The Foundation invests in Moldova for the first time

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© Didier Gentilhomme

For the first time, the Grameen Crédit Agricole Foundation has invested in Moldova, with the microfinance institution Smart Credit, providing a local currency loan equivalent to €496,000 over a three-year period. Smart Credit is an MFI founded in 2010 by five local professionals, whose mission is to position itself as the best provider of microfinance services in the region, particularly for socially disadvantaged small entrepreneurs.

The institution offers loans according to the individual methodology and currently has nearly 3,000 active clients, including 54% women and 71% clients in rural areas.

With this investment, the Foundation consolidates its presence in the Eastern Europe and Central Asia region, where it already has 17 partners spread across 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's management and Professor Yunus, 2006 Nobel Peace Prize winner and founder of Grameen Bank, the Grameen Crédit Agricole 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.

The Foundation makes two new investments in sub-Saharan Africa

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©Philippe Lissac

The Grameen Crédit Agricole Foundation is continuing its investments in sub-Saharan Africa, its priority area of intervention, with two new investments, including one with a new partner.

In Mali, for example, the Foundation financed Baobab Mali (formerly Microcred), a Baobab Group entity, for the first time with a local currency loan equivalent to €2.5 million. Baobab Mali began its operational activities in 2013 in Bamako. It is a microfinance institution created at the initiative of a group of international partners eager to contribute to Mali's economic and social development. To qualify for loans, entrepreneurs must demonstrate one year of activity and six months of uninterrupted operations on their premises. To date, the institution has nearly 20,000 clients, including 46,000 women and approximately 35,000 clients in rural areas.

The Foundation also granted a new loan of €790,000 equivalent in local currency to the microfinance institution Bimas in Kenya. A partner of the Foundation since 2014, Bimas is a microenterprise development program (MED-P) established in 1992 under the auspices of PLAN Embu. Its objective was to provide training and credit to small businesses in the Gachoka sector of Mbeere district. The institution has continued to expand its activities targeting the unbanked population in the Embu region in order to contribute to sustained economic growth and employment in the rural sector, which will result in improved social welfare and increased income for the rural population in Kenya. To date, the institution has nearly 19,000 clients, including 65% women and 90% rural clients.

First Foundation team seminar in 2020

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© FGCA

As part of the Grameen Crédit Agricole Foundation team seminar held from January 13 to 17, the teams had the opportunity to discuss various areas of the 2019-2022 strategic plan and the levers of action to optimize the Foundation's action with the microfinance institutions and social impact businesses it supports.

More efficiency for more impact

During the week, the Foundation's employees were able to put into practice the discussions held during the previous team seminar in 2019 around the three axes of the Medium-Term Plan: consolidating the Foundation's expertise and offering in favor of microfinance, strengthening the resilience of rural economies and promoting social impact in the financial sector.

Several meetings were held to present the 2020 outlook and the action plan to improve the Foundation's effectiveness and impact. In particular, a thematic workshop focused on three key issues for the coming years: digital impact finance and the Foundation's positioning in this sector, environmental performance, and measuring the Foundation's impact on funded organizations and end beneficiaries.

A workshop was also held with representatives from Plastic Odyssey, a social enterprise supported by the Crédit Agricole group, whose crew will sail the seas for three years to combat plastic pollution in the oceans. The Foundation will in turn partner with Plastic Odyssey to support their project to develop small-scale plastic waste reprocessing units 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's CSR team. These rich moments of exchange and sharing will contribute to achieving the objectives of the Strategic Plan, alongside Crédit Agricole Group entities, technical and financial partners, and supported organizations.

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

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©Philippe Lissac

The Mastercard Foundation has just awarded Kossam a USD 5 million grant for the period 2019-2022 to enable Kossam and Laiterie du Berger to create 5,000 direct or indirect jobs in the Richard Toll region.

La Laiterie du Berger, the strength of African entrepreneurship

La Laiterie du Berger is an example of the power of entrepreneurship in Africa. The social enterprise was created in 2006 by Bagoré Bathily and a group of active shareholders, with the goal of promoting local dairy production. "90% of the milk consumed in Senegal is imported in powder form, while 30% of the population traditionally lives from livestock farming and can produce milk. This observation led to the creation of Laiterie du Berger," Bagoré Bathily tells us.

The dairy collects milk from Fulani herders in the Richard Toll area of northern Senegal to then produce dairy products using local, natural milk. The company works with 800 Fulani herders, employs 300 people, and produces 6,000 tons 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 has 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 dairy production, providing training to farmers, and developing an innovative model of pilot "mini-farms." "More than 600 farming families have been impacted by the development of the local dairy sector, seeing their income 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" skills volunteer mission in 2018, left for two years to lead the project.

An unprecedented change of scale for the company

A new phase is about to begin for Laiterie du Berger and Kossam. Won over by Laiterie du Berger's social enterprise model, the Mastercard Foundation has just allocated a USD 5 million grant to Kossam for the period 2019-2022. The objective of this grant is to enable Kossam and Laiterie du Berger to create 5,000 direct or indirect jobs in the area. The allocated amount will be used, in particular, to increase milk collection to 4,000 tons and to promote the restructuring of the collection system. This financial support is particularly targeted at women, who are traditionally responsible for milk production and collection in Senegal.

This new project is called MéLiTeJi, the letters (M, L, T, J), which symbolically represent in Wolof milk (Meew), employment (Ligueey), success (Tekki) and women (Djiguen). This funding reinforces the company's objectives of developing livestock farming in a sustainable, responsible and social perspective and of building a sustainable Senegalese dairy sector, established on the basis of a modern and job-generating economy.

This grant is in itself a tremendous success that demonstrates the strength of this social enterprise model and the confidence in its potential for structuring the sector and creating jobs.

More information about La Laiterie du Berger here

Solidarity Bankers: a new mission to be filled in Bosnia-Herzegovina

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©Philippe Lissac

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA, Solidarity Bankers is a skills volunteer program open to Group employees that supports microfinance institutions and impactful businesses. The program has a twofold objective: to enhance the skills of Crédit Agricole Group employees and to provide additional support to the Foundation's partner microfinance institutions and businesses. Through this program, the Crédit Agricole Group reaffirms its commitment to supporting employee solidarity initiatives.

What are Solidarity Bankers?

Volunteer missions abroad are offered to employees on behalf of microfinance institutions or social enterprises, partners of the Grameen Crédit Agricole Foundation.

The missions are carried out through sponsorship or skills-based volunteering. Airfare and insurance are covered by Crédit Agricole SA. Any internal transportation costs, catering, and accommodation expenses are paid by the beneficiary organization. The Grameen Crédit Agricole Foundation will prepare and coordinate the mission.

Since the launch of the program in 2018, thirteen missions have been carried out, both in sponsorship and skills-based volunteering.

A mission to be filled!

A mission in the IT sector is available for Partner Microcredit Foundation, in Bosnia and Herzegovina, from mid-March to mid-May 2020.

Partner Microcredit Foundation is a non-profit microcredit organization located in Bosnia and Herzegovina. Founded by Mercy Corps in 1997 as an NGO, it became a microcredit foundation in 2000. It provides financial services to economically active populations who have limited or no access to financing sources to develop their businesses and improve their living conditions. The institution provides loans through a methodology of individual technical support and microcredit, primarily to micro-entrepreneurs, promotes the participation of women in the business world, and provides easier access to financial services in rural areas.

Mission objectives:

  • Assessment of existing IT infrastructure, organizational structure and applications used.
  • Development of guidelines for the future development of IT infrastructure and applications.
  • Recommendations for a 3-5 year IT investment plan and specific recommendations for 2020.

Contact

Carolina HERRERA
Director of Communications & Partnerships
carolina.herrera@credit-agricole-sa.fr

 

Foundation Letter No. 34 is now available

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© Philippe Lissac

The Grameen Crédit Agricole Foundation is publishing its Quarterly Letter #34, which features a new section dedicated to the Foundation's partners: supported organizations, founders, technical and financial partners share their experiences on their actions, projects, connections with the Foundation, and the impact of their work in the field. Also featured in this edition is Sara Belbachir, a Solidarity Banker on a mission to the Moroccan microfinance institution Al Karama.

Furthermore, the Foundation's Letter presents its latest news and in particular its partnership signed with the UNHCR and the Swedish International Development Cooperation Agency (Sida) for the implementation of a four-year program aimed at promoting access to financial and non-financial services for refugees and host communities in Uganda.

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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 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.

Another success for the Centimes Solidaires operation

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©SebastienProust

Launched in 2018 by the Grameen Crédit Agricole SA Foundation, Crédit Agricole SA, and CA Centre-est, Centimes solidaires aims to finance entrepreneurship projects by mobilizing Crédit Agricole employees, who are invited to donate 50 cents when paying for their meal 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 (Incubation, Creation, Inclusion) program, which supports entrepreneurship projects for refugees, single parents, and homeless people in Lyon.

The campaign took place in parallel at the Crédit Agricole campuses in Montrouge, Saint-Quentin, and Lyon from November 18 to 22. Crédit Agricole SA, the Grameen Crédit Agricole Foundation, and Crédit Agricole Centre-est will join forces with their employees to contribute to the fundraising.

Last year, Entrepreneurs du Monde also received €7,000 through the initiative, which helped strengthen the ICI program. In total, 20 group training sessions were organized, and 18 people were supported to structure their entrepreneurial projects. Entrepreneurs du Monde's goal is to support 40 project leaders by 2020.

A look back at the launch event in pictures

To launch the 2019 edition of the initiative, Crédit Agricole welcomed Rania, an entrepreneur and Syrian refugee supported through the initiative, to the Montrouge Campus on November 4. After leaving Syria and thanks to the Entrepreneurs du Monde ICI Project, funded through Centimes Solidaires, Rania was able to create her own catering service to showcase her country's traditional cuisine.

Discover the video of the operation which presents Rania's journey and the testimonies of the collaborators who participated in the operation.

Solidarity Notebooks: A Solidarity Banker in Morocco

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By Sarah Belbachir, Crédit Agricole SA

© DG

Solidarity Banker is a skills-based volunteer program open to all Crédit Agricole Group employees. Read the opinion piece by Sarah Belbachir, Solidarity Banker at Crédit Agricole SA, who went on a mission to Morocco.

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in June 2018, Solidarity Banker is a skills-based volunteer program open to all Crédit Agricole Group employees, supporting microfinance institutions and impactful businesses supported by the Foundation. Discover the opinion piece by Sarah Belbachir, Solidarity Banker at Crédit Agricole SA.

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Solidarity banker… but why?

The first time I mentioned the Solidarity Bankers program to those around me, they responded, "Banker and solidarity... aren't they a bit contradictory?" For many, these two words struggle to resonate in unison. However, when I discovered Solidarity Bankers, I encountered passionate people, sincere ambitions, and concrete actions. Far from being just fine words, the program won me over with the values it inspires and its commitment to working directly on the ground.

So I immediately applied for a mission to strengthen the system for combating money laundering and the financing of terrorism (LCB-FT) ofAl Karama, an institution funded by the Grameen Crédit Agricole Foundation and Crédit du Maroc which offers microcredits to people excluded from the traditional banking system, particularly women.

Very soon after applying, I received confirmation that my application had been accepted. My mission therefore began in Montrouge, at the Grameen Crédit Agricole Foundation for the preparation phase. With the help of Edouard, Violette and Carolina (1), we defined the schedule and objectives. They introduced me to the main concepts of microfinance, and gave me specific background information on Al Karama, the Moroccan economy and the world of microfinance in Morocco.

Top departure for Rabat!

On July 13, I finally flew to Rabat. For 10 days, I would focus on a subject that was within my area of expertise, but in a different sector, in a different-sized organization, and in a different cultural context than my daily life.

The first two days were devoted to raising awareness among senior management about the risks associated with AML/CFT and how to prevent them. AML/CFT training session was organized by Crédit du Maroc's skills sponsorship teams. This provided an opportunity to discuss Crédit du Maroc's VSE/SME financing practices and to understand the market into which Moroccan microfinance institutions are diversifying.

The discussions that followed with the Al Karama team allowed me to familiarize myself with the functioning of the institution, to identify the strong points in terms of AML-CFT and the elements requiring strengthening.

The next step was to draft an action plan in more detail so that Al Karama could gradually and prioritize its AML/CFT obligations. Working with Edouard Sers of the Grameen Crédit Agricole Foundation, who joined me for this part of the mission, we defined specific recommendations, with a person responsible for each action and a three-year implementation schedule. The challenge was to create a realistic and achievable action plan for Al Karama, given its resources and staffing levels.

The action plan was very well received by the Al Karama Management Committee, to whom we presented it on the last day of the mission. The next step is now in the hands of Al Karama, which will implement this roadmap.

Unforgettable encounters

My mission was punctuated by two visits that left a lasting impression on me. Al Karama organized two branch and client visits, one in an urban setting and the other in a rural setting. The first took place in the town of Temara, a suburb of Rabat. After a few discussions with the branch manager and loan officers, we visited a client in his traditional Moroccan clothing store, who had received a microloan for his business. This first visit allowed me to better understand how a microcredit agency operates and to see how procedures are actually applied in the field.

The second visit took place in Larache, in northern Morocco. We first visited a rural agency that provides specific agricultural services to the region's residents. We went to a watermelon and peanut field to meet a farmer who had benefited from a microcredit to expand his land. I was able to confirm the impact of microcredit on the development of small-scale agriculture and the strengthening of rural economies.

These meetings allowed me to gain a deeper understanding of microfinance and to see what inclusive finance can actually accomplish. But above all, they were an unforgettable human experience.

It was just a taste... I returned to Paris with the desire to get more involved.

Letter #34 to download here

Four new investments in Asia for the Foundation

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© Philippe Lissac

In partnership with CA CIB India, the Foundation provided a guarantee equivalent to €5 million to the Indian microfinance institution Annapurna, for a loan granted by CA CIB India in local currency. 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 prioritize women and directly involve them in productive activities through self-help groups and access to finance. To date, the institution serves 1.6 million active borrowers, including 99% women and 85% rural borrowers.

Similarly, in Myanmar, the Foundation granted a new loan in local currency equivalent to €2.3 million over a four-year period to VisionFund Myanmar, a microfinance institution that lends small amounts of money to people who lack a measurable credit history, assets to secure loans, or access to traditional sources of financing. To date, VisionFund Myanmar has more than 190,000 clients, including 86% women and 59% clients in rural areas.

Also in Myanmar, the Foundation also granted a new loan in local currency equivalent to €1.8 million over a four-year period to the microfinance institution Proximity Designs on behalf of Proximity Finance, a microfinance program whose objective is to eradicate extreme poverty by treating the poor as clients. To date, the program has 117,000 clients, including 69% women.

Finally, in Cambodia, the Foundation granted a loan equivalent to €1.6 million to Chamroeun, a long-standing partner of the Foundation since 2010. Chamroeun is a microfinance institution that provides financial services to the poorest, excluded from the services offered by more commercial microfinance institutions. The institution serves more than 30,000 clients, including 82% women.

More information about the Foundation's partners here.

[Interview] “Technical assistance helps structure our agricultural microcredits”

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Interview with Susan Chibanga, Managing Director, AMZ Zambia

© Didier Gentilhomme

In Zambia, the microfinance institution AMZ provides microcredit, insurance, and money transfer services to more than 50,000 clients, primarily women (60%) and in rural areas (80%). Thanks to technical assistance provided under the African Facility program, AMZ was able to implement an agricultural loan assessment system for smallholder farmers, an innovation in Zambia and the wider region.

What are the activities and objectives of AMZ Zambia?

Susan Chibanga: Since the institution's creation eight years ago, we have been providing opportunities and contributing to the economic well-being of the poorest people. We provide them with access to appropriate financial services: village group loans, agricultural loans, microinsurance, and even mobile payments. Agricultural loans and rural financing are costly activities that require close monitoring.

To make them viable, we rely on the expertise of our partners such as the Grameen Crédit Agricole Foundation, which is both one of our financiers and a technical assistance coordinator for several of our projects (*).

How does technical assistance improve your microloans?

AMZ has just taken a step forward in structuring its microcredit business. Thanks to technical assistance from the Foundation and other partners, we have implemented a tool to help manage our products, the Agricultural Loan Evaluation System, a true innovation in the region. This resource was initially developed by the Frankfurt School of Business. It allows us to determine credit limits by simulating repayment models based on the type of crops grown by small or medium-sized farmers. We conducted a pilot project on corn, soybeans, tomatoes, watermelon, and peanuts during one growing season. We now want to roll it out more widely.

With what priorities?

We are considering developing a mobile application for the tool. It would be useful to combine it with our customers' credit ratings and more secure authentication systems, such as pen signatures and even facial recognition. Experience shows that the tool reduces risk exposure for both our institution and our beneficiary clients. Technical assistance will help us continue to make our lending more efficient.

What are AMZ's growth prospects?

Already established in the central region of Zambia, we aim to expand our operations throughout the country. We also hope to become a deposit-taking institution within two years, in addition to our lending activities. Our positioning in the regions will remain crucial, with a long-term portfolio of 10 to 15,000 smallholders.

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(*) In order to develop rural and agricultural financing, AMZ Zambia is supported by national organizations (FSDZ, RUFEP) and international donors (Grameen Crédit Agricole Foundation, Oikocredit, FMO, Triple Jump, Global Partnership Lendahand), some of which, like the GCA Foundation, are also coordinators of technical assistance missions from which it benefits.
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