>@Anne-Cécile Auguin/EIB

Fondation Grameen Crédit Agricole has received a loan of the CFAF equivalent of EUR 12m from the European Investment Bank (EIB) in support of the development of microfinance in West Africa. This local currency loan provides genuine recognition for the Foundation, which will be able to extend its influence in Africa.

EIB – a committed microfinance player

The EIB has extensive experience of microfinance development. With more than EUR 1.3bn committed since its earliest microfinance operations in 1992, the Bank supports microfinance institutions and other players in the sector that promote inclusive and responsible finance. Within the framework of the Cotonou Agreement signed in 2000 between the European Union and the group of ACP (Africa, Caribbean, Pacific) countries, the EIB launched a microfinance investment facility to promote the private sector and combat poverty in West African countries. Under this programme a loan of the CFAF equivalent of EUR 12m was granted to Fondation Grameen Crédit Agricole.

Fondation Grameen Crédit Agricole – an expert in the sector

An investor, financier, coordinator of technical assistance and fund advisor, Fondation Grameen Crédit Agricole has been supporting microfinance and social business institutions across the world for the past 10 years. Ten years later, it has provided financing of over EUR 200m to more than 100 partners in some 30 countries. In 2018, a total of 75 partners were supported by the Foundation in 35 countries to the tune of EUR 73m. Following its sound results in 2018, this new loan will enable the Foundation to broaden its activity in Africa within the fields of microfinance and social entrepreneurship.

With more than 30% of financing operations in sub-Saharan Africa, the Foundation is positioning itself as a committed player in the fight against poverty on the African continent. It is focusing its attention on rural populations to promote financial inclusion and make the farming sector more resilient. This alliance between the EIB and the Foundation meets a common goal: financing and promoting a more sustainable and inclusive economy in line with the world's development agenda by 2030. By providing this loan in CFA francs, the EIB is enabling the Foundation to continue supporting its partners in West Africa with loans in local currency.

Key projects

Two institutions are set to already benefit from this joint support:

  • CAURIE MICROFINANCE in Senegal, which contributes sustainably to the social and economic independence of poor micro-entrepreneurs, mainly women.
  • PAM BF in Burkina Faso, which provides micro-credit to finance farming and economic activities such as market gardening and cereal production. These two institutions alone have nearly 100 000 active borrowers.

With this loan, the European Investment Bank confirms its commitment in support of financial inclusion in West Africa alongside a committed player that has recently celebrated its 10th birthday”, explained EIB Vice-President Ambroise Fayolle. “The ability to finance this operation in local currency is a key factor in order to help the most fragile populations without subjecting the microfinance institutions to foreign exchange risk. We are particularly pleased to support Fondation Grameen Crédit Agricole as it promotes jobs for women. It is these values backed by the EU that we are supporting here today.

The EIB loan enables us to leverage the impact of the Foundation, which is focusing more than a third of its financing in sub-Saharan Africa and is active in a dozen African countries. Africa will continue to be a priority target for the Foundation, which will concentrate over 30% of its financing operations on the continent by 2022. I wish to thank the EIB for being a part of the human and entrepreneurial adventure launched by Crédit Agricole and Professor Yunus 10 years ago”, stated Jean-Marie Sander, Chairman of Fondation Grameen Crédit Agricole