The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based nonprofit that provides financial services to microfinance institutions, recently signed a risk and technical assistance agreement with the Agence Francaise de Developpement (AFD), a bi-lateral development finance institution of the French government, to further GCAMF’s microfinance efforts, particularly in Sub-Saharan Africa. AFD will take 50 percent of the credit risk on a set of loans to be awarded to microfinance institutions (MFIs) by GCAMF. The agreement is valued at EUR 7 million (USD 9.1 million), of which EUR 3 million (USD 3.9 million) is earmarked for microfinance institutions in West and East Africa under the name of “Facility for Microfinance in Africa.” The remainder of the funds will be used in other undisclosed countries. The total corresponds to EUR 14 million (USD 18.2 million) in interventions from GCAMF.
In addition to financial assistance, the Facility for Microfinance in Africa also consists of technical assistance made up of a EUR 1.32 million (USD 1.72 million) grant from AFD and a EUR 300,000 (USD 390,000) grant provided by GCAMF.
By Brian LeBlanc
About the Grameen Credit Agricole Microfinance Foundation (GCAMF)
The Grameen Credit Agricole Microfinance Foundation (GCAMF) was founded in Luxembourg in 2008 by Credit Agricole SA, a French retail bank, and Grameen Trust (GT), a nonprofit microfinance organization affiliated with Grameen Bank of Bangladesh. GCAMF offers financing products to microfinance institutions (MFIs), focusing on MFIs that prioritize rural development, transparency, consumer protection and serving women. As of December 31, 2011, GCAMF reports reported total assets of EUR 51.1 million (USD 66.2 million) and 45 investment projects in 19 countries that support 30 microfinance institutions (MFIs), four social-business projects and one fund that covers foreign-exchange risk.
About the Agence Francaise de Developpement (AFD)
Established in 1941, Agence Francaise de Developpement (AFD) is a bilateral development finance institution whose public mandate is to finance development according to the overseas development assistance policies of the French government. In 2011, AFD reportedly committed approximately EUR 7 billion (USD 9.2 billion) to financing aid activities in developing and emerging countries and the French Overseas Communities. These investments involved providing primary schooling for 13.4 million children, improving drinking water supplies for 33 million people and disbursing microloans to 700,000 people.
Sources and Additional Information:
Grameen Credit Agricole Microfinance Foundation (GCAMF) press release, http://www.grameen-credit-agricole.org/en/content/grameen-cr%C3%A9dit-agricole-foundation-and-agence-fran%C3%A7aise-de-d%C3%A9veloppement-french-development-
MicroCapital story, March 5, 2013, “MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $1.3m to Microfinance Institution Mitra Bisnis Keluarga (MBK) of Indonesia,” https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-gcamf-loans-1-3m-to-microfinance-institution-mitra-bisnis-keluarga-mbk-of-indonesia/
MicroCapital story, March 5, 2013, “MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) to Loan $599k to Oxus Tajikistan,” https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-gcamf-to-loan-599k-to-oxus-tajikistan/
MicroCapital story, January 27, 2012, “MICROCAPITAL BRIEF: Technical Assistance Facility of Incofin Rural Impulse Fund II Receives $2.4m from French Public Finance Institution Agence Française de Développement (AFD),” https://www.microcapital.org/microcapital-brief-technical-assistance-facility-of-incofin-rural-impulse-fund-ii-receives-2-4m-from-french-public-finance-institution-agence-francaise-de-developpement-afd/
MicroCapital story, March 21, 2011, “MACROCAPITAL BRIEF: International Finance Corporation (IFC) Agence Française de Développement (AFD) Host Development Finance Institutions to Discuss Sustainable Development Finance for Small and Medium-Sized Enterprises (SMEs),” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-agence-francaise-de-developpement-afd-host-development-finance-institutions-to-discuss-sustainable-development-finance-for-small-and-med/
MicroUniverse Profile: About the Grameen Credit Agricole Microfinance Foundation (GCAMF) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Credit+Agricole+Microfinance+Foundation
MicroUniverse Profile: Agence Francaise de Developpement (AFD) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agence+Francaise+de+Developpement+%28AFD%29
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