Crédit Agricole Fund for Inclusive Finance in Rural Areas

©Philippe Lissac/GODONG

In partnership with CA Indosuez Wealth (Asset Management) and CACEIS Bank, Luxembourg Branch, the Grameen Crédit Agricole Foundation launched in September 2018 the FIR (Inclusive Finance in Rural Areas), a compartment of the Grameen Crédit Agricole Fund, the first microfinance fund of the Crédit Agricole group.

2018, launch of the FIR and first fundraising

For over 10 years, the Grameen Crédit Agricole Foundation has been promoting financial inclusion and entrepreneurship by supporting microfinance institutions and social impact businesses. To strengthen its work and multiply its impact, the Foundation, in partnership with CA Indosuez Wealth (Asset Management) and CACEIS Bank, Luxembourg Branch, has launched the Compartment for Inclusive Finance in Rural Areas (FIR), which will enable Group entities to finance microfinance institutions in rural areas in Africa, Asia, and Europe.

The first two FIR fundraising rounds closed in 2018 saw the participation of fifteen Regional Funds (Alsace-Vosges, Centre-est, Centre-France, Champagne-Bourgogne, Charente-Périgord, Franche-Comté, Ille-et-Vilaine, Languedoc, Loire-Haute Loire, Martinique-Guyane, Normandie-Seine, Provence Côte-d'Azur, Réunion, Savoie and Sud Rhône Alpes), as well as those of Amundi and Crédit Agricole Assurance for an amount of close to 8 million euros.

2019, third fundraising and new perspectives

With the last fundraising closed on June 28, 2019, five new Regional Funds (Alpes Provence, Brie Picardie, Finistère, Centre-Ouest and Touraine Poitou) subscribed to the FIR for an amount of 1.6 million euros.

With these resources, the FIR will expand its investments in the form of loans to microfinance institutions operating primarily in Sub-Saharan Africa and South and Southeast Asia. As part of its mandate as advisor to the Fund, the Foundation identifies microfinance institutions, conducts due diligence on the ground, and, once this investigation work has been completed and validated by the CA Indosuez Wealth Investment Committee (Asset Management), also handles the follow-up process.

The loans are intended to refinance credits made to populations traditionally excluded from the banking sector living in rural areas, who constitute the main clientele of the targeted microfinance institutions.

Team seminar between the Foundation and Crédit Agricole SA CSR

As part of a team seminar held from July 3 to 5, the Grameen Crédit Agricole Foundation and the Corporate Social Responsibility (CSR) department of Crédit Agricole SA decided for the first time to bring together their teams, led by Eric Campos, General Delegate of the Foundation and CSR Director of Crédit Agricole SA. Rich in exchanges and reflections, these three days provided an opportunity to take stock of the different professions and to strengthen the dynamics common to both entities.

Strengthening cooperation between the Foundation and CSR

Over the course of three days spent in the Ardèche village of Voguë, the teams were able to discuss the levers to activate to strengthen the scale of the projects carried out together and the new avenues of work to explore.

First, the two entities each presented their 2019-2022 Strategic Plan. For the Foundation, this is structured around three pillars: strengthening microfinance expertise, developing the resilience of rural economies, and promoting impact finance within the Group. On the CSR Department side, the teams focused on the Group's climate strategy, which provides for the gradual end of investments in coal, first in EU and OECD countries by 2020, then in China in 2030, and finally in the rest of the world by 2050. The common thread of both medium-term plans: supporting more inclusive, responsible, and sustainable finance.

Through working groups, the Foundation and CSR teams were able to define various elements on which they will move forward together in order to create synergies beneficial to both the Foundation and the entire Crédit Agricole group through the CSR Department of Crédit Agricole SA. Sharing expertise, capitalizing on successful joint projects, innovating, there are many possible actions to strengthen the action of the Foundation and the Group in favor of financial inclusion and entrepreneurship with social impact.

Following the Seminar, other meetings are planned to continue this dynamic of sharing and mutual enrichment between the Grameen Crédit Agricole Foundation and the CSR Department and, more generally, the entire Crédit Agricole group.

Circle of Friends No. 4: Solidarity Bankers in the Spotlight

© FGCA

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 impact businesses supported by the Foundation. To celebrate its first year, the program was highlighted at the Circle of Friends Meeting No. 4, held on July 9 at the Crédit Agricole Campus in Montrouge.

Solidarity Banker: First Year Review

The meeting was rich in exchanges, beginning with the intervention of Jean-Marie Sander, President of the Foundation, and that of Eric Campos, General Delegate of the Foundation and CSR Director of Crédit Agricole SA. Recalling the history of the Foundation and the various challenges it faces, both underlined the importance of providing technical support to the Foundation's partners with mechanisms such as Solidarity Banker.

Carolina Herrera, the Foundation's Director of Communications and Partnerships, then presented the framework for the Solidarity Banker program. Through one- to two-week field missions, Crédit Agricole Group employees support the Foundation's partners in responding to the technical support needs expressed by beneficiary organizations. Since the program began, 12 missions have been launched: a remarkable success that demonstrates the strong commitment of both employees and the Group.

The next Solidarity Bankers

To demonstrate this, Violette Cubier and Celine Hyon-Naudin, investment officers at the Foundation, presented the upcoming missions alongside two Solidarity Bankers. Sarah Belbachir of Crédit Agricole SA and Caman Kamougue of Crédit Agricole CIB are the two Solidarity Bankers who, supported by the Group's entities, will travel this summer to Morocco and Haiti to support Al Karama, a microfinance institution, and Palmis Enèji, a social impact company, respectively. They presented the objectives of the missions and highlighted their desire to contribute to a project with a strong social impact, as well as personal and professional enrichment, as the main motivations for becoming Solidarity Bankers.

The meeting concluded with a presentation of the Foundation's 2019-2022 Strategic Plan by Hélène Keraudren-Baube, Administrative and Financial Director, who outlined our three strategic pillars: strengthening expertise in microfinance, developing the resilience of rural economies and promoting impact finance within the Group.

Meeting No. 4 of the Circle of Friends of the Foundation

© FGCA

On July 9, the Grameen Crédit Agricole Foundation is holding the 4th meeting of the Foundation's Circle of Friends on the Crédit Agricole Campus in Montrouge. This will be an opportunity to review the first year of the Solidarity Banker program.

Launched by the Grameen Crédit Agricole Foundation and Crédit Agricole SA, Solidarity Banker is a skills-based volunteer program open to all Crédit Agricole Group employees, supporting organizations funded by the Foundation. Since the program began in June 2018, 12 missions have been launched. This is a remarkable success that demonstrates the commitment of employees and the Group to supporting projects with social impact.

To mark this successful first year, a meeting is being organized on July 9 at the Crédit Agricole Campus in Montrouge. Come and chat with the Foundation's team and the Solidarity Bankers who will be supporting the Foundation's partners in Morocco and Haiti.

For more information, contact carolina.herrera@credit-agricole-sa.fr

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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 SA 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.

The Foundation and Crédit du Maroc are committed to Moroccan microfinance

© Philippe Lissac

As part of a cooperation scheme, the Grameen Crédit Agricole Foundation and Crédit du Maroc support Moroccan microfinance institutions that offer financial services to populations traditionally excluded from the traditional banking system.

An innovative partnership to support microfinance

The Grameen Crédit Agricole Foundation and Crédit du Maroc are committed to the microfinance sector in Morocco. They are implementing an intervention plan that allows Crédit du Maroc to finance the microfinance institution in local currency with a guarantee from the Foundation, which also handles the monitoring process.

Founded in 2008 by Crédit Agricole executives and 2016 Nobel Peace Prize winner Professor Yunus, the Grameen Crédit Agricole Foundation finances and supports more than 75 microfinance institutions and social enterprises in Africa, Asia, and Europe, with over €80 million in outstanding loans. Crédit du Maroc has been supporting the country's economic development by financing individual and corporate clients since 1929.

With this partnership, Crédit du Maroc is strengthening its role as a bank committed to inclusive finance. “The partnership with the Grameen Crédit Agricole Foundation will allow us to better approach the ecosystem of very small businesses and income-generating activities, which represent half of the companies registered in the central commercial register in Morocco. It also underlines Crédit du Maroc's civic commitment as a socially responsible company by participating in financial inclusion,” said Baldoméro Valverde, Chairman of the Board of Crédit du Maroc.

For the Foundation, this is a great opportunity to multiply its impact by operating in Morocco for the first time. "Ten years after the Foundation's creation, we are building a new story with the Crédit Agricole Group. Alongside Crédit du Maroc, we will support Moroccan institutions to promote social entrepreneurship, financial inclusion, and agricultural development. It's a shared, tireless commitment to moving forward together toward a more shared economy," says Eric Campos, General Delegate of the Foundation and Director of CSR at Crédit Agricole SA.

Al Karama, the first institution funded

The Foundation approved a guarantee of €1.1 million on a loan of MAD 10.4 million granted by Crédit du Maroc to the Al Karama Foundation for Microfinance.

This institution, which grants loans for the development of professional activities, serves more than 27,000 active borrowers, mainly women (57% of clients) and manages a portfolio of more than €10 million. It has operations throughout the country thanks to a network of 84 branches and 314 employees.

In cooperation with Crédit du Maroc, Al Karama will also benefit from technical assistance to improve its anti-money laundering and counter-terrorist financing (AML-CFT) systems as part of the “Solidarity Banker” skills volunteer program. This program, open to all Crédit Agricole Group employees, was launched in 2018 by the Grameen Crédit Agricole Foundation and Crédit Agricole SA to support organizations funded by the Foundation through technical assistance missions (//gca-foundation.org/banquier-solidaire).

Solidarity Banker missions to be filled in Kenya and Cambodia

©Philippe Lissac

Two Solidarity Banker missions are available in Kenya and Cambodia: a Management Control mission to support the Musoni microfinance institution in Kenya and a Financial Management mission to support Cirque Phare (PPSE), a Cambodian social enterprise.

Solidarity Bankers is a skills volunteering program launched in 2018 by the Grameen Crédit Agricole Foundation and Crédit Agricole SA, open to all Crédit Agricole Group employees on behalf of microfinance institutions or social impact companies that are partners of the Foundation.

The missions to be filled

A Management Control mission is planned for the third quarter of 2019 to support Musoni in Kenya. Musoni is a microfinance institution that provides financial services through mobile payments to people excluded from the traditional banking system. To strengthen performance management, Musoni wants to implement a balanced scorecard methodology. The Solidarity Banker will be responsible for structuring a balanced scorecard with key performance indicators and making recommendations on its implementation.

A "Financial Management" mission is planned for September 2019 to support Cirque Phare (PPSE) in Cambodia. PPSE provides employment opportunities for Cambodian artists and sustains the country's arts sector. PPSE has now entered a growth phase and requires strengthening certain aspects of its management, particularly in terms of strategy, finance, and human resources. The Solidarity Banker will be responsible for proposing monitoring tools and making recommendations on the organizational structure.

How to apply?

Several missions are coming up on CA Solidaires. To discover them:

1. Go to the CA Solidaires website “Find your mission”
2. Enter “Grameen Foundation” in the search bar. All Solidarity Leave offers will appear!
3. Click on the offer of your choice, you will find all the information necessary for your application.

To learn more about the missions available, click here.

Contact: carolina.herrera@credit-agricole-sa.fr

Kossam SDE: re-inspiring youth, investing in development

By Chloé Chevrand & Evelyne Offroy, Grameen Crédit Agricole Foundation

© Philippe Lissac

After a Solidarity Banker mission supporting the Laiterie du Berger, Jonathan Michaud is now Director of Kossam SDE, a project led by the dairy that aims to structure the dairy sector in northern Senegal. A spotlight on our discussions with this agricultural engineer from Crédit Agricole Franche-Comté, who was seconded for two years to support the development of this high-impact social project.

Structuring the dairy sector in Senegal

Driving territorial development in the Richard Toll dairy basin in northern Senegal is the shared ambition of Laiterie du Berger and its subsidiary Kossam SDE. Since its creation in 2005, Laiterie du Berger has established itself as a pioneering social enterprise in the country.

Today, La Laiterie has become the second-largest player in the Senegalese yogurt market and the leading national company processing local milk. It works with the Dagana Livestock Cooperative, which brings together 800 Fulani livestock farmers, employs 300 people, and produces 6,000 tons of yogurt each year. In early 2019, to consolidate the business and the dairy sector, La Laiterie du Berger and the Dagana Livestock Cooperative co-founded the social enterprise Kossam – Société de Développement de l'Elevage (Kossam SDE).

Kossam SDE aims to structure and strengthen the dairy sector by providing local services (livestock feed, fodder, etc.) and training and advice to local farmers. The company is developing a "mini-farm" model currently in the pilot phase (15 units in operation) and aims to establish 100 mini-farms by 2022 (more information on the project here).

Young people, actors of development

Youth play an important role at the heart of this development plan. In a context where youth employment is a real challenge in Senegal, Kossam is implementing an ambitious program to support young people in their professional development in dairy production.

Thus, the training offered to farmers is also open to their families. Indeed, the dairy's farmers are mainly families, or rather family organizations, made up of a 'can manager', male or female, behind whom an entire family structure works. "There is a real desire among farmers trained by Kossam to involve and empower their children in farm work. Kossam SDE plans to intensify training and support for farmers and local youth, on the technical aspects and economic management of the farm and the family," says Jonathan Michaud, Managing Director of Kossam SDE, an agricultural engineer from Crédit Agricole Franche Comté, seconded for two years to develop the project.

Furthermore, young people are not only involved in the livestock sector, but also in other aspects of the dairy industry. Many young people are elected as leaders of dairy hubs (which are local sections of the cooperative). While these positions were once reserved for senior managers, today the involvement of young people in agricultural and local leadership roles is one of the foundations of the sector's model as it is being structured.

Finally, youth employment is promoted in milk collection. Kossam SDE has thus enabled the creation of the "collector" profession, now practiced by young local people. Jonathan Michaud affirms that the development of milk collection and the generation of increasing income through dairy activity contribute greatly to the stabilization of the young population of the Richard Toll dairy basin. In addition, the project has led to a change in the image of the dairy industry in the eyes of young people: for local populations, dairy production has become a rewarding, remunerative, and attractive activity for new generations.

With the increase in farm productivity, the creation of new professions around livestock farming will become essential (for example, the creation of professions such as livestock advisors and livestock technicians). As Jonathan Michaud points out, this is the logical continuation of the movement already initiated by the Laiterie du Berger for more than 10 years around dairy professionalization, which requires support, supervision, structures and therefore creates employment through and around dairy production.

With Kossam, the movement is strengthening, relying on training, entrepreneurship and the involvement of young people, bearers of innovations and key players in development in Senegal.

A successful first year for the Solidarity Bankers program

By Carolina Herrera, Grameen Crédit Agricole Foundation

© Philippe Lissac

At the initiative of the Grameen Crédit Agricole Foundation and Crédit Agricole SA, skills-based volunteering missions labeled "Solidarity Bankers" are offered to Crédit Agricole Group employees on behalf of microfinance institutions or social impact companies supported by the Foundation.

Senegal, Morocco, Haiti…: a great success for the first year

Less than a year after its launch in 2018, the program's success confirms employees' commitment and willingness to support social impact projects. This is the first time a partnership of this type has been launched by Crédit Agricole and the Grameen Crédit Agricole Foundation. The objective is twofold: first, to promote the skills of Crédit Agricole Group employees and second, to provide additional support to the Foundation's partner microfinance institutions and companies with one- to two-week field missions.

In 2018, six missions were launched, three of which were completed in 2018 and three planned for 2019. To date, four missions are already available for the third quarter of 2019. In 2018, six missions were launched, three of which were completed in 2018 and three planned for 2019. For example, a mission took place in Cambodia with the support of Crédit Agricole's International Retail Bank (BPI), to support the human resources management of Chamroeun, a partner microfinance institution that serves more than 27,500 clients. Another mission was conducted in Senegal, in partnership with Crédit Agricole Franche-Comté, for the Laiterie du Berger, a social enterprise in which the Foundation is a shareholder. Furthermore, with the support of the Regional Fund, the Solidarity Banker who carried out the mission left for 2 years to support Kossam, the Dairy project to structure the milk sector in Senegal.

A mission launched in 2018 will be carried out in July 2019 in cooperation with Crédit du Maroc and Crédit Agricole SA to improve the Al Karama Foundation's anti-money laundering and counter-terrorist financing (AML-CFT) systems. The institution currently supports more than 26,200 clients in Morocco. Another mission launched in 2018 will be carried out in Haiti to support Palmis Enèji, a social enterprise that offers clean and accessible cooking and lighting solutions to Haitian households. Crédit Agricole Corporate Investment Bank is supporting the Solidarity Banker, which will carry out the entire mission through skills sponsorship.

Cambodia, Kenya, Tajikistan… in 2019 the program changes scale

To date, six missions have been launched in 2019. One mission is for Kossam, the Laiterie du Berger project that aims to develop a sustainable dairy sector in Senegal. The Solidarity Banker will be tasked with supporting Kossam in the deployment of a digital application called "commcare collection." Another mission is planned to support the financial management and organizational structure of Cirque Phare (PPSE) in Cambodia. PPSE aims to promote social inclusion and youth empowerment through Cambodian culture and arts. Another mission will be for ACRE Africa, which offers crop insurance services to smallholder farmers. The Solidarity Banker will be tasked with analyzing the organization's new business strategy.

For these first missions launched in 2019, the selection process for Solidarity Bankers has been finalized. To date, three new missions are available: a "business model" role for the microfinance institution Humo in Tajikistan, a "Management Control" role to support the Musoni institution in Kenya, and a "digital" role to support the social enterprise SFA in Senegal.

Other missions are currently being planned with the support of Crédit Agricole Group entities and regional banks. With this initiative, the Group reaffirms its commitment to supporting employee solidarity initiatives and working alongside the Foundation to promote more inclusive and sustainable finance.

For more information, Click here.

Foundation Letter No. 32 is now available

©Philippe Lissac

The Foundation is publishing its Quarterly Letter #32, in which it presents its 2019-2022 strategic plan. For nearly a year, the Foundation has been working on preparing this medium-term plan, listening to and engaging with its administrators, partners, microfinance institutions and social enterprises, donors, and colleagues. The result allows the Grameen Crédit Agricole Foundation to look confidently to its future, outlining the major milestones.

Furthermore, the Foundation is pleased to see that it has gained the confidence of donors since, after Crédit Agricole CIB, the French Development Agency and Amundi, the European Investment Bank has joined the circle of its financiers with a loan in FCFA for an amount equivalent to 12 million euros, which allows the Foundation to increase its interventions in sub-Saharan Africa.

Finally, in this issue, you will discover the Foundation's good results in 2018, the highlights and key figures explained in the integrated report published in the last days of April.

Click here to download Letter #32

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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 SA 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.

Responsible finance serving the general interest

© Philippe Lissac

As part of a report on responsible finance, Admical met in April with Eric Campos, Managing Director of the Grameen Crédit Agricole Foundation and CSR Director of Crédit Agricole SA. This was an opportunity to discuss the prospects and challenges of the inclusive finance sector. A spotlight on this interview, available in full on Admical.

What is your assessment of the Foundation's first two terms?

The Foundation is a player in inclusive finance that seeks to reconcile economic profitability and social impact. To this end, it pursues a rigorous investment policy that prioritizes both sustainability and positive social externalities. The Foundation integrates financial and social performance at the heart of its investment process.

In 10 years, the Foundation has provided €200 million in financing to 38 countries, including 40% among the least developed countries with a loss rate of less than 0.6%. €200 million of financing has enabled the financing of between 600,000 and 700,000 microloans. More than 80% of microloan beneficiaries are women, and we operate overwhelmingly in rural areas.

In your opinion, how is the responsible finance sector likely to evolve in the coming years?

Responsible finance is a broad concept that covers several definitions, but can be summarized by the practice of the profession aimed at reconciling financial performance and social, environmental, or societal impact. But in reality, we cannot say that there is responsible finance on the one hand and irresponsible finance on the other. In fact, responsible finance is that which integrates this dual concern and explicitly reports. I believe that this way of integrating the effect or externality could gradually become the general rule, even in so-called traditional finance.

Last October, Amundi, the leading European asset manager, decided to integrate ESG factor analysis into all of its funds under management within three years. By integrating these criteria, Amundi clearly illustrates that non-financial criteria are gradually entering the range of assessment criteria for investment funds. This approach clearly demonstrates the dynamic evolution of finance.

A word about the Foundation's next five-year term. What are its major strategic directions?

Climate change, population growth, digital transformation... many challenges are shaking the world of microfinance. There is an urgent need to mobilize resources, innovate with new means of action, and strengthen cooperation. This conviction is at the heart of the Grameen Crédit Agricole Foundation's actions and its development plan.

The Foundation will continue to adapt to these new challenges by diversifying its expertise and enhancing its intervention methods. These three strategic challenges will guide its actions in the coming years.

Find the full interview with Eric Campos on Admical.