ACEP Burkina

A technical assistance programme to strengthen the impact of microfinance in West Africa

Actors committed to microfinance

With almost 12 years of experience in the microfinance sector and over €200 million in funding, the Grameen Crédit Agricole Foundation finances and supports with technical assistance microfinance institutions worldwide. This support aims at promoting sustainable and innovative microfinance services which, in turn, will have positive social and economic impacts for low-income populations and the development of small and micro enterprises.

With 37% of its investments in Sub-Saharan Africa, the continent is at the heart of the Foundation’s action and its mission to contribute to the fight against poverty. Alongside the European Investment Bank (EIB) and the Luxembourg Government, the Foundation will strengthen its support to microfinance institutions in West Africa, within the framework of a new technical assistance programme.

Both partners of the Foundation have strong experience in the development of microfinance: the EIB has already committed over € 1.3 billion for the sector since its first microfinance operations in 1992, a key objective of EIB support for private sector investments in Africa, and Luxembourg concentrates 61% of global assets under microfinance management.

Strengthening the impact of the Foundation in West Africa

After granting in 2018 to the Grameen Crédit Agricole Foundation a loan equivalent to €12 million euros in CFA francs, in order to support microfinance in West Africa, the EIB allocated, on behalf of the Government of Luxembourg, a grant of € 332,000 to provide technical support to five microfinance institutions supported by the Foundation.

This two-year programme will allow the Foundation to support Caurie (Senegal), Kafo Jiginew (Mali), Graine (Burkina Faso), ACEP Burkina Faso and ACEP Niger in order to facilitate their digital transformation, improve risk management or even strengthen the social performance management. Thanks to this partnership with the EIB and the Government of Luxembourg, the Foundation is increasing its presence in West Africa and strengthening its value proposition to its partners in the region. This will strengthen the impact of microfinance in rural and urban areas of West Africa, including in the Sahel States. Moreover, consolodating private sector access to finance will be key to bolster Africa’s resilience and recovery from the expected impact of the Corona virus.

During the first quarter, the Foundation makes 5 new investments in Africa

During the first quarter of 2019, the Grameen Crédit Agricole Foundation stepped up its presence with its African partners with the granting of five new financings, notably in the form of senior loans. As part of the African Facility programme, it has provided a loan in local currency equivalent to € 800,000 to Eclof Kenya, a microfinance institution that provides financial and non-financial services to micro, small and medium-sized enterprises in the country. while actively promoting savings. To date, the institution that finances 58% of women, has over 30,000 clients, 60% of them located in rural areas.

Also in East Africa, the Foundation has granted a new loan in local currency equivalent to €1 million to UGAFODE, a Ugandan microfinance institution whose main mission is to offer its clients affordable primary financial services. The institution currently has 17,300 clients, of whom almost 20% are women and about 80% are in rural areas.

In West Africa, the Foundation has granted a new loan to Togolese microfinance institution Coopec Sifa for a total amount in local currency equivalent to € 305,000. Coopec Sifa, which is funded under the African Facility programme, is a microfinance institution that offers small loans to its nearly 38,000 clients, mostly women (86%) in the north of the country.

In addition, ACEP Burkina has also been granted a new loan equivalent to €2.3 million in CFA francs. This microfinance institution, a partner of the Foundation since 2016, specialises in financing microenterprises and very small businesses in urban centers and near suburbs. It currently has 12,300 clients, 20% of whom are women.

Finally, in Senegal, the Foundation has strengthened its partnership with Laiterie du Berger, of which it has been a shareholder since 2010, with the granting of a loan in the form of ashareholders’ current account, for an amount in CFA francs equivalent to €229 000. Laiterie du Berger is a social company that collects milk from Fulani herders, in the North of the country, and transforms it into yogurts and other dairy products that are sold under the brand Dolima.

At the end of March 2019, the Grameen Crédit Agricole Foundation had 40 partners located in sub-Saharan Africa, which represents 42% of the Foundation’s commitments at the end of the first quarter.

For more information on the Foundation’s partners, click here.

In 2018, the Foundation consolidated its presence in West Africa with 8 new loans

In the course of the previous year, the Grameen Crédit Agricole Foundation strengthened its presence in West Africa with 8 new loans, 3 of which to new partners.

In Mali, the Foundation financed Kafo Jiginew, a cooperative network of savings and loans banks that provides retail financial services (savings, loans, microinsurance, transfer of funds and other services) to the largest number of persons in Mali to improve their living conditions. The institution has 48,000 working clients at this time, 92% of whom live in rural areas. The Foundation granted a loan in local currency equivalent to €3 million over five years to this institution.

In Benin, the Foundation granted a loan in local currency equivalent to €1.4 million to a new partner, PEBCo Bethesda which is geared to improving the living conditions of people by providing quality financial and non-financial services. The institution provides loans to groups and individuals. It has ca. 95,000 active borrowers, 64% of whom are women and 33% live in rural areas.

In Togo, the Foundation also financed a new partner, Assilassimé, with a loan in CFA francs equivalent to €500,000. Assilassimé is a programme created in 2012 by Entrepreneurs du Monde for marginalized people. The institution provides them financial (microcredit) and non-financial (training, individualized support, social media optimization) services. It has nearly 30,000 clients at this time, some 97% of whom are women.

In Burkina Faso, the Foundation moreover made three investments in existing partners in 2018, bringing the total amount of its commitments in that country to more than €4 million, or 13.8% of its commitments in Sub-Saharan Africa at the end of December 2018. More specifically, ACFIME received a loan in CFA francs equivalent to €305,000 over a period of three years. This is a microfinancial institution that helps to bridge the gap not covered by large MFIs which operate across the country, with loans granted by ACFIME having a very strong potential social impact. It has 18,600 clients at this time, 90% of whom are women. For its part, PAMF-BF received a loan in local currency equivalent to €1 million over a period of three years. The core activity of the institution, which has some 28,400 clients, is to grant loans in Burkina Faso so as to help meet better the financial needs of low-income segments of the population with reinforced protection or their members or users. Finally, ACEP Burkina received a loan in local currency equivalent to €1.5 million over a period of three years. Acep is a microfinance institution specialized in the financing of microenterprises and very small existing companies in urban centres and their inner suburbs. The credits granted are intended essentially to finance the working capital and investment needs. The institution has 11,000 active borrowers at this time.

Finally, in Senegal, the Foundation granted a loan in local currency equivalent to €762,000 to Caurie Microfinance, a socially responsible and financially viable MFI geared to making a lasting contribution to the economic and social promotion of poor microentrepreneurs, mainly women. Caurie has 71,000 clients at this time, 98% of whom are women. The Foundation has also granted a €100,000 loan to Sénégalaise des Filières Alimentaires in the form of a shareholders’ current account. SFA is a social business which is developing an inclusive value chain from the production and marketing of rice, in which the Foundation has had a shareholding stake since 2013.

For further information on the Foundation’s partners,cliquez here.