The Grameen Crédit Agricole Foundation is publishing its Newsletter No. 41, which highlights the Foundation's work and the usefulness of its work.

In 2021, the Foundation once again demonstrated the value of its work: it supported 81 microfinance institutions and impact businesses serving more than 9 million beneficiaries, including women and rural populations, in 37 countries. These are some of the key figures we present to you in the 2021 Integrated Report.

In this edition of the Newsletter, you will also discover the testimony of a Crédit Agricole CIB Solidarity Banker who went to Kyrgyzstan and a joint interview with two directors of microfinance institutions benefiting from the African Facility, the first technical assistance program launched by the Foundation in partnership with the French Development Agency.

Access the Newsletters

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 impactful businesses supported by the Foundation. Discover the opinion piece by Marc Diakhaté, Account Manager in the Structured Finance Distribution team at CACIB, who traveled to Kyrgyzstan in September 2021 as a Solidarity Banker to support Salym, a microfinance institution supported by the Foundation.

Program discovery and preparation

I have always had a keen interest in the fight against poverty. I participated in community projects based on microcredit in Vietnam in 2008 and then in Senegal in 2016, and I took a microfinance course during my university exchange in Manila in 2011, but I had not yet had the opportunity to work in a real financial institution offering this type of product. Applying for the Solidarity Bankers program and in particular for the mission to Salym in Kyrgyzstan was an obvious choice for me.

Salym is a microfinance institution that provides financial services to low-income populations in Kyrgyzstan and the mission was to introduce the environmental and social (E&S) risk management approach into the lending process.

To frame the mission, I was able to draw on my skills in internal control and risk management – having been an internal auditor and then a credit analyst – and I benefited from training from the Grameen Crédit Agricole Foundation on Salym and Kyrgyzstan. From mid-July, we began preparing for the mission with Salym so that I could become familiar with their organization and procedures. In addition, I researched various resources on microcredit and took some private lessons in Russian – which was my third language during my studies – in order to be able to have simple conversations on site without an interpreter.

The mission to Kyrgyzstan
I visited Salym's premises in Bishkek for two weeks in September 2021.
I arrived in Bishkek on the first Sunday of September and, on Monday morning, I presented the mission during a kick-off meeting with the entire Management Committee. During the first week, I met with the main managers and also some borrowers, with the aim of learning about Salym's operating conditions and mapping the main E&S risks inherent in lending activities.

During the second week, I discussed with management a first version of the risk map, then possible developments in the credit process to integrate E&S risk management. At the end of the second week, I conducted training on E&S risk management for Salym's Management Committee and presented the roadmap for deploying the E&S risk management system. The pace during the mission was fast. Thus, I was able to finalize the initially planned deliverables (E&S risk matrix, proposal for a new credit process, training, roadmap) during my stay on site.

Coming home
Back in Paris, at the request of Salym's CEO, I proposed a new, more comprehensive version of the Kyrgyz microfinance institution's E&S policy. In mid-October, we held a final videoconference meeting to discuss my proposal, with a view to rolling out the E&S risk management system in 2022.

I was delighted to be able to put my skills to work for a high-impact company, in a culturally unknown environment (Central Asia remains a landlocked and relatively untouristy area) and a particularly exotic one. I returned with the image of a dynamic country, rich in numerous entrepreneurial opportunities.

I sincerely thank Carolina Viguet, Maxime Borgogno, Gabrielle Ferhat of the Foundation but also my hierarchy at RPC (Natacha Gallou, Hubert Frédéric, Michael Beucher) and Human Resources at CACIB (Virginie Halipré, Nawel Frioui), who allowed me to participate in this mission as a Solidarity Banker.

In the early years of its existence, the Foundation focused on financing microfinance institutions, gradually specializing in smaller institutions located in rural areas and mainly for the benefit of women developing small income-generating activities.

In this interview, you will discover the testimony of Sébastien Simonot, Investment Manager, who sheds light on his job.

Your job as Investment Officer in a few words?

The Investment Officer's job involves establishing and developing lasting partnerships with microfinance institutions, organizations that provide financial and non-financial services to low-income populations.

A large part of our working time is devoted to identifying these potential partners, through an in-depth analysis of their financial, social, and environmental performance. First, during the desk review phase based on the documents they send us, and then on-site during our due diligence missions. We also regularly communicate with the institutions we already have in our portfolio, to evaluate the evolution of their financial, social, and environmental performance and assess their financial and technical needs in order to strengthen our partnerships.

What is your background? Is there a typical career path for an Investment Officer?

I began my career in corporate banking, first at Crédit Lyonnais and then at Crédit Agricole CIB. After a detour into humanitarian work, I moved into microfinance about twelve years ago, around the time the Grameen Crédit Agricole Foundation was being created. During these twelve years, I led management and advisory missions for microfinance institutions in Haiti and Africa. I joined the Foundation in the summer of 2020, and I cover several areas in Africa, as well as the Middle East, for them.

I would say there is no typical career path at the Foundation. The Investment Officer profiles are varied, but they have one thing in common: we all have training and experience in economics and finance, coupled with exposure to the development and humanitarian fields.

What are the strengths of your job?

This profession provides an opportunity to observe the innovation demonstrated by microfinance institutions in providing their services to vulnerable populations, despite the difficult contexts in which they must operate. The in-depth analysis of these institutions, particularly through on-site visits and meetings with their clients, highlights the full meaning of the Foundation's ambitions: to promote social entrepreneurship and financial inclusion. Finally, the cross-functional nature of the profession: an investment officer works with all of the Foundation's teams: Middle Office, Risk, Technical Assistance, and Communication.

Why did you choose the Foundation?

The financial inclusion industry has grown considerably in recent decades, and many funds exist to support these institutions both financially and technically. From the outset, the Foundation has been able to equip itself with the tools to, on the one hand, be able to intervene with small institutions with a strong social impact, and on the other hand, it has been able to intervene in areas where many other operators did not operate, in fragile countries, from an economic, social, and climatic point of view. Today, we have significant feedback from many countries, particularly in Africa, which is recognized and contributes to the strength of our identity.

Access the interview

RENACA offers individual and group loans to a predominantly female clientele in six regions of Benin. As part of the African Facility program, RENACA received support to strengthen its inclusive green finance initiatives.

THE ORGANIZATION AND THE FOUNDATION

As part of the African Facility, RENACA received a €182,000 grant from the French Development Agency to implement 18 technical assistance missions in various areas (information systems, business plans, etc.), including a mission to strengthen inclusive green finance. The Foundation has also granted RENACA three loans since 2013, for a total amount of €1,738,000.

THE CONTEXT OF THE MISSION

Faced with the deterioration of ecosystems, RENACA wanted to engage in inclusive green financing activities, particularly through the financing of agricultural activities that preserve forests and biodiversity and activities that contribute to reducing clients' vulnerability to climate change. The institution thus benefited from the support of an international firm (YAPU Solutions) to develop a green strategy and evaluate and expand its green product offering.

THE RESULTS

This mission provided a diagnosis of RENACA's actions in the area of inclusive green finance, and the institution received advice on developing its product offering. The mission also raised awareness among staff and governance on the topic of inclusive green finance and climate-smart agriculture. An institutional green strategy and action plan were also developed, enabling RENACA to clarify its objectives in the area of inclusive green finance.

THE PERSPECTIVES

Following the mission, several priority actions were defined, including the organization of awareness-raising sessions on inclusive green finance for RENACA agents, the definition of a list of activities excluded from financing because they are harmful to the environment, the development of an environmental and social policy as well as the development of an offer of environmentally friendly agricultural products.

This article was published in "Our technical assistance system", accessible here