International Development Cooperation Agency and the Grameen Credit Agricole Foundation. The initiative aims at building sustainable livelihoods, resilience and self-reliance among refugees in the settlement and host communities. This follows a successful pilot scheme of financial inclusion for refugees in Kampala. Under the project, refugees continue to access credit, savings and money transfer services.
During the pilot phase, UGAFODE adjusted its policies and procedures, including document requirements, such as identification (Refugee ID issued by the Office of the Prime Minister — refugee department). “Serving refugees fits in well with our mission of transforming lives of the low income, but economically active population. The refugees are economically active and have financial needs like any other person and deserve utmost attention,” declared Shafi Nambobi, the UGAFODE’s CEO.
Nakivale settlement hosts over 100,000 refugees from 13 countries, who mostly are engaged in agriculture and trade. With the Nakivale branch UGAFODE will extend financial services to smallholder refugee farmers and host community members to improve their household incomes. Nambobi announced that the institution plans to roll out financial services to refugees in other settlements in the future.
According to some refugees interviewed, UGAFODE Nakivale branch saves them from travelling long distances to access financial services in Mbarara or Isingiro. “With the establishment of this UGAFODE branch in our camp, financial services have been brought to our backyard, we can now be served easily,” one of the refugees said. Another refugee said that previously, due to poor roads, they needed to spare a day just to go to the bank and that the branch will help them save on transport costs and time wasted traveling.
Further information on the programme here.

The Foundation strengthens its support to the microfinance institution Graine

In February, the Grameen Crédit Agricole Foundation signed a new financing contract in Burkina Faso, in favor of the microfinance institution Graine, for a total amount in local currency equivalent to € 380,000. This funding is provided within the framework of the African Facility programme, a scheme set up in 2013 by the Grameen Crédit Agricole Foundation, in partnership with the French Development Agency (AFD), to support a greater number of rural microfinance institutions in sub-Saharan Africa .
GRAINE (GRoupe d’Accompagnement à l’INvestissement et à l’Epargne) is a microfinance institution which has set itself the mission of “contributing to the improvement of the economic and social conditions of the poor populations of Burkina Faso, mostly rural women, by offering them appropriate financial services ”. To date, the institution has over 24,000 borrowers, 97% of whom are women and 80% of whom live in rural areas.
With this new funding, the amount of the Foundation’s outstandings in sub-Saharan Africa reaches € 35.5 million, that is 37% of the total outstandings of the Foundation. With 40 partners, sub-Saharan Africa brings together 47% of the institutions and companies supported by the Foundation at the end of February 2020.

How Coronavirus affects Microfinance sector
By Grameen Credit Agricole Foundation
Created in 2008, at the joint initiative of Crédit Agricole SA and Professor Yunus, founder of the Grameen Bank and 2006 Nobel Peace Prize, the Grameen Credit Agricole Foundation is a cross-business actor committed to promoting a better-shared economy.
Investor, funder, technical assistance provider and fund advisor, the Foundation has more than 80 partners (microfinances institutions and social business) and operates in around 40 countries with nearly 100 million euros in outstanding. The Foundation focuses on microfinance institutions that serve women and rural people. These institutions support approximately 4 million clients.
The Microfinance sector is exposed and concerned
On March 19th, according to the latest figures from Santé Publique France, the Coronavirus has reached 213,254 people worldwide. 8 843 deaths are to be deplored. After following announcements of the closings of many institutions and companies, confinement measures continue to be taken around the world. Africa and South America were not officially affected for a long time by the virus, but they now face the crisis with hundreds of cases.
The global sanitary crisis also became an economic crisis. Economic activities are extremely limited in all countries and stock exchanges have lost almost a third of their value in less than a month. Quite logically, the worldwide microfinance sector is also not immune.
For this reason, the Grameen Credit Agricole Foundation’s team launched a survey among its partners on March 11th in order to gather their first impressions and analysis, the impact on their clients’ activity, on their institution and their potential needs. We also took advantage of our regular interactions with our partners to obtain as much information as possible. All further information in this document come from these resources. 56 Micro Finance Institutions (MFIs) responded to our survey, out of 75 reached partners (75% participation rate) with the last answers received on March 19.
All our partners are expressing in their responses a real concern about the expected effects of this global health crisis.
Local government decisions are already impacting small income-generating activities
48% (27) of surveyed MFIs felt their clients are impacted by the coronavirus at the time of the survey, and 68% (38) of them think they will be in a near future. Thanks to a quick feedback, we learn that governments have decided to close schools, to close down non-essential activities, to restrict movement or to prohibit gatherings in Sri Lanka, Cambodia, Romania, Myanmar, Sierra Leone, Jordan, Mali and other operating countries. These changes are taking place everywhere today and very day new countries are added in that list.
Such decisions have a direct impact on our partners’ customers. First, many customers rely on imports for their business. Border closures and travel bans affect trading activities.
It should also be noted that concerns about the travel ban in China is affecting not only Asian countries but also African countries.
“As the border to China has been closed, some agricultural product prices are decreasing so our farmer clients aren’t getting good prices for their harvest.” – Partner from Myanmar
“We have customers who travel for purchases (China, Ivory Coast, Togo, Benin,..). Informal sector traders are afraid and this can affect their activities.” – Partner from Burkina Faso
The impossibility of gathering will also have an impact on all the operations that take place in markets and fairs. Merchants will not be able to carry out their activities. The travel ban will strongly affect global tourism. All activities relying on tourism will face many problems (stocks, lack of customers, refunds) as well as countries depending on remittances.
“If travel bans will continue due to increased coronavirus cases in Gulf region and Europe as
economy of Jordan is dependent on tourism income and money remittances from the Gulf” – Partner from Jordan
Finally, we had no feedback yet on the plans of local authorities regarding the adjustments to be made by the financial institutions in particular. The only compelling example we were provided is that of Palestine. Through 8 guidelines, the Palestine Monetary Authority urges financial companies to continue provide lending services to people to ensure the continuation of the commercial and economic cycle and also postpone the periodic monthly payments of all borrowers for the next 4 months’ period (6 months for tourism and hotel sector).
Also, no any additional fees, commissions, or interest on delayed instalments can be collected during the period.
MFIs activity could be reduced
59% (33 MFIs) of the surveyed MFIs mentioned that their activity was still not affected by the epidemic at the time. 23 MFIs (37%) were feeling concerned at the time of this survey, giving several explanations such as risk for field staffs, restricted movement, working from home.
One of the main concern is the prohibition of group meetings, which will affect all MFIs whose microfinance methodology is based on a group approach. Few partners are already adapting.
In some countries with no clear decisions yet, MFIs will have to postpone disbursements if their loan officers are unable to travel or will have to temporarily adapt their processes.
“During the emergency period until 29 May 2020 above, client centre meetings will not take place as usual. Instead, the ‘Pay and Go’ method has been put in place as follows: only group leaders, two to four persons per centre of some 15-20 clients usually, are requested to come to the usual centre meeting at the usual location. The group leaders are requested to collect the instalment of their respective group members”. – Partner from Indonesia
“We have set up a special procedure to meet members of the solidarity groups individually. We provide advice to clients on how best to deal with the situation” – Partner from Senegal
Our partners must also adapt to the situation for their own staff. The risks of virus transmission is an important factor to take into account for the activity of credit agents. Likewise, the confinement rules prevent the smooth running of the activity for all departments and operations. Some staff are already working from home in some MFIs.
“lmaty where HQ is located will be on quarantine from 19 March, employees will be working on distance” – Partner from Kazakhstan
“Field staff are at high risk of contracting, so they are hesitant to work on clients, a quarantine will hit and polarize the whole MFI market” – Partner from Uganda
Portfolio risk and liquidity needs are under scrutiny
Many concerns are raised about portfolio risk. According to our survey, at the time of answering, only 11 MFIs were noticing an increase in the portfolio at risk. African partners raised more concerns. However, when asked if they anticipate an increase in the portfolio at risk, 36 of the MFIs answer “yes” (64%). In this case, anticipation of a risk increase comes from all over our regions of activity.
“Potential increase in PAR30 and reduced credit demand. Estimate an increase of PAR30 not to go beyond 2% and portfolio growth to potentially slow down by around 20%” – Partner from Cambodia
However, some partners consider that they are no more at risk than usual. In most cases, these MFIs are those with a particularly rural customer base.
“In general, since our customers are rural residents (70%), we predict that they will not have a strong deterioration due to rising prices for their agricultural products. But we think that a clearer situation will appear in the second half of April.” – Partner from Kyrgyzstan
“As of 16 March 2020, our business continue as usual. We have not seen impact on loan payment yet across Cambodia include Siem Reap and Phnom Penh. However, we would expect some increase in Siem Reap from end of this month onward. Please note that our client are mainly living in rural areas. The exposure has on Tourist, hotel, services industry is minimal.” – Partner from Cambodia
Coronavirus is going to have an impact on liquidity needs. According to our survey, 29 MFIs (52%) forecast a change in their needs. Most Tiers 3 MFIs do not forecast changes as the time, as a majority of Tiers 2 MFIs (17 MFIs) do forecast such changes. MFIs expect problems on the funding side. In particular, hedging issues are expected, and discussions with all the different lenders are initiated.
“Mainly, the exchange rate has been very volatile, indirectly due to the epidemic, and this causes new disbursements in USD to exchange to less local currency which has affected the number of loans we can disburse” – Partner from Myanmar
Liquidity problems are also anticipated. Indeed, non-repayment could be a barrier to the possibility of disbursing new loans. Rising provisions for risk and potential losses is also a cause of the drought in liquidity.
“if the situation continues up to mid-year, we will need liquidity as most of the liquid assets will have been suppressed by high provisioning for impaired assets (Expected losses) due to increased non-repayment” – Partner from Uganda
“The non-repayment of loans leads to a decrease in liquidity. Yes, we have taken steps to limit a potential situation” – Partner from Mali
Microfinance sector needs specific measures
Some MFIs already asked the Foundation if there was a possibility of helping their institutions through the epidemic crisis.
“We would like further advice on how to avoid the disease and what treatments are available and effective for treatment in the event of infection” – Partner from Benin
“We would prefer that Grameen Credit Agricole Foundation compile information about corona virus coup up measures especially in regards to MFIs around the world on how to deal with the challenges” – Partner from Uganda
A partner recalled that during past natural disasters, there had been particularly suitable measures that had been implemented. Some, which may seem counter-intuitive, had given rise to an increase in funding to allow clients to recover from the shocks and overcome this difficult period. Draining funding would only intensify the difficulties and impacts of the crisis.

Solidarity Bankers: a new mission in Tadjikistan
Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole S.A, Solidarity Bankers is a skills volunteering programme open to Group employees for the benefit of microfinance institutions or impact businesses. The objective of this programme is twofold: it is a way of acknowledging the skills acquired by Crédit Agricole group employees and provides additional support to microfinance institutions and impact companies supported by the Foundation. Thanks to this scheme, the Crédit Agricole group reiterates its commitment to support employees’ solidarity initiatives.
What are the Solidarity Bankers missions?
International volunteer assignments are available to employees on behalf of microfinance institutions or social impact companies supported by the Grameen Crédit Agricole Foundation.
The missions are carried out within the framework of philanthropy or volunteer work. Crédit Agricole S.A. covers airline ticket and insurance. The beneficiary institution pays any internal transport costs, catering and accommodation expenses. The Grameen Crédit Agricole Foundation will prepare and coordinate the mission.
Since the programme was launched in 2018, fourteen missions have been carried out, both in volunteering and in skills sponsorship.
A mission to fill!
A seven to ten-days mission on collateral assessment is available in favour of Oxus Tajikistan, in Tajikistan, either end of June or between August and October 2020.
The OXUS story began in 1997 in Tajikistan, just as the country emerged from a civil war. Back then, ACTED started to disburse its first micro-loans in the Vakhsh Valley. Following the success of this initial initiative, ACTED gradually launched several microfinance programmes across the country. In February 2006 eventually, OXUS was registered with the Tajik National Bank as a Microlending Organization.
As of December 2019, OXUS Tajikistan is ranked amongst the largest microfinance provider in portfolio terms in the country. Currently, MCO “OXUS” Tajikistan is a part of microfinancial institutions of OXUS Group which also operates in Kyrgyzstan and Afghanistan.
Mission objectives:
- Assessment of the current methodology for assessing collateral
- Develop a new methodology for assessing collateral
- To train HQ level managers
How to apply?
- Click on the link “Find a project”“Trouver sa mission”
- Enter in the the search bar: “Fondation Grameen”. All the Solidarity Leave offers will appear!
- Click on the offer of your choice, you will find all the information requested for your application.
Contact
Carolina HERRERA
Head of Communication & Partnerships
carolina.herrera@credit-agricole-sa.fr

Access to energy in Ivory Coast with Crédit Agricole CIB

After several months of work, a securitisation pilot project initiated by Crédit Agricole CIB and the Grameen Crédit Agricole Foundation has been launched in Ivory Coast. It will help to support the access to energy and financial inclusion for the rural populations in Ivory Coast.
A technology-enabled project with a strong impact
Access to energy is one of the major challenges in Africa: more than 620 million people lack access to electricity and continue to use battery-powered flashlights and oil lamps, in spite of the toxic effects on their health and on the environment. This fuel poverty particularly affects rural populations living in areas without access to electricity grid.
The financing of ZECI’s (Zola EDF Cote d’Ivoire) “Solar Home Systems” business aims to address this issue by providing solar home systems to off-grid populations in Ivory Coast. ZECI is a company co-founded by EDF and Zola Electric that sells on credit and ensures the maintenance of solar kits to meet the needs of rural off-grid populations. This offer is presented in the form of three-year sale on credit contracts, with payments being made via mobile money and with pay-as-you go flexibility: the customers can adjust the payment over time based on their available income. In order to support the company’s development, several financial players joined forces to provide this financing offer in the form of a securitisation structure backed by the receivables arising out of the pay-as-you-go contracts.
An innovative structure
To fund the development of ZECI, a securitisation vehicle (NEoT CI) was created, which purchases and the solar home systems and the sale-on-credit contracts signed with the off-grid customers. This vehicle is owned by the company NEoT Off-Grid Africa, a platform dedicated to investments in off-grid projects in Sub-Saharan Africa, managed by NEoT Capital and controlled by the infrastructure fund Meridiam, with Mitsubishi Corporation and EDF as co-shareholders.
Bankers committed to development
The financing of the vehicle (NEoT CI) was structured in the form of a securitisation by Crédit Agricole CIB, Société Générale CIB and Société Générale Côte d’Ivoire (SGCI), with an equity portion provided by NEoT Off-Grid Africa and a senior loan in local currency of 11.80 billion CFA francs (or about €18 million) granted by SGCI with guarantees provided by the African Development Bank (ADB) and Crédit Agricole CIB.
In addition to participating in the implementation and financing of the project, the Grameen Crédit Agricole Foundation will also be in charge of monitoring the project’s social and environmental performance. The senior loan drawdown will be adjusted based on the growth and performance of the portfolio. This financing will allow ZECI to strengthen its economic model and to increase its impact in rural areas in the Ivory Coast.

The Foundation and CA Egypt support a new partner
The Grameen Crédit Agricole Foundation, in partnership with Crédit Agricole Egypt, has just granted, for the first time, funding to the microfinance institution Tasaheel, in the form of a guarantee equivalent to € 3 million, allowing the institution to access a loan granted by CA Egypt.
Tasaheel for Microfinance Foundation (Tasaheel) is a tier 2 microfinance institution created in 2015 as part of GB Auto’s corporate responsibility programme. Its mission is the effective development of small enterprises through the design and granting of loans, to help improve the socio-economic status of low-income families. Tasaheel aims to help low-income people generate higher returns to improve their standard of living, which in turn supports overall community development and economic growth. To date, the institution has nearly 400,000 active borrowers, 83% of whom are women. Less than 1% of its customers live in rural areas.
With this new funding, the Foundation is consolidating its presence in Egypt and strengthening its partnership with Crédit Agricole Egypt within the framework of the cooperation schemes set up with the Crédit Agricole Group’s International Retail Banking (BPI).

The Foundation invests for the first time in Moldova

For the first time, the Grameen Crédit Agricole Foundation has invested in Moldova, with the microfinance institution Smart Credit, with a loan in local currency equivalent to 496,000 euros over a period of three years. Smart Credit is an MFI created in 2010 by five local professionals and whose mission is to position itself as the best microfinance service provider in the region, in particular for socially disadvantaged small entrepreneurs.
The institution offers loans according to the individual methodology and today has nearly 3,000 active clients, 54% of whom are women and 71% are clients in rural areas.
With this investment, the Foundation is consolidating its presence in the Eastern Europe and Central Asia region where it already has 17 partners in eight countries. This region thus represents 21% of the portfolio monitored by the Foundation.
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Created in 2008, under the joint leadership of Crédit Agricole SA and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business actor which contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. Investor, lender, technical assistance coordinator and Fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

The Foundation makes two new investments in Sub-Saharan Africa

The Grameen Crédit Agricole Foundation continues to invest in sub-Saharan Africa, its priority intervention area, with two new investments, one of them to a new partner.
Thus, in Mali, the Foundation funded for the first time Baobab Mali (formerly Microcred), an entity of the Baobab Group, with a loan in local currency equivalent to € 2.5 million. Baobab Mali started its operational activities in 2013 in Bamako. It is a microfinance institution created on the initiative of a set of international partners wishing to contribute to the economic and social development of Mali. In order to be granted a loan, entrepreneurs must demonstrate one year of activity and six months of uninterrupted operations on their premises. To date, the institution has nearly 20,000 active borrowers, 46% of whom are women and about 35% of whom live in rural areas.
The Foundation also granted a new loan in local currency equivalent to € 790,000 to the microfinance institution Bimas in Kenya. A partner of the Foundation since 2014, Bimas is a microenterprise development programme (MED-P) launched in 1992 under the auspices of PLAN Embu. It was aimed at providing training and credit to small enterprises in Gachoka Division in Mbeere District. The institution has continued expanding its operations to the largely unbanked population in the areas of Embu. Its goal is to contribute to sustained economic growth and employment in the rural sector resulting in enhanced social welfare and increased income of the rural population in Kenya. To date the institution has nearly 19,000 active borrowers, 65% of whom are women and 90% of whom live in rurale areas.

First team seminar for the Foundation in 2020

As part of the Grameen Crédit Agricole Foundation team seminar held from January 13 to 17, the teams had the opportunity to discuss the different axes of the 2019-2022 strategic plan and the levers for action to optimise the Foundation’s action with microfinance institutions and companies with social impact that it supports.
More efficiency for more impact
During the week, the Foundation’s staff put into practice the reflections carried out during the previous team seminar held in 2019 around the 3 of the Medium-Term Plan axes: consolidating the expertise and the offer of the Foundation in the microfinance field, strengthen the resilience of rural economies and promote social impact in the financial sector.
Several meetings were organised to present the 2020 prospects and the action plan to improve the effectiveness of the Foundation and its impact. More specifically, a thematic workshop highlighted three key challenges for the years to come: impact digital finance and the positioning of the Foundation in this field, environmental performance and measurement of the impact of the Foundation on funded organisations and final beneficiaries.
A workshop was also organised in the presence of representatives of Plastic Odyssey, a social enterprise supported by the Crédit Agricole group, whose crew will travel the seas for three years to fight plastic pollution of the oceans. The Foundation will also partner with Plastic Odyssey in order to support them on their project to develop small units for reprocessing plastic waste in Africa.
A treasure hunt at the Arts et Métiers Museum was the team building activity of the week, with the participation of Crédit Agricole SA CSR team. Rich and stimulating exchanges that will contribute to the achievement of the objectives of the Strategic Plan, alongside Crédit Agricole Group entities, technical and financial partners and supported organisations.

La Laiterie du Berger and Kossam receive $ 5M Support from the Mastercard Foundation

La Laiterie du Berger, the strength of African entrepreneurship
La Laiterie du Berger is an example of the strength of entrepreneurship in Africa. The social enterprise was created in 2006 by Bagoré Bathily and a pool of active shareholders, with the objective of developing local dairy production. “90% of the milk consumed in Senegal is imported in the form of powder, while 30% of the population traditionally lives from livestock and can produce milk. It is this observation that led to the creation of La Laiterie du Berger”, indicates Bagoré Bathily.
La Laiterie du Berger collects the milk of Peul breeders from the Richard Toll area of northern Senegal to then produce dairy products, with local and natural milk. The company works with 800 Peul farmers, employs 300 people and produces 6,000 tonnes of yogurt each year. After 12 years of existence, with the support of the Grameen Crédit Agricole Foundation and Crédit Agricole Franche-Comté, a second chapter opened with the creation of a new subsidiary, Kossam SDE.
Kossam aims to structure the dairy sector in northern Senegal by promoting access to material resources for milk production, by providing training to livestock farmers and by developing an innovative model of pilot “mini-farms”. “Over 600 breeders’ families have been impacted by the development of the local milk industry and have seen their revenues increase by more than 50% between 2018 and 2019”, says Jonathan Michaud, Director of Kossam, an agricultural engineer from Crédit Agricole Franche-Comté, who, after a Solidarity Bankers mission in 2018, left for 2 years to lead the project.
An unprecedented change of scale for the company
A new stage will begin for La Laiterie du Berger and Kossam. Conquered by the social enterprise model of the Laiterie du Berger, The Mastercard Foundation has just allocated a grant of 5 million USD for the period 2019-2022 in Kossam. The objective of this grant is to allow Kossam and La Laiterie du Berger to create 5,000 direct or indirect jobs in the area. The amount allocated will be used in particular to increase the collection of milk to 4000 T and to valorize the restructuring of the collection system. This financial support particularly targets women, who are traditionally responsible for the production activity and milk collection in Senegal.
This new project is titled MéLiTeJi, the letters (M, L, T, J), symbolically representing in Wolof milk (Meew), employment (Ligueey), success (Tekki) and women (Djiguen). This funding reinforces the company’s objectives of developing livestock in a sustainable, responsible and social way and to build a sustainable Senegalese dairy sector, established on the basis of a modern economy and generating employment.
This grant is already a great success in itself, demonstrating the strength of this social enterprise model and the confidence in its potential to structure the sector and create jobs

Solidarity Bankers: a new mission in Bosnia and Herzegovina

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole S.A, Solidarity Bankers is a skills volunteering programme open to Group employees for microfinance institutions or impact businesses. The objective of this programme is twofold: it is a way of acknowledging the skills acquired by Crédit Agricole group employees and provides additional support to microfinance institutions and partner companies of the Foundation. Thanks to this scheme, the Crédit Agricole group reiterates its commitment to support employees’ solidarity initiatives.
What are Solidarity Bankers?
International volunteer assignment are available to employees on behalf of microfinance institutions or social companies, partners of the Grameen Crédit Agricole Foundation.
The missions are carried out within the framework of philanthropy or volunteer work. Crédit Agricole S.A. covers airline ticket and insurance. The beneficiary institution pays any internal transport costs, catering and accommodation expenses. The Grameen Crédit Agricole Foundation will prepare and coordinate the mission.
Since the programme was launched in 2018, thirteen missions have been carried out, both in volunteering and in skills sponsorship.
A mission to fill!
A mission in the IT sector is available in favour of Partner Microcredit Foundation, in Bosnia and Herzegovina, from mid-March to mid-May 2020.
Partner Microcredit Foundation is a non-profit microcredit organisation located in Bosnia and Herzegovina. Founded by Mercy Corps in 1997 in the form of an NGO, it became a microcredit foundation in 2000. It offers financial services to economically active populations who have difficult or no access to funding sources for the development of their activity, and improvement of their living conditions. The institution provides loans as part of an individual technical and microcredit support methodology mainly to microentrepreneurs promotes the participation of women in the business world and provides easier access to financial services in rural areas.
Mission objectives:
- Assessment of the existing IT infrastructure, the organisational structure and the applications used.
- Development of guidelines for the future development of IT infrastructure and applications.
- Recommendations for a 3 to 5 year IT investment plan and specific recommendations for 2020.
How to apply?
Submit your application on the CA solidaires website
Contact
Carolina HERRERA
Communication & Partnerships Director
carolina.herrera@credit-agricole-sa.fr

The Foundation’s Newsletter #34 is now available

The Grameen Crédit Agricole Foundation publishes its Quarterly Letter # 34 in which it notably presents a new section in the form of a space dedicated to the Foundation’s partners: supported organisations, founders, technical and financial partners testify about their actions, their projects, their links with the Foundation and the impact of their work in the field. In this edition, also discover the Column of Sara Belbachir, Solidarity banker who completed a mission with the Moroccan microfinance institution Al Karama.
In addition, the Foundation’s Newsletter presents its latest news and in particular the partnership signed with the UNHCR and the Swedish International Development Agency (Sida) for the implementation of a four-year programme aimed at promoting access to financial and non-financial services for refugees and host communities in Uganda.
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Founded in 2008, under the joint leadership of Crédit Agricole SA and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business actor which contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. Investor, lender, technical assistance coordinator and Fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

A new success for Credit Agricole’s Solidarity cents operation

Launched in 2018 by the Grameen Credit Agricole Foundation, Crédit Agricole S.A. and Crédit Agricole Centre-Est, Solidarity Cents aims to finance entrepreneurship projects by mobilising Crédit Agricole employees who are invited to donate 50 cents when paying for their meals in collective restaurants. For the 2019 edition, thanks to the support of employees, € 8,657 will be donated to Entrepreneurs du Monde to finance the ICI programme (Incubation, Creation, Inclusion) which supports entrepreneurship projects for refugees, single parents and homeless people in Lyon.
The campiagn took place in parallel at the Crédit Agricole Campuses in Montrouge, Saint-Quentin and Lyon from 18 to 22 November. Crédit Agricole S.A., the Grameen Crédit Agricole Foundation and Crédit Agricole Centre-Est will embrace the generosity of their employees by contributing to the collection.
Last year, Entrepreneurs du Monde also received € 7,000 through the operation, which helped strengthen the ICI programme. All together, 20 collective training sessions were organised and 18 people supported to structure their entrepreneurship projects. Entrepreneurs du Monde’s objective is to support 40 project applicants by 2020.
Back to the images oin the launching event
To launch the 2019 edition of the campaign, Crédit Agricole welcomed on November 4, on the Montrouge Campus, Rania, entrepreneur and Syrian refugee financially supported thanks to the 2018 campaign. After leaving Syria and thanks to the ICI Project (Incubation, Creation, Inclusion) of Entrepreneurs du Monde funded through Solidarity Cents, Rania launched her catering service to share the traditional dishes of her country.
Watch the video of the operation which presents Rania’s journey and the testimonies of the staff who participated in the operation.
vidéo

Solidarity Notebooks: a Solidarity Banker in Morocco

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in June 2018, Solidarity Banker is a skills volunteering programme open to all Crédit Agricole group employees for microfinance institutions or impact businesses supported by the Foundation. Discover the Column of Sarah Belbachir, Solidarity Banker of Crédit Agricole SA.
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Solidarity Banker… but, why?
The first time I spoke to my acquaintances about the Solidarity Bankers programme, I was told «banker and solidarity … isn’t that a bit contradictory?» For many, these two words have a hard time resonating in unison. However, when I discovered the Solidarity Bankers programme, I met passionate people, sincere ambitions and concrete actions. Far from being fine words, the programme won me over by the values ??it inspires and its willingness to work directly on the ground.
So I immediately applied for a mission to strengthen the anti-money laundering and ant-terrorism financing system (AML-ATF) of Al Karama, an institution funded by the Grameen Crédit Agricole Foundation and Crédit du Maroc that offers microloans to people excluded from the traditional banking system, in particular women.
Very soon after applying, I had confirmation that my application had been accepted. My mission therefore began in Montrouge, at the premises of the Grameen Crédit Agricole Foundation for the preparation phase. With the help of Edouard, Violette and Carolina (1), we defined the schedule and the objectives. They introduced me to the main concepts of microfinance, and provided me with specific contextual elements on Al Karama, on the Moroccan economy and the microfinance sector in Morocco.
Take-off to Rabat!
On July 13, I finally flew to Rabat. For ten days, I was going to devote myself to a topic that was part of my area of ??expertise, but in a different sector, in a different size structure and in a cultural context different from my daily life.
The first two days were devoted to raising awareness among top management on the risks linked to AML-ATF and how to prevent them. AML-ATF training was organised by Crédit du Maroc teams within the framework of a skill-sharing patronage. It was an opportunity to exchange views on Crédit du Maroc’s VSE / SME financing practices and understand the market in which Moroccan microfinance institutions will diversify.
The discussions that followed with Al Karama’s team allowed me to familiarise myself with the functioning of the institution, to identify the strengths in terms of AML-ATF and the elements needing strengthening.
The next step was to elaborate a more detailed action plan, so that Al Karama integrates its AML-ATF obligations gradually and according to priorities. In collaboration with Edouard Sers of the Grameen Crédit Agricole Foundation, who joined me on this part of the mission, we thus defined precise recommendations, with one manager per action and a three-year implementation schedule. The challenge was to draw up a realistic and achievable action plan for Al Karama, in light of its ressources and its workforce.
The action plan was very well received by the Al Karama Executive Committee to which we presented it on the last day of the mission. The next step is now in the hands of Al Karama, who will implement this roadmap.
Unforgettable meetings
My mission was punctuated by two visits that marked my experience. Al Karama organised visits to agencies and clients, one in urban areas and the other one in rural areas. The first took place in the city of Temara, on the outskirts of Rabat. After some discussions with the branch manager and loan officers, we visited a client who received a microcredit in his traditional Moroccan clothing store. This first visit allowed me to better understand the functioning of a microcredit agency and to see how the procedures are actually applied in the field.
The second visit took place in Larache, in the north of Morocco. We first visited a rural agency which offers agricultural services to the inhabitants of the region. We went to a watermelon and peanuts field to meet with a farmer who has received a microcredit to develop its activity with a larger field. I was able to confirm the impact of microcredit on the development of small farming and the strengthening of rural economies.
These meetings allowed me to understand microfinance as closely as possible and to see what concrete finance can achieve. But above all, these meetings have been an unforgettable human experience.
This was just a taste … I came back to Paris with the desire to get further involved.

Four new investments in Asia for the Foundation

In partnership with CA CIB India, the Foundation has granted a guarantee equivalent to € 5 million to the Indian microfinance institution Annapurna, for a loan granted in local currency by CA CIB India. Annapurna Finance Pvt. Ltd (AFPL) was established in 2009, and is now one of the top ten NBFC-MFIs in the country. The institution provides financial services to low-income populations. Its main objectives are to provide financial assistance for economic empowerment and to give priority to women and to involve them directly in production activities through Self-help groups and access to finance. As of today, the institution serves 1.6 million active borrowers, 99% of which are women and 85% of which live in rural areas.
Similarly, in Myanmar, the Foundation has granted a new loan for a total amount equivalent to € 2.3 million in local currency over a four-year period to VisionFund Myanmar, a microfinance institution that lends small sums of money to people who do not have a measurable credit history, assets to secure the loans, or access to mainstream financial providers. As of today, VisionFund Myanmar serves over 190,000 clients, 86% of whom are women and 59% of whom live in rural areas.
Also in Myanmar, the Foundation has granted a new loan in local currency equivalent to € 1.8 million over a four-year period to Proximity Designs, on behalf of Proximity Finance, a microfinance programme whose mission is to addres extreme poverty by treating the poor as customers. To date, the programme has 117,000 active borrowers, 69% of whom are women.
Finally, in Cambodia, the Foundation has granted a loan equivalent to € 1.6 million to Chamroeun, a historical partner of the Foundation since 2010. Chamroeun is a microfinance institution that provides financial services to the poorest, those excluded from the range of more commercial microfinance institutions. The institution serves over 30,000 clients, 82% of whom are women.
More information on the Foundation’s partners here.

[Interview] – «Technical assistance helps to structure and sustain our agricultural microcredits»
Interview with Susan Chibanga, CEO, AMZ Zambia

Through technical assistance provided within the framework of the African Facility scheme, AMZ was able to develop an Agriculture Loan Evaluation System to enhance its credit assessment of its agriculture loans to smallholder farmers. This is a new innovation in Zambia and in the region at large.
What are AMZ Zambia’s activities and objectives?
Susan Chibanga, CEO of AMZ Zambia: AMZ was established by the Agora Group eight years ago, and ever since we have been engaged in contributing to the economic well-being of the financially excluded and underserved rural populations. We aim to provide appropriate financial services: village group loans, agricultural loans, MSME loans, microinsurance and mobile money services. Agricultural loans and rural financing in general are expensive due to the need for service delivery at the doorstep of the customer. Our partners have contributed through the provision of technical assistance on several projects including digitalization of our processes and the development of the Agriculture Loan Evaluation System. (*)
How does technical assistance improve the agricultural microcredits granted by AMZ?
With this technical assistance, we have created a tool to help us assess creditworthiness of our agriculture product customers: The Agricultural Loan Evaluation System. This is a resource developed with help from the Frankfurt School of Business. The tool makes it possible to determine the tenor and payment frequency of the loan to be granted by simulating the repayment models depending on the type of crop being grown by small and medium-sized farmers. We conducted a pilot project on corn, soybeans, tomatoes, watermelon and peanuts during an agricultural season. We now wish to deploy it more widely.
Going forward we plan to extend this product in all branches of our operation and also develop a mobile application for the tool. It will be relevant to combine it with our customers’ credit ratings and more secure authentication systems: signature by stylus or even by facial recognition. Experience shows that the tool reduces risk exposure for both our institution and our beneficiary clients. Technical assistance will help us improve the efficiency of our lending.
What are AMZ’s growth prospects?
We are already established in 6 of the 10 provinces of Zambia and we want to extend our activities to the whole country. We also hope to become a deposit-taking institution medium term, as part of our product diversification and expansion strategy. Our positioning in the territories will remain decisive, with a portfolio of 10 to 15% of the dedicated agriculture loan over the long term. A vast majority of our clients, even those accessing other products, are small farmers.
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(*) In order to develop rural and agricultural financing, AMZ Zambia works with national organizations (FSDZ, RUFEP) and international lenders (Grameen Crédit Agricole Foundation, Oikocredit, FMO, Triple Jump, Global Partnership Lendahand), some of which, such as the Foundation, are also coordinators of technical assistance missions from which it benefits.

Sida, UNHCR and Grameen Crédit Agricole Foundation join hands for financial inclusion of refugees in Uganda

KAMPALA: The Swedish International Development Cooperation Agency (Sida), United Nations High Commissioner for Refugees (UNHCR), and the Grameen Crédit Agricole Foundation (GCAF) today launched a four-year programme to promote access to financial and non-financial services for refugees and host communities in Uganda.
The programme is an innovative blended financial approach with public and private funds coming together to facilitate finance for refugees and host communities. Access to affordable credit services is essential for refugees to start, build and expand enterprises, to meet their daily needs and to be more resilient to emergencies. In addition, access to other types of financial services such as savings, payments and insurance is key to ensure the inclusion of refugees in the formal financial sector and promote their self-reliance and resilience.
An innovative approach
This is a first-of-its-kind programme designed to incentivize both microfinance investors and financial service providers (FSPs) to extend their financial services to refugee and host populations. The project is currently piloted in Palorinya refugee settlement, in northern Uganda and in Kampala and will be gradually expanded to other targeted refugee-hosting districts.
“It is an effective way of using development aid, where we mobilize capital from other investors and thus ensure that scarce humanitarian funds can be released to go to refugees with the greatest need,” says Director General, SIDA, Carin Jämtin.
GCAF will provide debt funding to three FSPs with a guarantee from SIDA, which will also fund the technical assistance of the programme through its humanitarian allocation. The Foundation will coordinate, together with UNHCR, the technical assistance component in order to support the three FSPs to develop an offer of products and services, including financial literacy and business development trainings, for both refugees and members of the host communities.
Supporting entrepreneurship
For UNHCR, the project is in line with the Comprehensive Refugee Response Framework (CRRF) and respond to the call to work with development agencies and the private sector to find lasting solutions for refugees. Many refugees are entrepreneurs, having been business owners in their country of origin or having entrepreneurial skills to start or expand a business activity in their host country. UNHCR Representative in Uganda, Mahoua Parums hailed the initiative and said, that, “Financial inclusion is a key component of achieving long-term solutions for refugees, as it helps them rebuild sustainable livelihoods. Many refugees decide to start a business once they settle in the country of asylum and microfinance can help them make their business grow, avoid aid-dependency and contribute economically and socially to the host communities.”
Through this programme, refugees will receive entrepreneurial training, equipping them with essential skills such as business plan development, financial literacy (including working with the banks), pricing and marketing.
“At the Foundation, we are convinced that microfinance institutions, while adapting their products and services, have an active role to play in promoting the financial inclusion of refugees. Opportunities for digital finance, an in-depth knowledge of each group’s characteristics, regular follow-up and appropriate non-financial services should stimulate such an involvement.” Says GCAF’s Managing Director, Eric Campos.
In total, some 100,000 refugees and hosting Ugandans would be able to access financial services (credit and savings) 70 percent being women. The project will support the creation and development of small businesses such as farming, handicrafts, catering, and trading.

The Foundation continues its development in Sub-Saharan Africa

The Grameen Crédit Agricole Foundation continues to make significant investments in Sub-Saharan Africa, its priority intervention area, with three new investments.
In South Africa, the Foundation financed SEF. Founded in 1992 in Limpopo province, the poorest region of the country, SEF provides microcredit to women living in poor, rural communities. SEF has gained considerable international recognition for its poverty-targeting methodology, the Participatory Wealth Ranking, one of the first such tools officially recognised and promoted by the Microcredit Summit Campaign. The institution that serves 197,359 active borrowers (99% of women and 56% of clients below the National Poverty Line), has been granted a first loan equivalent to €3 million in local currency from the Foundation.
Similarly, the Foundation granted a first loan in local currency equivalent to € 250,000 to the microfinance institution MLF Zambia. The MicroLoan Foundation Zambia (MLF-Z) is a not-for-profit specialist microfinance provider that was established in 2008. Its activities are overseen by the Microloan Foundation which has its headquarters in the UK and is regulated by the Charity Commission. MLF-Z’s main activity is providing low-income women living in predominantly rural areas of Eastern, Southern and Central Provinces of Zambia with short-term loans for productive purposes. The institution, that lends exclusively to women, serves over 11,000 active borrowers. This investment has been conducted within the framework of the African Facility scheme, implemented in partnership with the French Development Agency (AFD).
Also within the framework of the African Facility, the Grameen Credit Agricole Foundation has granted a new loan to the microfinance institution PMBF SA (ex-SOFIPE) in Burkina Faso, for a total amount in local currency equivalent to € 750,000 over a three-year period. PMBF-SA is a microfinance institution that grants loans and offers financing for imports and other financial products to small entrepreneurs. As of today, the institution serves around 17,000 clients, 67% of which are women.
Further information on the Foundation partners here.

The Grameen Credit Agricole Foundation invests in Palestine

In November, the Grameen Crédit Agricole Foundation again signed a partnership in Palestine with the microfinance institution FATEN, for a loan of an equivalent amount in local currency of one million euros. The Foundation now has two partners in Palestine where it has been present since 2012.
FATEN, an NGO that provides financial products and services to small entrepreneurs in the country, as well as farmers who own isolated land near the Israeli separation wall. Its product offering includes group loans, individual loans, Islamic loans, and housing and start-up loans.
FATEN is the largest microfinance institution in the region and is active in remote areas. The current stability has allowed the institution to develop while continuing to serve a majority of women, with a strong presence in rural areas and refugee camps.
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Created in 2008, under the joint impetus of the directors of Crédit Agricole S.A. and Professor Yunus, winner of the 2006 Nobel Peace Prize and founder of the Grameen Bank, the Grameen Crédit Agricole Foundation is a multi-business operator that contributes to the fight against poverty through financial inclusion and entrepreneurship with a social impact. As an investor, lender, technical assistance coordinator and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

The White paper of agricultural insurance

The White Paper published by the International Confederation of Crédit Agricole (CICA) in November is intended to be a contribution to the Sustainable Development Goals for more resilient and better protected agriculture in the face of climatic hazards.
Since its creation in 1950, the International Confederation of Crédit Agricole (CICA) organizes each year a Congress, now called Rencontres. It is an opportunity to present studies and exchange views on subjects of common interest to the heads of banking and financial institutions members of the Confederation.
These Meetings take place on all continents in order to offer members access to other countries and agricultural, banking and cultural realities.
On the occasion of the 6th World Congress on Agricultural and Rural Finance held on November 12 and 13 in New Delhi, CICA published The White Book of Agricultural Insurance, the fruit of 23 contributions that shed light on the challenges of agricultural insurance. Through the testimonies of different actors in all regions of the world, the White Paper aims to contribute to the Sustainable Development Goals, for more resilient and better protected agriculture in the face of climatic hazards. Crédit Agricole’s FARM has collaborated closely in the production of advertising, which highlights how risk management is a key condition for improving the economic, social and environmental performance of agriculture, in both the North and the South.
Download the White paper here.

The Foundation pursues its investments in Europe and Central Asia
In recent months, the Grameen Crédit Agricole Foundation has continued to develop its portfolio with new investments in Eastern Europe and Central Asia.
It has thus granted a new loan to the microfinance institution Monte Credit in Montenegro, for a total amount of € 1 million over a three-year period. Monte Credit offers its clients primarily agricultural and business loans, according to the individual loan methodology. To date, the institution, which manages a portfolio of € 7.4 million, has around 4,600 clients, 55% of whom are women. 56% of its clients live in rural areas.
The Foundation has also granted two new loans totaling € 2.5 million to the Georgian microfinance institution Lazika, whose mission is to facilitate access to financial services tailored to entrepreneurs. With a € 14 million portfolio, the institution now has around 11,000 clients, 47% of whom are women and 75% of whom live in rural areas.
Finally, the Foundation granted a new loan over a three-year period to OXUS Tajikistan for an amount of €1.2 million. OXUS Tajikistan is a microfinance institution that focuses on rural areas where over 80% of its clients live and work. To date, the institution has around 14,000 clients, 39% of whom are women, and manages a portfolio of € 11.3 million.
With these new investments, the Foundation now has 16 partners in 7 countries in the area, which represents an outstanding portfolio of € 16.6 million, that is 19.8% of the total outstandings portfolio managed by the Foundation as of end of October.

The Foundation has signed a new financing agreement with SFA

The Grameen Crédit Agricole Foundation has signed a new financing agreement with the Sénégalaise des Filières Alimentaires (SFA), a partner of the Foundation since 2013, in the form of an equity investment. With this new equity investment amounting to € 137,000, the Foundation consolidates its support to SFA, a social company that develops an inclusive value chain through the production and commercialisation of rice.
The SFA supports the production of quality rice by small farmers in the Senegal River Valley through long-term contract farming arrangements and by giving them access to financing and technical support. The paddy is transformed in white rice and is sold on the Senegalese market under the brand Terral. Thus, the SFA contributes to the goal of self-sufficiency in Senegal, which today depends on imports for over 75% of its rice.
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Created in 2008, under the joint impetus of the directors of Crédit Agricole S.A. and Professor Yunus, winner of the 2006 Nobel Peace Prize and founder of the Grameen Bank, the Grameen Crédit Agricole Foundation is a multi-business operator that contributes to the fight against poverty through financial inclusion and entrepreneurship with a social impact. As an investor, lender, technical assistance coordinator and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

The Foundation funds a new partner in Bosnia and Herzegovina

The Grameen Crédit Agricole Foundation continues to develop its activity in Bosnia and Herzegovina with the signing of a new partnership with the microfinance institution Partner Microcredit Organisation (Partner) to whom it has granted a first loan of € 2 million over a three-year period.
Partner is a multi-ethnic organisation founded by Mercy Corps in 2000. It is the first microfinance institution to work in both Bosnia and Herzegovina following the war. One of the largest MFIs in Bosnia, Partner provides a range of business, agriculture and housing loans through a network of around 30 offices. To date, the institution has over 40,000 active borrowers, 42% of whom are women and 87% of whom live in rural areas, and manages a portfolio of nearly € 70 million.
With this new partnership, the Foundation has three partners in Bosnia and Herzegovina and 16 partners in the Eastern Europe / Central Asia region, representing nearly 20% of the partners and 26% of the outstanding funds managed by the Foundation as of October 2019.
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Created in 2008, under the joint impetus of the directors of Crédit Agricole S.A. and Professor Yunus, winner of the 2006 Nobel Peace Prize and founder of the Grameen Bank, the Grameen Crédit Agricole SA Foundation is a multi-business operator that contributes to the fight against poverty through financial inclusion and entrepreneurship with a social impact. As an investor, lender, technical assistance coordinator and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

Meeting with three female managers of Corporate Foundations – What impact?

In France, nearly half (47%) of corporate foundations were created between 2000 and 2009, according to the last National Survey of Funds and Foundations published by the Observatoire de la philanthropie de la Fondation de France. 43% of corporate foundations were created over the past 10 years, of which 18% between 2015 and 2017 (1). The corporate foundations have shown dynamism and have become levers of innovation and transformation for the companies.
As part of the Grameen Credit Agricole Foundation’s Friends Club meetings, the Evergreen Campus of Crédit Agricole SA in Montrouge welcomed on November 28th, three female managers of Corporate Foundations who came to present their trajectories but also and above all the commitments and impact of the Foundations they lead.
Under the moderation of Eric Campos, Managing Director of the Grameen Credit Agricole Foundation, Miren Bengoa, Managing Director of the Chanel Foundation, Aurélie Bellemin, Managing Director of Fondation Solidarités by Crédit Agricole Centre-est, and Viviane Olivo, Managing Director of Fondation Crédit Agricole Nord de France shared with the audience the objectives and values of their respective Foundations and their point of view on the impact the work performed by corporate foundations may have on the business world and society at large.
For more information :
Fondation CHANEL
Fondation Solidarités by Crédit Agricole Centre-est
Fondation Crédit Agricole Nord de France
(1) Article “Philantrophie : le boom des fondations d’entreprise”, Le Monde, 04/06/2019

Plastic Odyssey and Crédit Agricole renew their partnership

19 tons of plastic enter the ocean every minute. Yet this waste can be an invaluable resource! Make recycling this waste a profitable and job-generating activity: this is the bet of the Plastic Odyssey team. Merchant navy officers, sales manager and engineer, these young entrepreneurs decided to build an ambitious project to raise awareness of recycling plastic waste and share know-how for emerging countries.
A shipping to share low-tech and open-source plastic recycling technologies
For 3 years, the Plastic Odyssey team will sail the seas of the world on a ship to fight against plastic pollution. The expedition will stop in emerging countries to encourage local waste reduction initiatives and the creation of small recycling plants. At each stopover, Plastic Odyssey will share low-tech and open-source recycling technologies to promote the development of micro-entrepreneurship and the circular economy. Training in sorting and recycling plastics will also be offered.
This project does not aim to collect the plastic present in the oceans but to act upstream, by working with the local populations on depolluting solutions, so that the terrestrial waste does not end up in the oceans.
The first ship that advances thanks to recycled plastic
The ship will be ready to go in the second half of 2020. Measuring 40 meters in length, it will operate using fuel made from plastic waste thanks to a pyrolysis plant installed at the rear of the boat: a great first in the field of navigation.
For 3 years, he will successively travel the coasts of Africa, Latin America, and Asia to raise awareness of plastic pollution in the oceans, encourage the reduction of plastic and its recycling and transform plastic waste into resources.
The fight against plastic pollution: a major social issue
The fight against plastic pollution is a concern that Crédit Agricole shares with Plastic Odyssey. The Group was already a partner of Plastic Odyssey in 2018, during the prototyping phase of the project. Crédit Agricole, via 16 entities (1), is continuing this commitment by supporting Plastic Odyssey’s approach with € 1.2 million over 5 years. The support provided for this expedition is in line with the Societal Project of the Crédit Agricole Group.
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(1) 7 Regional Banks (Alpes Provence, Aquitaine, Atlantique Vendée, Charente-Maritime Deux-Sèvres, Finistère, Normandie Seine, Provence Côte d’Azur), BforBank, CAMCA Mutuelle, Crédit Agricole Assurances, CACEIS, Crédit Agricole CIB, Crédit Agricole Immobilier, Crédit Agricole S.A., Crédit Agricole Pologne and Crédit Agricole Italie..

The Foundation invests for the first time in South Africa

In October, the Grameen Crédit Agricole Foundation invested for the first time in South Africa with the microfinance institution Phakamani Foundation. The Phakamani Foundation is a microfinance institution that empowers poor women to succeed at microenterprise. The Phakamani’s microenterprise programme is modelled on the internationally renowned Grameen Bank. Its system of training, group borrowing, and on-going support brings both accountability and practical assistance to the development of the microenterprises.
The programme targets rural and peri-urban areas with very high unemployment. The neediest people within these communities are identified by using a household index, an asset test, and a basic interview. Women who may be interested in starting their own microenterprises are invited to learn about Phakamani’s programme. To date, the institution has over 31,000 female clients all located in rural areas and manages a portfolio of nearly € 3 million.
A second investment in South Africa is being finalised in favour of SEF, a microfinance institution that serves 197,359 active borrowers (99% of women).

Corporate foundations: what impact?

The Grameen Crédit Agricole Foundation Friends Club is an area open exclusively to employees of the Crédit Agricole Group who are interested in the activities and mission of the Foundation. It is a Club of information sharing and debates organised throughout the year with the Foundation’s partners.
To mark the end of the year, a meeting is organised on November 28th at the Crédit Agricole Campus in Montrouge. Come chat with the General Delegates of three Corporate Foundations that will discuss the action and impact of Foundations, which bring innovation to the company and society.
The event is exclusively reserved for employees of the Crédit Agricole Group. To register, please contact carolina.herrera@credit-agricole-sa.fr
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Created in 2008, under the joint impetus of the directors of Crédit Agricole S.A. and Professor Yunus, winner of the 2006 Nobel Peace Prize and founder of the Grameen Bank, the Grameen Crédit Agricole SA Foundation is a multi-business operator that contributes to the fight against poverty through financial inclusion and entrepreneurship with a social impact. As an investor, lender, technical assistance coordinator and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

The Foundation organises the 5th African Facility Forum in the margins of the SAM 2019
From 20 to 25 October, the Grameen Crédit Agricole Foundation brought together in Ouagadougou (Burkina Faso), 22 African microfinance institutions (MFIs), partners supported within the framework of the African Facility, a scheme set up in 2013 by the Grameen Credit Agricole Foundation and the French Development Agency (AFD) to support a larger number of rural MFIs in sub-Saharan Africa.
On October 20th, the 42 representatives of the partner institutions met with the Foundation’s teams in order to assess the African Facility over the past year, welcome the new beneficiaries of the programme and share the best practices of the different institutions that attended, before meeting with representatives of AFD and Proparco present in Ouagadougou.
Participation in the African Microfinance Week
The African Facility partners also had the opportunity to participate in ADA’s African Microfinance Week (SAM 2019) from October 21st to 25th. Open to all microfinance practitioners, SAM is a common African platform for reflection and exchange among all stakeholders in the sector to accelerate in a sustainable manner both financial inclusion and economic growth of the continent.
This event aims to facilitate exchanges between microfinance professionals and foster synergies at regional and international level. With this in mind, the Foundation organized a training course on Adaptation of MFIs to climate change that brought together more than fifty professionals, mainly from Africa, concerned by the fact that the variations and the difficulty in predicting the climate put at risk the livelihoods of microfinance borrowers, and thereby threaten the future ability of MFIs to operate in rural areas.
Represented by Philippe Guichandut, Director of Inclusive Finance Development, the Foundation also spoke at a round table on the state of the art of the inclusive finance sector and its contributions to the SDGs in Africa. He stressed, among other things, the challenges linked to the financial inclusion of refugees, the challenges of digital finance as well as the importance of financing small farms which remain at the heart of the Foundation’s concerns.

Two other partners of the Foundation awarded with the Smart Certification

The Smart Campaign is a global initiative to incorporate strong client protection principles into the financial inclusion industry. The Smart Campaign’s Client Protection Certification programme publicly recognizes those institutions providing financial services to low-income households whose standards of care uphold the Smart Campaign’s seven Client Protection Principles. These principles cover such important areas such as pricing, transparency, fair and respectful treatment and prevention of over-indebtedness.
The certification programme contains a rigorous set of standards against which institutions are evaluated by independent, third-party raters that are licensed by the Smart Campaign. The raters are established, specialized rating agencies with extensive experience, having analyzed hundreds of institutions to date.
In 2019, in addition to the action of Chamroeun, partner of the Grameen Crédit Agricole Foundation since 2010, this initiative also publicly recognised the action of two other microfinance institutions, partners of the Foundation, as Client Protection Certified for meeting strong standards of client care: Musoni (Kenya) and Salym Finance (Kyrgyzstan).
These institutions join almost 120 others in over 40 countries that have been certified since the programme was launched in January 2013.
For further information about Grameen Credit Agricole Foundation partners, please click here.

Exceptional meeting: Rania, Syrian entrepreneur and refugee

To launch the 2019 edition of Solidarity Cents, the Grameen Crédit Agricole Foundation, Crédit Agricole SA and CA Center-est welcome on November 4, on the CA Campus in Montrouge, Rania, A Syrian entrepreneur and refugee supported through the operation.
After leaving Syria and thanks to the ICI Project (Incubation, Creation, Inclusion) of Entrepreneurs du Monde funded via Solidarity Cents, Rania was able to create its catering service to discover the traditional cuisine of her country. Come to exchange with Rania and taste her culinary specialties.
Solidarity Cents
Launched in 2018 by the Grameen Crédit Agricole Foundation, Crédit Agricole SA and CA Center-Est, Solidarity Cents aims to finance entrepreneurship projects by mobilizing Crédit Agricole employees who are invited to donate 50 cents when they pay their meals at the CA Campuses restaurants.
Thanks to the support of Crédit Agricole employees, € 7,000 were paid to Entrepreneurs du Monde in 2018 to finance the ICI Project, which supports entrepreneurship projects for refugees, isolated parents and homeless people in Lyon.
This year, the beneficiary of the operation will be Entrepreneurs du Monde again. The operation will run in parallel at the Crédit Agricole Campuses in Montrouge, Saint-Quentin and Lyon from November 18 to 22.
The event is exclusively reserved for employees of the Crédit Agricole Group. To register, please contact carolina.herrera@credit-agricole-sa.fr

[Interview] Climate change and Microfinance

On the occasion of The African Microfinance Week (SAM, the FinDev portal asked a number of questions to Eric Campos, Managing Director of the Grameen Crédit Agricole Foundation and CSR Manager of Crédit Agricole SA on the adaptation of microfinance institutions to climate change.
How can inclusive finance help to achieve the SDGs in Africa?
Inclusive finance is a voluntary initiative of the financial sector to create positive social impact while creating financial value so as to make this undertaking sustainable. When socially effective, microfinance is an instrument of inclusive finance. But this can hold true also for the conventional financial sector which can seek to combine the financial return of the means and resources deployed with social impact. Inclusive microfinance makes it possible to foster access to financing for segments of the population which have been traditionally excluded from the banking sector. In this respect, it supports the consumption by segments of the population with low income, often from informal sources, who are at times relatively more vulnerable (rural communities, women, young job seekers) and enables them to build a little capital. When such financing supports the development of small businesses, the latter in turn create growth, boost employment and stimulate the local economy.
What is the role of MFIs in the face of climate change, in particular in Africa, a continent particularly vulnerable to these upheavals?
The Food and Agricultural Organization of the United Nations has stressed that urgent action is needed to support small concerns in their efforts to adapt to climate change. Farmers, nomadic herders, fishermen and small forest owners all depend on activities which are closely and inextricably linked to the climate. The negative effects on the food supply are getting worse, and may even deteriorate into disaster in certain particularly vulnerable areas. It is therefore urgent to bolster the resilience of the small family farm faced with an upheaval in operating conditions. The African continent is more exposed in this respect, because only 0.25% of the 178 million insured farmers in the world are African.
In the face of climate change, access to financial services is essential because it contributes to supporting the stability of farming activities when MFIs manage to reach farmers in rural areas. Nevertheless, there is no denying that enormous challenges still lie ahead. Heavy investments are needed to improve agricultural productivity, develop rural infrastructures, and foster the establishment of companies processing agricultural products and engaging in agri-industrial activities. Microfinance continues to be an overly isolated tool which is not yet matched up to the continent’s challenges because there is no ecosystem to support the modernization of agriculture.
In particular, how can MFIs support rural populations and small producers?
Whereas these farmers should ideally have adequate financial security and good livelihoods, they actually lead a life of daily struggles. They are faced with limited access to agricultural inputs (seeds, fertilizers, water, agrichemical products, agricultural tools and machinery) and to markets. They are henceforth regularly exposed to unexpected meteorological events that affect their production and therefore their income, without any insurance coverage. Farmers are often helpless against the ravaging effects of climate change.
The MFIs are often the only recourse a farmer has to finance his working capital requirements. They provide a variety of financial products that seek to adapt to the activities of the rural world. When MFIs are socially committed, they also provide “on-site support” which bolsters their effectiveness (workshops, on-site visits and risk assessment, advice on the purchase of raw materials, etc.). The sector of microfinance therefore remains the only alternative to usurers in very many rural areas. These institutions can also provide agricultural insurance products, which however are still prohibitively expensive for village agriculture which continues to be mostly at the subsistence level.
What concrete actions does the Grameen Crédit Agricole foundation take on this subject in Africa?
Rural life is the cornerstone of growth in developing countries. Rural areas have high growth potential but because of lack of means and resources, they are being deserted by their inhabitants who migrate to areas of potential employment and go to live on the fringes of cities. This development issue of rural economies is also linked to the necessary bolstering of subsistence agriculture to address malnutrition against the background of exponential population growth, and the promotion of the entrenchment of populations around jobs in the agricultural sector.
The Foundation is a contributor to rural development. 40% of the loans granted are earmarked for Sub-Saharan Africa. We are effectively present in some fifteen countries, and the Foundation’s financing policy is geared primarily to rural areas and women. The principles of action are marked by the need for the management of the social and economic performance of our partners. We promote responsible finance through strict eligibility criteria and a systematic economic and social performance analysis. As the fight against poverty cannot be waged alone, however, we take action alongside other committed stakeholders. With openness, determination and ability to listen, we call for the convergence of actions and agendas.
What do you expect from SAM 2019?
The battle against climate change is a global challenge for which we call on all parties to face up to their responsibilities. But the resilience of populations and economies is a local challenge which requires public and private stakeholders who are capable to contribute, in their respective area of responsibility, to the modernization of their regions. The SAM is a place for exchange, learning, information and sharing. It is also a place where a coalition of the willing is being built. We hope that the 2019 edition will bring us the optimism of determination and the energy of inspiration.
Source : Portail FinDev

OSHUN, clean water for all!
OSHUN, a partner of the Grameen Crédit Agricole Foundation, is a social start-up that aims to guarantee access to clean water to everyone, especially in developping countries.
OSHUN was created from the alliance of three French companies, each one leader in their respective fields, with the idea of adopting a social approach while having the framework and rigor of entrepreneurship.
The Providence technology developed by OSHUN is unique. In addition to answer all the problems related to the potabilisation of the water, the Providence technology is autonomous in energy, easy to transport and to maintain, connected in real time, and payable numerically at a fair price.
In Senegal where the company operates, OSHUN is 1 000 000 liters of water produced and distributed during the first year of activity, 65 rural jobs created in one year, 65% of them occupied by women, and a decrease in waterborne diseases of 30% in adults and 80% in children.
Discover OSHUN in video by clicking here.
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Created in 2008, under the joint impetus of the directors of Crédit Agricole S.A. and Professor Yunus, winner of the 2006 Nobel Peace Prize and founder of the Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business actorthat contributes to the fight against poverty through financial inclusion and entrepreneurship with a social impact. As an investor, lender, technical assistance coordinator and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

Chamroeun, partner of the Foundation earns Smart Certification

The Smart Campaign, a global initiative to incorporate strong client protection principles into the financial inclusion industry, has publicly recognised Chamroeun, partner of the Grameen Crédit Agricole Foundation since 2010, as Client Protection Certified for meeting strong standards of client care. The institution joins more than 115 others in over 40 countries that have been certified since the programme was launched in January 2013.
“We extend our heartfelt congratulations to Chamroeun,” said Isabelle Barrès, Director of the Smart Campaign. “Their willingness to do the work it takes to prepare for and undergo the intensive process of evaluation is indicative of their deep commitment to their clients. They have shown that this bar is achievable in the area of client protection. Their example will catalyze a movement towards certification within the broader industry.”
The Smart Campaign’s Client Protection Certification programme publicly recognizes those institutions providing financial services to low-income households whose standards of care uphold the Smart Campaign’s seven Client Protection Principles. These principles cover such important areas such as pricing, transparency, fair and respectful treatment and prevention of over-indebtedness. The certification programme contains a rigorous set of standards against which institutions are evaluated by independent, third-party raters that are licensed by the Smart Campaign. The raters are established, specialized rating agencies with extensive experience, having analyzed hundreds of institutions to date.
Chamroeun has long demonstrated a commitment to client protection. Prior to undergoing certification, the institution was evaluated by the Smart Campaign on its practices and contributed to the development of Campaign tools to help advance the sector.
Further information on Chamroeun, cliquez here.

African Facility II: The Foundation and AFD together for microfinance in Africa

Launched in 2013 by the Grameen Crédit Agricole Foundation and the Agence Française de Développement (AFD) [French Development Agency], the “Take-off Facility for agricultural and rural microfinance in Africa” (African Facility) aims to support microfinance institutions in sub-Saharan Africa. After a successful first phase (2013-2016), with 16 funded partners and € 6 million in disbursed loans, the second phase of the program will support 25 rural microfinance institutions.
With the coordination of the Foundation, AFD financing for Phase II is structured around 3 elements: a loan of € 6 million for the credit activity; a € 2.2 million grant for technical assistance; and an ARIZ portfolio guarantee to cover 50% of the credits granted.
The results of Phase II
Phase II of the program already has 22 microfinance institutions supported (including 10 new ones), which at the end of June 2019 represent more than 400,000 active borrowers, 70% of whom are women and 66% live in rural areas.
In terms of technical assistance, beyond the tasks related to the reinforcement of financial management and risks, new themes are integrated into the program, such as social performance management, microinsurance, digitalization and green microfinance. In addition, 79 technical assistance missions were launched. Furthermore, the 29 microfinance institutions’ Managers and Directors received a scholarship to participate in the Boulder training in Turin in 2017 and 2019.
Finally, all institutions confirmed their participation in the Facility Partners’ Forum organized in October 2019 in parallel with the African Microfinance Week in Ouagadougou. This will be an opportunity to make a point of step of the impact of the program and strengthen the links between the partners supported.

The Credit Agricole FIR Fund invests in Kazakhstan and Kosovo

In 2018, the Grameen Crédit Agricole Foundation launched a social impact investment fund in partnership with CA Indosuez Wealth (Asset Management) and CACEIS Bank, Luxembourg Branch. This fund offers the Regional Banks and entities of the Crédit Agricole SA Group the opportunity to invest in the financing of microfinance institutions operating in rural areas in emerging countries.
The Foundation thus reinforces its support to institutions operating in emerging countries for the benefit of people traditionally excluded from the banking sector, and more specifically for the benefit of women, who constitute the client base of these institutions. The benefit is twofold: a positive profitability objective and an impact in terms of financing of income-generating activities.
Two new microfinance institutions have recently been financed through this Fund. A loan in local currency equivalent to €1.5 million has been granted to Asian Credit Fund (ACF) in Kazakhstan. ACF offers financial services designed to promote rural household development, small business growth and homeownership. To date, the institution has 27,000 active borrowers, 79.5% of whom are women and 95.9% of whom live in rural areas. The institution manages a loan portfolio amounting to € 13.2 million.
The Fund also financed the Kosovar institution KRK with a loan of € 1.5 million. KRK’s mission is to provide access to financial services in rural areas of Kosovo. A long-standing partner of the Grameen Crédit Agricole Foundation, the institution currently has 16,000 active borrowers, of which 15.2% are women and 60.5% live in rural areas, and manages a loan portfolio amounting to € 38.4 million.
With these two new investments, the Fund is now supporting four projects for a total amount of € 5 million. As of September 30, 2019, after the confirmation of the participation of Centre Loire, 21 Regional Banks are investing in the Fund. The FIR’s outstanding amount is € 9.7 million thanks to the investments of Crédit Agricole Assurance, Amundi and 21 Regional Banks (Alpes Provence, Alsace-Vosges, Brie Picardie, Centre-est, Centre-France, Centre Loire, Centre-Ouest, Champagne-Bourgogne, Charente-Périgord, Finistère, Franche-Comté, Ille-et-Vilaine, Languedoc, Loire-Haute Loire, Martinique-Guyane, Normandie-Seine, Provence Côte-d’Azur, Réunion, Savoie, Sud Rhône Alpes and Touraine Poitou).

The Grameen Crédit Agricole Foundation invests again in Central Asia

During the first six months of the year, the Grameen Crédit Agricole Foundation made new investments in Central Asia. It granted a new loan in USD equivalent to € 895,000 to the Tajik microfinance institution Humo. Humo is a progressive and leading microcredit deposit organisation whose main activity is to provide quality, affordable financial services to the rural population. To date, this institution has nearly 57,000 active borrowers, 42% of whom are women and 80.5% of whom live in rural areas.
The Foundation also granted a new loan to OXUS Kyrgyzstan for a total amount in local currency equivalent to € 708,000. OXUS Kyrgyzstan is a microfinance institution that offers individual and group loans to its clients who work mainly in the agricultural and livestock sectors. The institution currently has 7,600 active borrowers, 55% of whom are women and 57.2% of whom live in rural areas.
The Grameen Crédit Agricole Foundation is currently supporting 20 microfinance institutions in Eastern Europe and Central Asia with total commitments in the region amounting to € 20.1 million, that is 21% of the Foundation’s commitments as of end of August 2019.
Further information: Organisations soutenues
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Created in 2008, under the joint impetus of the directors of Crédit Agricole S.A. and Professor Yunus, winner of the 2006 Nobel Peace Prize and founder of the Grameen Bank, the Grameen Crédit Agricole SA Foundation is a multi-business operator that contributes to the fight against poverty through financial inclusion and entrepreneurship with a social impact. As an investor, lender, technical assistance coordinator and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

The Foundation grants 7 new fundings in sub-Saharan Africa
During the first half of the year, the Grameen Crédit Agricole Foundation has granted seven new fundings in sub-Saharan Africa to historic partners. With these new investments, the Foundation raises the amount of its commitments in Sub-Saharan Africa to nearly € 41 million, that is 41% of the total amount of the Foundation’s commitments as of end of August 2019.
In Benin, the RENACA microfinance institution received a loan in local currency equivalent to € 762,000 over a three-year period. RENACA is a mutual microfinance institution whose mission is to significantly strengthen the economic base of rural populations. To date, the institution has 27,000 active borrowers, 80% of whom live in rural areas and 59.5% of whom are women.
In Kenya, the Foundation granted a new loan in local currency equivalent to € 2 million to the microfinance institution Musoni. Musoni Kenya is a microfinance institution that leverages Information Communication Technology (ICT) heavily to manage its operations efficiently and to scale rapidly. To date, the institution has 44,000 active borrowers, 66.3% of whom are women and 63.3% of whom live in rural areas.
In Uganda, ENCOT received a new loan in local currency equivalent to € 296,000 over a three-year period. This loan was made within the framework of the African Facility, a programme developed by the Grameen Crédit Agricole Foundation in partnership with the French Development Agency to support small microfinance institutions in sub-Saharan Africa. ENCOT is an indigenous rural community development microcredit and rural-enterprise development NGO whose goal is to provide financial and enterprise development services. To date, the institution has 6,200 active borrowers, 56% of whom are women and 88.4% live in rural areas.
Similarly, in the Democratic Republic of Congo, the Foundation granted a loan equivalent to € 540,000 within the framework of the African Facility, to the microfinance institution Paidek, an institution whose role is to finance the development of small commercial or livestock-raising activities. To date, Paidek has 15,500 active borrowers, 51% of whom are women and 31.2% of whom live in rural clients.
In Zambia, the Foundation also provided a new loan in local currency equivalkent to € 300,000 over a three-year period to Agora Microfinance Zambia (AMZ), within the framework of the African Facility. AMZ is a microfinance institution which targets specifically people with low incomes through suitable financial products. To date, it has 37,100 active borrowers, 58% of whom are women and 85% of whom live in rural areas.
Finally, in Senegal, the Foundation has made two new investments. A first investment was made with the microfinance institution CAURIE in the form of a loan, for an amouint in local currency equivalent to € 1.14 million over a four-year period. Caurie Microfinance’s mission is to contribute to the economic and social improvement of poor microentrepreneurs. The institution now has 72,200 active borrowers, 99% of whom are women. 55% of Caurie’s customers live in rural areas. The second investment made by the Foundation in this country was made in the form of an equity investment to Laiterie du Berger for an amount equivalent to € 99,700. La Laiterie du Berger, of whom the Foundation has been a shareholder since 2010, is a social company that collects milk from Fulani herders, in the North of the country, and transforms it into yogurts and other dairy products that are sold under the brand Dolima.

The Foundation supports three new partners

During the first half of 2019, the Grameen Crédit Agricole Foundation funded three new partners in Africa and Central Asia. With these three new partners, at the end of August 2019 the Foundation supported 81 organisations in 38 countries.
It has thus granted a first loan in FCFA equivalent to € 1.5 million to Vital Finance in Benin, a microfinance institution founded in 1998. Launched as a microfinance project funded by USAID, Vital Finance has gained impressive experience in the field of microfinance. Its constant evolution in terms of both its activities and its profitability places it among one of the largest microfinance institutions in the country. The institution is mainly active in peri-urban areas with very active populations, economically viable but without access to traditional banks. To date, Vital Finance has 29,000 active borrowers, 66% of whom are women.
Also in the first semester, in Zambia, the Foundation provided a loan in local currency equivalent to € 1.5 million to the microfinance institution Entrepreneur Financial Center Zambia (EFC). It is the largest regulated microfinance institution in the country. EFC offers loans to individual businesses and loans for housing. It also offers deposit and savings products to its clients. The institution, established by CARE Zambia in 1996 as a microfinance project, aims to provide working capital solutions for micro, small and medium enterprises (MSMEs), with a focus on innovation customised products. To date, it has nearly 4,000 active borrowers, 44% of whom are women and 6% of whom are located in rural areas.
Finally, the Foundation also granted a first loan in local currency equivalent to € 890,000 to the microfinance institution Salym Finance in Kyrgyzstan. This institution, created in 2007 by four Kyrgyz entrepreneurs, aims to create the financial conditions to support and develop client activities and improve the standard of living of the population. Salym offers loans following the individual methodology. Currently, the institution has nearly 12,500 active borrowers, 53% of whom are women and 74% of whom are living in rural areas, and manages a portfolio of €16.5 million.
For further : information.

Solidarity Notebooks: A Solidarity Banker in Senegal
By Haoly Basse, Crédit Agricole CIB

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole S.A. in 2018, Solidarity Bankers is a skills volunteering programme open to all Crédit Agricole Group employees for microfinance institutions or impact companies supported by the Foundation. Discover the platform of Haoly Basse, a CACIB Solidarity Banker who went to Senegal in July to provide guidance and support to KOSSAM, a social business supported by the Grameen Crédit Agricole Foundation.
When I discovered the Solidarity Bankers programme, I felt an affinity with the values of commitment, solidarity and sharing embodied by the assignments offered. I became aware that the values conveyed by Crédit Agricole were not just “pretty words” but were backed by inspiring, visible and concrete actions.
I therefore decided to apply for a “digital” assignment in favour of KOSSAM Société de développement de l’élevage (KSDE) in Senegal — an assignment even closer to my heart as I stem from the North of Senegal. KOSSAM is a social business, a subsidiary of the Laiterie du Berger, which works with nearly 450 local dairy farmers and aims to develop a sustainable dairy industry in the North of the country. The aim of the assignment was to provide guidance and support for the company in deploying the digital application “Com care” which will help improve the collecting conditions and the company’s knowledge of its farmers – suppliers.
After a series of talks with the Foundation’s team, I was confirmed as a Solidarity Banker. I also had the support of my employer, Crédit Agricole CIB, which covered 50% of the assignment time by way of skills-based sponsorship. The adventure had started.
Morning visits, meetings and learning
The discussions leading up to the assignment with the team of the Foundation and KOSSAM enabled me to prepare for the intense task that lay ahead. I arrived in Dakar on Saturday, 29 June, and was met at the airport by Jonathan Michaud, one of the first Solidarity Bankers stemming from Crédit Agricole Franche Comté, who was posted on a two-year assignment as General Manager of KOSSAM.
The next day I attended the annual Convention of supplying farmers held in Saly by the Laiterie du Berger. It was a sterling opportunity for me to take part in a key moment during which I was able to observe the strong cohesion of the dairy farmers and teams of the Laiterie du Berger and KOSSAM in facing the challenges of the dairy industry.
The following Monday was my first day at work in Richard Toll. As it happened to be payday, I was able to meet most of the farmers who worked with KOSSAM. On the days which followed, I paid several field visits which started at 5:00 AM to help the teams of KOSSAM with the deployment of the digital application “Com Care” to collect milk from the dairy farmers and to feed the company’s database. The needs of the users vary: save time when performing their work, have reliable data that can be shared in real time, automate repetitive tasks, implement procedures and have a reliable information system. The discussions with the farmers were rich and instructive, particularly concerning the establishment of mini farms – one of the development pillars of KOSSAM.
In addition to visiting several farms, I also visited the plant of the Laiterie du Berger. I found the shop foreman’s description of the industrial processes for the design of dairy products captivating. I was impressed by his professionalism and technical acumen. I also took part in the inauguration of the water fountains in one of the stores selling food in the bush – a fine moment of sharing and celebration.
10 days after – the next steps
I drew on all the data collected to analyse the existing situation and to make recommendations on how to accelerate the company’s digitization. The subsequent steps will consist of putting in place a reliable information system for KOSSAM so as to have access to shared data in real time to manage the work on a day-to-day basis and to develop the company’s business.
This assignment was very eye-opening for me, because I would have never imagined that being close to the farming world would have pleased me so much. I enjoyed being close to the dairy farmers and the local teams, sharing their everyday lives, listening to them and seeing the impact their actions and collective work had in the field. There is an African saying: “we are broke but not brazen.” I find it most telling of the mutual assistance and solidarity that I witnessed throughout my assignment. These values are deeply rooted in Senegal and it is invigorating to share them.
I returned to Paris transformed with a desire to go back to Senegal, because the country has enormous potential for development. I have come away with a rich professional experience and a fine human adventure which has reinforced my ties with the Crédit Agricole Group.

Microfinance and retail banking: converging views
By Céline Hyon-Naudin, Investment Manager, Grameen Crédit Agricole Foundation

Microfinance is the set of financial products and services accessible to people who are excluded from the conventional banking system. Today, the microfinance sector boasts 139 million beneficiaries for an estimated total of outstanding loans of $114 billion (1). Beyond the objective of fostering financial inclusion, microfinancing is constantly adapting and innovating to be a lever for economic development through entrepreneurship.
This financing of entrepreneurship is a common key point between microfinance and retail banking. As in the case of microfinance, retail banking provides solutions to promote income-generating activities. In the Booklet celebrating the Foundation’s 10th anniversary published last year, we compared the figures of the Foundation and a small-sized “average” (2) regional bank and identified several analogies. This article puts the spotlight on the common challenges identified.
A few points of comparison
Retail banks and microfinance institutions (MFIs) share certain objectives and operating procedures. For example, the commercial organization is similar to that of a conventional banking network with an account manager who manages a portfolio. They both exercise their activities in the heart of their territories close to their customers. Microfinance has evolved so as to diversify its offer of financial products, moving close to that of a retail bank: lending, savings, money transfers, insurance, mobile payments, investments, etc., reflecting the variety of needs of clients and businesses.
Furthermore, MFIs and retail banks are plying their trade by endeavouring to control their costs and risk, while aiming to generate a positive and resilient result capable of securing the sustainability of their mission.
For all that, the revenue and expenditure structure differs widely between the two models. The operating costs (for example, travel expenses of loan officers who have at least 250 to 300 clients) are high at an MFI: they account for 50% to 60% of the charges.
The revenue mix also has structural differences. The amounts and average term of loans are more modest in microfinance: microcredits are in general for a term of less than a year and the average loan (of our partners) is €765 compared with €16,000 for an average regional bank. An MFI has revenues linked almost exclusively to financing, contrary to a retail bank, which has a more extensive range of products and is less reliant on financing. The revenues of an MFI are essentially generated from the net financing margin: Interest on loans accounts for 88% to 99% of the revenues of MFIs, far more than the 51% of the average regional retail bank.
Interest rates in the microfinance sector are higher than those of a retail bank, particularly because of the operating costs. Nevertheless, ethics and the impact requirement are forcing the sector to optimize its operating costs. The table below provides a comparison of the expenditures, revenues and margins per customer of a partner MFI and a bank. Although there are sizeable variations between regions, the margin per customer is positive for the MFIs. Microfinance remains a viable economic sector, even if MFIs are facing significant challenges, which retail banks too are up against.
Common challenges for banking and microfinance
With 1.7 billion adults worldwide who still don’t have access to a bank account (3), microfinance and banking have to continue to innovate in order to reach them. Two lines of approach are available to them: digital finance and the resilience to climate change.
Digital finance is transforming the world of finance, making it more agile: New technologies provide digital financial services which are improving the operating efficiency of financial institutions and increasing the range of their service. Improving operational processes should make it possible to develop new distribution channels and to reach new markets. The dissemination of financial services by these new technologies constitutes a pillar of the current financial acceleration. The potential is significant: of the 1.7 billion adults who still do not have access to a bank account, one billion have a mobile telephone and 480 million have access to the internet (4).
The financing of the ecological transition is another common challenge. MFIs are strengthening the development of rural economies through their direct contact with small producers. Small farmers are already weakened by the small size of their farmland (80% have less than 2 hectares) and their low level of integration in agricultural sectors (only 7% are formally integrated in commercial value chains). Climatic change poses an additional risk as MFIs and retail banking alike have to innovate to grant loans better adapted to agricultural cycles and risks and to promote new cultivating practices that encourage resilience and adaptation to climate change. Microfinance and retail banking are accordingly positioning themselves around financial solutions such as those that are fostering access to green energy to promote the ecological transition.
These common challenges are bringing together the two branches of the financial system which play a powerfully inclusive role in economic development and social and environmental progress. There are many synergies to capitalize on between microfinance and the banking sector.
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(1) Microfinance Barometer 2018: //www.convergences.org/barometre-de-la-microfinance/
(2) The average regional bank is based on calculations from figures provided by French regional institutions which have made it possible to establish an average profile.
(3) Global Findex 2017
(4) Ibid

The Foundation’s Newsletter N.33 is now available

The Foundation publishes its quarterly Newsletter N.33. In this issue of The Newsletter, we present the cooperation set up with the Crédit Agricole Group entities: Crédit du Maroc and CACIB in India. Together, we implemented a scheme to support and finance local microfinance institutions. We have been working for several months on the project and it is with a great sense of pride that we present it to you.
You will also discover the article by Céline Hyon-Naudin, Investment Manager of the Foundation, who analyzes the similarities and common challenges to retail banking and microfinance.
In this edition, we are launching a new section: Solidarity Notebooks. It will present the testimonials of Solidarity Bankers who went on field missions to support the organizations funded by the Foundation. The first Notebook is written by Haoly Basse, Solidarity Banker of CACIB who went to Senegal in July to support Kossam, a social enterprise that aims at developing an inclusive daily sector in the North of the country. A great story to add: Kossam is headed by Jonathan Michaud from Crédit Agricole Franche-Comté, one of the first Solidarity Bankers.
Enjoy the read!
Click herehere to download the Newsletter N.33
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Created in 2008, under the joint impetus of the directors of Crédit Agricole S.A. and Professor Yunus, winner of the 2006 Nobel Peace Prize and founder of the Grameen Bank, the Grameen Crédit Agricole SA Foundation is a multi-business operator that contributes to the fight against poverty through financial inclusion and entrepreneurship with a social impact. As an investor, lender, technical assistance coordinator and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

The Grameen Credit Agricole Foundation invests in three new countries

In the first half of 2019, the Grameen Crédit Agricole Foundation made new investments, including three in new countries. For the first time, it funded the LAPO microfinance institution in Sierra Leone for an amount equivalent to € 385,000. LAPO’s mission is to provide financial services that meet the needs of economically active people in a cost-effective and innovative way. It is an MFI that is committed to developing the microfinance industry in Sierra Leone based on microfinance best practices and enhancing the microfinance sector in relation to further developing a credit culture. To date, the institution has nearly 22,000 active borrowers, 97.3% of whom are women. 74% of its clientele is located in rural areas.
The Foundation has also made an initial financing equivalent to € 500,000 to the Nigerian microfinance institution ACEP Niger. ACEP Niger is an MFI specialised in financing very small businesses in urban areas. It manages loans and savings products for urban and peri-urban small and micro-enterprises rejected by the traditional banking system. In accordance with its corporate social responsibility focus, ACEP Niger has adopted the SMART Campaign Client Protection Principles. It thus protects its borrowers against over-indebtedness. To date, the institution has nearly 4,000 clients, about 25% of whom are women. The entire ACEP Niger clientele is located in urban areas.
Lastly, the Foundation also granted a first loan worth € 493,000 to VisionFund Rwanda, a microfinance institution, subsidiary of VisionFund International whose mission is to provide financial and non-financial services to underprivileged rural communities. VisionFund Rwanda serves vulnerable women with children and youth in rural areas and provide them with economic empowerment opportunities. Its products and strategy are focused on strengthening and providing financial services to Village Savings and Loans Associations (VSLAs) and groups. To date, the MFI has close to 12,000 active borrowers, 62% of whom are women and 85% of whom are located in rural areas.

During the first quarter, the Foundation makes three new investments in Asia

During the first half of 2019, the Grameen Crédit Agricole Foundation made three new investments in Asia, including a guarantee in India in partnership with CA-CIB India.
In Cambodia, Phare Performing Social Enterprise (PPSE) was granted a loan equivalent to € 332,000. This partner, of which the Foundation holds 15.5% of equity since 2013, is a social company that creates, produces and organises performing arts shows and that hires young artists from underprivileged backgrounds.
In Myanmar, the Foundation also granted a new loan equivalent to € 1.8 million to Vision Fund Myanmar, a microfinance institution that lends small sums of money to people who do not have a measurable credit history, assets to secure the loans, or access to mainstream financial providers. To date, the institution has 183,000 active borrowers of whom over 85% are women and nearly 52% live in rural areas.
Finally, in India, the Foundation, in partnership with CA-CIB India, has established a loan guarantee scheme for a total amount in local currency equivalent to € 5.5 million on behalf of Fusion Microfinance Private Ltd, a microfinance institution founded in northern India in 1994. Fusion pays particular attention to issues of over-indebtedness and irresponsible lending, training its branch managers and relationship officers on the risks of multiple lending, so that its staff can be certain that prospective borrowers are aware of the risks and responsibilities that borrowing entails.

The Foundation and CACIB work together to support microfinance in India

The Grameen Crédit Agricole Foundation and Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) have joined forces to guide and finance Indian microfinance institutions that support projects for segments of the population wo are excluded from the conventional banking system. Through this partnership, the Crédit Agricole Group is mobilizing its expertise in inclusive finance in India and committing funding to the tune of €12 million.
Loans for a global amount equivalent to €12 million in local currency may be granted by Crédit Agricole CIB to Indian microfinance institutions under the guarantee and supervision of the Grameen Crédit Agricole Foundation. The latter institution will deal with the origination and examination of funding applications and their monitoring. Loans granted to institutions will help facilitate access to financial services to the greatest possible number of people so as to encourage the development of income-generating activities. Rural populations and women entrepreneurs will be the main beneficiaries.
Through this partnership, Crédit Agricole CIB emerges as a committed stakeholder for inclusive finance in India. “The complementary nature of the know-how has played out optimally here, with the Foundation contributing its deep understanding of the stakes of microfinance, and the Indian branches of Crédit Agricole CIB their demonstrated knowledge of the local, complex and evolving banking regulations,” said Emmanuel Bouvier d’Yvoire, Senior Country Officer of Crédit Agricole CIB for India. Present in India since 1981, Crédit Agricole CIB is established in Bangalore, Chennai, Delhi, Mumbai and Pune.
“Alongside Crédit Agricole CIB, we support institutions that promote the development of rural economies in India. This cooperation shows the Group’s commitment to act every day in the interest of society,” says Eric Campos, Executive Officer of the Foundation and Head of CSR of Crédit Agricole S.A. For the Foundation, it is a sterling opportunity to work in India where microfinance is highly developed but exclusion remains a challenge.
The first financing operation is a loan of INR 5 million, guaranteed fully (100%) by the Foundation, to Fusion Microfinance in India. This company provides financial products and services to more than 1 254 007 women, mainly (86%) in rural areas, who compose its entire clientele. The institution has a portfolio of €237 million. It is present in 17 Indian States, with a network of 440 branches and 3 695 employees.

New Solidarity Bankers mission in Kyrgyzstan

At the initiative of the Grameen Crédit Agricole Foundation and Crédit Agricole S.A., Solidairity Bankers is a skills-sponsorship programme open to Crédit Agricole Group employees on behalf of the organizations supported by the Foundation. Since the beggining of the programme, thirteen missions were launched.
A new Solidarity Bankers mission is to be filled in favour of OXUS Kyrgyzstan. OXUS is a microfinance institution established in 2006 that provides financial services to under-banked people in Kyrgyzstan.
The institution serves more than 7600 active borrowers (55% women and 57% in rural areas) and manages a portfolio of €7.2 million. The Solidarity Banker will be responsible for supporting OXUS in the production of a Marketing plan and a Client Loyalty programme. The mission is scheduled for the fourth trimester of 2019.
HOW TO APPLY
To discover the detailed offers of the missions:
- Go to the CA Solidaires website “Find a project”
- Enter the search bar: “Grameen”. All the Solidarity Leave offers will appear!
- Click on the offer of your choice, you will find all the information you need to apply.
More information: carolina.herrera@credit-agricole-sa.fr
___________________________________________________________
Created in 2008, under the joint impetus of the directors of Crédit Agricole S.A. and Professor Yunus, winner of the 2006 Nobel Peace Prize and founder of the Grameen Bank, the Grameen Crédit Agricole Foundation is a cross-business actor that contributes to the fight against poverty through financial inclusion and entrepreneurship with a social impact. As an investor, lender, technical assistance coordinator and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

The Foundation, partner of the 2019 Microfinance Barometer
Since 2010, Convergences publishes each year a Microfinance Barometer which retraces the main trends of the sector at the international level while giving visibility to microfinance initiatives with strong social impact and by promoting good practices. This year, the Grameen Crédit Agricole Foundation is a partner of the Microfinance Barometer, the 10th edition of which will be launched during the Convergences World Forum which will take place on September 5 & 6 at the Palais Brongniart in Paris.
With the theme “What profitability for Microfinance”, the 9th Microfinance Barometer presents the key figures of the sector and explores the subject of the profitability of the sector in its multiple facets. Should microfinance be profitable? If so, can it be, while remaining socially responsible? Can it stay true to its aspirations of helping nearly 2 billion people with no access to banking services out of poverty? How to combine social performance and financial profitability to best serve the beneficiaries?
From microfinance institutions to investors, the Barometer confronts different points of view and highlights the very strong interdependence between social performance and economic performance. Through case studies, expert analyzes and interviews between investors, this edition offers an inventory of the profitability of microfinance, and provides lessons on the double return – social and financial – of microfinance.
To download it : here

Launching of “Producing my solar electricity”

Tuesday July 16, Elisabeth AYRAULT, CEO of CNR, Raphaël APPERT, Managing Director of Crédit Agricole Centre-Est and Marc JEDLICZKA, Director of HESPUL, officially launched the White paper called “Producing my solar electricity”, in the presence of Jacqueline ROISIL, Assistant Regional Director of ADEME.
This guide is intended for farmers, SMEs and companies wishing to engage in the installation of photovoltaic panels. Published by Uni-media, the White paper consists of about twenty pages to better understand this technology of “green” electricity generation.
Its main objective is to give photovoltaic project owners the keys to trigger and carry out their project. The definition of photovoltaics, its economic models, the partners of the project, or the conditions of connection are among the six items that make up the book. It is also available in digital format.
This practical guide is the result of a joint reflection between CNR and Crédit Agricole Centre-est on their role and usefulness on their territory. They jointly realized that the energy transition could not take place without economic players, large and small, and that it is their responsibility as an industrialist and a banker-insurer to contribute to it. “Supporting the transformation of the economic model of companies, SMEs and farmers, by integrating responses to climate challenges is a duty. This book is proof of the concrete commitment of two actors recognized locally as the Crédit Agricole Centre-est and CNR “, recalled Raphaël Appert.

Crédit Agricole Fund for Inclusive Finance in Rural Areas

In partnership with CA Indosuez Wealth (Asset Management) and CACEIS Bank, Luxembourg Branch, the Grameen Crédit Agricole Foundation launched in September 2018 the FIR (Finance Inclusive en Milieu Rural – Inclusive Finance in Rural Areas) a sub-fund of the Grameen Crédit Agricole Fund, the first microfinance fund of Credit Agricole Group.
2018, launch of the FIR and first fundraising
For over 10 years, the Grameen Crédit Agricole Foundation has been promoting financial inclusion and entrepreneurship by supporting microfinance institutions and social impact companies. In order to strengthen its action and leverage its impact, the Foundation, in partnership with CA Indosuez Wealth (Asset Management) and CACEIS Bank, Luxembourg Branch, launched the Rural Inclusive Finance (FIR) Sub-Fund which will allow Group entities to finance microfinance institutions in rural Africa, Asia and Europe.
The first two FIR fundraisong events closed in 2018 saw the participation of fifteen Regional Banks (Alsace-Vosges, Centre-est, Centre-France, Champagne-Bourgogne, Charente-Périgord, Franche-Comté, Ille-et-Vilaine, Languedoc, Loire-Haute Loire, Martinique-Guyane, Normandie-Seine, Provence Côte-d’Azur, Réunion, Savoie et Sud Rhône Alpes), as well as those of Amundi and Crédit Agricole Assurance for an amount of nearly 8 million euros.
2019, third fundraising and new perspectives
With the last fundraising event closed on June 28, 2019, five new Regional Banks (Alpes Provence, Brie Picardie, Finistère, Centre-Ouest and Touraine Poitou) subscribed to the FIR for 1.6 million euros.
With these resources, the FIR will develop its investments in the form of loans to microfinance institutions operating in sub-Saharan Africa and South and South-East Asia. As part of its mandate as an advisor to the Fund, the Foundation identifies microfinance institutions, conducts due diligence on the field and, once this is done and validated by the CA Indosuez Wealth Investment (Asset Management) Committee, is also responsible for the monitoring process.
The loans are intended to refinance loans made to people traditionally excluded from the banking sector, living in rural areas, which constitute the main clientele of targeted microfinance institutions.

The Foundation’s Friends Club N.4: the Solidarity Bankers programme in the spotlight

Launched by the Grameen Crédit Agricole and Crédit Agricole S.A. Foundation in June 2018, Solidarity Banker is a skills volunteering programme open to all Crédit Agricole Group employees in support of microfinance institutions or impact companies supported by the Foundation. To celebrate its first year, the programme was honoured at the Foundation’s Friends Club Meeting N°4, held on 9 July at Crédit Agricole’s Campus in Montrouge.
Solidarity bankers: balance sheet of the first year
The meeting was rich in exchanges, beginning with the speeches of Jean-Marie Sander, President of the Foundation, and Eric Campos, Executive Director of the Foundation and CSR Director of Crédit Agricole S.A. Recalling the history of the Foundation and the various challenges it faces, both stressed the importance of providing technical support to the Foundation’s partners through mechanisms such as the Solidarity Banker.
Carolina Herrera, Director of Communication and Partnerships of the Foundation, then presented the framework of the Solidarity Banker programme. With field missions lasting one to two weeks, Crédit Agricole Group employees support the Foundation’s partners to meet the technical support needs expressed by the beneficiary organisations. Since the beginning of the program, 12 missions have been launched: a great success that demonstrates the strong commitment of employees and the Group.
The next Solidarity bankers
To testify to this, Violette Cubier and Céline Hyon-Naudin, Investment Officers at the Foundation, presented the next missions alongside two Solidarity Bankers. Sarah Belbachir of Crédit Agricole SA and Caman Kamougue of Crédit Agricole CIB are the two solidarity bankers who, supported by the Group’s entities, will travel to Morocco and Haiti this summer to support Al Karama, a microfinance institution, and Palmis Enèji, a social impact company, respectively. They presented the objectives of the missions and highlighted their desire to contribute to a project with a strong social impact as well as personal and professional enrichment as the main motivations to become Solidarity Bankers.
The meeting ended with a presentation of the Foundation’s Strategic Plan 2019-2022 by Hélène Keraudren-Baube, Administrative and Financial Director, who recalled our three strategic pillars: strengthening microfinance expertise, developing the resilience of rural economies and promoting impact finance within the Group.

Team seminar between the Foundation and Crédit Agricole SA’s CSR
As part of a team seminar held from 3 to 5 July, the Grameen Crédit Agricole Foundation and Crédit Agricole SA’s Corporate Social Responsibility (CSR) department decided for the first time to bring together their teams, led by Eric Campos, Managing Director of the Foundation and CSR Director of Crédit Agricole S.A. A wealth of discussion and reflection, during these three days to take stock of the various business lines and strengthen the dynamics common to both entities.
Strengthen cooperation between the Foundation and CSR
During three days spent in the Ardèche in the village of Voguë, the teams were able to discuss the levers to be activated to strengthen the scale of the projects carried out together and the new avenues of work to be explored.
As a first step, the two entities each presented their Strategic Plan 2019-2022. For the Foundation, it is based on three pillars: strengthening microfinance expertise, developing the resilience of rural economies and promoting impact finance within the Group. For the CSR Department, the teams focused on the Group’s climate strategy, which calls for a gradual divestment from coal, first in the EU and OECD countries by 2020, then in China in 2030 and finally in the rest of the world by 2050. The common thread of the two medium-term plans is to support a more inclusive, responsible and sustainable finance.
Through working groups, the Foundation and CSR teams have been able to define various elements on which they will move forward together in order to create synergies that will benefit both the Foundation and the Crédit Agricole Group as a whole through Crédit Agricole S.A.’s CSR Department. Sharing expertise, capitalizing on successful joint projects, innovation – many are the possible actions to strengthen the Foundation’s and the Group’s action in favour of financial inclusion and socially responsible entrepreneurship.
At the end of the Seminar, further meetings are planned to continue this dynamic of pooling and mutual enrichment between the Grameen Crédit Agricole Foundation and the CSR Department and, more generally, the entire Crédit Agricole Group.

The 4th Meeting of the Foundation’s Friends Club

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole S.A., Solidarity Banker is a skills volunteering programme open to all Crédit Agricole Group employees in support of organisations financed by the Foundation. Since the start of the programme in June 2018, 12 missions have been launched. This is a great success and demonstrates the commitment of employees and the Group to support projects with a social impact.
To celebrate this first year of success, a meeting is being organised on 9 July at Crédit Agricole’s Campus in Montrouge. Come and talk to the Foundation’s team and the Solidarity Bankers who will support the Foundation’s partners in Morocco and Haiti.
For more information, please contact carolina.herrera@credit-agricole-sa.fr
___________________________________________________________
Created in 2008, under the joint impetus of the directors of Crédit Agricole S.A. and Professor Yunus, winner of the 2006 Nobel Peace Prize and founder of the Grameen Bank, the Grameen Crédit Agricole SA Foundation is a multi-business operator that contributes to the fight against poverty through financial inclusion and entrepreneurship with a social impact. As an investor, lender, technical assistance coordinator and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

Follow the Group’s employees committed to the Solidarity Bankers missions

This summer, follow on Instagram the Group’s employees who have committed themselves to the “Solidarity Banker” missions.
Solidarity Banker is a skills volunteering programme open to all Crédit Agricole Group employees for organisations funded by the Grameen Crédit Agricole Foundation. Created in 2008, the Foundation supports over 75 microfinance institutions and social enterprises in some 30 countries.
Since the launch of the programme in June 2018, 12 missions have been proposed. This is a great success and it demonstrates the commitment of employees and the Group to support projects with a social impact.
This summer, we will follow three solidarity bankers throughout their missions: a first “digital” mission to support a Senegalese social enterprise, a “business plan” mission to support a Haitian social enterprise and a “Prevention of money laundering and terrorist financing (AML/CFT)” mission to support a microfinance institution in Morocco.
A Solidarity Banker from Crédit Agricole CIB in Senegal
From Sunday 30 June, follow Haoly Basse, who, with the support of Crédit Agricole CIB, is heading to Senegal to support KOSSAM, a social enterprise that works with nearly 450 local farmers and aims to develop a sustainable dairy sector in the North of the country. Haoly will support Kossam in the deployment of a digital application that will improve collection conditions and KOSSAM’s knowledge of breeder-suppliers.
A great story to add: KOSSAM is now managed by Jonathan Michaud, an agricultural engineer from Crédit Agricole Franche Comté who, after a mission as a Solidarity Banker for La Laiterie du Berger, was seconded for 2 years to support the development of the project.
A Solidarity Banker from Crédit Agricole SA in Morocco
On July 13th, Sarah Belbachir, a Solidarity Banker from Crédit Agricole SA went to Morocco to support the Al Karam Foundation, a partner microfinance institutionof the Grameen Crédit Agricole Foundation. The mission, which is done in cooperation with Crédit du Maroc, which organized a training session in skills sponsorship, and Crédit Agricole SA, aims at improving the Alkarama Foundation’s anti-money laundering and anti-terrorist financing systems (AML-FT). The institution currently supports more than 26,200 clients in Morocco.
Visit the Group’s Instagram account @groupecreditagricolecareers !
For further information, visit //gca-foundation.org/solidarity-banker
Contact Carolina Herrera

Grameen Crédit Agricole Foundation and Crédit du Maroc are committed to Moroccan microfinance

An innovative partnership to support microfinance
The Grameen Crédit Agricole Foundation and Crédit du Maroc are committed to the microfinance sector in Morocco. They set up an intervention scheme that allows Crédit du Maroc to finance the microfinance institution in local currency with the guarantee of the Foundation, which also takes care of the monitoring process.
Created in 2008 by Crédit Agricole’s managers and the 2016 Nobel Peace Prize winner, Professor Yunus, the Grameen Crédit Agricole Foundation finances and supports more than 75 microfinance institutions and social enterprises in Africa, Asia and Europe with more than €80 million in outstanding loans. Crédit du Maroc has been supporting the country’s economic development by financing individual and corporate customers since 1929.
With this partnership, Crédit du Maroc is strengthening its action as a bank committed to inclusive finance. “The partnership with the Grameen Crédit Agricole Foundation will allow us to get as close as possible to the ecosystem of the very small company and income-generating activities, which represents half of the companies registered in Morocco’s central commercial register. It also marks Crédit du Maroc’s civic commitment as a socially responsible company by participating in financial inclusion,” says Baldoméro Valverde, Chairman of Crédit du Maroc’s Executive Board.
For the Foundation, this is a great opportunity to multiply its impact by intervening for the first time in Morocco. “Ten years after the Foundation’s creation, we are building a new history with the Crédit Agricole Group. Alongside Crédit du Maroc, we will support Moroccan institutions to promote social entrepreneurship, financial inclusion and agricultural development. It is a common, tireless commitment to move forward together towards a more shared economy,” says Eric Campos, Managing Director of the Foundation and Head of CSR at Crédit Agricole S.A.
Al Karama, the first funded institution
The Foundation approved a guarantee of €1.1 million on a MAD10.4 million loan granted by Crédit du Maroc to the Al Karama Foundation for Microfinance.
This institution, which provides loans for the development of professional activities, serves more than 27,000 active borrowers, mainly women (57% of clients) and manages a portfolio of more than €10 million. It has operations throughout the country through a network of 84 branches and 314 employees.
In cooperation with Crédit du Maroc, Al Karama will also receive technical assistance to improve its systems to combat money laundering and terrorist financing (AML-FT) as part of the “Solidarity Banker” skills volunteer programme. This scheme, open to all Crédit Agricole Group employees, was launched in 2018 by the Grameen Crédit Agricole and Crédit Agricole S.A. Foundation to support the organisations financed by the Foundation through technical assistance missions (//gca-foundation.org/banquier-solidaire).

Solidarity bankers missions to be filled in Kenya and Cambodia

Two Solidarity Bankers missions are to be filled in Kenya and Cambodia: a Management Control mission to support Musoni, a microfinance institution based in Kenya and a financial management mission to support Phare Circus (PPSE), a Cambodian social enterprise.
Solidarity Bankers is a skills-based volunteering scheme launched in 2018 by the Grameen Crédit Agricole Foundation and Crédit Agricole SA, set up for the employees of the Crédit Agricole Group on behalf of microfinance institutions or social impact companies, partners of the Foundation.
Missions to be filled
A “Control Management” mission is planned for the third quarter of 2019 to support Musoni in Kenya. Musoni is a microfinance institution that provides financial services through mobile payments to people excluded from the mainstream banking system. To strengthen performance management, Musoni wishes to implement a balanced scorecard methodology. The Solidarity Banker will be responsible for structuring a balanced scorecard with key performance indicators and making recommendations on its implementation.
A “Financial management” mission will be held in September 2019 to support the Cirque Phare (PPSE) in Cambodia. The Cirque Phare (PPSE) provides employment opportunities for Cambodian artists and sustains the arts sector in the country. PPSE has now entered a growth phase and requires strengthening certain aspects of its management, including strategic, financial and human resources management. The Solidarity Banker will be responsible for proposing monitoring tools and making recommendations on the organisational structure.
How to apply?
Several missions are to be published on CA Solidaires. To discover them:
1. Go to the CA Solidaires website “Find a project”
2. Enter “Grameen” in the search bar. All the Solidarity Leave offers will appear!
3. Click on the offer of your choice, you will find all the information you need to apply.
To find out more about the missions to be filled, click here.
Contact: carolina.herrera@credit-agricole-sa.fr

Kossam SDE: reinspiring youth, investing in development
By Chloé Chevrand & Evelyne Offroy, Fondation Grameen Crédit Agricole

After a mission as a Solidarity Banker for La Laiterie du Berger, Jonathan Michaud is now Director of Kossam SDE, a project led by La Laiterie, which aims to structure the dairy sector in northern Senegal. Spotlight on our discussions with this agricultural engineer from Crédit Agricole Franche-Comté, who has been seconded for two years to support the development of this project with a strong social impact.
Structuring the dairy sector in Senegal
To be the driving force behind the territorial development of Richard Toll’s dairy basin in northern Senegal: this is the shared ambition of Laiterie du Berger and its subsidiary Kossam SDE. Since its creation in 2005, La Laiterie du Berger has established itself as a pioneering social enterprise in the country.
Today, it has become the second largest player in the Senegalese yoghurt market and the main national company processing local milk. It works with the Coopérative des éleveurs de Dagana, which groups 800 Peul farmers, employs 300 people and produces 6000 tonnes of yoghurt each year. In early 2019, in order to consolidate the activity and the dairy sector, La Laiterie du Berger and the Coopérative des éleveurs de Dagana cofounded the social enterprise Kossam – Société de Développement de l’Elevage (Kossam SDE).
Kossam SDE aims to structure and strengthen the dairy sector by providing local services (livestock feed, fodder,…) and training and advice to local farmers. The company is developing a model of “mini-farms” currently in the pilot phase (15 units in operation) and aims to set up 100 mini-farms by 2022 (more information on the project here).
Young people as actors of development
At the heart of this development plan, youth occupies an important place. In a context where youth employment is a challenge in Senegal, Kossam is setting up an ambitious system to support young people in a process of professionalization in dairy production.
Thus, the training offered to breeders are also open to their families. Indeed, the breeders of La Laiterie are mainly families, or rather family organizations, consisting of a “canister manager”, man or woman, behind whom works a whole family structure. “There is a real will of the breeders trained by Kossam to involve and empower their children in the work of the farm. Kossam SDE has planned to intensify the training and support for the and local youth, on the aspects of technical and economic management of the farm and family,” says the Director of Kossam SDE, Jonathan Michaud, Credit Agricultural Engineer Agricole Franche Comté, detached for 2 years to develop the project.
Moreover, young people are not only involved as breeders, but in others links in the dairy chain. Indeed, from many young people are elected as managers of the dairy divisions (which are of the local chapters of the cooperative). Whereas these positions were once reserved for senior managers, today the involvement of young people in agricultural and local of the sector’s model in structuring.
Finally, youth employment is promoted at the level of milk collection. Kossam SDE has thus made it possible to create the profession of “collector”, now exercised by local young people. Jonathan Michaud says that the development of milk collection and the generation of increasing incomes through dairy activity contribute greatly to the stabilization of young populations in Richard Toll’s dairy basin. In addition, the project has changed the image of the dairy industry towards young people: dairy production has become a rewarding, remunerative and attractive activity for local populations, especially for new generations. With the increase in productivity of farms, the creation of new professions around breeding will become essential (by for example, the creation of livestock advisors, technicians of breeding). As pointed out by Jonathan Michaud, it is the logical continuation of the movement already initiated by La Laiterie du Berger for more than 10 years around professionalization dairy, which requires support, supervision, structures and thus creates employment by and around the milk production.
With Kossam, the movement is growing stronger, based on training, entrepreneurship and the involvement of young people, innovators and key development actors in Senegal.

The Foundation’s Newsletter #32 is now available

The Foundation publishes its Quaterly Newsletter #32 in which it presents its 2019 – 2022 Strategic Plan. For nearly a year, the foundation has been working on the preparation of this medium-term reflection and to this end, it has listened and exchanged with its Board members, partners, microfinance institutions and social enterprises, funders and colleagues. The result allows the Foundation to look into its future with confidendence, as it has outlined the main stages of its development to come.
The Foundation is also pleased to see that it is building the trust of its funders. After Crédit Agricole CIB, Agence Française de Développement and Amundi, the European Investment Bank has joined the circle of its funders with a loan in CFA Francs for an amount equivalent to €12 million enabling the Foundation to increase its operations in Sub-Saharan Africa.
Finally, in this issue, you will discover the Foundation’s good results in 2018, the highlights and key figures explained in its Integrated Report published in the last days of April.
Click here to download the Newsletter #32
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Created in 2008, under the joint leadership of the directors of Crédit Agricole SA and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole SA Foundation is a multi-skilled operator which contributes to the fight against poverty through financial inclusion and social impact entrepreneurship. Investor, lender, technical assistance coordinator and Fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.

A first successful year for the Solidarity bankers programme
By Carolina Herrera, Fondation Grameen Crédit Agricole

At the initiative of the Grameen Crédit Agricole Foundation and Crédit Agricole S.A., Solidarity bankers missions are offered to Crédit Agricole Group employees on behalf of microfinance institutions or companies with a social impact supported by the Foundation.
Senegal, Morocco, Haiti… : a great success for the first year
Less than a year after its launch in 2018, the success of the program confirms the commitment and willingness of employees to support projects with a social impact. This is the first time that a partnership of this type has been launched by Crédit Agricole and the Grameen Crédit Agricole Foundation. The objective is twofold: on the one hand, to enhance the skills of Crédit Agricole Group employees and, on the other hand, to provide additional support to the Foundation’s microfinance institutions and partner companies with one- to two-week missions in the field.
In 2018, six missions were launched, three of which were carried out in 2018 and three planned for 2019. For example, a mission took place in Cambodia with the support of Crédit Agricole’s International Retail Banking (BPI) to support the human resources management of Chamroeun, a partner microfinance institution serving more than 27,500 clients. Another mission was carried out in Senegal, in partnership with Crédit Agricole Franche-Comté, in favour of Laiterie du Berger, a social enterprise in which the Foundation is a shareholder. In addition, with the support of the Regional Bank, the Solidarity Banker who carried out the mission left for 2 years to support Kossam, the Dairy’s project to structure the dairy sector in Senegal.
A mission launched in 2018 will be carried out in July 2019 in cooperation with Crédit du Maroc and Crédit Agricole SA to improve the Al Karama Foundation’s anti-money laundering and anti-terrorist financing systems (AML-FT). The institution currently supports more than 26,200 clients in Morocco. Another mission launched in 2018 will be carried out in Haiti to support Palmis Enèji, a social enterprise that offers clean and accessible cooking and lighting solutions to Haitian households. Crédit Agricole Corporate Investment Bank supports the Solidarity Banker, who will carry out the entire mission in terms of skills sponsorship.
Cambodia, Kenya, Tajikistan… in 2019 the programme scales up
To date, six missions have been launched in 2019. A mission in favour of Kossam, the Laiterie du Berger project, which aims to develop a sustainable dairy sector in Senegal. The Solidarity Banker will be responsible for supporting Kossam in the deployment of a digital “commcare collection” application. Another mission is planned to support the financial management and organizational structure of Cirque Phare (PPSE) in Cambodia. PPSE aims to promote the social inclusion and empowerment of young people through Cambodian culture and arts. A mission will take place in favour of ACRE Africa, which provides crop insurance services to smallholders. The Solidarity Banker will be responsible for analysing the organisation’s new business strategy.
For these first missions launched in 2019, the selection process for Solidarity Bankers has been finalised. To date, three new missions are to be filled: a mission to support the “business model” of Humo, a microfinance institution in Tajikistan; a “management control” mission to support Musoni, a microfinance institution in Kenya; and a “digital” mission to support SFA, a social enterprise in Senegal.
Other missions are currently being planned with the support of the Crédit Agricole Group’s entities and Regional Banks. With this scheme, the Group reaffirms its commitment to support employees’ solidarity initiatives and work alongside the Foundation to promote more inclusive and sustainable finance.

Responsible finance in the service of the common interest

What is your assessment of the first two mandates of the Foundation?
In 10 years, the Foundation has granted 200 million euros in funding in 38 countries, 40% of which are among the least developed with a loss rate of less than 0.6%. 200 million euros in funding can finance between 600 and 700,000 microloans. More than 80% of microcredit beneficiaries are women and we work mostly in rural areas.
How do you think the responsible finance sector will evolve in the coming years?
Last October, Amundi, the first European Asset Manager, decided to integrate ESG factor analysis into all of its funds under management within three years. By integrating these criteria, Amundi clearly illustrates that extra-financial criteria are gradually entering into the range of criteria for assessing investment funds. This approach clearly shows the dynamics of the evolution of Finance.
A word on the next five years of the Foundation. What are the major strategic directions?
Climate change, population growth, digital transformation … many are the challenges that shake the world of microfinance. It is urgent to mobilize resources, to innovate with new means of action, to strengthen cooperation. This conviction is at the heart of the actions of the Grameen Crédit Agricole Foundation and its development plan.
The Foundation will continue to adapt to these new challenges by diversifying its expertise and enriching its intervention methods. These three strategic challenges will guide its action for the next few years.
Find the full interview of Eric Campos on Admical‘s website (in French).

The Foundation publishes its 2018 Integrated Annual Report

The Grameen Crédit Agricole Foundation publishes its 2018 Integrated Report, which describes the highlights, key figures and projects developed with its partners. 2018 was an important year for the Foundation. It marked the Foundation’s 10th anniversary with several commemorative events celebrated alongside its partners and founders, Crédit Agricole and Professor Yunus, Nobel Peace Prize winner and founder of the Grameen Trust. Ten years later, the Foundation is positioning itself as a recognized player in the inclusive finance sector and is strengthening its action to contribute to the fight against poverty.
2018 was also a year of growth. As at 31 December 2018, the Foundation managed €73 million in assets and supported more than 70 partners in 34 countries in Africa, Asia and Europe. At the heart of its objectives, the Foundation promotes female entrepreneurship and rural economies through the institutions it supports: 75% of microcredit beneficiaries are women and 80% live in rural areas.
2018 was also a strong year for partnerships. Several projects have been launched with the Crédit Agricole Group: the development of cooperation schemes with Group entities abroad, the launch of the FIR, the Group’s first microfinance fund, and the implementation of “Banquier solidaire”, a skills volunteering programme open to all Group employees on behalf of the Foundation’s partners.
2018 was also the year of preparation of the Foundation’s Strategic Plan 2019-2022, which confirms the Foundation’s commitment to strengthening the microfinance sector, developing rural economies and promoting impact finance.
To download the 2018 Integrated Report, click here.

The Grameen Crédit Agricole Foundation publishes its Strategic Plan 2019-2022

The publication of the Strategic plan 2019-2022 anchors the Foundation’s positioning around three priority areas: reinforce our expertise and offer in favour of the microfinance sector, strengthen resilience in rural economies and promote social impact in the financial sector.
Created in 2008 by the joint initiative of the directors of Crédit Agricole S.A. and the 2006 Nobel Peace Prize winner and founder of the Grameen Trust, Professor Muhammad Yunus, the Grameen Crédit Agricole Foundation is committed to promoting microfinance and socially responsible entrepreneurship. With more than €200 million in financing granted in loans and investments, a presence in more than 40 countries and a network of more than 100 partners supported since its inception, the Foundation represents for the Crédit Agricole Group a unique specialist centre in the field of inclusive finance in emerging countries.
Over the last ten years, the Foundation has established a solid experience in financing microfinance institutions and promoting rural economic development. It has developed several projects with the Crédit Agricole Group’s entities and Regional Banks: with cooperation schemes with the Group’s entities abroad, a skills volunteering programme and a social impact investment fund, the Foundation has been able to strengthen its action and increase its impact.
In order to address the challenges ahead and make a positive contribution, the Strategic Plan 2019-2022 has been developed over the course of 2018 by the Foundation’s team with guidance from the Board and consultation of partners and external stakeholders. The three pillars proposed in the Strategic plan (accompany MFIs, strengthen the resilience of rural economies and promote a social performance perspective in the financial sector) build on the Foundation’s strengths and focus on strategic axes that reinforce the Foundation’s positioning, permit to scale its impact and help balance the economic model.
To download the strategic plan 2019-2022, please click here.

Solidarity Bankers missions in Senegal Cambodia and Kenya

Solidarity Bankers is a new type of overseas volunteering mission offered to the Group’s employees on behalf of microfinance institutions or social impact companies, partners of the Grameen Crédit Agricole Foundation. Three missions are to be filled: a “digital” mission in Senegal, a “human ressources / management” mission in Cambodia and a “strategy” mission in Kenya.
Missions to be filled
A “digital” mission for Kossam in Senegal is planned for June-July 2019. Kossam is a social enterprise, whose mission is to develop and anchor an inclusive and sustainable dairy sector around Richard Toll in northern Senegal. To do so, ossam collects milk from 450 local breeders, provides them with market services as well as advice and training. The Solidarity Banker will be responsible for supporting Kossam in the deployment of a “commcare collection” digital application.
A “Human ressources / management” mission is planned for the second quarter of 2019 to support the Phare Circus (PPSE) in Cambodia. PPSE provides employment opportunities for Cambodian artists and sustains the arts sector in the country. PPSE has now entered a growth phase and requires strengthening some aspects of its management, including strategic, financial and human resources management. The Solidarity Banker will be responsible for proposing monitoring tools and making recommendations on the organisational structure.
A “strategy” mission for ACRE Africa in Kenya will take place during the second / third quarter of 2019. Based in Kenya but also present in Tanzania and Rwanda, ACRE Africa provides crop insurance services to smallholders farmers. ACRE decided in 2018 to diversify its activities to offer consulting services and to change its business model from a B-to-C to a B-to-B model. The Solidarity Banker will be responsible for analysing the organisation’s new strategy and evaluating its business model.
How to apply?
Go to the CA Solidaires website “Find a project”
Type in the keyword serach : “Fondation Grameen”. All the missions available will be displayed !
Click on the offer you are interested in to have all the information in order to apply.
For additional information: carolina.herrera@credit-agricole-sa.fr

Inclusive finance at Harvard Business School
By Hélène Keraudren Baube, Grameen Crédit Agricole Foundation

Led by Harvard Business School and ACCION, the Strategic Leadership in Inclusive Finance Program is a 5-day intensive course designed to reflect on the progress and challenges of the sector. This year, Hélène Keraudren-Baube, Chief Financial Officer at the Grameen Crédit Agricole Foundation, had the opportunity to participate thanks to a scholarship granted by InFiNe Luxembourg. Here is a spotlight on this week in immersion.
We were about sixty participants, from all continents and especially from various backgrounds: microfinance practitioners, investors and donors, financial service providers, regulators… The programme is structured around a series of case studies and guided discussions, with a strong emphasis on digital finance – a theme that has become essential for microfinance institutions today.
Day 1: Financial inclusion in question
Our first working session aimed to introduce the theme of financial inclusion with case studies on public-private partnerships led by Mastercard in South Africa and Nigeria. Mastercard introduced its cards into government programs to, in the South African case, help dematerialize the payment of government benefits, and in the Nigerian case, provide identity documents to people who did not have them. However, in South Africa, most customers still prefer cash and find no real benefit in having a card. In Nigeria, very few people sought to obtain identity cards, as the process of obtaining them was quite cumbersome and tedious. This leads us to the conclusion that pushing technology does not lead to financial inclusion: for inclusion to be effective, solutions must be tailored to end-users.
Day 2: Changes in the microfinance sector
Our second day of work focused on the changes we are seeing in the traditional microfinance sector. In some markets, such as Peru, we are witnessing a shift towards mergers and acquisitions between microfinance institutions. On others, like Bolivia, we see microfinance institutions that have to adapt to regulatory changes. More recently, we see the arrival of digitization as a new phenomenon to which MFIs must adapt: how does technology affect internal processes, product distribution, payments, credit scoring? An interesting discussion that also raised other questions: Are the client’s needs always a priority? Is interaction with the customer preserved?
Day 3: What are the prospects for fintechs?
We continued our training with another series of cases on the arrival of Fintechs in the landscape. We studied an Indian system, where mobile payment providers are growing as long as they have replaced cash in many daily transactions. The corollary is that, in doing so, these operators collect large amounts of data on their customers, leading us to question ourselves: if the creation of a digital fingerprint may seem a good thing, how can we ensure responsible use and processing of customer data? In China, we examined a peer-to-peer platform created to enable individuals to finance micro-entrepreneurs. The platform has managed to grow very quickly and reach millions of people, going much further than its initial model. How can such platforms, which have multiplied in China in recent years, be regulated?
Fintechs therefore appear to be disrupters of inclusive finance, because they create new opportunities: they change the ecosystem and are able to evolve quickly. But if we want Fintechs to be part of financial inclusion, we must put customers at the centre of our concerns: how to protect them, provide them with appropriate products and services and ensure real inclusion, beyond the gender gap or the urban/rural divide?
Hélène Keraudren Baube’s detailed report is available on the InFiNe Luxembourg website.