The global landscape of’international aid is currently undergoing a profound transformation. With a reduction of 7.4 % in 2024 and with even sharper cuts expected in 2025, many development sectors are under strain — but few as much as that of the’financial inclusion.
A new field investigation, led by the Grameen Crédit Agricole Foundation in partnership with CHERRY+SPTF and the Financial Inclusion Equity Council (FIEC), sheds new light on the repercussions of these aid cuts. Based on responses from 86 organizations operating in 58 countries, The study highlights both the immediate consequences for Financial Service Providers (FSPs) and the broader impacts on the vulnerable populations that they accompany.
Although the inclusive finance sector was designed to be self-sufficient, The data shows that 58 % of the FSPs still depend — directly or indirectly — on programs or funding supported by international aid. These results mark a turning point for the sector, which now calls for strategic adaptation and strengthened cooperation between stakeholders.
Budget cuts hit rural and small institutions the hardest.
According to the investigation, 60 % of the FSPs declare that they are directly affected by the aid cuts. The most affected areas concern the partnerships (70 %), financial resources (53 %) and the quality of the customer portfolio (57 %). Small institutions (Level 3 FSPs) and those operating in fragile countries are the most vulnerable, as are the actors involved in the agricultural and rural finance — a segment heavily dependent on guarantees and programs supported by donors. A worrying fact, 67 % of respondents expect the situation to deteriorate in 2025–2026.
The most vulnerable customers suffer the consequences
The investigation highlights that the vulnerable customers are the first to be affected by these disruptions. Access to agricultural financing, green and climate finance, as well as to services intended for the poorest populations is among the most threatened areas. Near the half of the FSPs (49 %) They finance agricultural and livestock activities, sectors essential to rural economies but still heavily dependent on aid programs. The cascading effects on food security, gender inclusion, and community resilience could be considerable.
Strategic shifts and resilience test
Despite a challenging environment, the survey paints a picture of a sector of remarkable resilience. 57 % of respondents believe that inclusive finance remains generally sound. 44 % of the FSPs have already adapted their strategies, placing greater emphasis on the quality of the wallet, strategic alliances and customer protection.
The results also reveal a evolution of mentalities : 43 % of institutions are now focusing more on the sustainability, local partnerships and innovation. However, respondents point out that if the impact investors appear as key players in filling the funding gap, their expectations may not always align with the market reality.
A call to strengthen cooperation and innovation
The study concludes with a call to action to all stakeholders to:
1️⃣ Strengthen the local cooperation between public and private actors; ;
2️⃣ Promote mechanisms of mixed finance (blended finance) to optimize public and private resources; ;
3️⃣ Develop synergies between FSPs thanks to the pooling of resources and networks; ;
4️⃣ Prioritize the customer protection through the design of innovative and inclusive products; ;
5️⃣ Investing in the impact measurement in order to improve accountability and attract more private investors.
As one respondent — the financial director of a bank in the Dominican Republic — summarized:
" The inclusive finance sector is like a rock in the middle of a global storm. Despite aid cuts and geopolitical tensions, it remains incredibly strong because it focuses on what matters most: the financial needs of people in their communities. »
This new reality calls for greater innovation, cooperation, and collective resilience. The study's findings confirm that inclusive finance, deeply rooted in local economies and human needs, remains one of the most resilient and meaningful in the changing context of international aid.
Read THE report complete For explore how THE FSPs navigate In This new landscape and This that the future reserve to inclusion financial.
➡️ Link to the full report
Retransmisión Webinario 29/01/2026
Webinar Replay 22/01/2026
The Grameen Crédit Agricole Foundation and Proparco are joining forces to develop microfinance in rural African areas.
A strengthened commitment to financial inclusion
The Grameen Crédit Agricole Foundation and Proparco are proud to announce the signing of a new loan agreement for €15 million. This significant financing is part of the Grameen Crédit Agricole Foundation's strategy to support microfinance institutions operating primarily in rural areas of the African continent.
This collaboration demonstrates the shared commitment of our two institutions to actively contribute to the development of inclusive and sustainable financial services in regions where access to traditional banking services remains limited.
Clear objectives to support development
This new financial partnership pursues three main objectives:
Supporting rural populations
The funding will facilitate access to credit in areas where traditional banking services are often absent, thereby helping to reduce financial inequality and stimulate local economic development.
Promoting women's empowerment
Women's economic empowerment is a strategic pillar for both our institutions. This loan will particularly support initiatives aimed at strengthening women's entrepreneurship and financial independence in rural areas.
Strengthening a partnership of trust
This new milestone strengthens the close and long-standing partnership between Proparco and the Grameen Crédit Agricole Foundation. This collaboration also benefits from ARIZ guarantees and technical assistance funds, enabling the partners to be supported over the long term with a comprehensive and integrated approach.
"Financial Inclusion for Refugees" Programme in Uganda: From Concept to Market Development
"Financial Inclusion for Refugees" Programme in Uganda: From Concept to Market Development
The Grameen Crédit Agricole Foundation (FGCA), alongside its partner Proparco, is embarking on a new strategic phase of its program dedicated to Financial Inclusion for Refugees in Uganda (2025-2027). This three-year program builds on the lessons learned from a pilot program (2019-2023, co-financed by SIDA) which demonstrated the existence of a viable economic model (or business case) for the financial inclusion of refugees.
Based on Proven Results
The pilot program demonstrated that refugees have consumption patterns similar to other populations and engage in sustainable economic activities, thus contradicting the idea that they are "unbankable." Based on these results, GCA and Proparco are now aiming to develop this emerging market.
Programme Objectives
The main objective is to build on promising results to refine interventions and prepare for broader market expansion by identifying other financial service providers (FSPs) that could be candidates for private sector investment. The programme aims to improve sustainable livelihoods and market viability for refugees and host communities.
Approach and Implementation
The FGCA uses a blended finance approach (debt and technical assistance, or TA) with its two implementing partners: UGAFODE Microfinance Limited and Vision Fund Uganda (VFU). These institutions bring essential local expertise and proven experience working with vulnerable populations.
Technical assistance is structured around three main areas:
The essence of this approach is to demonstrate the commercial/economic viability of the refugee segment in order to unlock commercial investment and institutionalize this market. This requires patient, low-cost capital, flexible, risk-reducing capital, and catalytic financing.
Towards a Sustainable Financial Inclusion Ecosystem
This project aims to trigger a sustainable financial inclusion ecosystem for this underserved segment, including not only humanitarian partners, but also other actors in the financial sector and private investors. The objective is to integrate the refugee market into the global financial inclusion ecosystem, thereby shifting the focus towards the Development component of the Humanitarian-Development-Peace (HDP) nexus.
For more details, discover the full article by clicking here.
What has been the impact of the reduction in international aid on financial service providers?
A new paradigm for international aid: how are financial service providers adapting to budget cuts?
The global landscape of’international aid is currently undergoing a profound transformation. With a reduction of 7.4 % in 2024 and with even sharper cuts expected in 2025, many development sectors are under strain — but few as much as that of the’financial inclusion.
A new field investigation, led by the Grameen Crédit Agricole Foundation in partnership with CHERRY+SPTF and the Financial Inclusion Equity Council (FIEC), sheds new light on the repercussions of these aid cuts. Based on responses from 86 organizations operating in 58 countries, The study highlights both the immediate consequences for Financial Service Providers (FSPs) and the broader impacts on the vulnerable populations that they accompany.
Although the inclusive finance sector was designed to be self-sufficient, The data shows that 58 % of the FSPs still depend — directly or indirectly — on programs or funding supported by international aid. These results mark a turning point for the sector, which now calls for strategic adaptation and strengthened cooperation between stakeholders.
Budget cuts hit rural and small institutions the hardest.
According to the investigation, 60 % of the FSPs declare that they are directly affected by the aid cuts. The most affected areas concern the partnerships (70 %), financial resources (53 %) and the quality of the customer portfolio (57 %). Small institutions (Level 3 FSPs) and those operating in fragile countries are the most vulnerable, as are the actors involved in the agricultural and rural finance — a segment heavily dependent on guarantees and programs supported by donors. A worrying fact, 67 % of respondents expect the situation to deteriorate in 2025–2026.
The most vulnerable customers suffer the consequences
The investigation highlights that the vulnerable customers are the first to be affected by these disruptions. Access to agricultural financing, green and climate finance, as well as to services intended for the poorest populations is among the most threatened areas. Near the half of the FSPs (49 %) They finance agricultural and livestock activities, sectors essential to rural economies but still heavily dependent on aid programs. The cascading effects on food security, gender inclusion, and community resilience could be considerable.
Strategic shifts and resilience test
Despite a challenging environment, the survey paints a picture of a sector of remarkable resilience. 57 % of respondents believe that inclusive finance remains generally sound. 44 % of the FSPs have already adapted their strategies, placing greater emphasis on the quality of the wallet, strategic alliances and customer protection.
The results also reveal a evolution of mentalities : 43 % of institutions are now focusing more on the sustainability, local partnerships and innovation. However, respondents point out that if the impact investors appear as key players in filling the funding gap, their expectations may not always align with the market reality.
A call to strengthen cooperation and innovation
The study concludes with a call to action to all stakeholders to:
1️⃣ Strengthen the local cooperation between public and private actors; ;
2️⃣ Promote mechanisms of mixed finance (blended finance) to optimize public and private resources; ;
3️⃣ Develop synergies between FSPs thanks to the pooling of resources and networks; ;
4️⃣ Prioritize the customer protection through the design of innovative and inclusive products; ;
5️⃣ Investing in the impact measurement in order to improve accountability and attract more private investors.
As one respondent — the financial director of a bank in the Dominican Republic — summarized:
" The inclusive finance sector is like a rock in the middle of a global storm. Despite aid cuts and geopolitical tensions, it remains incredibly strong because it focuses on what matters most: the financial needs of people in their communities. »
This new reality calls for greater innovation, cooperation, and collective resilience. The study's findings confirm that inclusive finance, deeply rooted in local economies and human needs, remains one of the most resilient and meaningful in the changing context of international aid.
➡️ Link to the full report
What has been the impact of the reduction in international aid on financial service providers?
Strategic collaboration to strengthen agricultural financing in Africa
The Grameen Crédit Agricole Foundation, ACRE Africa, and ZEP-RE (PTA Reinsurance) have signed a strategic collaboration aimed at strengthening access to finance and insurance for smallholder farmers across the African continent.
This collaboration brings together three organizations with complementary expertise:
ACRE Africa, a leading agricultural insurance broker specializing in the design of innovative risk management products; ;
ZEP-RE, a regional reinsurance company with extensive experience in agricultural and weather insurance solutions; ;
The Grameen Crédit Agricole Foundation, an impact investment vehicle committed to financing microfinance institutions and promoting inclusive agriculture.
A long-standing partner and shareholder of ACRE Africa since 2014, the Foundation has been actively involved for many years in promoting agricultural microinsurance for smallholder farmers.
As part of this collaboration, the three organizations have committed to:
✅ Conduct joint fundraising initiatives to support agricultural financing programs; ;
✅ Explore equity investment opportunities to strengthen their collective impact; ;
✅ Sharing technical expertise to develop and evolve agri-credit and group insurance solutions.
The common goal is clear: to strengthen the resilience, productivity and financial inclusion of farmers through better access to credit supported by effective risk mitigation tools.
This strategic alliance reflects the shared commitment of the three partners to work together in good faith to stimulate sustainable and inclusive agricultural development in Africa, creating a lasting positive impact for smallholder farmers and their communities.
Watch the video to learn more. this link.
Strategic collaboration to strengthen agricultural financing in Africa