From February 19th to 22nd, The Social Performance Task Force (SPTF), CGAP, Dvara and Leapfrog Investments organized a learning workshop on the theme of Customer Centricity in Mamallapuram (Tamil Nadu), in conjunction with the SPTF annual meeting.

The event brought together 280 participants, who shared practical experiences and discussed case studies highlighting how customer value management can best achieve the dual goals of business success and financial inclusion. Current topics covered at the workshop included the opportunities and risks of new technologies and the digitalization of financial services, measuring and managing financial services results at the customer level, customer segmentation to define more tailored products, and the Mimosa India report on loan penetration.

The financial success of the inclusive finance sector is a necessary but insufficient condition for ensuring a positive impact on the lives of its clients through financial services. As the crises of recent years in Bosnia, Morocco, and Bolivia, as well as in some states of India, have shown, rapid growth and high profits are not necessarily indicators of improved living conditions for clients, or even of good long-term financial performance. This is why the inclusive finance sector, through the coordination work of SPTF, has defined a series of best practices accepted by the entire sector to describe and evaluate the provision of responsible financial services: these are the "Universal Standards" (USSPM – Universal Standards for Social Performance Management).

Since its creation in 2008, as part of its mission to support and open up a field of action for responsible inclusive finance, the Grameen Crédit Agricole Foundation has been active in the field of development cooperation; in doing so, it promotes and applies the combined systematic evaluation and analysis of social and financial performance with all its partners. The Grameen Crédit Agricole Foundation has been an associate member of MFIN since 2017.

Since 2016, the Foundation has conducted an annual assessment of the social performance of a portfolio of representative companies in order to obtain a comparative measurement of performance compared to the market and to identify areas for improvement as part of the implementation of its annual action plan. Presented to the Foundation's Management and Board of Directors, this analysis allows for more precise monitoring of our actions in order to carry out our mission. It is communicated externally to enable the exchange of knowledge and practices. (To consult the Foundation's benchmarks and other SPI4 benchmarks: http://www.cerise-spi4.org/#/benchmarking/.)

By Alexia Van Rij & Philippe Guichandut, Grameen Crédit Agricole Foundation

© FGCA

What if microfinance was the key to refugee integration?

Often perceived as too risky and unstable a clientele, refugees are generally not or underserved by financial service providers, despite the crying need. However, the few experiments in lending to refugees seem to show satisfactory results[1].

Based on this observation, the UNHCR (United Nations High Commissioner for Refugees) and Sida (Swedish International Development Cooperation Agency) launched a program promoting access to financial and non-financial services for refugees in Uganda and Jordan. This is how the Grameen Crédit Agricole Foundation was selected to support its partner microfinance institutions in reconsidering the refugee issue in their strategy.

An initial study on the needs for access to financial and non-financial services was entrusted to Microfinanza[2]. In this context, we spent three days of exciting discussions and meetings with Burundian, Rwandan and Congolese refugees at the Nakivale camp in southern Uganda.

In the heart of Nakivale, Uganda: a strong need for access to financial services

Uganda is now the third largest refugee-hosting country in the world, with over 1.4 million refugees as of the end of March 2018. Following the 2013 crisis in South Sudan, Uganda has seen a growing number of refugees arrive, with the UNHCR estimating the number at nearly 1,800 per day. The country has one of the most favorable refugee policies in the world, allowing them to receive a plot of land to cultivate, to work, to have free access to Ugandan social services (education, health), to enjoy freedom of movement and to receive identity papers. It is in this very specific context that the Foundation joined the Microfinanza team in Nakivale, one of the oldest refugee camps in Uganda, to support them in their study with refugees.

Nakivale is now home to over 100,000 people, primarily from Rwanda, Burundi, and the Democratic Republic of Congo, spread across small settlements across 185 square kilometers. Most of Nakivale's residents have benefited from plots of land granted by the government, used for farming and livestock breeding. Others run small restaurants, hair salons, or clothing stores. These are typical activities for microfinance institutions. However, no microfinance institutions operate in the camp, and the refugees can therefore rely only on solidarity within the camp.

Moban Sacco, a savings and loan organization that now has no fewer than 1,449 members, was born from this mutual aid effort in the face of a lack of capital. Thanks to Moban Sacco, refugees can save small amounts and receive some loans, but these are generally considered insufficient to truly develop their businesses.

Prejudices denied

One of the fears microfinance institutions have about refugees is that they will return to their country without having paid their debts. It is clear that in Nakivale, none of the people interviewed plan to return home anytime soon, given the region's insecurity. Some of them have been living in the camp for over 15 years (an average of 7-8 years) with the firm intention of developing their microenterprises there.

Furthermore, all the refugees we met stated that they had a very concrete idea of how they would use a loan. In a nutshell, it's not ideas that are lacking, but capital! How can we forget the story of this woman, who came from the Kivu region of Congo, alone with her three children, a hairdresser by profession, whose 11-year-old son translated her words because she had worked all her life to ensure that her son learned English? Having left her country with no savings, she didn't have the means to set up her hairdressing salon and depended on the food rations provided by the UNHCR to survive, she and her children. Or the meeting with this Rwandan entrepreneur, who with his few savings created a grain milling company 6 years ago? He had managed to employ 3 people to develop his activity, but his small savings did not allow him to expand his business and buy new, efficient equipment.

These examples, among many others, highlight the diversity of situations and the often wasted potential of these men and women endowed with talent, experience and the will to take their destiny into their own hands, as they had been able to do in their country before the situation got out of hand.

At the Foundation, we are convinced that microfinance institutions, by adapting their products and services, have an active role to play in promoting the financial inclusion of refugees. The opportunities offered by digital finance, a sound understanding of the characteristics of each group, and regular monitoring should foster such involvement. Meetings with the Foundation's partner financial institutions suggest that they will be ready to meet the challenge of offering quality, inclusive financial services to these refugee populations and their host communities.

The study currently underway with Microfinanza, which will be made public in July 2018, should provide concrete avenues for our partners to actively engage in, with our support, joint work with the UNHCR and technical assistance funded by Sida.

_______________________________________________________

[1] Some examples on: New issues in refugee research, Michelle Azorbo, Research paper N.199, UNHCR; Microfinance for Refugees, Thimothy H. Nourse, American Refugee Committee here.

[2] Company selected via a call for tenders.

From demographic challenges to environmental ones, including the fight against poverty, Jean-Marc Chataigner sets out his vision for the development of the Sahel and calls for "the pursuit of increased international solidarity" through "a joint, partnership-based approach, co-constructed with governments, communities, local associations, and populations." A spotlight on his interview.

What are the challenges and prospects for an integrated approach to returning to lasting peace in the Sahel?

The region's major challenges require continued increased international solidarity because the Sahelian countries do not yet have the capacity to address them alone. A joint, partnership-based approach is needed, co-developed with governments, communities, local associations, and populations. An integrated approach is needed, encompassing the various components of the international community's action, as well as national, regional, and international efforts. Through the mission entrusted to me by the Minister for Europe and Foreign Affairs, Jean-Yves Le Drian, France is promoting the idea of a more coordinated approach to the various political and diplomatic actions, particularly for the implementation of the peace agreement in Mali, security efforts, through the establishment of the G5 Sahel joint force, and the relay that will ultimately have to be taken up in renewed approaches to development.

The Sahel Alliance, launched in 2017 by Chancellor Merkel and President Macron, aims to achieve concrete results in a limited number of sectors, on issues essential to the future of the Sahel, which have nevertheless been neglected in recent years by donors, such as agriculture and education. The Sahel Alliance favors an approach in terms of the effectiveness of ODA (Official Development Assistance) and transparency and accountability of the actions implemented, in close collaboration with partner governments and the civil societies concerned. It intends to strengthen the targeting of donor actions on the most fragile and vulnerable areas, peripheral and far from capitals, and to promote better coordination of development programs with humanitarian and security issues.

How can we rebuild a trusting and lasting partnership between France and the African continent?

Relations between France and Africa have always had a special dimension linked to a shared history made up of difficult times, but also of an exemplary community of arms to confront the enemies of freedom. But the world of 2018 is no longer that of 1945 or even that of 1958. International relations have profoundly evolved with the end of the Cold War, the attacks of 2001, the emergence of new powers, and the emergence of global threats that we must face and that can give rise to strong nationalist withdrawal. In this new international concert, France, and through it more broadly Europe, and Africa have common interests to assert.

In his speech in Ouagadougou last November, the President of the Republic clearly laid the foundations for this new relationship to be built, notably through the call for better listening to African youth, a real change in method in the management of public development aid, "no longer building cathedrals to our glory" he even specified, the priority given to education, particularly that of young girls, the common fight against religious extremism and obscurantism, the launch of a reflection on the restitution of African heritage, the conditions of movement of African students and the reception of African talents, investment in the African infrastructure of tomorrow. All these subjects, I will not list them all because the list is impressive, are crucial for the establishment of a relationship of respect, partnership and balance, the only one capable of establishing lasting mutual trust over the long term between our two continents.

What are the challenges of growth, peace and security for Europe and Africa?

Africa is the location of essential economic and security issues for Europe in a geographical area undergoing rapid change and experiencing strong demographic growth.

The takeoff of many African countries is now underway and represents trade and investment opportunities for Europe in rapidly emerging markets. Conversely, the persistence of fragile and failed states poses a threat to both our collective security and the sustainability of African development. Strengthening regional peacekeeping capacities and deploying African military forces, along the lines of the G5 Sahel, capable of addressing the various threats to peace and security on the continent is therefore a fundamental priority.

Find his column here.

Family farming in Africa constitutes the bulk of the continent's agricultural production. It is particularly impacted by climate change. Microfinance institutions (MFIs) in rural areas must adapt their practices to better manage their own risks as well as those of their clients.

Faced with this challenge, the Grameen Crédit Agricole Foundation and YAPU, a German social fintech company, aim to support partner MFIs in digitizing their operations and updating their information systems to incorporate climate risk. In November 2017, the Grameen Crédit Agricole Foundation and YAPU signed a cooperation agreement to develop services in the field of climate-smart finance. This approach aims to include climate change risks in the product and service offerings of financial institutions so that they can further develop economically viable activities that are resilient to climate change and contribute to the preservation and restoration of ecosystems. Two projects will be launched in 2018 as part of this partnership.

___________________________________________________________

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.

Crédit Agricole Assurances is assisting the Grameen Crédit Agricole Foundation in conducting due diligence on CIF-VIE, one of the leading insurance companies in Burkina Faso, which is of particular interest to the Foundation. This transaction is part of the Foundation's dual ambition: to strengthen its presence in the microinsurance sector and consolidate its ties with Crédit Agricole Group entities.

CIF-VIE: a company with strong potential

CIF-VIE began its operations in Burkina Faso in 2013, with the support of RCPB, the main Burkinabe microfinance cooperative network, and ADA (a Luxembourg NGO). It aims to improve the protection of policyholders and beneficiaries through a comprehensive range of life, death, and capitalization insurance products in Burkina Faso.

Today, the African company accounts for 61.3 billion euros of the market. With a positive net profit since its creation, CIF-VIE is taking a new step in its growth with a strategic, operational, and financial transformation. Its action plan: open its capital to new shareholders to comply with the new requirements of the Inter-African Conference on Insurance Markets (CIMA); restructure its organization towards greater efficiency and better risk management; and develop its products and expand its distribution network. Its goal by 2020 is to be among the top five insurance companies in Burkina Faso.

The Foundation and CA-Assurances join forces to support microinsurance

The Grameen Crédit Agricole Foundation supports 70 microfinance and social business institutions in more than 30 countries. As an investor, financier, and supporter, it strengthens its contribution to the financial transition by supporting the development of microinsurance in Africa.

Noting CIF-VIE's strong potential, the Foundation, alongside CA-Assurances, carried out a due diligence mission to better understand this structure and assess the possibility of investing in it. Pierre Casal Ribeiro, Microinsurance Expert at the Foundation, led the due diligence mission accompanied by Eduardo Cardoso de Miranda, Creditor Insurance Expert at CA-Assurances, with the support of El-Hadj Diop, Investment Advisor, and Céline Hyon-Naudin, Social Business Investment Officer at the Foundation.

Crédit Agricole Assurances, the leading insurance group in France and the leading bancassurer in Europe, has committed itself alongside the Foundation to a dynamic of social responsibility to promote the skills and convictions of its employees in favor of the common good.

Investing in a more shared economy is the driving force behind this collaboration.