June 2018 - Fondation Grameen Crédit-Agricole

Microfinance and refugees: a promising association

June 27, 2018/0 Comments/in News/by Marie Laumont

By Alexia Van Rij & Philippe Guichandut, Grameen Crédit Agricole Foundation

What if microfinance was the key to refugee integration?

Often perceived as too risky and unstable a clientele, refugees are generally not or underserved by financial service providers, despite the crying need. However, the few experiments in lending to refugees seem to show satisfactory results[1].

Based on this observation, the UNHCR (United Nations High Commissioner for Refugees) and Sida (Swedish International Development Cooperation Agency) launched a program promoting access to financial and non-financial services for refugees in Uganda and Jordan. This is how the Grameen Crédit Agricole Foundation was selected to support its partner microfinance institutions in reconsidering the refugee issue in their strategy.

An initial study on the needs for access to financial and non-financial services was entrusted to Microfinanza[2]. In this context, we spent three days of exciting discussions and meetings with Burundian, Rwandan and Congolese refugees at the Nakivale camp in southern Uganda.

In the heart of Nakivale, Uganda: a strong need for access to financial services

Uganda is now the third largest refugee-hosting country in the world, with over 1.4 million refugees as of the end of March 2018. Following the 2013 crisis in South Sudan, Uganda has seen a growing number of refugees arrive, with the UNHCR estimating the number at nearly 1,800 per day. The country has one of the most favorable refugee policies in the world, allowing them to receive a plot of land to cultivate, to work, to have free access to Ugandan social services (education, health), to enjoy freedom of movement and to receive identity papers. It is in this very specific context that the Foundation joined the Microfinanza team in Nakivale, one of the oldest refugee camps in Uganda, to support them in their study with refugees.

Nakivale is now home to over 100,000 people, primarily from Rwanda, Burundi, and the Democratic Republic of Congo, spread across small settlements across 185 square kilometers. Most of Nakivale's residents have benefited from plots of land granted by the government, used for farming and livestock breeding. Others run small restaurants, hair salons, or clothing stores. These are typical activities for microfinance institutions. However, no microfinance institutions operate in the camp, and the refugees can therefore rely only on solidarity within the camp.

Moban Sacco, a savings and loan organization that now has no fewer than 1,449 members, was born from this mutual aid effort in the face of a lack of capital. Thanks to Moban Sacco, refugees can save small amounts and receive some loans, but these are generally considered insufficient to truly develop their businesses.

Prejudices denied

One of the fears microfinance institutions have about refugees is that they will return to their country without having paid their debts. It is clear that in Nakivale, none of the people interviewed plan to return home anytime soon, given the region's insecurity. Some of them have been living in the camp for over 15 years (an average of 7-8 years) with the firm intention of developing their microenterprises there.

Furthermore, all the refugees we met stated that they had a very concrete idea of how they would use a loan. In a nutshell, it's not ideas that are lacking, but capital! How can we forget the story of this woman, who came from the Kivu region of Congo, alone with her three children, a hairdresser by profession, whose 11-year-old son translated her words because she had worked all her life to ensure that her son learned English? Having left her country with no savings, she didn't have the means to set up her hairdressing salon and depended on the food rations provided by the UNHCR to survive, she and her children. Or the meeting with this Rwandan entrepreneur, who with his few savings created a grain milling company 6 years ago? He had managed to employ 3 people to develop his activity, but his small savings did not allow him to expand his business and buy new, efficient equipment.

These examples, among many others, highlight the diversity of situations and the often wasted potential of these men and women endowed with talent, experience and the will to take their destiny into their own hands, as they had been able to do in their country before the situation got out of hand.

At the Foundation, we are convinced that microfinance institutions, by adapting their products and services, have an active role to play in promoting the financial inclusion of refugees. The opportunities offered by digital finance, a sound understanding of the characteristics of each group, and regular monitoring should foster such involvement. Meetings with the Foundation's partner financial institutions suggest that they will be ready to meet the challenge of offering quality, inclusive financial services to these refugee populations and their host communities.

The study currently underway with Microfinanza, which will be made public in July 2018, should provide concrete avenues for our partners to actively engage in, with our support, joint work with the UNHCR and technical assistance funded by Sida.

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[1] Some examples on: New issues in refugee research, Michelle Azorbo, Research paper N.199, UNHCR; Microfinance for Refugees, Thimothy H. Nourse, American Refugee Committee here.

[2] Company selected via a call for tenders.

Open Day at the Grameen Crédit Agricole Foundation

June 26, 2018/0 Comments/in News/by Marie Laumont

By Killian Grippon & Chloé Liquard, Grameen Crédit Agricole Foundation

On June 8, the Grameen Crédit Agricole Foundation welcomed partners and entities of the Crédit Agricole group to present the Foundation's activities and discuss its actions for a better shared economy.

The day was rich in discussions and lessons learned, with presentations from the team and talks by Jean-Marie Sander, President of the Foundation, Jean-Michel Severino, Administrator of the Foundation and Sébastien Duquet, Director of OXUS, a network of microfinance institutions supported by the Foundation.

The open day served as an opportunity to reaffirm the Foundation's commitment to excellence, commitment, and sharing in support of inclusive finance. Participating in this day allowed us to fully immerse ourselves in the world of the Foundation from the very first days of our internship.

The world of finance shaken by global challenges

Climate change, security, migration… The world of finance is influenced by a complex collection of interdependent attributes. Climate change will continue to transform politics, security and the socio-economic context. Access to resources is becoming more complicated, exacerbating tensions, inequalities and conflicts. The number of refugees is increasing: the International Organization for Migration (IOM) predicts that there will be 200 million refugees by 2050[1]. The world population is growing: several studies predict around 10 billion people on Earth by 2050[2]. Faced with such demographic growth, many questions arise about the capacity to feed, house and guarantee the economic and social integration of these billions of people.

Faced with this worrying situation, what can be done? There is an urgent need to mobilize resources, act in partnership, and integrate these social and environmental challenges into the economy of today and tomorrow. This integrated approach is at the heart of inclusive finance and the work of the Grameen Crédit Agricole Foundation. By joining the Foundation's team, we discovered its approach of partnership, adaptability, and responsibility to better meet the needs of marginalized populations. For us, this is the finance of the future, one that captures the diversity of present and future challenges and adapts to a changing world.

The Foundation, a key player in inclusive finance

Since its creation in 2008, the Foundation has been working to promote the development of inclusive finance by supporting microfinance institutions (MFIs) and social businesses around the world. Foundation President Jean-Marie Sander opened the day by confirming this strong and shared commitment to a more inclusive economy. Throughout the day, all of the Foundation's teams presented the Foundation's businesses, projects, and initiatives. As newcomers to the world of microfinance and social business, we shared the same observation at the end of the day: the sector is far more complex than one might imagine.

For example, the range of financing tools and services offered and developed is very broad and adapted to the specific needs of microfinance institutions. The African Facility, an initiative set up with the French Development Agency (AFD), is an example of the evolution of the Foundation's offering towards more comprehensive support for MFIs. Also, after a first phase which supported 16 rural MFIs in Sub-Saharan Africa, the second phase of the program will be carried out between 2017 and 2020 and will not only finance but also provide technical assistance to more than twenty institutions.

The Foundation has also strengthened its ties with Crédit Agricole entities. Guarantee schemes with the Group's international entities in Egypt, Morocco, Serbia, and India are also being developed. Long-term financing of €14 million from Crédit Agricole Corporate Investment Bank will enable the Foundation to strengthen its work in the coming years. Crédit Agricole Indosuez Wealth (Asset Management) will manage the investment funds for which the Foundation has an advisory mandate. And to name a final partnership, the "Solidarity Banker" skills volunteer program between Crédit Agricole SA and the Foundation was launched just a week before the Open Day. As part of the program, Group employees will be able to go on assignment to support MFIs and social enterprises supported by the Foundation. This is the first time in the history of Crédit Agricole and the Foundation that such a partnership has been launched.

Promoting inclusive finance also requires raising awareness of the challenges posed by climate change in rural areas. Improving the resilience of rural producers is just as necessary as facilitating access to financing to ensure the sustainability of the agricultural sector. The Foundation adopts this approach, not only through technical assistance, but also through its agricultural microinsurance activities. The Foundation launched a microinsurance pilot project in Mali to support RMCR, one of its partner MFIs, in offering drought risk insurance to its borrowers. The project faces several challenges, but it will continue to evolve to make the product more affordable and appropriate.

Our discussion with Sébastien Duquet, Director of OXUS, a network of MFIs operating in post-conflict areas, allowed us to better understand the synergies between financial inclusion and humanitarian action. Access to microcredit services remains essential in a context of economic recovery. However, disparities in social performance persist, particularly with regard to gender and rural issues, which represents a major challenge.

Perspectives: multiplying impact and working in partnership

What conclusions did we draw from this day? First and foremost, the Open Day allowed us to better understand the Foundation's role and how it is committed to a more inclusive and responsible economy. Similarly, several strategic areas stand out for the coming years: partnerships, support for the agricultural sector, and a responsible approach.

First, the Foundation's work strongly follows a partnership approach. Fighting poverty is a responsibility that must be shared by various stakeholders. The Foundation will continue to work with private, public, and solidarity-based actors to multiply its impact and expand its geographic presence. The development of the agricultural sector will remain a priority for the Foundation, both through support for microfinance in rural areas and through support for socially beneficial entrepreneurship. Finally, the Foundation will continue to promote a responsible approach in all of its activities.

To conclude the day, Jean-Michel Severino, Foundation Administrator, delivered a powerful speech on Africa's development challenges. Food insecurity, rampant population growth, and shifting markets—the African continent will face several major challenges, and the Foundation and its partners have a major role to play.

This Open Day was the first in a series of events that the Foundation will organize throughout the year. These "Meetings for a Shared Economy" will be a platform for exchange and sharing experiences with the Foundation's partners, and we look forward to being part of them.

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Source

[1] http://www.unhcr.org/4df9cc309.pdf
[2] https://www.un.org/development/desa/fr/news/population/world-population-prospects-2017.html

Read this week: Peace, security and development in the Sahel

June 20, 2018/0 Comments/in News/by Marie Laumont

From demographic challenges to environmental ones, including the fight against poverty, Jean-Marc Chataigner sets out his vision for the development of the Sahel and calls for "the pursuit of increased international solidarity" through "a joint, partnership-based approach, co-constructed with governments, communities, local associations, and populations." A spotlight on his interview.

What are the challenges and prospects for an integrated approach to returning to lasting peace in the Sahel?

The region's major challenges require continued increased international solidarity because the Sahelian countries do not yet have the capacity to address them alone. A joint, partnership-based approach is needed, co-developed with governments, communities, local associations, and populations. An integrated approach is needed, encompassing the various components of the international community's action, as well as national, regional, and international efforts. Through the mission entrusted to me by the Minister for Europe and Foreign Affairs, Jean-Yves Le Drian, France is promoting the idea of a more coordinated approach to the various political and diplomatic actions, particularly for the implementation of the peace agreement in Mali, security efforts, through the establishment of the G5 Sahel joint force, and the relay that will ultimately have to be taken up in renewed approaches to development.

The Sahel Alliance, launched in 2017 by Chancellor Merkel and President Macron, aims to achieve concrete results in a limited number of sectors, on issues essential to the future of the Sahel, which have nevertheless been neglected in recent years by donors, such as agriculture and education. The Sahel Alliance favors an approach in terms of the effectiveness of ODA (Official Development Assistance) and transparency and accountability of the actions implemented, in close collaboration with partner governments and the civil societies concerned. It intends to strengthen the targeting of donor actions on the most fragile and vulnerable areas, peripheral and far from capitals, and to promote better coordination of development programs with humanitarian and security issues.

How can we rebuild a trusting and lasting partnership between France and the African continent?

Relations between France and Africa have always had a special dimension linked to a shared history made up of difficult times, but also of an exemplary community of arms to confront the enemies of freedom. But the world of 2018 is no longer that of 1945 or even that of 1958. International relations have profoundly evolved with the end of the Cold War, the attacks of 2001, the emergence of new powers, and the emergence of global threats that we must face and that can give rise to strong nationalist withdrawal. In this new international concert, France, and through it more broadly Europe, and Africa have common interests to assert.

In his speech in Ouagadougou last November, the President of the Republic clearly laid the foundations for this new relationship to be built, notably through the call for better listening to African youth, a real change in method in the management of public development aid, "no longer building cathedrals to our glory" he even specified, the priority given to education, particularly that of young girls, the common fight against religious extremism and obscurantism, the launch of a reflection on the restitution of African heritage, the conditions of movement of African students and the reception of African talents, investment in the African infrastructure of tomorrow. All these subjects, I will not list them all because the list is impressive, are crucial for the establishment of a relationship of respect, partnership and balance, the only one capable of establishing lasting mutual trust over the long term between our two continents.

What are the challenges of growth, peace and security for Europe and Africa?

Africa is the location of essential economic and security issues for Europe in a geographical area undergoing rapid change and experiencing strong demographic growth.

The takeoff of many African countries is now underway and represents trade and investment opportunities for Europe in rapidly emerging markets. Conversely, the persistence of fragile and failed states poses a threat to both our collective security and the sustainability of African development. Strengthening regional peacekeeping capacities and deploying African military forces, along the lines of the G5 Sahel, capable of addressing the various threats to peace and security on the continent is therefore a fundamental priority.

Find his column here.

The Crédit Agricole group sponsors the Plastic Odyssey expedition

June 20, 2018/0 Comments/in News/by Marie Laumont

Crédit Agricole SA, five regional banks, and CAMCA Mutuelle are supporting the Plastic Odyssey project, which aims to recover plastic waste from the coasts before it pollutes the oceans and transform it into fuel. What does this project involve?

The Plastic Odyssey project is based on the following objective: to recover plastic waste from the coasts before it pollutes the oceans and transform it into fuel, thanks to an innovative process that consists of adapting pyrolysis technology to navigation. Once this challenge is successful, the Plastic Odyssey team will be able to bring this technology to local populations in emerging countries, with an impact on the environment but also on job creation.

Who is involved?

Crédit Agricole SA, five regional banks* and CAMCA Mutuelle are sponsors for a total amount of €115,000, with the support of the Grameen Crédit Agricole Foundation.

What are the stages of the project?

The first stage includes the construction, the launch on June 15 in Concarneau and the exhibition of a prototype named "Ulysse" for 6 months, a miniature replica of the boat which will set sail in 2020. The second stage of the project will include the construction of the boat, as well as a 3-year voyage, made up of 30 stopovers in South America, Africa and Asia.

* Aquitaine, Finistère, Normandy, Normandy-Seine, Provence Côte d'Azur

>>> Learn more

A partnership to strengthen “climate smart finance”

June 18, 2018/0 Comments/in News/by Marie Laumont

Family farming in Africa constitutes the bulk of the continent's agricultural production. It is particularly impacted by climate change. Microfinance institutions (MFIs) in rural areas must adapt their practices to better manage their own risks as well as those of their clients.

Faced with this challenge, the Grameen Crédit Agricole Foundation and YAPU, a German social fintech company, aim to support partner MFIs in digitizing their operations and updating their information systems to incorporate climate risk. In November 2017, the Grameen Crédit Agricole Foundation and YAPU signed a cooperation agreement to develop services in the field of climate-smart finance. This approach aims to include climate change risks in the product and service offerings of financial institutions so that they can further develop economically viable activities that are resilient to climate change and contribute to the preservation and restoration of ecosystems. Two projects will be launched in 2018 as part of this partnership.

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

A new partnership between the Foundation and Crédit Agricole Egypt

June 14, 2018/0 Comments/in News/by Marie Laumont

By Violette Cubier, Grameen Crédit Agricole Foundation

The Grameen Crédit Agricole Foundation and Crédit Agricole Egypt have signed a partnership agreement to structure a loan facility for DBACD, one of the largest MFIs in Egypt. Read the interview with Walie Lotfy, Head of Retail Banking at Crédit Agricole Egypt.

Interview with Walie Lotfy, Head of Retail Banking at Crédit Agricole Egypt

Could you introduce the partnership between Crédit Agricole Egypt and the Grameen Crédit Agricole Foundation?

The project of a partnership between Crédit Agricole Egypt (CA Egypt) and the Grameen Crédit Agricole Foundation (GCA Foundation) was born more than three years ago. However, regulatory constraints prevented us, at the time, from realizing our cooperation. Because CA Egypt, like the GCA Foundation, was convinced of the importance of this partnership and the market potential, we relaunched our project in 2017 around a completely renewed and better structured cooperation scheme, which meets the Group's requirements and regulatory requirements, particularly with regard to compliance issues.

We have partnered to structure a loan facility for microfinance institutions (MFIs). The first transaction, worth EGP 58 million (approximately EUR 2.8 million), was successfully completed for the benefit of a leading MFI in Egypt, the Dakahlya Businessmen Association for Community Development (DBACD).

With this first successful transaction, CA Egypt joins the ranks of banks contributing to the development of microfinance in the country. CA Egypt is thus expanding its range of services by reaching new sectors, in line with the Bank's sustainable growth strategy.

How can the banking sector contribute to the development of microfinance in Egypt?

Historically, the banking sector in Egypt has avoided entering the microfinance sector due to its complexity. As a result, public banks have long dominated this market. However, the Central Bank of Egypt has recently implemented mechanisms to incentivize banks to support the development of microfinance in the country. Moreover, all banks have recognized the vast potential of the microfinance market, not only due to the quality of assets but also the high levels of profitability. Most banks are now competing to lend to microfinance institutions.

In your opinion, what is the added value of the Grameen Crédit Agricole Foundation and what are the prospects for the partnership?

This partnership aligns with the Group's strategy to strengthen synergies between its various entities. It brings mutual benefits to both the GCA Foundation and CA Egypt. For the GCA Foundation, this partnership opens new markets for its expansion. For CA Egypt, being able to rely on the Foundation's knowledge and expertise is a significant support in diversifying its range of services and entering the microfinance market in Egypt while limiting the associated risks. This partnership will allow CA Egypt to gain an edge over competitors lacking this type of expertise.

The partnership also allows the Bank to gain visibility and acquire a better positioning in the microfinance sector, thanks to the reputation of the GCA Foundation which is recognized as one of the benchmark players in the sector.

I believe this collaboration has strong potential. We have learned several lessons from this pilot transaction, and we will continue to optimize the system to develop a more competitive offering and thus increase our impact, while keeping risks under control.

CA-Assurances and the Grameen Crédit Agricole Foundation on a mission to Burkina Faso

June 1, 2018/0 Comments/in News/by Marie Laumont

Crédit Agricole Assurances is assisting the Grameen Crédit Agricole Foundation in conducting due diligence on CIF-VIE, one of the leading insurance companies in Burkina Faso, which is of particular interest to the Foundation. This transaction is part of the Foundation's dual ambition: to strengthen its presence in the microinsurance sector and consolidate its ties with Crédit Agricole Group entities.

CIF-VIE: a company with strong potential

CIF-VIE began its operations in Burkina Faso in 2013, with the support of RCPB, the main Burkinabe microfinance cooperative network, and ADA (a Luxembourg NGO). It aims to improve the protection of policyholders and beneficiaries through a comprehensive range of life, death, and capitalization insurance products in Burkina Faso.

Today, the African company accounts for 61.3 billion euros of the market. With a positive net profit since its creation, CIF-VIE is taking a new step in its growth with a strategic, operational, and financial transformation. Its action plan: open its capital to new shareholders to comply with the new requirements of the Inter-African Conference on Insurance Markets (CIMA); restructure its organization towards greater efficiency and better risk management; and develop its products and expand its distribution network. Its goal by 2020 is to be among the top five insurance companies in Burkina Faso.

The Foundation and CA-Assurances join forces to support microinsurance

The Grameen Crédit Agricole Foundation supports 70 microfinance and social business institutions in more than 30 countries. As an investor, financier, and supporter, it strengthens its contribution to the financial transition by supporting the development of microinsurance in Africa.

Noting CIF-VIE's strong potential, the Foundation, alongside CA-Assurances, carried out a due diligence mission to better understand this structure and assess the possibility of investing in it. Pierre Casal Ribeiro, Microinsurance Expert at the Foundation, led the due diligence mission accompanied by Eduardo Cardoso de Miranda, Creditor Insurance Expert at CA-Assurances, with the support of El-Hadj Diop, Investment Advisor, and Céline Hyon-Naudin, Social Business Investment Officer at the Foundation.

Crédit Agricole Assurances, the leading insurance group in France and the leading bancassurer in Europe, has committed itself alongside the Foundation to a dynamic of social responsibility to promote the skills and convictions of its employees in favor of the common good.

Investing in a more shared economy is the driving force behind this collaboration.