Crédit Agricole launches a fund for rural microfinance

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In partnership with CA Indosuez Wealth (Asset Management) and CACEIS Bank, Luxembourg Branch, the Grameen Crédit Agricole Foundation has launched a social impact investment fund enabling Crédit Agricole Group entities and Regional Banks to invest in financing microfinance institutions in rural areas.

The Foundation is thus strengthening its support for institutions operating in emerging countries to benefit populations traditionally excluded from the banking sector, and more specifically, women, who constitute the bulk of these institutions' clients. The benefit is twofold: a positive profitability objective and an impact in terms of financing income-generating activities. Two loans to microfinance institutions in sub-Saharan Africa were granted thanks to the funds raised. A quarterly monitoring report will be sent to investors. This fund will soon benefit from the Luxflag Label (promoting the financing of sustainable and responsible investments).

This first operation of this type, launched by the Crédit Agricole Group, is a great success!

For the first time, the Regional Banks and Crédit Agricole SA entities have the opportunity to join a system dedicated exclusively to international microfinance investments and structured within the Crédit Agricole group. The first fundraising round, closed on September 28, 2018, confirmed the participation of 13 Regional Banks (Alsace-Vosges, Centre-est, Centre-France, Champagne-Bourgogne, Franche-Comté, Ille-et-Vilaine, Languedoc, Loire-Haute Loire, Martinique-Guyane, Normandie-Seine, Réunion, Savoie and Sud Rhône Alpes) – which already represents 1/3 of the Regional Banks – and Amundi for an amount of nearly €6 million.

The second fundraising round, which closed on December 31, confirmed the participation of two Regional Banks (Charente-Périgord and Provence Côte d'Azur) as well as that of Crédit Agricole Assurances for a total amount close to 8 million euros.

The Grameen Crédit Agricole Foundation – 10 years of supporting microfinance and social entrepreneurship

The Grameen Crédit Agricole Foundation was created in 2008 by Crédit Agricole and the Nobel Peace Prize-winning Professor Yunus Grameen Foundation. Operating in 33 countries, nearly half of which are the world's poorest, the Foundation is committed to combating poverty and promoting financial inclusion. In 10 years, the Foundation has provided more than €215 million in financing. Alongside the Crédit Agricole Group, the Foundation is developing new instruments to increase its financing capacity and strengthen its impact.

The Foundation is proud to work alongside Crédit Agricole SA entities and the Group's Regional Banks to strengthen its action in favor of financial inclusion and the financing of rural economies.

For more information:
pascal.webanck@credit-agricole-sa.fr
carolina.herrera@credit-agricole-sa.fr

In 2018 the Foundation invested €3.7 million in East Africa

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It has thus financed two partners in Kenya: BIMAS, with a loan of 500,000 euros, and VERT Ltd. with a loan of 440,000 euros. BIMAS is a microenterprise development program (MED-P) established in 1992 under the auspices of PLAN Embu. Its objective is to contribute to sustained economic growth and employment in the rural sector, which will result in improved social well-being and increased income for the rural population in Kenya. To date, BIMAS has more than 18,500 clients, including 66.5% women. VERT Ltd., for its part, is a company specializing in the export of fresh fruits and vegetables. The company, created in 2000, has adapted its business model over the years to better meet the specificities of the European market and adapt to current legislation. It has also implemented a more sustainable model by working directly with small local farmers organized into small groups. The Foundation has been a shareholder in VERT Ltd since 2016.

The Foundation also provided its first-ever loan to the MicroLoan Foundation in Malawi, providing €256,000. The MicroLoan Foundation is a UK-based microfinance charity that provides business training, loans, and ongoing support to women living in Malawi, Zambia, and Zimbabwe. The organization's primary goals are poverty reduction and women's empowerment. In Malawi, the institution now has nearly 30,000 clients, all women. In Uganda, the Foundation provided a new loan to the microfinance institution UMF, providing €700,000. UMF (Uganda Microcredit Foundation) is a microfinance institution that provides loans and other microfinance services to economically active people in Uganda. The institution specializes in commercial and personal, financial, and non-financial products for businesses and individuals to facilitate their development. The institution has more than 4,000 clients, including 54% women and 70% in rural areas.

In Zambia, the Foundation also funded two partners: AMZ with a €600,000 loan over a four-year period and FINCA Zambia with a €1.2 million loan over a three-year period. Agora Microfinance Zambia (AMZ) is a microfinance institution that specifically targets low-income people with appropriate financial products. AMZ aims to serve clients who were previously excluded from the formal financial market, primarily due to their poverty or place of residence. It has over 25,000 clients in 391 rural areas. 611 of these clients are women. FINCA Zambia, for its part, is a multi-service microfinance institution that currently serves over 9,000 clients with financial services, including loans, savings, payments, and money transfers. FINCA Zambia's clientele includes 571 women.

For more information about our partners, click here.

The Foundation is carrying out bond financing with OSHUN

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Today, nearly one billion people lack access to improved drinking water sources. Sub-Saharan Africa is one of the most affected regions: between 25 and 50% of its population still lack access to water from an improved drinking water source, and between 75 and 1,000 lack access to a household connection.

Founded in 2014, OSHUN deploys an innovative water service solution in rural areas. Based on an original business model that leverages local entrepreneurship, OSHUN provides high-quality water services through water kiosks at a price that matches the willingness to pay, while providing optimal health guarantees. This business, which is expected to expand to several African countries, began in rural Senegal.

For the first time, the Grameen Crédit Agricole Foundation's project committee has approved €200,000 in bond financing to cover investments and working capital for OSHUN, a new partner headquartered in France. This project is co-financed with the Caisse Régionale Alpes Provence, one of whose clients, the Société du Canal de Provence, is a stakeholder in the project. The Caisse Régionale benefited from the Foundation's expertise in the water sector and its knowledge of the local economy.

For more information on the Foundation's partners, click here.

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