The Foundation is committed to small agricultural businesses

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© Godong

The Council on Smallholder Agricultural Finance (CSAF) is the leading global network of social financiers promoting an inclusive financial market for producer organizations and small and medium-sized enterprises (SMEs) in agriculture. Since 2013, CSAF's 16 members and affiliates have provided $5 billion in loans to agricultural SMEs, providing market access to 3.4 million smallholder farmers in 65 countries across Africa, Asia, and Latin America.

After being accepted as a CSAF affiliate in June 2020, the Grameen Crédit Agricole Foundation is continuing its commitment in 2021 by participating in the construction of a memorandum of understanding to specify the principles and protocols for restructuring and rehabilitating loans.

The need for a memorandum of understanding

Increased cooperation among CSAF members has generated positive collaboration among lenders, resulting in additional funding and technical assistance for borrowers. In some cases, however, there has been a lack of coordination, resulting in suboptimal outcomes for both lenders and borrowers. The Covid-19 crisis has heightened the need for clearly stated principles on loan restructuring.

Collective work

CSAF members held several workshops in March 2021 to develop and articulate explicit expectations for loan restructuring. Following these workshops, a working group was established to develop basic principles, outlined in the Memorandum of Understanding, that members can follow during loan restructurings. The Grameen Crédit Agricole Foundation contributed to this reflection and the Commitment “Key Principles to Protect Microfinance Institutions and Their Clients in the Covid-19 Crisis” was a useful resource.

 

Download the memorandum of understanding here.

Mission diary of a Solidarity Banker in Kyrgyzstan

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Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in 2018, Solidarity Bankers is a skills-based volunteer program open to all Crédit Agricole Group employees, supporting microfinance institutions and impact businesses supported by the Foundation. Discover the opinion piece by Andreas Brunner, Solidarity Banker at Crédit Agricole Assurances, who carried out a field mission for Oxus in Kyrgyzstan in October 2021.

A social commitment to financial inclusion

From the moment I started at Crédit Agricole (14 years ago!), I was drawn to the group's charitable initiatives. I first learned about the Solidarity Bankers program when a colleague shared with me the call for applications for a marketing consulting role. He himself had completed a Solidarity Bankers role in Africa, and his feedback motivated me to apply. So, in October 2019, I applied for this marketing role for OXUS, a microfinance institution in Kyrgyzstan.

After several interviews, I was delighted to learn that I had been selected for the mission. It fully met my expectations: to put my skills to good use in a solidarity project and discover a new culture and activity. My mission was initially planned for March 2020 and we believed in it... until the lockdown. Then another attempt in April 2021 which again ended in a postponement. Finally, I was able to leave in October 2021.

Mission preparation

My mission for OXUS Kyrgyzstan consisted of two main components: defining an annual marketing plan and creating a loyalty program to increase their client retention rate. A few interviews with the teams at the Grameen Crédit Agricole Foundation and OXUS allowed me to better assess and understand the challenges and objectives of the mission. To prepare for my arrival in the field, I analyzed documents on the institution's strategy and the microfinance market in Kyrgyzstan before my departure. I also had a long discussion with a colleague of OXUS's main shareholder, the NGO ACTED. After defining my schedule on site, all that was left was for me to leave!

In the footsteps of the Silk Road

I must admit that I didn't know much about this magnificent Central Asian country, not even its capital. In addition to doing some research before my departure, the long flight was a good opportunity to brush up on geography and learn more about the country's history. I'm already arriving in Istanbul: the airport reminds me of the crowds before the Covid-19 crisis, and I feel like I'm embarking on the Silk Road. After a second 5-hour flight, I finally arrive in Bishkek (IATA code: FRU, for those in the know) where I'm welcomed—by the General Director himself! The first stone laid in our friendship.

Two weeks of intense work followed: interviews, agency visits, analyses... Time passed very quickly, but I could count on the great availability of my interlocutors. The exchanges were mainly in English, but I was happy to be able to get in a few words in Russian, which helped me not only in the interviews, but especially at the restaurant. I devoted the second week of the mission to finalizing my deliverables (strategic and tactical analyses, annual plan, loyalty program, and practical tools for the teams) and testing my proposals. It was also an opportunity to look ahead with the OXUS Kyrgyzstan teams to the work they would have to carry out in the coming months. Thanks to the support of the CEO and the Board of Directors, I left confident that they would be able to, on the one hand, carry out a large number of actions planned in the 2022 marketing plan, and on the other, implement their new loyalty program.

A unique human experience

I especially remember a warm welcome and wonderful encounters. The Kyrgyz introduced me to their culture and showed me great hospitality. I was able to discover the capital with its history, its architecture, its Russian heritage. An organized weekend excursion allowed me to better understand this country with its yurts, its cuisine, its agriculture, its petroglyphs, its enormous salt lake at an altitude of 1600m, and above all, its high mountains culminating at over 7000m and which surround the city.

 

I would like to thank the CEO of OXUS Kyrgyzstan, Denis Khomyakov, for his generosity and trust, the entire team at the Grameen Crédit Agricole Foundation for their support (Carolina Viguet, Cécile Delhomme, Julie Serret, Philippe Guichandut), Aurélie Cacciotti of Crédit Agricole SA for the logistical aspect, as well as all the people at Crédit Agricole Assurances who contributed to making this mission possible.

 

[INTERVIEW] Humo, beneficiary of the Solidarity Bankers program

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© EBRD

Solidarity Bankers is a skills volunteering program launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in 2018 with a dual objective: on the one hand, to support microfinance institutions and social impact businesses financed by the Foundation with technical assistance, and on the other hand, to promote the skills of Group employees who wish to get involved in projects with a strong social impact.

HUMO is a microfinance institution in Tajikistan that aims to support vulnerable and underserved populations living in rural areas through financial and advisory services for small businesses. It was supported in 2020 by Julien Leroy, Innovation Leader at CA-CIB.

A look back at the program with an interview with Firdavs Mayunusov, Financial Manager at HUMO.

1) Why was optimizing your business model important for your institution?

The financial sector has long been one of the most conservative and non-digitized industries in the world. Experience shows that the introduction of innovations and new technologies significantly increases competitiveness and improves customer experience. However, in order to develop cutting-edge innovations and solutions, it is necessary to rethink our institution's business model and organizational structure.

Humo was founded 17 years ago to improve access to finance and social development in Tajikistan. Today, financial product requirements are evolving rapidly. Transitioning from a microfinance institution to a technology company is essential. It's key to achieving our mission and unlocking the region's potential. Therefore, we've begun our digital transformation and are making the company's structure more flexible and product-oriented.

2) What did you expect from the Solidarity Banker? Did the results match your expectations?

We expected the Solidarity Banker to provide us with advice and guidance on the company's transformation. Thanks to him, we were able not only to understand our weaknesses, but also to find new growth opportunities and strengthen our business model. Today, two years later, we have implemented most of the recommendations and launched the digital transformation. We were able to take a fresh look at the business model and develop a transformation strategy. The results of the mission exceeded our expectations.

3) What were the priorities defined following the recommendations made?

We reflected on the role of innovation and organizational change in business development. Flexibility and speed are essential for our company to be competitive in the market. So, we opened a new Product Department to manage cutting-edge financial solutions. Then, we began rethinking the customer experience and opened a sales department. Finally, we embarked on a digital transformation and implemented agile methodologies. This has allowed us to become one of the most technologically advanced players in the market.

4) 2 years and a few waves of Covid-19 later, what remains of the Solidarity Banker at Humo?

Over the years, Humo has changed its organizational structure, strengthened its business model, and identified opportunities. It optimized core business processes and minimized bureaucracy. The company became more agile, strategically focused, and launched several digital products. We attracted new user segments and became one of the leading FinTech companies in Tajikistan. Thanks to the Solidarity Banker, Humo was able to choose the right development path and realize its growth potential. Today, Humo is undeniably one of the market leaders despite the challenges of Covid-19, legislation, and socioeconomic development.

SOLIDARITY BANKERS: THREE MISSIONS TO BE FILLED WITH PARTNERS OF THE FOUNDATION

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© Didier Gentilhomme

Solidarity Bankers is a skills volunteering program launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in 2018 with a dual objective: on the one hand, to support microfinance institutions and social impact businesses financed by the Foundation with technical assistance, and on the other hand, to promote the skills of Group employees who wish to get involved in projects with a strong social impact.

The missions can take place during the Solidarity Banker's working hours (skills sponsorship) and/or during holidays (volunteering).

Currently, three missions are available in the field (the field missions last 2 weeks and are organized in compliance with the international travel rules issued by the Crédit Agricole group):

  • “Digital Strategy” Mission for Smart Credit (Moldova)

Smart Credit is a microfinance institution founded in 2010 by five local professionals with a shared vision: to provide financial services to socially disadvantaged people and small Moldovan entrepreneurs. The institution has over 3,000 active borrowers and manages a portfolio of €4.4 million.

The selected Solidarity Banker will be responsible for evaluating the institution's digital strategy and contributing to the development of an action plan for implementing a new digital strategy. Experience in IT project management and fluency in English are required.

For more information, see the terms of reference of the mission.

  • “Communication and Marketing” Mission for Lazika (Georgia)

Lazika Capital is a microfinance institution established in 2000 by Oxfam Great Britain in Georgia. Its mission is to facilitate access to financial services tailored to the needs of low- and middle-income entrepreneurs. The institution is now among the leaders in the Georgian microfinance sector and has nearly 14,000 clients.

The mission will take place in pairThe selected Solidarity Banker will be responsible for evaluating the organization's marketing actions and strategy, as well as developing a marketing plan for the end of 2021/2022. A first Solidarity Banker has been selected for the mission; we are now looking for a partner, with a junior profile accepted.

For more information, see the terms of reference of the mission.

  • “LCB-FT” mission in favor of SEF (South Africa)

SEF is a microfinance institution established in 1992 that actively works to eliminate poverty by providing the poor and very poor with a range of financial and non-financial services to enable them to realize their potential. As of December 2020, the institution has 225,317 active borrowers, including 1,001 women in rural areas, and manages a portfolio of €45,153,765.

The selected Solidarity Banker will be responsible for analyzing the environment, regulatory framework, and AML/CFT risks facing SEF, updating procedures, and conducting training for all categories of employees (top management, middle management, and operational staff) on AML/CFT risks and prevention measures. At least 5 years of experience in compliance roles is required.

For more information, see the terms of reference of the mission.

To apply: send your CV and cover letter (or 2 paragraphs presenting your motivations and expertise) to:

 

The Foundation is a winner of the GEF Adaptation Innovation Program

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© Didier Gentilhomme

The Grameen Crédit Agricole Foundation is one of 10 winners of the Global Environment Facility's (GEF) Adaptation Innovation Program. This competition provides seed funding for innovative initiatives to help vulnerable countries cope with the worsening climate crisis.

The GEF Program: Supporting Innovations in the Face of Climate Change

The GEF Adaptation Innovation Program accelerates private sector innovation and action for vulnerable populations. Open to direct submissions from technology and private sector innovators, this program supports financially viable and scalable solutions for adapting to the adverse impacts of climate change.

The GEF has announced 10 new winners, among the 418 applicants, of its Adaptation Innovation Program. Each winning concept will be eligible for grants from the Special Climate Change Fund [Special Climate Change Fund – SCCF] and the Least Developed Countries Fund [Least Developed Countries Fund – LDCF], hosted by the GEF, which have provided targeted financing for climate resilience projects in developing and low-income countries over the past 20 years.

The Grameen Crédit Agricole Foundation project

There is currently little public and private funding for climate change adaptation and biodiversity conservation, particularly in the inclusive finance sector. One of the main reasons is that the sector lacks a common framework and indicators to assess the opportunity for financial service providers (FSPs) to develop and scale this type of offering.

In coordination with five other organizations, including its partner YAPU Solutions, the Foundation's project aims to provide public and private stakeholders with common intervention frameworks, indicators, and specific products to help them coordinate their methodology and activities, and deliver concrete solutions. This will enable FSPs to receive financial, technical, and technological support to support their clients' climate change adaptation and biodiversity conservation projects, particularly the most vulnerable: small producers and rural communities.

The approach builds on existing and proven project methodologies United Nations Environment Programme's "Microfinance for Ecosystem-Based Adaptation" and on the Green Index 3.0 of the action group Green Inclusive and Climate Smart Finance (GICSF)The objective is to help FSPs monitor and improve the climate change resilience and biodiversity impacts of their institutions and clients. This project builds on these preliminary experiences and aims to deploy this approach for the benefit of the entire inclusive finance sector..

“Initially, the Foundation will set up a mixed finance vehicle and pilot this three-pronged assistance program (financial, technical, and technological) with four microfinance institutions. We then hope to encourage other stakeholders to use this vehicle and the tools it offers. This is fully in line with our strategy of supporting our partners to strengthen the adaptation to climate change of smallholder farmers and rural communities.” – Eric Campos, General Delegate, Grameen Crédit Agricole Foundation.

 

Download the press release 

A Solidarity Banker in Tajikistan

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Solidarity Banker – OXUS Tajikistan ©Olivier Mancini

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in 2018, Solidarity Bankers is a skills-based volunteer program open to all Crédit Agricole Group employees, supporting microfinance institutions and impact businesses supported by the Foundation. Olivier Mancini, Solidarity Banker at Crédit Agricole Languedoc, completed a field mission in September 2021 for Oxus Tajikistan (OTJ).

Column by Olivier Mancini, Head of Recovery, Crédit Agricole du Languedoc

Motivation that can withstand anything

I discovered the Solidarity Bankers program through a call for applications launched by the Grameen Crédit Agricole Foundation at the end of 2019 on the website creditagricole.info. The proposed mission, in support of Oxus, a microfinance institution in Tajikistan, caught my attention and prompted me to make initial contact.

After an enriching experience in Zimbabwe in 2018 as part of a solidarity leave scheme, I was looking to get involved again in skills-based volunteering or training missions with adults, preferably abroad. The immersion in a new context, the discovery of a different culture and the opportunity to practice a foreign language motivated me as much as the desire to share my knowledge.

When the mission for Oxus Tajikistan (OTJ) was launched in early 2020, it didn't take me long to apply! Since the mission's objective coincided with my work, my profile was selected. I then conducted several interviews with the Foundation's teams before being definitively selected. That was without taking into account Covid-19: it was impossible to avoid the mission's postponement. No matter, I had plenty of time to prepare in advance for the mission in the field.

Mission preparation

Founded in 2006 by ACTED and following the adoption of microfinance laws in Tajikistan, OTJ is a microcredit organization that provides loans primarily to microentrepreneurs and farmers in rural areas. A partner of the Grameen Crédit Agricole Foundation since 2012, OTJ aims to improve the economic and social conditions of low-income populations excluded from the traditional banking system.

The objective of the mission was to review the valuation process for the different types of guarantees and to consider the introduction of additional valuation methods in order to get as close as possible to best practices in this area. To achieve this result, the mission had to be well-framed and prepared before departure. I therefore learned the principles of microfinance and studied the institution's internal documentation to familiarize myself with their procedures. I also spoke on numerous occasions with OTJ and the Foundation to better formulate the expectations of the mission.

With the terms of reference finalized and the health situation improving, I only had 5,000 km left to travel and 18 hours of flying to complete the mission!

Heading to Tajikistan

Arriving at 3:00 a.m. in Dushanbe, I was greeted by Bakhtyior and immediately faced the language barrier. I (unfortunately) speak neither Russian nor Tajik, but thanks to a few words of English we managed to communicate on the essentials.

The next morning, I met with Vantasho, Managing Director, and then with the heads of the various departments to gain a good understanding of how the activities were conducted. I was also able to meet with beneficiaries to discuss financing requests and the characteristics of the assets offered as collateral. The documentation and information collected on site, in addition to the documents previously studied, allowed me to develop and submit my recommendations to Vatansho. With his approval, I continued the work I had started with Umedjon, Risk Director, and Shurhat, Financial Director, to establish the foundations of a new collateral valuation methodology and then provide the elements to support this new method to be implemented.

The duration in the field (10 days) proved sufficient to meet the terms of reference of the mission and to develop the necessary materials for the implementation of the recommendations planned for a few weeks after my departure. With this in mind, the mission will continue remotely for a few additional days of support in order to provide additional insights and perspectives on the implementation methods and the evaluation of the relevance of the methodology.

An unforgettable experience

Undoubtedly, this experience exceeded my expectations, both in terms of the mission carried out and on a human level.

Faced, over a short period of time, with the expressed desire to fulfill the mission's objectives in order to provide concrete and appropriate responses, I was able to count on the great availability of all OTJ employees regardless of their function. I was also able to rely on the expression of a mutual critical view in a real spirit of openness on the part of my main contacts. The co-construction of the proposed solutions was all the more gratifying, especially since it was necessary to achieve the same requirement in terms of consistency and solidity of the recommendations as that which I can experience in my activity, but with significantly fewer external facilitating tools. It is therefore a real satisfaction to have been able to contribute to the evolution of the organization's practices with the OTJ teams.

Clearly, and despite the brevity of the stay, the experience on a human level is unforgettable thanks to their sense of hospitality. The (many) moments of conviviality were real opportunities for sharing that allowed me to learn more about the history of Central Asia, Tajikistan and even their personal history. I would leave with great pleasure and I thus keep the precious memory of people who greet with a hand on their heart but who also have their heart on their sleeve.

I would like to thank the people at the Caisse régionale de Crédit Agricole du Languedoc who supported my approach; Caroline Brandt, Carolina Viguet, Cécile Delhomme from the Grameen Crédit Agricole Foundation who made this mission possible; Aurélie Cacciotti from Crédit Agricole SA for logistical support; and of course Vatansho Vatanshoev, CEO of OTJ and Umedjon shodiev, Head of Risks at OTJ, Shurhat Zoidoc (CFO) as well as all the OTJ teams for their help and welcome, with a special greeting to Bakhtyior and Yosuman. 

 

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