[INTERVIEW] Humo, beneficiary of the Solidarity Bankers program

© 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

© 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

© 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

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. 

 

The Grameen Crédit Agricole Foundation will conduct a new technical assistance program to develop microinsurance in rural areas.

©GODONG

The Grameen Crédit Agricole Foundation receives a new technical assistance grant of €900,000 from PROPARCO to facilitate access to insurance products for rural communities.

Insurance products are tools for protecting individuals against a range of risks, particularly those related to illness or natural disasters. They are drivers of economic development and social well-being. Yet, the insurance penetration rate in Africa is less than 21%. To address this, it is essential to ensure the sustainability of insurance products for people excluded from traditional insurance markets.

New technical assistance program: training microfinance institutions in microinsurance

The Grameen Crédit Agricole Foundation receives a technical assistance grant of €900,000 from PROPARCO, a subsidiary of the group AFD, in order to set up a micro-insurance program with theInternational Labour Organization (ILO).

This new technical assistance program will enable the Foundation to train and support these partner microfinance institutions so they can add new insurance services to their products, including agricultural insurance. Their clients, vulnerable people often excluded from insurance products (low-income households, women, smallholder farmers, microenterprises, and small and medium-sized enterprises), will thus be better protected and able to increase their resilience to climate, economic, and health shocks.

The Grameen Crédit Agricole Foundation will be able to draw on the program's expertise Impact Insurance ILO to develop this program and train nearly a dozen partner microfinance institutions in Africa and Southeast Asia.

At the end of 2020, the Foundation had already obtained a €10 million guarantee from the AFD Group to support its partner institutions in sub-Saharan Africa during the Covid-19 crisis. This guarantee, as well as this grant, are part of the long-standing partnership developed between the Foundation and AFD/PROPARCO since 2013 with the launch of the African Facility program which expires at the end of December 2021.

 

Download the press release

                                                             

More information on the Foundation's technical assistance offer: //www.gca-foundation.org/our-technical-assistance-system/

 

Signals of economic recovery still mixed

©Ed-Dunens / Adobestock

ADA, Inpulse and the Grameen Crédit Agricole Foundation partnered in 2020 to monitor and analyze the effects of the Covid-19 crisis on their partner microfinance institutions around the world. This monitoring was carried out periodically throughout 2020 to gain a better understanding of the evolution of the crisis internationally. We are extending this work this year, on a quarterly basis. The findings presented in this article follow the second quarter of 2021. With this regular analysis, we hope to contribute, at our level, to the development of strategies and solutions adapted to the needs of our partners, as well as to the dissemination and exchange of information between the various players in the sector.

In summary

The results presented in the following pages come from the seventh survey in the joint series[1] to ADA, Inpulse and the Grameen Crédit Agricole Foundation. Responses from our partner microfinance institutions (MFIs) were collected during the second half of July 2021. The 78 responding institutions are located in 40 countries in Sub-Saharan Africa (SSA-32%), Latin America and the Caribbean (LAC-30%), Eastern Europe and Central Asia (EAC-22%), the Middle East and North Africa (MENA-9%) and South and Southeast Asia (SSEA-6%).[2].

The generally positive trend nevertheless hides very contrasting realities between institutions which are growing again (the majority), and others which continue to encounter difficult economic conditions. The first group shows growth in their outstanding amounts and positive trend development projections for the end of 2021. These prospects nevertheless remain measured (mainly between 0 and 10% of portfolio growth) since certain factors such as customer demand or risk management still have an impact on expansion possibilities.

On the other hand, some institutions are facing difficulties specific to health contexts, the effects of which are weighing on economic life and having a very significant impact on transaction volumes. As a result, the profitability of their financial performance is affected to the point of materializing negatively, for the most fragile, on their equity.

  1. An operational context which continues to improve overall

The reduction in operational constraints and the gradual resumption of activities are confirmed once again in this latest survey. Of course, this trend hides some less positive disparities due to the measures taken to combat the spread of the virus. At the beginning of July 2021, 47% of the institutions surveyed reported no longer encountering operational constraints on a daily basis (Figure 1). Also, all the constraints related to traveling within the country and meeting customers do not concern more than 20% of the respondents.

This is in fact reflected in the level of activity of the institutions: 72% of MFIs have either resumed a pace similar to that of before the crisis or are experiencing a gradual recovery without major interruption (Figure 2). This phenomenon is particularly visible in the ECA region where the level of activity has not decreased for almost all institutions. In the LAC and SSA regions, a majority of organizations are in the same situation (respectively 63% and 68%). In these regions, the difficulties are particularly felt in East Africa, Panama and Honduras. Finally, For MFIs in the MENA region, the trend is towards recovery, while those located in SSEA are largely facing new difficulties (Cambodia, Laos, Myanmar, Sri Lanka).

  1. Some microfinance institutions have returned to growth

It is in this context that MFIs continue to disburse loans to their clients. While the increase in the portfolio at risk (PAR) and the reduction in the loan portfolio were the major financial consequences of the crisis in 2020, only 36% of the MFIs surveyed in July still report seeing a decline in their outstanding loans (figure 5).

This positive analysis nevertheless hides a slow process, as shown by the responses of our partners regarding the achievement or not of their disbursement targets in Q2 2021. More than half (53%) indicate that they did not reach their disbursement targets during this period, a figure relatively close to that obtained in the first quarter. This result is not entirely correlated with the level of operations of an organization: more than half of the MFIs in the LAC and SSA regions report unfulfilled objectives despite a favorable operational environment. Note that Three major reasons are cited by MFIs that did not achieve their growth targets during this quarter : the decrease in the amounts requested by clients (45% of them), the reluctance of clients to commit to new loans (43%) and risk management by focusing only on existing clients (38%). Thus, MFIs in the EAC region are exceptional with excellent performances in Q2 2021.

Although these indicators show an inconsistent pace of development, 2021 should nevertheless end with growth in outstanding loans for the vast majority of MFIs. Indeed, 86% of the institutions surveyed expect to have outstanding amounts higher than those of December 2020 at the end of 2021. This growth will also be reasonable for a large proportion of them: 44% of respondents forecast portfolio growth of between 0 and 10%, particularly in the MENA and LAC regions. For just over a third of MFIs (36%), it will be between 10 and 30%. Projections are split between these two estimates in the other three regions analyzed. Finally, note that a proportion of 10 to 20% of MFIs in each zone anticipate a reduction in their outstanding amount.

  1. Although still present, credit risk remains under control

Despite these reassuring indications regarding portfolio growth, MFIs still have to manage high credit risk, a lingering remnant of the crisis. 58% of respondents in Q2 2021 report that their current risk portfolio remains higher than at the start of 2020. While some institutions still have an active moratorium (only 5%), loans from customers in difficulty at the start of the crisis now appear in the PAR, as restructured loans or late payments. In addition, there are late payment customers who did not have a moratorium. All of these loans are subject to a provision to cover the proven risk of default. Therefore, we find the decline in profitability as another major financial consequence of the crisis, fueled by the sharp increase in provisioning expenses and the reduction in outstanding amounts.

In detail, It appears that 59% of our partners have increased their level of provisions compared to before the crisis (Figure 6). For the majority of them (71% of these 59%), the increase is between 0 and 25% of the usual amount, a situation found in each zone except the SSEA region. Conversely, there is a group of MFIs (40%) no longer seeing a major increase in credit risk and whose provisioning expenses are similar to the past, or even decreasing. In this regard, the ECA zone stands out again since this is the case for nearly 60% of the organizations surveyed in the region.

 

However, as we noted in our recent studies, this has not yet materialized into a very sharp increase in loan write-offs. HAS At the end of the second quarter of 2021, 59% of respondents indicated that the levels of loans written off for the year were either down compared to previous years or at the same level.. Nevertheless, 13% of MFIs had to write off at least double what they had before the crisis.

 

  1. Equity capital has been largely saved so far

The profitability of microfinance institutions is affected by the return of activities, the variation in outstanding credit and risk coverage. (factors presented in the paragraphs above). For 51% of our partners, the trend is downward (Figure 5). However, the information collected at the end of June 2021 is reassuring: 80% of those surveyed have a profitability level at least at breakeven, which therefore has no consequences on the capital of their structure (Figure 7). In the same sense, Despite the negative result, 11% of those surveyed do not feel any pressure on their equity. The situation is nevertheless more critical for 8% of the partners interviewed., whose capitalization level is in danger, leading to a potential breach of covenant with their lessors or the regulator.

Faced with the difficulties of certain clients, who are facing new waves of complications related to the Covid-19 pandemic or other factors, potential losses could affect the solvency of microfinance institutions. Some already require the intervention of their shareholders or investors. We learned in our latest study that the type of shareholders institutions wish to target depends on the reason for which this support is necessary (cover losses or, indeed, to grow). This survey shows that the question is already being asked for 20% of respondents: needs may arise despite recent capital support, but some MFIs are also without solutions to this issue (10%). These cases show that the impact of the crisis will still be felt on institutions already severely affected by this unprecedented period, but also on less robust MFIs. Vigilance regarding capital needs remains essential since the long-term impact of credit risk could tip the scales for other organizations if the general situation does not improve, for example with the arrival of new epidemic waves.

 

                                                                                             

[1] The results of the first five surveys are available here: //www.gca-foundation.org/observatoire-covid-19/, //www.ada-microfinance.org/fr/crise-du-covid-19/ And //www.inpulse.coop/news-and-media/

[2] Number of responding MFIs by region: EAC 17 MFIs; SSA 25 MFIs; LAC 24 MFIs; SSEA 5 MFIs; MENA: 7 MFIs.

The Foundation publishes its report “Our technical assistance system”

In order to share the experience accumulated since 2013, the Grameen Crédit Agricole Foundation is publishing its report “Our technical assistance system”.

Technical assistance programs serving our partners

In 2013, the Grameen Crédit Agricole Foundation made the strategic decision to embark on the activity of coordinating technical assistance programs in order to strengthen its impact capacity. Funded by the French Development Agency (AFD), "the African Facility" is the first support program initiated by the Foundation. It aims to support small microfinance institutions with high potential and a social vocation by granting them a loan associated with technical assistance activities.

The Foundation now offers six major technical assistance programs, in cooperation with major international organizations, to strengthen the network of microfinance institutions and impact businesses in Africa, the Middle East, Europe and Asia. This support activity has become one of the Foundation's four core businesses, alongside financing, investment and investment advice.

Diversify and structure your support programs

Since launching this activity, the Foundation has mobilized appropriate funding from institutional stakeholders. It also adheres to clear procedures based on international best practices and compliance with donor criteria regarding procurement rules.

The richness of technical assistance is reflected in the variety of coordinated programs, both general and thematic. With eight years of experience, it now has a proven capacity to strengthen its partners.

A contribution to its impact model 

Beyond operationally strengthening its partners, the Foundation also supports them in addressing the many challenges they face in constantly evolving environments and markets. Technical assistance programs help develop strategies for inclusive green finance, digitalization, and the financial inclusion of refugees, among others.

The Foundation also plays a role in promoting social impact banking practices. The Solidarity Bankers program contributes significantly to this within the Crédit Agricole group.

Lessons and recommendations

In 2020, with the methodological assistance of Cerise, an independent organization, the Foundation decided to conduct an in-depth evaluation of its technical assistance. It is now drawing lessons from this model through insights into the entire process: internal procedures, intervention methods, involvement of beneficiary organizations, choice of service provider, reporting, post-mission monitoring, etc.

Through this report, the Foundation reflects this work by sharing its experience with all those who contribute to the consolidation of the inclusive finance sector.

 

Discover the report

Technical assistance for strengthening inclusive green finance

©GODONG

The African Facility is a technical assistance program set up in 2013 by the Grameen Crédit Agricole Foundation, in partnership with theFrench Development Agency (AFD), to support rural microfinance institutions in sub-Saharan Africa.

RENACA is a Tier 2 microfinance institution established in 2005. Located in Benin, its mission is to significantly strengthen the economic base of vulnerable rural, peri-urban, and urban populations engaged in self-employment activities. It offers individual and group loans to a predominantly female clientele in six regions of Benin. As part of the African Facility program, RENACA received technical assistance, with the support of the firm YAPU Solutions, to strengthen its actions in inclusive green finance.

A look back at the system with Thomas DOVONOU, Head of Credit Services, in charge of Promoting New Products at RENACA.

  • How important was this mission for your institution?

This mission consisted of an initial intervention with RENACA-Benin (National Network of Self-Managed Village Savings and Credit Banks of Benin) to develop our green agenda and define our organizational objectives. On the one hand, we wanted to benefit from an introductory awareness session on the concept of inclusive green finance. On the other hand, an institutional assessment was necessary to take stock of our actions in the field of inclusive green finance and to identify and exploit market opportunities.

As RENACA operates primarily in rural areas, one of our priorities was to receive advice on how to expand our agricultural credit product offerings, in terms of scope, productivity, and climate change risk management. The firm also specifically trained us on the concept of Climate-Smart Agriculture.

  • How the relationship with the consultant throughout the mission?

YAPU conducted an assessment of RENACA's initial implementation of inclusive green finance, based on a review of our documentation and processes, and by interviewing our teams. The firm worked closely with all of the Network's stakeholders (senior management, operational staff, elected officials, and clients) to define our challenges and structure our priorities in an action plan. This provided us with a framework to strengthen our activities toward a more active and environmentally responsible organization.

We particularly appreciated YAPU's participatory approach, as well as the good preparation of the mission and the quality of the documentation provided.

  • What actions did you implement following this mission?

We first completed a Green Index and disseminated the results within the Network. This way, the teams were informed of our current situation in terms of the level of implementation of inclusive green finance and became aware of our areas for improvement and possible opportunities.

Then, the results of the mission were used to improve the inclusive green finance system through the implementation of certain recommendations.

For example, we have developed a list of activities excluded from funding because they are harmful to the environment and customer well-being (charcoal production, extraction activities leading to the pollution of water bodies, etc.). This list has also been supplemented with a list of behaviors for sustainable change expected from our customers.

We have also developed our range of agricultural financial products through the implementation of an appropriate system in terms of strategy, actor profile (operational agents and pool agricultural finance specialists), procedures and policies, tools, financial resources, partnerships, etc.

Finally, RENACA developed an environmental and social policy, which was adopted by its Board of Directors. The next step will be to disseminate it to network stakeholders (operational agents, customers, elected officials, etc.).

Ultimately, thanks to YAPU's involvement, we gained a better understanding of the opportunities and challenges associated with inclusive green financing. This mission therefore enabled a real awareness-raising among the Network's teams, from senior management to field agents.

 

Phare, The Cambodian Circus is touring France!

Phare Circus (Cambodia) © Oyen Rodriguez

Phare Performing Social Enterprise (PPSE) is a social enterprise created in 2012 at the initiative of Phare Ponleu Selpak ("The Light of the Arts"), a Cambodian NGO that has been working for over 20 years to provide access to quality education and artistic training for children in great need. Today, the NGO educates over 1,000 children and has over 300 students in its performing arts school located in Battambang. It offers these young artists classes in circus, theater, music, and dance through 4- to 6-year professionalization programs.

The Grameen Crédit Agricole Foundation has been a shareholder in PPSE since 2013 and provides financial support for the development of its projects, including Phare Cafe, Phare Boutique, and Phare, The Cambodian Circus. PPSE has also received technical assistance through the Solidarity Bankers program in 2019 and 2020.

Phare, The Cambodian Circus was created to provide employment opportunities to young students and graduates of the Phare Ponleu Selpak Circus (PPSA) programs. 80% of the dividends generated are donated to the PPSA association to ensure the project's sustainability. The initiative is a success: Phare artists perform every night under a big top in Siem Reap and their performances have attracted more than 100,000 spectators since opening in 2013. They have also toured extensively around the world: in Asia, Australia, the United States, and Europe. The Crédit Agricole group also had the privilege of welcoming the troupe to its Montrouge campus in 2015. In eight years, Phare, The Cambodian Circus has become one of Cambodia's most innovative social enterprise models.

Don't miss the opportunity to discover their work during their French tour between November and December 2021. "White Gold," the title of their show, is a periphrasis for rice, omnipresent in Cambodian daily life and imagination. It is the central element of the scenography and brings a poetic dimension to the prowess of the artists who perform juggling and acrobatics with poetry and energy. Much more than a circus show, Phare performances are unique in the world: they combine dance, theater, live music, and circus arts. Breathtaking.

Book your tickets: //pharecircus.org/or-blanc-france-2021/

The Grameen Crédit Agricole Foundation participates in the African Microfinance Week 2021

The 5th edition of the African Microfinance Week (AMW), dedicated to the development of financial inclusion in Africa, will take place from October 18 to 22, 2021 in Kigali, Rwanda, on the theme of resilience.

Organized by ADA Microfinance (Support for Autonomous Development) In Luxembourg, the main objective of SAM 2021 is to bring together the thoughts and commitments of the different categories of actors in the African inclusive finance sector. Conferences and training sessions are organized throughout the week to discuss strategies and actions to be taken to, on the one hand, strengthen the resilience capacities of financial services operators and beneficiary populations, and on the other hand, accelerate their progress towards the sustainable development goals.

The SAM Conference: “We are not born resilient, we become it: strengthening inclusive finance to overcome crises”

This conference will be held over two days and will be structured into plenary sessions.

It is in this context that Philippe Guichandut, Director of Inclusive Finance Development at the Grameen Crédit Agricole Foundation, will speak during two sessions on "MFIs and the Covid-19 crisis in Africa: Survey results and lessons learned" as well as "Financing the inclusive finance sector in times of crisis: what role for investors and donors in strengthening the resilience of the sector?". On this occasion, Philippe Guichandut will share the experience of the Grameen Crédit Agricole Foundation during the Covid-19 crisis and the results of the surveys carried out, in partnership with Inpulse And ADA, with their partner microfinance institutions.

Violette Cubier, technical assistance program manager at the Foundation, will speak at an experience-sharing session on financial innovations that promote the resilience of refugee populations.

Training and workshops

SAM 2021 also offers around twenty training courses on different themes: agricultural finance, digital finance, inclusive insurance, social performance, etc.

At the initiative of the United Nations High Commissioner for Refugees and the Grameen Crédit Agricole Foundation, a training session is being organized on the theme of financial inclusion for refugees and host communities.

Training on microinsurance will also be provided by the Grameen Crédit Agricole Foundation, the International Labour Organization and the Micro Insurance Network.

Finally, Sébastien Simonot, Investment Officer at the Foundation, will speak at the workshop “Green and Inclusive Finance: Understanding and Addressing Client Vulnerabilities.” The training will provide participants with an overview of client needs assessment frameworks, data collection tools, and strategies for integrating inclusive green finance programs into their organizations.

The opportunity to meet its partners

On the occasion of SAM 2021, the Foundation will meet with its African partners, notably those involved in the African Facility's technical assistance program, developed since 2013 in partnership with the French Development Agency (AFD) and which will end on December 31 of this year. Meetings will be organized in advance of SAM 2021 and will allow all parties involved to take stock of this mechanism, which has helped strengthen some twenty microfinance institutions in sub-Saharan Africa, the Foundation's priority intervention area.

Discover the Grameen Crédit Agricole Foundation's technical assistance programs here.