In 2013, alongside the French Development Agency (AFD), the Foundation launched its first technical assistance program: the African FacilityThe objective of this facility is to support small and medium-sized rural microfinance institutions with a strong social impact in sub-Saharan Africa. More than eight years after its launch, the Facility's performance demonstrates the importance of providing not only financial but also technical support to partner microfinance institutions.

Through the African Facility, the Foundation and AFD supported 26 microfinance institutions, which in turn financed the income-generating activities of more than 500,000 borrowers with average loans of around €200. With 328 technical assistance missions completed, the program covered numerous areas of expertise, from developing environmental strategies to digitizing the credit granting process and strengthening governance.

Within this framework, BIMAS and MicroLoan Foundation Malawi, two African microfinance institutions, have received several technical assistance missions. A spotlight is on their track record with the African Facility. Discover the interview with Elizabeth Karinga, Chief Financial Officer of BIMAS, and Randall Williams, former Director of MicroLoan Malawi, who discuss this initiative.

What is your assessment of the African Facility?

Elizabeth: The African Facility has been an extraordinary journey for BIMAS. The progress our institution has made is clear. For example, when we first began receiving support from the African Facility, our operations management processes were still manual, whereas with the program's support, we were able to begin a digitalization process. Thanks to the African Facility, we have also improved our social performance management and our communication with clients.

Randall: MLF Malawi joined the African Facility in 2018 and has benefited from several missions, particularly in terms of digitalization. For example, with the help of the Facility, we implemented a new HR platform that automated certain HR procedures and ensured more efficient personnel management, such as staff leave management. Before the platform was implemented, it took two days and four sheets of paper for branch staff to validate their leave requests. It now takes less than five minutes and no paperwork for this same validation. We were also able to implement a new cloud-based accounting platform to replace the old system we had. This came at the right time because it allowed our finance team to work remotely during the COVID-19 crisis, which was not previously possible. I should also highlight that both platforms have centralized file archiving capabilities that allow teams to access digital files securely and remotely. Thus, in addition to significant productivity gains, we have also become a more agile organization since Management is now able to have real-time access to information on the platforms to make strategic decisions more quickly.

Elizabeth: The African Facility has really helped us in terms of developing our activities. One of the most important things in microfinance is being able to assess how many people we reach, what type of disbursements we make, and how to increase financial inclusion for as many people as possible. At the beginning of the program, BIMAS had approximately 18,000 clients; today, we serve 42,000, thanks to the new processes we implemented under the African Facility. We have grown from 21 to 40 branches, and this has helped create jobs in our new areas of operation, particularly in rural areas. This growth demonstrates the positive impact of the program and the partnership with the Grameen Crédit Agricole Foundation.

Randall: We are truly grateful for the support we received through the African Facility to implement these capacity building initiatives. These technical assistance missions have truly helped strengthen our operations by improving the governance structure and increasing the overall resilience of our organization. More importantly, it has helped us minimize disruptions related to the COVID-19 pandemic and also allowed us to expand our reach at a much faster pace than before. Regarding context, we have been able to grow our branch network from 15 to 22 over the past two years (despite the pandemic), and this is largely due to productivity improvements that have allowed our staff to better focus on development, improving customer satisfaction, as well as achieving other key social performance management objectives. I hope that the Grameen Crédit Agricole Foundation can continue this very important initiative because, as you can see, there are clear benefits not only for the institution itself, but also for the pyramid client base we serve.

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More information about our technical assistance program here.

The FIR (Inclusive Finance in Rural Areas), exclusively reserved for Crédit Agricole Group entities, allows investment in the financing of rural microfinance institutions that serve populations traditionally excluded from the banking sector in emerging countries.

To date, the FIR has registered subscriptions from 21 regional banks*, Amundi, and CA Assurances. The FIR supported new institutions in 2021. It granted €1 million in loans to ACF in Kazakhstan, €800,000 to Lazika in Georgia, €1 million to Montecredit in Montenegro, and €500,000 to Furuz in Tajikistan.

As of the end of December 2021, the FIR supports six microfinance institutions in six countries: Georgia, Kazakhstan, Kyrgyzstan, Kosovo, Montenegro, and Tajikistan. Despite the health crisis, which increased credit risk and hampered their profitability, these institutions have demonstrated resilience. They continue to contribute to the development of income-generating activities, particularly village agricultural production (711,300 beneficiaries live in rural areas).

Download the report

*Alpes Provence, Alsace-Vosges, Brie Picardy, Centre-east, Centre-France, Centre Loire, Centre-West, Champagne-Burgundy, Charente-Périgord, Finistère, Franche-Comté, Ille-et-Vilaine, Languedoc, Loire-Haute Loire, Martinique-Guyana, Normandy-Seine, Provence Côte-d'Azur, Reunion, Savoie, South Rhône Alpes and Touraine Poitou

The Senegalese Food Chain Association (SFA) is a social enterprise that promotes the production of quality rice by smallholder farmers in the Senegal River Valley through a long-term partnership. SFA provides them with access to financing and technical support, then processes the paddy into white rice and sells it on the Senegalese market.

THE ORGANIZATION AND THE FOUNDATION

Since 2013, the Grameen Crédit Agricole Foundation has been a shareholder in Sénégalaise des Filières Alimentaires. The SFA benefited from the Solidarity Bankers program: a high-level expert, Head of the Group Purchasing Information System Project Management division at Crédit Agricole SA, spent two weeks in the field to support the SFA in optimizing its information system.

THE CONTEXT OF THE MISSION

In an effort to expand its business, SFA sought outside expertise and support from an information systems expert to develop a technology application for local teams to better manage and optimize their operations and producer monitoring. Our Crédit Agricole expert visited SFA factories in Saint Louis and Dakar and conducted an assessment of the information system through interviews with various SFA stakeholders. She also worked with them on digitizing the rice collection chain to optimize productivity and yields.

THE RESULTS

By visiting the field, she was able to understand the different stages of rice harvesting and processing and offer her recommendations. Thanks to the implementation of the management information system under development and a weighing application integrated into the Sage software, the Solidarity Banker has enabled SFA to improve its industrial activity, production conditions, and technical and financial monitoring of producers. Since improving its production system, SFA's ambition is to double its volume of activity by 2022, while supporting the local rice sector in Senegal.

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

Discover the mission in video here

Since 2013, the Foundation has sought to complement its approach with targeted expertise to strengthen the operational performance of its partners. For nine years now, we have been developing, coordinating, and implementing technical assistance programs.

In this interview, you will discover the testimony of Victoire Binson, responsible for technical assistance, who sheds light on her job and its impact.

In a few words, what technical assistance does the Foundation offer?
Technical assistance is an additional support mechanism intended for the Foundation's partners, whether microfinance institutions or social enterprises. The modalities of intervention are varied, including participation in training, support missions, and even co-financing for the acquisition of equipment. The Foundation plays a technical assistance coordination role within the framework of programs in conjunction with our technical and financial partners. Thus, as of the end of December 2021, nearly 380 technical assistance missions had been launched and coordinated by the Foundation.

What programs does the Foundation develop?
The Grameen Crédit Agricole Foundation's offerings have continued to expand since the launch of its historic program, the African Facility, in 2008, aimed at strengthening small MFIs in rural areas. Since then, we have also launched a technical assistance program funded by the Luxembourg government and coordinated by the EIB to strengthen the capacity of microfinance institutions in sub-Saharan Africa. And in Uganda, with the United Nations High Commissioner for Refugees and thanks to funding from the Swedish Cooperation Agency, we have also launched a program to provide refugee populations with access to financial and non-financial services.

What technical assistance programs does the Foundation offer to social enterprises?
We also have other programs open to social enterprises. First, the Solidarity Bankers program, which aims to enhance the skills of Crédit Agricole Group employees and allows our partners, microfinance institutions, and social enterprises, to benefit from pro bono field missions in Africa, Asia, and Eastern Europe. And finally, we have a final program called the SSNUP program, whose objective is to strengthen the resilience of small producers and the structuring of agricultural value chains in Africa and Asia.

What are the main impacts of these programs?
The Foundation has just published a report on its technical assistance system in which it has identified three direct impacts:
First, assistance helps strengthen the operational performance of its partners; then, technical assistance helps develop new services, such as digitalization or microinsurance, and reach new targets, such as refugees. Finally, through these technical assistance programs, the Grameen Cédit Agricole Foundation promotes innovative practices and strengthens its ties with stakeholders in the inclusive finance sector.

What are the upcoming projects?
Technical assistance is an integral part of the Foundation's new 2022-2025 Strategic Plan and a key focus of its development. In 2022, we are also launching a program with the International Labor Organization and funded by PROPARCO that will enable us to support 12 of our microfinance institutions in Africa and Asia in developing microinsurance products. We have strong ambitions for both digital and climate resilience, and we will work to implement new support mechanisms to help our partners navigate this major transition.

Access the interview here