The Grameen Credit Agricole Microfinance Foundation (GCAMF), which is based in Luxembourg and invests in “social businesses,” recently informed MicroCapital that it has made an investment of USD 500,000 in Nairobi-based Agriculture and Risk Enterprise Limited (ACRE), a microinsurance provider that aims to launch products in East and West Africa in exchange for an 8-percent stake in the company. ACRE grew out of the “Kilimo Salama” program of the Switzerland-based Syngenta Foundation for Sustainable Agriculture. As of 2013, the Kilimo Salama program insured approximately 200,000 farmers in Kenya, Rwanda and Tanzania for a total coverage amount of USD 18.8 million. This is the first investment that GCAMF has made into the microinsurance sector.
GCAMF also has provided a three-year loan in local currency equivalent in value to EUR 245,500 (USD 334,257) to the Ecumenical Church Loan Fund Uganda Limited (ECLOF Uganda), a Kampala-based nonprofit microfinance institution (MFI) that is part of the Ecumenical Church Loan Fund (ECLOF), a network of ecumenical MFIs in 20 countries. The loan was disbursed from the “African Facility” of GCAMF and is intended to allow ECLOF to purchase “support and technical assistance”[1].
As of March 2014, ECLOF Uganda has three branches, a loan portfolio of EUR 776,000 (USD 1.05 million) and approximately 3,000 active clients, 72 percent of whom are women living in rural areas. Additional financial information on the institution is not available.
By Alíz Crowley, Research Associate
About Ecumenical Church Loan Fund (ECLOF)
The Ecumenical Church Loan Fund (ECLOF) is a network of non-denominational microfinance institutions (MFIs) with offices in 20 countries: Argentina, Armenia, Bolivia, Brazil, Colombia, Dominican Republic, Ecuador, Ghana, India, Jamaica, Kenya, Myanmar, Peru, Philippines, Sri Lanka, Switzerland, Tanzania, Uganda, Uruguay, Zambia. Each national ECLOF has its own board and local staff. The International Secretariat, based in Switzerland, provides additional oversight, technical support, policy development, exchange of regional and country experience and resource mobilization. Loan requests are considered by national ECLOFs. As of 2012, ECLOF had a global loan portfolio of USD 40.4 million and approximately 130,000 clients.
About Ecumenical Church Loan Fund Uganda Limited (ECLOF Uganda)
ECLOF Uganda is a non-profit microfinance organization, affiliated with Switzerland-based ECLOF, which operates in 20 countries. ECLOF Uganda provides microcredit and financial products for groups, individuals and microenterprises that have “no or few access to these services.” As of March 2014, ECLOF Uganda has three branches, a loan portfolio of EUR 776,000 (USD 1.05 million) and approximately 3,000 active clients, 72 percent of whom are women living in rural areas.
About Agriculture and Risk Enterprise Limited (ACRE)
The Nairobi-based Agriculture and Risk Enterprise Limited (ACRE) is a “social business” founded in 2014 that grew out of the “Kilimo Salama” program of the Switzerland-based Syngenta Foundation for Sustainable Agriculture. It offers crop insurance for smallholders in Kenya, Rwanda and Tanzania. As of 2013, the Kilimo Salama program insured approximately 200,000 farmers for a total coverage amount of USD 18.8 million. As of 2014, ACRE is planning to replicate this business model elsewhere in East Africa as well as in West Africa. ACRE’s investors include the Grameen Credit Agricole Microfinance Foundation, the Lundin Foundation and LGT Venture Philanthropy. ACRE has also been funded by grants from the Global Index Insurance Facility, which is funded by the EU and the governments of Japan and the Netherlands but is managed by the World Bank and the International Finance Corporation.
About Grameen Credit Agricole Microfinance Foundation (GCAMF)
The Grameen Credit Agricole Microfinance Foundation (GCAMF) provides financial services to microfinance institutions (MFIs) and social business projects. GCAMF was founded in Luxembourg in 2008 by Crédit Agricole SA, a French retail bank, and Grameen Trust, a nonprofit microfinance organization affiliated with Grameen Bank of Bangladesh. In financing microfinance institutions (MFIs), GCAMF focuses on those that prioritize rural development, transparency, consumer protection and serving women. As of December 2012, the foundation reported total assets of EUR 51.1 million (USD 70.3 million). Since its inception in 2008 through 2013, the foundation has invested in 31 microfinance institutions (MFIs), 10 social-business projects and one fund in 21 countries. During 2013, The foundation was active in Azerbaijan, Bangladesh, Benin, Burkina Faso, Cambodia, Cameroon, Democratic Republic of Congo, France, Indonesia, Kenya, Kosovo, Madagascar, Mali, Palestine, Philippines, Senegal, Sri Lanka, Tajikistan, Timor Leste, Togo and Zambia.
Sources and Additional Resources
[1] Grameen Credit Agricole Microfinance Foundation, New Disbursements for ECLOF a New Partner of the Foundation
[2] Grameen Credit Agricole Microfinance Foundation, By Taking a Participation in the Capital of ACRE, the Foundation Undertakes its First Investment in Micro-Insurance
[3] Syngenta Foundation for Sustainable Agriculture, Kilimo Salama Becomes ACRE
MicroCapital, June 17, 2014, Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $2m to Cambodian Angkor Mikroheranhvatho Kampuchea; Invests $546k in Equity in Palestinian Arab Center for Agricultural Development
MicroCapital, June 9, 2014, Grameen Credit Agricole Lends $1m to Première Agence de Microfinance au Burkina Faso, $239k to Biotropical of Cameroon
MicroCapital, January 13, 2010, Ecumenical Church Loan Fund (ECLOF)
MicroCapital Universe Profile: Ecumenical Church Loan Fund (ECLOF)
MicroCapital Universe Profile: Ecumenical Church Loan Fund Uganda Limited (ECLOF Uganda)
MicroCapital Universe Profile: Agriculture and Risk Enterprise Limited (ACRE)
MicroCapital Universe Profile: Grameen Credit Agricole Microfinance Foundation (GCAMF)
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