PAIDEK, partner of the Grameen Crédit Agricole Foundation since 2014, is a microfinance institution (MFI) created in 1993 by SOS Faim and whose mission is to contribute to the strengthening of the economic fabric and the revitalisation of the popular economy in the Democratic Republic of Congo, and in particular in the Kivu region (North Kivu, South Kivu and Maniema). To do so, the institution, which had nearly 21,000 active borrowers at the end of June 2022, 51% of whom were women, facilitates the access of disadvantaged populations excluded from the traditional banking system to financial and non-financial services by setting up a professional and sustainable financial instrument throiugh individual and group lending schemes.
As of today, PAIDEK operates mainly in urban areas (2/3 of its customers). Despite its desire to target more small agricultural producers in rural areas, and despite the decline in the number of active borrowers in urban areas for several years now, the MFI is encountering difficulties in achieving this strategic objective due to the distance between the targeted areas and its agencies, making it difficult to reach its target and creating security issues related to the transfer of cash. To do this, the institution wishes to adapt its service offer, in particular to offer remote access to its rural clientele, made up mainly of women, young people and small producers.
In order to achieve its objectives, PAIDEK will benefit from the SSNUP (Smallholder Safety Net Upscaling) programme coordinated by ADA and for which the Foundation has been selected as one of the impact investors in charge of its implementation. This programme aims at increasing the productivity and resilience of smallholder farmers, particularly in Asia and Africa, through better risk management and the promotion of sustainable and climate-smart agricultural practices.
This project focuses on the development of digital distribution channels for financial products, adapted to the needs and constraints of small producers in rural areas. The technical assistance provided under the programme will thus enable PAIDEK to define the digital solutions to be implemented in order to improve the distribution of financial products and strengthen its reach in rural areas, in particular among small producers operating in the coffee, rice, onions, tomatoes, potatoes, cassava, corn or even beans industry. This project will also allow the institution to increase its reach in rural areas, reduce its operational costs and limit the risks associated with handling cash.
For the Grameen Crédit Agricole Foundation, this project is at the heart of one of its strategic priorities, namely the strengthening of rural economies. This technical assistance mission thus contributes to strengthening the impact of the funding already granted by the Foundation to PAIDEK.
For more information on the SSNUP programme, click here.