The Grameen Crédit Agricole Foundation is a partner of the first edition of the Impact Finance Barometer launched at the Global Forum Zero Exclusion, Zero Carbon, Zero Poverty on September 2, 2021. This publication, coordinated by Convergences, is the result of the collective work of impact finance experts, analysts, investors and microfinance institutions. It confronts different visions of impact investing and financial inclusion in the world.
Under the theme “Financing social and environmental transitions”, this Barometer presents key figures of the sector and the levers for the development of inclusive finance that serves people and the planet. How to redirect funding towards an impact project? How to connect investors and project leaders? Is there a common metric of impact?
This edition also deals with financial inclusion in the face of the Covid-19 crisis and more specifically with the impact of this crisis on microfinance institutions.
Edouard Sers, Head of Risk, Compliance and Impact at the Foundation spoke on this subject during the 3Zero Global Forum:
“The Covid-19 crisis has had a significant impact on microfinance institutions (MFIs) partner of the Grameen Crédit Agricole Foundation. This impact however varies depending on the region and countries affected. The two main financial consequences of the crisis are an increased credit risk, which affects profitability (especially in 2020) and therefore, has an impact on equity. At the beginning of the year, 60% of the MFIs surveyed thought they needed new equity. In mid-2021, the latest surveys we conducted show that one in five MFIs are still looking for a way to recapitalize properly. In contrast, there has not been a generalized liquidity crisis and, despite the loss of profitability for many, the sector has shown overall responsibility in maintaining jobs. In order to support its partners, the Foundation continues to develop its funding and technical assistance offer. It also shares on a regular basis the conclusions of its Covid-19 Observatory based on surveys carried out in partnership with ADA and Inpulse to collect the feelings of actors in the field.”
Discover the Barometer here.
Discover the Report of the Grameen Crédit Agricole Foundation : “The impact of the Covid-19 crisis on microfinance institutions. Analyses and perspectives.”