The Grameen Crédit Agricole Foundation is publishing its Quarterly Letter #34, which features a new section dedicated to the Foundation's partners: supported organizations, founders, technical and financial partners share their experiences on their actions, projects, connections with the Foundation, and the impact of their work in the field. Also featured in this edition is Sara Belbachir, a Solidarity Banker on a mission to the Moroccan microfinance institution Al Karama.

Furthermore, the Foundation's Letter presents its latest news and in particular its partnership signed with the UNHCR and the Swedish International Development Cooperation Agency (Sida) for the implementation of a four-year program aimed at promoting access to financial and non-financial services for refugees and host communities in Uganda.

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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 nearly 40 countries.

By Sarah Belbachir, Crédit Agricole SA

Solidarity Banker is a skills-based volunteer program open to all Crédit Agricole Group employees. Read the opinion piece by Sarah Belbachir, Solidarity Banker at Crédit Agricole SA, who went on a mission to Morocco.

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA in June 2018, Solidarity Banker 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 Sarah Belbachir, Solidarity Banker at Crédit Agricole SA.

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Solidarity banker… but why?

The first time I mentioned the Solidarity Bankers program to those around me, they responded, "Banker and solidarity... aren't they a bit contradictory?" For many, these two words struggle to resonate in unison. However, when I discovered Solidarity Bankers, I encountered passionate people, sincere ambitions, and concrete actions. Far from being just fine words, the program won me over with the values it inspires and its commitment to working directly on the ground.

So I immediately applied for a mission to strengthen the system for combating money laundering and the financing of terrorism (LCB-FT) ofAl Karama, an institution funded by the Grameen Crédit Agricole Foundation and Crédit du Maroc which offers microcredits to people excluded from the traditional banking system, particularly women.

Very soon after applying, I received confirmation that my application had been accepted. My mission therefore began in Montrouge, at the Grameen Crédit Agricole Foundation for the preparation phase. With the help of Edouard, Violette and Carolina (1), we defined the schedule and objectives. They introduced me to the main concepts of microfinance, and gave me specific background information on Al Karama, the Moroccan economy and the world of microfinance in Morocco.

Top departure for Rabat!

On July 13, I finally flew to Rabat. For 10 days, I would focus on a subject that was within my area of expertise, but in a different sector, in a different-sized organization, and in a different cultural context than my daily life.

The first two days were devoted to raising awareness among senior management about the risks associated with AML/CFT and how to prevent them. AML/CFT training session was organized by Crédit du Maroc's skills sponsorship teams. This provided an opportunity to discuss Crédit du Maroc's VSE/SME financing practices and to understand the market into which Moroccan microfinance institutions are diversifying.

The discussions that followed with the Al Karama team allowed me to familiarize myself with the functioning of the institution, to identify the strong points in terms of AML-CFT and the elements requiring strengthening.

The next step was to draft an action plan in more detail so that Al Karama could gradually and prioritize its AML/CFT obligations. Working with Edouard Sers of the Grameen Crédit Agricole Foundation, who joined me for this part of the mission, we defined specific recommendations, with a person responsible for each action and a three-year implementation schedule. The challenge was to create a realistic and achievable action plan for Al Karama, given its resources and staffing levels.

The action plan was very well received by the Al Karama Management Committee, to whom we presented it on the last day of the mission. The next step is now in the hands of Al Karama, which will implement this roadmap.

Unforgettable encounters

My mission was punctuated by two visits that left a lasting impression on me. Al Karama organized two branch and client visits, one in an urban setting and the other in a rural setting. The first took place in the town of Temara, a suburb of Rabat. After a few discussions with the branch manager and loan officers, we visited a client in his traditional Moroccan clothing store, who had received a microloan for his business. This first visit allowed me to better understand how a microcredit agency operates and to see how procedures are actually applied in the field.

The second visit took place in Larache, in northern Morocco. We first visited a rural agency that provides specific agricultural services to the region's residents. We went to a watermelon and peanut field to meet a farmer who had benefited from a microcredit to expand his land. I was able to confirm the impact of microcredit on the development of small-scale agriculture and the strengthening of rural economies.

These meetings allowed me to gain a deeper understanding of microfinance and to see what inclusive finance can actually accomplish. But above all, they were an unforgettable human experience.

It was just a taste... I returned to Paris with the desire to get more involved.

Letter #34 to download here

KAMPALA: The Swedish International Development Cooperation Agency (Sida), the United Nations High Commissioner for Refugees (UNHCR), and the Grameen Crédit Agricole Foundation today launched a four-year program to promote access to financial and non-financial services for refugees and host communities in Uganda.

The program is an innovative blended financial approach that combines public and private funds to facilitate financing for refugees and host communities. Access to affordable credit services is essential for refugees to start, create, and expand businesses, meet their daily needs, and be more resilient in the face of emergencies. Furthermore, access to other types of financial services, such as savings, payments, and insurance, is essential to ensure the inclusion of refugees in the formal financial sector and promote their self-reliance and resilience.

An innovative approach

This is a unique program designed to incentivize microfinance investors and financial service providers (FSPs) to expand their financial services to refugees and host populations. The project is currently being piloted in Palorinya refugee camp in northern Uganda and in Kampala, and will gradually be expanded to other targeted refugee-hosting districts.

"This is an effective way to use development aid. We leverage funds from other investors and thus ensure that scarce humanitarian funds can be released to help the most deprived refugees," says Carin Jämtin, Executive Director of SIDA.

The Grameen Crédit Agricole Foundation will provide debt financing to three financial service providers with a guarantee from SIDA, which will also fund the program's technical assistance through its humanitarian allocation. The Foundation will coordinate, with UNHCR, the technical assistance component to help the three FSPs develop a range of products and services, including financial education and business development training, for both refugees and host community members.

Supporting entrepreneurship

For UNHCR, the project is in line with the Comprehensive Refugee Response Framework (CRRF) and responds to the call to work with development agencies and the private sector to find durable solutions for refugees. Many refugees are entrepreneurs, having been entrepreneurs in their countries of origin or possessing entrepreneurial skills to create or expand a business in their host country. Mahoua Parums, UNHCR Representative in Uganda, welcomed this initiative and stated that “financial inclusion is a key element in finding long-term solutions for refugees, as it helps them rebuild sustainable livelihoods. Many refugees decide to start a business once settled in the country of asylum, and microfinance can help them grow their businesses, avoid aid dependency, and make an economic and social contribution to host communities.”

Through this program, refugees will receive training in business management that will equip them with essential skills such as developing business plans, financial education (including bank relations), pricing, and marketing.

“At the Foundation, we are convinced that microfinance institutions, while adapting their products and services, have an active role to play in promoting the financial inclusion of refugees. Digital finance opportunities, in-depth knowledge of the characteristics of each group, regular monitoring, and appropriate non-financial services should stimulate such involvement,” says Eric Campos, Managing Director of the Grameen Crédit Agricole Foundation.

In total, some 100,000 Ugandan refugees and hosts are expected to have access to financial services (credit and savings), including 70,000 women. The project will support the creation and development of small businesses in sectors such as agriculture, crafts, catering, and trade.