African Facility: success of the first phase of the project implemented in partnership with AFD
Three years after the launch of the first African Facility, a programme set up in 2013 by the Grameen Crédit Agricole Foundation in partnership with the French Development Agency (AFD) to strengthen medium-sized African Microfinance Institutions with high potential development, the results show the validity of the scheme.
The signing of 24 loan contracts, 97 technical assistance missions, and the disbursement of loans for a total amount of around 8 million euros attest to the dynamism of the implementation of the Facility. This resulted in a genuine reinforcement of the capacities and performance of the 16 partners of the first African Facility, which ended in 2016, benefiting over 300,000 active borrowers, 71% of them women and 80% of them living in rural area. These results also reflect the improvement in the risk profile of targeted MFIs, which favours their eligibility for financing from local and international investors.
A new agreement signed at the beginning of 2017 between the AFD and the Foundation will help consolidate and expand the capacity for action of the latter with its partners in sub-Saharan Africa. This agreement has three components: a € 2.2 million grant for co-financing technical assistance missions to microfinance institutions; a € 6 million in financing for the Foundation's development in sub-Saharan Africa and a € 10 million guarantee line allocated to financing granted by the Grameen Crédit Agricole Foundation.