The population is relatively poor in Tajikistan. The share of agriculture in GDP is declining but it still employs 46% of the working population.
The Institution:
HUMO is a microfinance institution in Tajikistan which aims to support vulnerable and underserved populations living in rural areas through financial and advisory services for small businesses.
Impact:
HUMO provides micro-credit loans to groups and individuals to help finance start-up businesses, finance agricultural projects and make the processing and trade of agricultural products more affordable.
During the first six months of the year, the Grameen Crédit Agricole Foundation made new investments in Central Asia. It granted a new loan in USD equivalent to € 895,000 to the Tajik microfinance institution Humo. Humo is a progressive and leading microcredit deposit organisation whose main activity is to provide quality, affordable financial services to the rural population. To date, this institution has nearly 57,000 active borrowers, 42% of whom are women and 80.5% of whom live in rural areas.
The Foundation also granted a new loan to OXUS Kyrgyzstan for a total amount in local currency equivalent to € 708,000. OXUS Kyrgyzstan is a microfinance institution that offers individual and group loans to its clients who work mainly in the agricultural and livestock sectors. The institution currently has 7,600 active borrowers, 55% of whom are women and 57.2% of whom live in rural areas.
The Grameen Crédit Agricole Foundation is currently supporting 20 microfinance institutions in Eastern Europe and Central Asia with total commitments in the region amounting to € 20.1 million, that is 21% of the Foundation’s commitments as of end of August 2019.
Created in 2008, under the joint impetus of the directors of Crédit Agricole S.A. and Professor Yunus, winner of the 2006 Nobel Peace Prize and founder of the Grameen Bank, the Grameen Crédit Agricole SA Foundation is a multi-business operator that contributes to the fight against poverty through financial inclusion and entrepreneurship with a social impact. As an investor, lender, technical assistance coordinator and fund advisor, the Foundation supports microfinance institutions and social enterprises in nearly 40 countries.
A first successful year for the Solidarity banker programme
By Carolina Herrera, Fondation Grameen Crédit Agricole
At the initiative of the Grameen Crédit Agricole Foundation and Crédit Agricole S.A., “Solidarity Banker” missions are offered to Crédit Agricole Group employees on behalf of microfinance institutions or companies with a social impact supported by the Foundation.
Senegal, Morocco, Haiti… : a great success for the first year
Less than a year after its launch in 2018, the success of the program confirms the commitment and willingness of employees to support projects with a social impact. This is the first time that a partnership of this type has been launched by Crédit Agricole and the Grameen Crédit Agricole Foundation. The objective is twofold: on the one hand, to enhance the skills of Crédit Agricole Group employees and, on the other hand, to provide additional support to the Foundation’s microfinance institutions and partner companies with one- to two-week missions in the field.
In 2018, six missions were launched, three of which were carried out in 2018 and three planned for 2019. For example, a mission took place in Cambodia with the support of Crédit Agricole’s International Retail Banking (BPI) to support the human resources management of Chamroeun, a partner microfinance institution serving more than 27,500 clients. Another mission was carried out in Senegal, in partnership with Crédit Agricole Franche-Comté, in favour of Laiterie du Berger, a social enterprise in which the Foundation is a shareholder. In addition, with the support of the Regional Bank, the Solidarity Banker who carried out the mission left for 2 years to support Kossam, the Dairy’s project to structure the dairy 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 anti-terrorist financing systems (AML-FT). 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 supports the Solidarity Banker, who will carry out the entire mission in terms of skills sponsorship.
Cambodia, Kenya, Tajikistan… in 2019 the programme scales up
To date, six missions have been launched in 2019. A mission in favour of Kossam, the Laiterie du Berger project, which aims to develop a sustainable dairy sector in Senegal. The Solidarity Banker will be responsible for supporting Kossam in the deployment of a digital “commcare collection” application. Another mission is planned to support the financial management and organizational structure of Cirque Phare (PPSE) in Cambodia. PPSE aims to promote the social inclusion and empowerment of young people through Cambodian culture and arts. A mission will take place in favour of ACRE Africa, which provides crop insurance services to smallholders. The Solidarity Banker will be responsible for analysing the organisation’s new business strategy.
For these first missions launched in 2019, the selection process for Solidarity Bankers has been finalised. To date, three new missions are to be filled: a mission to support the “business model” of Humo, a microfinance institution in Tajikistan; a “management control” mission to support Musoni, a microfinance institution in Kenya; and a “digital” mission to support SFA, a social enterprise in Senegal.
Other missions are currently being planned with the support of the Crédit Agricole Group’s entities and Regional Banks. With this scheme, the Group reaffirms its commitment to support employees’ solidarity initiatives and work alongside the Foundation to promote more inclusive and sustainable finance.
The Foundation continues to invest in Eastern Europe and Central Asia
In 2018, The Foundation continued to invest in Eastern Europe and Central Asia, granting a total of seven loans to six partners for a total of €7.6 million, wich represents 19% of the new investments made over the year.
The Foundation invested for the first time in Bosnia-Herzegovina, granting a loan of €2 million to Mi-Bospo, a micro-finance institution that provides access to credit and non-financial services to private individuals, in particular to women entrepreneurs. The institution moreover provides responsible financing by applying the consumer protection principles which play a significant role in the development of female entrepreneurship. Mi-Bospo has more than 22,500 clients at this time, 64% of whom are women. The Foundation also provided a first loan of €1 million to Mikra, a microfinance institution founded by Catholic Relief Services (CRS) which provides access to affordable, quality financial and support services to the poorest working populations (mainly women who account for 70.2% of its 13,400 clients).
In Kazakhstan, the Foundation granted a second loan in local currency equivalent to €608,000 to Bereke, a microfinance institution which it has financed since 2017. The mission of Bereke, which has 5,200 clients, 76% of whom are women, is to help improve the standard of living of citizens through economic support provided by means of loans to small and microenterprises as well as by means of agricultural, consumer or housing loans.
The Foundation has also granted a new loan (the third since 2016) to the microfinance institution Oxus Kirghizstan, for an amount of €687,000 over a period of three years. The institution provides individual and group loans to nearly 7,000 clients, most of whom work in agriculture and livestock breeding.
The Foundation has also financed a new partner Agency for Microfinance in Kosovo (AFK) with a loan of €1.4 million over three years. AFK is an institution that aims to improve the living conditions in the country by offering small and microenterprises access to sustainable financial services. It has 17,500 clients, 78% of whom live in rural areas.
Finally, in Tajikistan, the Foundation granted two loans for a total amount of €1.9 million to Humo, an MFI partner since 2017. The Foundation has thus granted a total of three loans to this institution, the main activity of which is to provide affordable, quality financial services to people living in rural areas, as well as to promote the development of small and medium-sized enterprises in the country’s poor regions. Humo has nearly 50,000 clients at this time, 81% of whom live in rural areas, and 44.4% of whom are women.
