Kafo Jiginew, resilient in the face of the Covid-19 crisis in Mali

© RFI Knowledge

The Covid-19 crisis has impacted the activity of Kafo Jiginew, a microfinance institution funded by the Grameen Crédit Agricole Foundation since 2018. This is primarily due to the slowdown in international economic activity, which has impacted savings growth, but also due to the demand for credit, which has also declined. This overview was presented by David Dao, Director of Kafo Jiginew, during an interview given on the occasion of the presentation of donations worth 25 million FCFA to the widows and orphans of Malian soldiers who are part of the institution's membership.

Covid-19 has also affected the Malian cotton sector, which is largely financed by the institution, which has seen its demand decline on the global market. Credit requests from cotton producers have decreased, which for the institution represents a significant drop in financial income. Another consequence is the increased risk of loan defaults, which could weigh on Kafo's financial profitability in 2020. David Dao, however, expects a positive result for 2020 and asserts that the situation will not affect the existence of the institution, which is solid.

Kafo Jiginew remains the leader in microfinance in Mali with at least 40% market share, 430,000 clients, and a portfolio of 68 billion FCFA. Since 2014, the institution has entered a phase of profitability that continues. In 2015, Kafo Jiginew also initiated a global rating operation with MFR – Microfinanza Rating, an international audit firm that evaluates and rates its financial and social performance. These best practices ensure transparency vis-à-vis international donors such as the Grameen Crédit Agricole Foundation, which will remain committed alongside its partners to address the current crisis.

Source: Bamada.net

 

The Foundation publishes its Impact Newsletter

The Grameen Crédit Agricole Foundation publishes a Special Impact Newsletter that presents the evolution of the Foundation's direct and indirect impact figures and an "Impact Focus" section with the initial results of the international coalition, initiated in May 2020 by the Foundation, to protect microfinance institutions and their clients in the face of the Covid-19 crisis. These results demonstrate real cooperation and coherence of action between the 30 organizations that signed the commitment. Due to the speed of the measures taken, liquidity defaults have been avoided to date and technical assistance, coordinated and focused on essential actions, has made it possible to support the institutions throughout the period.

We also present the joint interview with the Managing Directors of CA Normandie-Seine and CA Centre France, two regional banks that have invested in Finance Inclusive en Milieu Rural (FIR), Crédit Agricole's first microfinance fund, which strengthens the Group's action and impact in favor of financial inclusion.

You will discover the key figures of Solidarity Bankers, the Crédit Agricole Group's skills volunteering program for organizations funded by the Foundation, as well as a travel diary of a Solidarity Banker from Crédit Agricole SA who went to Senegal to support SFA, a social enterprise supported by the Foundation.

Download the The #37 Special Impact Newsletter

Signatory organizations report on Covid-19 engagement and lessons learned

Over the past few months, the financial inclusion sector has embarked on a journey to address the Covid-19 crisis. On the ground, microfinance institutions have taken measures to address health risks, lockdowns, and the economic downturn. In the meantime, lenders, investors, support organizations, and technical assistance providers have had to adapt their intervention principles and coordinate their actions (1). By signing Commitment on key principles to ensure the protection of microfinance institutions and their clients in the Covid-19 crisis ("the Commitment"), 30 organizations have committed to certain key principles.

Six months after the signing of the Commitment, a working group composed of signatories (ADA, Cordaid Investment Management, Frankfurt School Impact Finance, Grameen Credit Agricole Foundation, Microfinance Solidaire, SIDI and the Social Performance Task Force) is drawing lessons from the implementation of the principles of the Commitment. In a joint publication, the signatories present the state of implementation of 10 principles, particularly those linked to the deferral of deadlines and the first stages of voluntary debt restructuring, in line with what could be observed during the first months of the crisis.

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We conclude that there was excellent coordination among international donors, who agreed on the terms of the repayment extension, avoiding, in most cases, lengthy restructuring discussions. This rapid response proved essential in avoiding a liquidity crisis in the sector, as most of the funded partners maintained sufficient liquidity levels. In rare cases, when uncoordinated individual behavior threatened the equitable sharing of constraints among international donors, peer pressure was effective.

We have also witnessed unprecedented coordination in the area of technical assistance, which has already resulted in collaborations between technical assistance providers, such as the organization of a joint webinar on liquidity management, the provision of business continuity tools, and the implementation of field surveys with end clients. However, the coordination has not lived up to our initial objective, particularly due to the need to prioritize the most urgent issues. Given the significant challenges that microfinance institutions will face on the ground, we believe it is essential to continue our efforts on this front to avoid duplication and strive for greater efficiency.

Our commitment to client and staff protection continues. We have encouraged initiatives to promote the continued protection of clients and staff during this time of crisis, and we must continue these efforts to ensure they remain at the center of discussions. Many microfinance institutions will need to recover a business that is intimately linked to the financial health of clients, the behavior of field staff, and the treatment of staff. To this end, we encourage the coordinated collection of information on staff management and client outcomes throughout the crisis and beyond. We also encourage the intensification of sector-specific initiatives that contribute to effective monitoring in these exceptional circumstances (2).

New debt financing slowed considerably during the crisis but did not stop completely. While some economies are restarting, many of the partners we finance have shown promising signs of recovery since July 2020, with significant differences between countries and sectors. Recognizing the opening of this new chapter, we are committed to supporting and consolidating the economic recovery in a timely and responsible manner.

Open publication

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[1] //www.covid-finclusion.org/investors
[2] The Social Investor Working Group of the SPTF has issued Lenders' Guidelines for Defining and Monitoring Responsible Covenants in the Covid-19 context.

Sinapi Aba wins Best Bank for Women Entrepreneurs award

Sinapi Aba has been awarded the Gold Winner for Best Bank for Women Entrepreneurs 2020 at the Global SME Finance Awards. Launched in 2018, the Global SME Finance Awards were designed to recognize the outstanding commitments and achievements of financial institutions and Fintech companies in providing exceptional products and services to their SME customers.

Sinapi Aba is a microfinance institution established in 1994 in Ghana by Opportunity International to serve as an incubator that provides business development and income-generating opportunities to economically disadvantaged people, enabling them to improve their living conditions. Sinapi has been a partner of the Foundation since 2018. Through its savings and credit products, Sinapi Aba promotes entrepreneurial development, particularly women's entrepreneurship, which represents 78% of its clients. The institution also contributes to the development of rural areas, as 76% of its clients launch income-generating activities in rural areas.

Sub-Saharan Africa is one of the main regions supported by the Grameen Crédit Agricole Foundation. In Ghana, where the Foundation began operations in 2018, the Foundation is financing the microfinance institution Sinapi Aba with a local currency loan equivalent to €931,000.

More information about Sinapi Aba here.

Foundation grants new loan to OXUS Tajikistan

 

The Grameen Crédit Agricole Foundation has granted a new loan to the microfinance institution OXUS Tajikistan. The loan, worth €465,000, is the fourth granted to this Tajik institution, which primarily targets microentrepreneurs and farmers in rural areas. Its social mission is clear and aims to improve the economic and social conditions of low-income populations who are not served by the banking sector.

With this new loan, the Foundation has €24.5 million in outstanding loans tracked in the Eastern Europe and Central Asia region, with a total of 19 partners in 10 countries. This represents €261 million of the total outstanding loans tracked by the Foundation as of the end of September 2020.

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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 40 countries.

For more information on the organizations supported by the Foundation, Click here.

 

Crédit Agricole Solidarity Bankers in Pictures

Launched in June 2018 at the initiative of the Grameen Crédit Agricole Foundation and Crédit Agricole SA, Solidarity Bankers is a skills-based volunteer program open to all Crédit Agricole Group employees in support of microfinance institutions and social impact businesses supported by the Foundation.

The objective of the program Solidarity Bankers is twofold: on the one hand, it allows us to promote the skills of Crédit Agricole Group employees who wish to get involved in solidarity projects and, on the other hand, to strengthen support for microfinance institutions and businesses financed by the Grameen Crédit Agricole Foundation. Two years after its launch, discover the testimonials and highlights of the missions in Senegal and Cambodia in 3 video capsules which present the results of the program.

First destination, Senegal

The program's first mission is emblematic: the mission led by Jonathan Michaud, an agricultural engineer from Crédit Agricole Franche Comté in Senegal for the Laiterie du Berger. With the support of the Regional Bank, the Solidarity Banker spent two years helping the Dairy structure the dairy sector in Senegal. Today, he is Director of KOSSAM SDE, the Dairy's subsidiary created following his mission, which is helping to structure the dairy sector in northern Senegal by providing material resources and training to farmers and developing an innovative model of pilot "mini-farms." 1,230 local farmers were supported, whose income increased by more than 50% between 2018 and 2019.

Another mission was carried out in Senegal in 2020. Michèle Kouam, IT Project Manager at Crédit Agricole SA, left at the beginning of the year to support the Société Sénégalaise des Filières Alimentaires (SFA). Her mission was to work on the digitalization of rice collection for SFA, a company that produces white rice from paddy grown by small producers in the Senegal River Valley. By enabling access to credit, providing technical support, and guaranteeing a fair price, SFA now supports 3,200 smallholder farmers and promotes the development of an inclusive rice sector in Senegal.

Heading to Cambodia

A final mission completes this visual overview: the mission of François Galland, International HR Director of Crédit Agricole SA, to the microfinance institution Chamroeun. François worked for two weeks on Chamroeun's human resources strategy. The institution offers financial products and services to more than 33,000 low-income people in Cambodia, who are also supported with a range of training and social support services.

Next steps

Since the program's launch, 20 missions have been launched, 12 of which have already been completed. The selection process for the first missions launched in 2020 has been finalized, but two missions remain to be filled, in Morocco and Egypt.

With Solidarity Bankers, Crédit Agricole's regional banks and entities in France and internationally are increasing their efforts to promote inclusive finance and strengthening the human and societal projects of the Group/PMT 2022 strategy.

Watch the video of the 3 missions

Solidarity Bankers and Plastic Odyssey: missions to be filled in Egypt and Morocco

THE PLASTIC ODYSSEY ADVENTURE

Every minute, 19 tons of plastic enter our oceans and 80,000 tons of marine pollution comes from coastal cities in the world's poorest countries. In the face of this global problem, Plastic Odyssey aims to make plastic waste recycling a profitable activity that creates new jobs.

The project involves a world tour aboard a ship that acts as an ambassador for recycling technologies. The ship will stop in emerging countries where these solutions will be used to recycle available waste and contribute to the creation and development of plastic recycling microenterprises. The expedition is scheduled to set sail at the end of January 2021.

Crédit Agricole SA, the Caisses régionales de CA (1) and their subsidiaries (2) have been supporting the project since 2018 by financing the construction of a prototype boat and the expedition to the tune of €1.2 million over 5 years. The Grameen Crédit Agricole Foundation is supporting Plastic Odyssey in the development of its economic model and the project to structure a social impact recycling sector during the expedition. The Foundation will also put the Plastic Odyssey team in touch with local recyclers and entrepreneurs to encourage the emergence of social economic models.

MISSIONS TO BE FILLED IN EGYPT AND MOROCCO

Plastic Odyssey will begin its journey across the Mediterranean Sea, updating its knowledge of the plastic waste value chain and identifying opportunities for partnerships with social entrepreneurs. As part of the skills sponsorship program, Solidarity Bankers, Crédit Agricole SA and the Grameen Crédit Agricole Foundation are publishing two missions to support the development of Plastic Odyssey, open only to Crédit Agricole employees based in Egypt and Morocco.

The Solidarity Bankers will be tasked with identifying key players in the plastics recycling value chain in Egypt and Morocco, analyzing the business model of the targeted social enterprises and their success factors, and identifying development opportunities for Plastic Odyssey.

The duration of each assignment is one day per week for sixteen weeks, which can be during working hours (skills sponsorship, to be validated by the Solidarity Bankers' employers) and/or during vacations (volunteering). The assignments can be carried out in pairs or by a team of Crédit Agricole experts based in Egypt and Morocco. The assignment in Egypt will take place from the 4th quarter of 2020 and the assignment in Morocco from the 1st quarter of 2021.

APPLY FOR THE MISSION IN EGYPT
APPLY FOR THE MISSION IN MOROCCO

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(1) Alpes Provence, Aquitaine, Atlantic Vendée, Charente-Maritime Deux-Sèvres, Finistère, North of France, Normandy-Seine and Provence Côte d'Azur
(2) CA Assurances, CACEIS, Crédit Agricole CIB, CA Immobilier, BforBank, CAMCA Mutuelle, Crédit Agricole Poland and Crédit Agricole Italy

RENACA, finalist of the 2020 European Microfinance Award

In the current context of the Covid-19 pandemic, encouraging savings activities is essential to ensure the resilience of vulnerable people. Savings help, among other things, smooth consumption in the face of income volatility, minimize the impact of financial and other shocks, encourage long-term planning, and provide opportunities for productive investment.

The 2020 European Microfinance Award (EMA 2020) will award €100,000 to the organization that best promotes effective and inclusive savings. Among 70 applications from 37 countries, three finalists have been announced: Buusaa Gonofaa Microfinance, Muktinath Bikas Bank, and RENACA, a partner of the Grameen Crédit Agricole Foundation. These organizations offer savings products and services based on a true understanding of client needs and behaviors, reach underserved populations, and ensure that savings are accessible, affordable, and useful.

RENACA is a union of Beninese cooperatives supported by the Foundation since 2013, targeting low-income and vulnerable populations in rural areas. RENACA offers a wide range of savings products (door-to-door "tontine" models, term deposits, and demand deposits) and promotes community savings and credit groups. Its savings offering is supported by a mobile application and the use of tablets, for secure and reliable customer transactions. RENACA also provides training on financial education and other non-financial services.

Following the announcement of the finalists, Luxembourg's Minister for Development Cooperation and Humanitarian Affairs, Franz Fayot, said: "The extraordinary response to this year's award is a strong testament to the impressive reputation it has earned for its rigor and the quality of the benefits that can be reaped by exposing those who perform well in the process. The diverse applications highlight not only the importance of responsible, inclusive financial services during crises, but also how savings can strengthen the resilience of vulnerable communities in particular."

The winner will be chosen from among the three finalists by a Jury and their name will be announced on November 19, 2020 during an online ceremony to be held during EMW 2020.
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More information on e-MFP

New program to support smallholder farmers

SSNUP (Smallholder Safety Net Upscaling Program)

In collaboration with the Swiss Agency for Development and Cooperation and the Luxembourg Agency for Development Cooperation and Humanitarian Action, ADA is launching a new program to support smallholder farmers in Africa, Latin America, and Asia. The Smallholder Safety Net Upscaling Program (SSNUP) will run for ten years and has a budget of €55 million.

The program will draw on the technical assistance expertise of impact investment funds to design, test and develop financial and non-financial solutions for mitigating and transferring agricultural risks for different actors in value chains.

A partnership to strengthen the provision of technical assistance

With its experience in managing technical assistance programs, the Grameen Crédit Agricole Foundation was selected as one of the impact investors responsible for setting up the SSNUP.

The Foundation will coordinate technical assistance missions for the organizations it supports—microfinance institutions and social enterprises—on various themes such as the development of new financial and non-financial products/services for small producers, agricultural microinsurance, and the digitalization of operations. The SSNUP expands the Foundation's technical assistance offering and represents a tremendous opportunity to strengthen its impact on the organizations it supports in Africa and Asia and on the small producers supported by its organizations on the ground.

In addition to the Foundation, four impact investors have joined SSNUP: Incofin, Oikocredit, responsAbility, and Symbiotics. Other stakeholders will be invited to join the program as it develops.

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More information: ADA

Meeting: Lidia, entrepreneur supported via Centimes solidaires

SOLIDARITY CENTS

Launched in 2018 by the Grameen Crédit Agricole Foundation, Crédit Agricole SA and CA Centre-est, Centimes solidaires aims to finance entrepreneurial projects by mobilizing Crédit Agricole employees who are invited to make a donation of 50 cents when paying for their meal in the restaurants on the Crédit Agricole Campus.

Entrepreneurs du Monde, an NGO also funded by the Crédit Agricole Solidarité et Développement Foundation, has been a beneficiary of the initiative since its first edition. The NGO has already received €15,651 to strengthen the ICI (Incubation, Creation, Inclusion) program, which supports entrepreneurship projects for refugees, single parents, and homeless people in Lyon. In two years, more than 100 people have received guidance to structure their entrepreneurial projects.

2020 will be the 3rde and final year of support for Entrepreneurs du Monde, which will receive an additional €11,000 in subsidies.

MEETING WITH LIDIA

To close the 3e edition of Centimes solidaires, the Foundation and Crédit Agricole welcome Lidia, an Italian entrepreneur supported through the operation, on October 29, 2020, to the Montrouge Campus.

Having arrived in France 12 years ago, Lidia is an Italian entrepreneur, mother of three, and recipient of the RSA (Responsible Income Support). Thanks to the support of Entrepreneurs du Monde through the ICI program, she was able to create her own catering business. The next step: bringing a former grocery store in Lyon to life, on a street steeped in Italian history.

Come chat with Lidia and taste her culinary specialties!

Event reserved exclusively for Crédit Agricole group employees.
To register, contact carolina.viguet@credit-agricole-sa.fr