Escolar Documentos
Profissional Documentos
Cultura Documentos
ACTIVITIES OF SIDI
AND ITS PARTNERS IN 2002
TABLE OF CONTENTS
TABLE OF CONTENTS
GLOSSARY
ACAD : Arab Center for Agricultural Development (Palestinian Territories) IMOFOR : Mobil Institute for training (Haiti)
AFD : Development French Agency (France) INDES : Inversiones para el Desarrollo (Chile)
ACB : Akiba Commercial Bank limited (Tanzania) KNFP : National Councial for Grassroot financial system (Haiti)
AMOS : Oued-Srou Microfinance Association (Morocco) KOKARI : Co-operative of intermediation in rural credit services (Niger)
ASPRODEB : Senegal Association For Promotion and Development à la Base (Senegal) LA-CIF : Latin American Challenge Investment Fund (South America)
BAEF : Banque for women investment (North Kivu) MAE : Ministry of Foreign Affairs (France)
BANCOSOL : Banco Solidario (Bolivia) MAIN : Microfinance African Institution Network
CCFD : Catholic Committee against Hunger and for Development (France) MENNGOS : MicroEnterprise Network NGOs (South Africa)
CCSP : Credit Co-operative to support Small Producers (Laos) MPDF : Mekong Project Development Facility
CCG : Cooperative for guarantee security and management (Haiti) MUFEDE : “Women and development” Credit Union
CDC : Caisse des Dépôts et Consignations (France) MUSO : Solidarity Credit Union
CEP : Capital aid fund for Employment of the Poor (Vietnam) NGO : Non Government Organisation
CERUDEB : Centenary Rural Development Bank (Uganda) OMIPA : Oruchinga Microfinance Agency (Uganda)
COD-EMH : Co-ordination of Development Operations - Methodist Chruch (Haiti) PROFUND : Investment Fund in South-American Microfinance Institutions
CONSOLIDAR : Cooperativa CORFAS de Credito Solidario (Colombia) SAINDESUR : Inversiones para el desarrollo (Uruguay)
CORDAID : Catholic Organisation for Relief and Development (Holland) SAPCA-EGAS (ex UGIE) : Société d’Approvisionnement, de Production, de Commercialisation
CORFO : Corporación de Fomento a la Producción (Chile) et de Conseil Agricole des Ententes des groupements associés du Sénégal (Senegal)
CRG : Rural Credit Union of Guinea (Guinea) SCC : Swedish Co-operative Center (Sweden)
EDAPROSPO : Equipo de Aseroramiento a Actividades Productivas de Sectores Populares SFI : International Financial Society
(Peru) SIPEM : Investment Company for Investment Promotion in Madagascar (Madagascar)
EMT : Ennatien Moulethan Tchonnebat (Cambodia) TISE : Investment Company for Social and Economic initiatives (Poland)
ESD : Saving Solidarity Development Association (France) TITEM : Union of credit and savings local associations (Madagascar)
FC : Co-operative Fund (Laos) TOUIZA : National Volunteers Association (Algeria)
FIDI : Ivorian Investment and Development Fund UE : European Union
FONHSUD : Haitian Fund to promote Local Development in the Southern Province (Haiti) UGPM : Union of Peasant Associations from Meckhe (Senegal)
FPH : Fondation pour le Progres de l’Homme (France) URCSONA : Regional Union of Sourou and Nyala Credit Unions (Burkina Faso)
GRAIFSI : Support group for integrating the women of the informal sector (Haiti) WAGES : Women Association for both Gain Economic and Social (Togo)
Cover photos: Signing a loan contract, Morocco (photo AL AMANA). The harvest (photo CIRIC).
Seminar in Addis Ababa (photo SIDI). A green box (for members’ contributions) at a solidarity credit union, Senegal (photo SIDI).
3545-SIDI/2003_GB 4/09/03 10:39 Page 3
3
The last three years have been very busy for SIDI. Huge challenges have Defining a new plan for 2003-2005
emerged in the fields of development and human solidarity, to which all of SIDI is reaffirming its specific solidarity financing objectives and plans to do
us have made a small contribution in order to improve the well-being of the following :
all. - Finance and support providers of community financial services to small
urban and rural producers.
Giving expression to solidarity in the field of financing - Be part of development activities that stem from demand rather that
SIDI is contributing in a unique way to the promotion of solidarity by hel-
the supply side of financial services.
ping poor populations to break out of under-development and to shape
- Develop partnerships with the same dynamics as the Solidarity Chain
their own initiatives. Solidarity financing circuits are helping to change the
for Financing.
living conditions of thousands of people by backing income-generating
- Pursue objectives that are consistent with those of the CCFD, in order
and job-creating activities, the proceeds of which are used to improve
to promote globally a solidarity economy and society.
access to health care, housing and education, etc. In further developing its
- Support local empowerment and the emergence of enterprising indiv
solidarity financing activities, SIDI, along with the Catholic Committee
duals who are able to take the initiative to change their living condi-
against Hunger and for Development (CCFD), has continued to mobilise
tions.
members of the public who are sensitive to inequalities in the world and
To achieve these goals, the 2003-2005 action plan will focus on 5 leading
concerned about the future we are preparing for our children. They exp-
actions :
ress their solidarity with the poor countries through a range of means
- Reinforce and diversify the partnerships and the portfolio :
other than direct donations to humanitarian and international solidarity
The goal here is to consolidate openings in the geographic areas of Africa
organisations.
and the Indian Ocean, the Maghreb and the Mashriq, the Mekong coun-
Several thousand savers and solidarity financial institutions are joining for- tries, the Andean countries and Haiti, by achieving regional and sub-regio-
ces because they are convinced that development financing requires com- nal consistency, by strengthening the multipartnership strategy and by
munity solidarity savings facilities. In spite of the difficult climate and the responding to requests for alliances. While priority will be given to finan-
downturn on the financial markets, the promotion of the Faim et cing in the rural areas, particular attention will be paid to local partnership
Développement investment fund has moved ahead, thanks to the mobili- organisations wishing to diversify the range of financial services they pro-
sation of 20 SIDI/CCFD regional correspondents in liaison with Diocesan vide, to include areas such as health care, housing, assistance to migrants,
Committees and the local staff of CCFD. etc. The exchange of practical knowledge via networks will be supported
in order to advance toward the resolution of common regional and secto-
Over the course of the past three years, SIDI’s partners have demonstrated ral problems, with special attention to the dynamics of groups promoting
their commitment to incorporating their financial approach into a broader a solidarity economy, such as the MAIN network in Africa and the Foro Lac
vision. They believe that financial services are not the only tool that can in Latin America.
ensure an immediate and sustainable development start and genuine - Make use of solidarity financial engineering
improvements in the populations’ living conditions, although financial ser- The aim would be to capitalise on and promote savings and loan instru-
vices do empower them. In Africa and on other continents, SIDI’s partners ments that are adapted to the needs of the populations and that are par-
are exchanging experiences, testing innovative methods and are attaining ticularly appropriate for isolated areas. We will work with the partners to
their goals in spite of the hardships caused by natural disasters such as define an innovative policy on the cost of resources and financial services.
drought in the Sahel, political and social upheaval in Madagascar, the The objective is to present a well-founded argument for reducing interest
Great Lakes region, Haiti and Palestine, and imbalances in producer prices rates for the benefit of both the clients and the community-based financial
in Senegal. institutions.
The results of the 2000-2002 plan - Successful teamwork
The completion of the 2000-2002 action plan was marked by a number of The range of SIDI’s human resources, i.e. its permanent staff, volunteer
remarkable accomplishments for SIDI. We gained further experience in consultants and local support, will be optimised and expertise will be sha-
providing services to our partners, who in addition have taught us a few red along with the CCFD’s thematic skills in the solidarity economy and
things, and we have consolidated our shareholders’ trust and relations food sovereignty.
around a common vision of development. Three major achievements - Working in alliances
should be highlighted : We intend to mobilise local resources from the donors to shore up the part-
nerships in the South, and show them how to monitor new opportunities,
- The capital was increased from 3.35 million Euro to 5.32 million Euro and train them in responding to donors policies and instruments, to ensu-
through the issue of 13,000 new shares. re appropriate cofinancing applications.
- Foster and expand the Solidarity Chain for Financing
- The solidarity investment portfolio was increased by more than
By defining the notion of social viability and the related methodologies,
1 million Euro, reaching 3.3 million Euro at the end of 2002. Total finan-
SIDI and its partners will be in a position to strengthen these aspects, the-
cing (equity investments and loans) over the same period reached 2.5
reby incorporating them as a basic principle in its actions.
million Euro, 63% of which in the priority geographic areas of Africa,
the Mediterranean basin and Haiti.
In 2003, thanks to an on-going climate of trust, we will further develop fair
- The resources mobilised to support the partnerships reached
partnership relationships and remain open-minded about learning from
2.7 million Euro, one-third of which came from international sources.
one another in order to make best use of expertise and to evaluate the
More important than the figures, is the consolidation of partnerships.
social viability of actions in the field. Broadening access to financial servi-
Thanks to their diversified and complementary skills, SIDI’s permanent
ces that meet the real needs of the populations will mean that all the links
staff, backed by dedicated volunteer consultants, has put together techni-
in the Solidarity Chain for Financing will be better able to pursue their
cal support mechanisms that are highly appreciated by the partners. The
commitment in the future.
staff, assessing the achievements from the 2000-2002 period and on the
basis of the exchanges and reflections which occurred during the SIDI
Christian Schmitz
Workshop of October 2001, carried out extensive work to draw up a new
Chairman of the Board of Directors
strategic plan for the 2003-2005 period, approved by the Supervisory
Paris, 5 June 2003
Board, in February 2003.
3545-SIDI/2003_GB 4/09/03 10:39 Page 4
4
STRATEGIC PLAN
2000-2002
This 2000-2002 activity report shows the abundant progress achieved, in the form of renewed trust from the share-
holders, experience in serving the partners, learning from them, as well as in the relationships created around a com-
mon vision of development. More important than the figures are all the people who mobilised alongside SIDI, sha-
reholders, savers, volunteer consultants, local supporters, etc. joining forces to make a success of this plan that has
enhanced genuine solidarity and promoted sustainable well-being for populations.
Financing in the service of partnerships • The right financial tools for the partners
At the close of the 2000-2002 plan, the portfolio figures During the preceding plan, SIDI reviewed and reflected
show a real increase of 65% in financing activities. At 31 on its financing in rural areas. The setting up of part-
December 2002, SIDI’s gross portfolio amounted to 3.261 nership contracts with producer organisations, coopera-
million euro, while at 31 December 1999, it stood at 2.13 tives, credit unions, etc. has strengthened this desire to
million euro. The 2000-2002 plan therefore brought in a reach out. Nevertheless, the status of these organisations
net increase of 1.131 million euro. The sum of 2.486 generally does not allow equity investing. Therefore,
million euro was granted during this period, after reim- SIDI began to grant more and more loans.
bursements and disinvestments to the tune of 1.105 In light of changes in the portfolio during the 2000-2002
million euro. plan, SIDI decided to examine the following points :
- the cost of financial resources made available to the
SIDI’s financing activities comprised the following : partners. Some partners benefit from non-remunera-
ted stable resources, as in the case of equity invest-
• Increased activities in priority areas ment, while others only have access to resources with
a cost, i.e. loans at interest rates that take into
In its 2000-2002 plan, SIDI opted to shore up its activities account the financial means and the environment of
in priority areas of Africa, the Mediterranean basin and their clients.
Haiti. This choice is the result of a desire and a commit- - the imperative need, in the start-up and consolida-
ment to achieve solidarity that goes beyond financial tion phases of the partnerships, to find additional
investment. In making that choice, SIDI chose to work in resources (subsidies) both for training and for institu-
the particularly difficult field of extreme poverty and tional capacity-building (see chapter III).
amid political, financial and macroeconomic instability - the need to develop concerted synergies with the
as well as in crisis areas, economic as well as social, inclu- CCFD in order to enhance complementarities for the
ding violence and insecurity in areas such as Palestine, benefit of our partners.
Algeria, in the Great Lakes region and in Haiti, where
tension is rife. No less than 1.569 million euro, 63% of
the financing granted by SIDI (see table on page 5) was
mobilised for these priority areas, which, at 31 December
2002, accounted for 57% of SIDI’s entire portfolio (see
graphs 1 and 1 bis).
Graph 1 : Geographic breakdown of the portfolio
at 31 December 1999
• Minimal-risk financial support terms Asia
21%
In these priority areas, some partners suffer from the Europe
effects of frail institutions and unstable environments. 5%
Consequently, they required tailor-made financial sup- Caribbean
port. The amounts invested are generally low, in order to 3%
meet the financial needs and ensure that the risks are Mediterranean
covered. SIDI’s support of these institutions is mindful of basin
the need to strengthen their structure and internal capa- Latin America Africa
3%
cities by means of made-to-measure support. This type 49% 19%
of activity places big demands on SIDI’s human resources,
despite the fact that the financial investment is low.
Graph 1 bis : Geographic breakdown of SIDI’s portfolio
at 31 December 2002
Latin America
32%
Asia
8%
Mediterranean
basin
8%
Africa Europe
3%
40% Caribbean
9%
3545-SIDI/2003_GB 4/09/03 10:39 Page 5
The priority areas received 69% of SIDI's support resources, • The capital increase of October 2001
including additional financing, totalling 1.164 million euro.
The completion of the 2000-2002 plan firmly anchored At the Extraordinary General Meeting held in October
SIDI’s support activities around three focal points: 2001, SIDI’s capital was increased, to meet its partners’
financial needs, to 5.32 million euro, a 60% increase, which
• Reinforced partnerships received the broad support of SIDI’s shareholders.
SIDI made a deliberate choice to support a variety of • The SIDI Workshops of October 2001
approaches that match the socio-economic and cultural set-
ting of each initiative. Financial institutions, associations In October 2001, when the capital was increased, the SIDI
that grew out of the institutionalisation of projects, private Workshops were held, during which the concept of the
limited companies, credit unions, producers’ organisations, Solidarity Chain for Financing was reaffirmed. The Chain is
etc. make up the array of SIDI’s partners and are indicative made up of the following solidarity links (see sidebar 4,
of the wide range of its partnership relations. page 23):
• New themes - in the North, shareholders and savers provide SIDI with its
financial, moral and spiritual foundation. They donate their
The partners in the priority areas appealed to SIDI for help savings or share their income so that SIDI’s work could be
with the new, locally-expressed needs. Thanks to the part- pursued.
ners’ willingness to listen and an in-depth inventory, SIDI - in the South, the highly diversified partners deploy a
got involved in rural areas by financing cooperatives, small broad range of financial intermediation services for disad-
farmers’ organisations, etc. More recently, requests from vantaged communities. They form the heart of SIDI’s activi-
partners and appeals from shareholders have prompted ties by asserting their vision of sustainable well-being.
SIDI to enter other fields, such as the financing of housing, Thanks to the real-life accounts heard at the Workshops,
health care and medium and long-term financing. the partners active in the Chain got to know each other
better. SIDI’s staff, made up of permanent employees and
• Diversified services for the partners assisted by deeply committed volunteer consultants, had
the task of fostering the link between the mobilisation of
In its 2000-2002 plan, SIDI intensified its intra-country multi- solidarity savings and its use by microfinance institutions
partnership strategy. SIDI is an advocate of development, active in promoting access to financial services for disad-
and based on its experience, elaborates a commitment and vantaged populations.
partnership strategy that goes beyond project financing
and the provision of services. SIDI is being sought after to • The creation of FID (the Development Incentive
develop partnerships for the long-term that express a sha- Fund) in 2000
red vision and promote shared actions.
In order to cover portfolio risks, in particular the exchange
rate losses incurred, the FID was capitalised to the tune of
2.59 million euro. The resources generated by this fund
over the past two years have helped to set up the necessa-
ry provisions, without increasing the cost of SIDI’s support
of its partners.
PARTNER
PARTNER SUPPORT
SUPPORT
6
AND
ANDFINANCING
FINANCING IN 2002
Research / Developpement 50 55
In the North, this Chain focuses on the mobilisation of peo- TOTAL 1071 952
ple and groups who are willing to share their income or (of which additional financing) 280 332
their savings and who opt for responsible investment by
investing in SIDI’s capital and organising actions in the
fields of education and development (see ch. IV). Mediterranean
Asia basin Recherche et
As a result of the mobilisation of capital in the North, SIDI 12% 5% développement
is given the opportunity to finance partners in the South, 5%
in the form of loans or equity investing, thus enabling Africa Caribbean
them to consolidate their financial resources. 62% 7%
25%
South Africa (33 €K)
15%
Laos (21 €K)
5% The year 2002 was very busy. More than 1 million euro
was invested in 12 countries in Africa, the Mediterranean
0%
basin, the Caribbean, Asia and Latin America, without
counting the loan made to the CCSP network in Laos,
which was converted into capital.
The total of new investment and loans in 2002 was
The section on SIDI’s Partners, Africa (see page 9), illustra- 1,228,000 euro, an increase of 85% compared to 2001 (see
tes the diversity of SIDI’s ways and means to provide sup- graph 5). The increase in these funds was the result of
port, both via institutions (participating in governance, identification work conducted during 2001. Nearly 50%
training administrators) and via the management of micro- of the funds was committed to Africa, which confirms
finance activities (monitoring and computerisation of the SIDI’s solidarity investment priority.
portfolio, diversification of products, staff training, etc.).
Graph 4 :
In addition, thanks to the mobilisation of new financing, SIDI’s portfolio at 31 December 2002
supplementary, to that from the CCFD (co-financing) and
(loans, equity investment and claims)*
thanks to the building of strategic alliances, SIDI has the
wherewithal to boost support to its partners. In 2002, the 1400 Kt
1305
funds received by SIDI from French or international orga-
1200 Kt
nisations reached 280,000 euro, which enabled it to cover
26% of its support activities. That was less than in 2001, 1034
1000 Kt
owing to the fact that some negotiations did not reach
finalisation. 800 Kt
600 Kt
The sum of 178,000 euro of the additional financing was
used for the completion of specific projects led by the part- 400 Kt
ners (see graph 3): training in South Africa, in the 258 288 265
200 Kt
Democratic Republic of the Congo and in Laos. Sizeable 111
financing obtained from the French Foreign Ministry and 0 Kt
n
from several European partners helped to boost training asi ric
a an ca ia e
.b Af b be eri As rop
and networking activities that were carried out by the Me
d ri Am Eu
Ca tin
MAIN network. This consisted of four training seminars La
that were held in Abidjan, Dakar, Kampala and Addis
* This graph accompanies table 3 “SIDI’s gross portfolio”, p. 25
Ababa, for which SIDI submitted reflections and helped in
event coordination.
Caribbean
8%
Asia
16%
TISE
(POLAND)
COD/EMH - FONHSUD NAJDEH
GRAIFSI - KNFP - CCG (LEBANON)
TOUIZA
(HAITI) AMOS - AL AMANA (ALGERIA)
(MOROCCO) ACAD CEP - WUSOP
(PALESTINE) (VIETNAM) CCSP
ASPRODEB - UGPM MUFED - URCSONA (LAOS)
SAPCA/EGAS (BURKINA-FASO)
(SENEGAL) MAIN
PROFUND KOKARI NETWORK
(COSTA-RICA) CRG (NIGER) (AFRICA)
(GUINEA) EMT
WAGES CERUDEB - OMIPA
CONSOLIDAR-SERFINDES (TOGO) (UGANDA) HATTHA KAKSEKAR
BANCO SOLIDARIO (CAMBODIA)
(ECUADOR) (COLOMBIA) AKIBA
FIDI BAEF (TANZANIA)
EDAPROSPO - LA-CIF (IVORY COAST) (DR OF CONGO)
(PERU) BANCOSOL SIPEM - TITEM
(BOLIVIA) (MADAGASCAR)
SAINDESUR
(URUGUAY)
INDES
(CHILE)
MENNGOS - TEMBEKA
(SOUTH AFRICA)
3545-SIDI/2003_GB 4/09/03 10:39 Page 9
AFRICA SIDI intensified its efforts to further open up and diversify its partnerships in new countries in Africa, a key
priority in its 2000-2002 action plan. SIDI’s partners on the African continent include microfinance institutions,
local self-managed organisations, producers’ associations and those that have developed a micro credit
component. Each has a broad range of financial intervention activities for the disadvantaged. In 2002, SIDI
shored up its alliances in order to achieve better synergies for community partners. In addition, the current
reflection on rural financing and social viability will bring the 2000-2002 plan to a close on a high note of hope
for SIDI and its partners.
SIDI’s participation in the equity and on the board of Support for Kokari’s services in Niger
directors of the Crédit Rural de Guinée-SA (CRG-SA),
a leading player in rural financing in Guinea, benefit- Thanks to the involvement of its member-employees,
ting 100,000 borrowers, led the CRG to reflect on the from its donors (the French Foreign Ministry, AFD and
functions and the role of its board of directors. This others), as well as its work as an intermediary for deve-
privileged role enabled SIDI to fine-tune its knowled- lopment programmes, KOKARI has succeeded in ancho-
ge of the issues in the world of rural financing, in par- ring its credit and support services for rural organisa-
ticular in the design of innovative financial products, tions, via thirteen offices distributed around Niger.
including the financing of multi-activities, fisheries SIDI stepped up its efforts in 2002 in three areas: on the
and income-producing sectors, as well as on the sub- technical side, with support for the accountancy depart-
ject of governance. ment, on the institutional side, with participation in a
The CRG was initiated ten years ago, on the Grameen debate on whether to open the cooperative to its clients
bank model. It has evolved towards a joint manage- and to external partners, including SIDI, and the mobili-
ment system, both in the community banks that are sation of specific subsidies, via the European Union-ACP
managed by representatives elected by the borrowers Business Assistance Scheme. That subsidy paid for the
and employees, and in the membership of the board training of loan officers, a financial audit and improve-
of directors (40% participation by local banks, 35% ments in accountancy.
by employees and 25% by external partners, inclu-
ding SIDI).
3545-SIDI/2003_GB 4/09/03 10:39 Page 10
Initiatives for rural financing in Senegal Support for two partners in Uganda
10 SIDI is continuing its actions in Senegal in the farming sec- In June 2002, OMIPA, a network of 22 rural savings
tor and in particular, family farms. In November 2002, in banks, celebrated its first year of operations after the
order to continue supporting the groundnut sector, which ACORD programme withdrew from the region. Thanks
is experiencing a number of difficulties, SIDI persuaded to the quality of the support provided by the OMIPA staff
CORDAID to renew its loan to UGIE, since renamed to the savings banks, and thanks to the strong involve-
SAPCA-EGAS. SIDI topped up this loan to 115,000 euro. ment of its members, who are all farmers, in guiding the
This support for SAPCA-EGAS in its groundnut marketing institution, OMIPA now has good development potential
activities has enabled SIDI to become more familiar with that SIDI has sought to reinforce. The release of a loan in
the problems experienced in developing and financing a two instalments in 2002, in the amount of US$ 44,000,
particular sector of activity. increased its loan portfolio by nearly 90% compared to
31 December 2001.
Cooperation with UGPM, which started with a financing
programme for solidarity credit unions located in more At the same time, CERUDEB, a commercial microfinance
than 80 villages, was strengthened in 2002 by the joint bank that today has 19 branches, renewed its board of
creation of a financing programme for family farms. SIDI directors and appointed two new directors (an executive
decided to finance the experimental phase of the pro- director and a director who will handle strategy). Having
gramme with a 61,000 euro loan. achieved very positive results, the bank is now examining
how to deploy its new growth strategy to diversify its
clientele. This stage will include the continued pursuit of
services to rural populations, improvements in operatio-
nal efficiency via modern technology and the develop-
ment of new services and products tailored to the needs
East Africa and the of the customer base. The participation of SIDI on the
board of directors, with a volunteer consultant to sup-
Great Lakes region port the desk officer, is proving its worth and will facili-
tate a review of the bank’s new mission.
The boosting of partnerships continued in Uganda and
Tanzania, with the emphasis on institutional participation
in governance. The important identification work carried
out in the Great Lakes area consolidated SIDI’s commit-
ment above and beyond its activity as a social investor in
a region that is being economically and socially rebuilt.
Against a backdrop of a political crisis in Madagascar – local methodology that required revamping and the
the worst this country has known since independence – introduction of management tools and new financial
and diplomatic initiatives in South Africa, which were products. A big challenge for 2003 will be to find tech-
reported on the continent, SIDI is maintaining its strong nical and financial allies to enable TITEM to pursue its
commitment to serving its partners. development.
SIDI will endeavour to build new alliances, because the
complexities of solidarity financing call for serious
South Africa reflection and concerted actions.
12
ASIA In Asia, SIDI’s actions are concentrated in the countries along the Mekong River, where it has managed to put
together a network of quality partners. The 2000-2002 plan enabled SIDI to advance towards its ambitious goals of
participating in the institutionalisation of organisations in Vietnam and Cambodia and taking part in the creation of
refinancing organisations in Laos. The year 2002 brought greater technical and institutional support for SIDI’s part-
ners in this region.
Laos Cambodia
The consolidation of the CCSP cooperative network, to SIDI is consolidating its multipartnership strategy and is
which SIDI contributed actively throughout its 2000- strengthening its support for EMT and HATTHA KAK-
2002 plan, as well as the creation of the umbrella struc- SEKAR, which are both involved in the process of insti-
ture, the Cooperative Fund, marked the success of a tutionalisation.
community development process that began nearly ten EMT continued its robust growth in 2002 and confir-
years ago, in the wake of support from CCFD that ran med the good results of the previous year, which will
until 1996. With 9 cooperatives located in seven of the strengthen its position as the country’s biggest microfi-
country’s provinces, the CCSP network today is the only nance institution. In terms of the number of clients, in
microfinance network created by Laotians that is active September 2002, EMT’s share accounted for 27% at
nationally, serving nearly 1,000 small microentrepre- national level. The year 2002 also saw the start of an
neur. integrated MIS (management information system),
At its constituent general meeting held on 26 January which will allow the decentralisation of certain activi-
2002, which officially created the Cooperative Fund, ties to the provincial branches, in order to promote
SIDI converted part of its outstanding loans, totalling growth.
US$ 200,000, into equity investment (US$ 147,000). With the arrival of new shareholders, such as Lafayette
Official certification from the banking authorities is still Finance and PROPARCO, a private sector subsidiary of
being negotiated, but the authorities have already AFD, EMT has diversified its shareholders and increased
confirmed their interest in this initiative. ALTERFIN has its capital. Today, EMT’s main concern remains the quest
also confirmed its decision to convert the balance of its for refinancing in order to maintain to its portfolio
loan into equity investment. The Cooperative Fund will growth target, which was set out in its 2003-2005 busi-
play a key role in the development of the network and ness plan.
will be entrusted with training to the cooperatives, With the help of its well-trained managerial staff, EMT
their refinancing and the financing of small microen- is preparing for the withdrawal of the technical assis-
terprises. tance that GRET is still providing. In keeping with its
mission and vision, EMT also initiated, starting in
The financing plan underscored the need for US$ January 2003, a cut in the interest paid by its clients.
200,000 in lending funds and US$ 300,000 in subsidies, The year 2002 was a little more unsettling for HATTHA
over three years, to pay for training and technical assis- KAKSEKAR. Its shareholders mainly consist of the foun-
tance. SIDI has already mobilised several European part- ding NGO and the staff association, which together
ners to back the consolidation of this Fund starting in hold 5 of the 7 seats on the board of directors. Its first
2003. The CCSP network has initiated negotiations with year of operations closed with balanced books.
a regional programme of the IFC (MPDF), to support However, at the start of 2002, HATTHA KAKSEKAR pur-
technical assistance. sued an ambitious growth policy, which, unfortunately,
led to a large increase in arrears, a situation that the
MFI had problems incontrolling. After receiving a war-
ning from the National Bank of
Cambodia either to overcome its weak-
nesses or lose its certification, the gene-
ral management of HATTHA KAKSEKAR
made an effort to remedy matters.
SIDI, concerned about this urgent situa-
tion that jeopardized the viability of a
partner, provided HATTHA KAKSEKAR
with the means to negotiate with the
authorities. With the collaboration of
experienced and devoted consultants
SIDI agreed to carry out technical sup-
port missions, to draw up a medium-
Photo : Guy SPICA
14
LATIN AMERICA
The year 2002 was a difficult one for the entire region. On top of political turmoil, the global slump took its toll,
bringing about an economic decline. Social unrest over access to drinking water and health care, in addition to
demonstrations and strikes, aggravated the situation. While some institutions managed to maintain their level
of activities, and a few even developed their activities, others felt the full force of the regional recession. SIDI
focused its activities on partner support in Colombia, Ecuador and Peru.
In light of the fact that BANCOSOL has attained a deg- Colombia is still suffering from a guerrilla war and
ree of institutional maturity, with more than 70,000 repression at the hands government forces. Because of
active clients, SIDI may consider selling its small stake in kidnappings of local elected officials, skyjackings and
BANCOSOL and undertaking a more modest initiative frequent attacks on oil pipelines, foreign investors
(see sidebar 1). avoid the country . Every year, thousands of farmers
leave their lands, fleeing threats of violence, and swell
the ranks of the desplazados who flock to the fringes of
large cities.
Dans quel cadre la SIDI envisage-t-elle la sortie d’un partenariat ?
In what circumstances does SIDI consider pulling out of a partnership?
In a region affected by the economic crisis in Argentina
Under its 2000-2002 plan, SIDI held a discussion on the possibility of lea- and the slump in the US economy, economic activity
ving some partnerships and on turnover of shareholders’ equity. That remains weak, which means more unemployment and a
discussion will continue under its 2003-2006 plan and will culminate in steady fall in the value of the peso. CONSOLIDAR’s 2001
the design and implementation of a withdrawal policy (see Chapter III, figures foreshadowed a nearly balanced situation for
p. 23), as well as a scheme to capitalise on withdrawal experiences.
Although SIDI’s commitments are offered for the long-term, i.e. more
2002, however, the dismal climate in 2002 dashed any
than 10 years, other reasons may arise that call for the withdrawal from hopes of growth. Given these circumstances, the arrival
a partnership at a particular time. Examples of these reasons are : of new investors and an increase in its portfolio to a
- concern surrounding the turnover of SIDI shareholders’ equity for the level able to guarantee its viability are receding. At the
benefit of other institutions, when the partnership has reached a good end of the year, SIDI reinforced its stake in CONSOLIDAR
level of viability and autonomy. by an additional US$ 50,000. CONSOLIDAR’s financing
- the desire to allow an institution to forge other alliances. needs, relating to the credit fund, the expansion of its
- changes in the institution’s vision that may no longer be in step with staff and the purchase of computer equipment, have
SIDI’s own vision. yet to be met.
Sidebar N°1 A joint mission with CORDAID is being planned for the
first quarter of 2003, to discuss with CONSOLIDAR’s
small management team how best to improve its cur-
rent situation.
Chile
Although Chile has continued to enjoy economic stabi-
lity, the country has not been immune to regional com-
plications. The fall in growth has had a particular
3545-SIDI/2003_GB 4/09/03 10:39 Page 15
Ecuador Peru
Ecuador’s rate of inflation in 2002 was less than 10%, After cooperation with CREDINPET was brought to an
the lowest in the last 20 years, and remittances from end, SIDI pursued its partnership with EDAPROSPO, an
Ecuadorians working abroad constituted the second association active in microfinance, health care servi- 15
biggest source of external income, after oil. BANCO ces, the promotion of credit and savings unions and
SOLIDARIO ended the year on a high note, with a microenterprise training (see chapter entitled Focus
portfolio of 70,000 clients worth US$ 99 million. In on New Partners).
February 2002, a new product called My family, my SIDI in particular is backing EDAPROSPO’s individual
country, my return, launched in partnership with the loan programme via a US$ 80,000 loan, which falls
Spanish Confederation of Savings Banks, was a success due in June 2003. Moreover, in keeping with its open
for the bank in targeting Ecuadorian emigrants, who approach to the rural areas, SIDI is planning on expan-
were offered a loan to pay for the trip aboard, a safe ding its activities in Peru by targeting mainly the cen-
and rapid fund transfer system and the management tral macro-region and by contributing to better quali-
of income and savings. ty of financial services in this area, via a range of
players having attained institutional and financial
In 2002, with the support of SIDI, the bank succeeded maturity.
in renewing for another year a US$ 1 million finan-
cing package, granted by the unit trust Nord Sud
Développement. Given its rapid growth, the bank will
most likely need to increase its equity in the near
future. At the continental level
Set up in 1995 for a 10-year period, Costa Rica-based
Uruguay PROFUND is today preparing for its closure, scheduled
in two years’ time. Today’s economic and financial
During a mission carried out in February 2002, SIDI problems in South America, PROFUND’s area of activi-
held a discussion with SAINDESUR, a risk-capital insti- ty, are hampering fund management, in so far as any
tution, on the idea of diversifying to new products, attempt at investment is fraught with difficulties.
such as leasing. SIDI’s comments were well received by PROFUND contributed to the financing of more than
the new staff at SAINDESUR, which would now like to 400,000 microenterprises in 10 countries, which
develop new activities. However, before SAINDESUR taught PROFUND a lot about the ups and downs of
was able to secure the go-ahead from the financial investing in this area. PROFUND has also set an exam-
authorities, Uruguay became insolvent, as a direct ple of strategic and operational management that led
result of the Argentinean financial crisis. to the creation of other funds, on both sides of the
But the crisis also offered some small opportunities in Atlantic.
the export prefinancing niche. With the plan of taking
advantage of such opportunities, SAINDESUR is kee- For its part, LA-CIF, a credit fund in which SIDI increa-
ping its eyes open, but at the same time is taking a sed its initial stake, has continued to grow and attract
cautious stance. SIDI is planning to encourage closer new investors and backers, who at the end of 2002,
ties between SAINDESUR and INDES, in Chile, because contributed to the capital by more than US$ 3 million,
both organisations share a similar macroeconomic and credit lines of more than US$ 10 million.
environment.
In April 2002, SIDI, after receiving a remit from the
Fondation Charles Léopold Mayer (Fondation pour le
Progrès de l’Homme), took part in the formal launch
of Foro-Lac, a continent-wide network bringing toge-
ther representative organisations of rural MFIs in
Latin America and Haiti.
THE
16
MEDITERRANEAN
BASIN In 2002, SIDI broadened its multipartnership approach in Morocco and consolidated its existing partnerships in
the other countries of the region, a priority of its 2000-2002 action plan. Economic integration is made difficult in
the Mediterranean basin and the local economic and political situation is a source of instability. As a result, SIDI
needs to understand local problems and set up supervised support.
Under its next action plan, SIDI will strive to enrich its
knowledge of development problems encountered by
rural populations, Moroccans, Palestinian refugees in
Lebanon as well as young people in Algeria and
Lebanon, with a view to encouraging diverse approa-
ches and broadening partnerships.
THE CARIBBEAN
SIDI’s actions in the Caribbean are focused on Haiti, a country where the economic and political situation is going
17
from bad to worse and where there is no clear solution on the horizon. With foreign aid deadlocked and the cons-
tant devaluation of the gourde, which make day-to-day life very bleak indeed, SIDI’s partners are deploying huge
efforts to pursue their activities with the disadvantaged populations. SIDI’s actions and its ability to adapt to local
circumstances have been widely acknowledged and requests for partnerships are multiplying. In 2002, SIDI widened
its partner network by setting up cooperation with a crafts association. Furthermore, SIDI, in conjunction with its
allies, will intensify efforts to support a training scheme combining solidarity financing and development.
Photo : SIDI
three Haitian organisations (COD-EMH, GRAIFSI and
KOFIP). In 2002, it gained 5 new members, all promoters
of community banks and working in rural areas. Also in
2002, KNPF received support from CCFD, enabling it to Transporting rice by mule, Haiti
hire a permanent coordinator to meet the expectations
of the new members and to map out training schemes. FONHSUD works with local organisations in the region
of Aquin to promote income-generating activities. SIDI
agreed to convert the entire loan granted to FONHSUD
The continued devaluation of the local currency made
into gourdes, the local currency, and to set up a new
things difficult for our partners, some of whom were,
repayment programme. SIDI’s vitally important loan to
however, able to anticipate the problems. Therefore,
FONHSUD helped to refinance solidarity credit unions
while GRAIFSI focused on creating solidarity credit uni-
and savings banks as well as to finance farmers’ organi-
ons, it also sought to make early repayment to SIDI.
sations, in particular collective means of production.
COD-EMH was unable to avoid these difficulties, and
SIDI granted a US$ 100,000 loan to INDEPCO (Institut
reinforced its network of community banks, numbering
National pour le Développement et la Promotion de la
416, bringing together more than 13,000 people.
Couture en Haïti), a federation of small-scale tailors, via
the CCG (Coopérative de Cautionnement et de Gestion).
Because of the poor functioning of some cooperatives,
which were paying 10% to 12% per month on deposits
in US dollars, and because of its commitments to the
state and the agrarian reform, the CCG went through
serious liquidity difficulties.
In 2003, SIDI is planning on backing a restructuring of
CCG, but that will only be possible if the members of
CCG agree to recapitalise and come up with a credible
recovery plan.
TOGO WAGES
- individual savings, called HOLA, with a minimum deposit
of 8 euro, a minimum duration of 6 months, yielding 3%
per year
- a type of savings called tontine, in which a common fund
The institutionalisation of an urban project in a is set up and collected daily by itinerant collectors; the mini
thorny context mum daily deposit is 0.3 euro, from which WAGES deducts
one daily contribution each month.
The WAGES institution, a new SIDI partner in Togo, grew In 2002, the total savings outstanding reached 750,000 euro,
out of a project started by CARE International in 1994 and a 132% increase over 2001, which demonstrates the clients’
initially planned for six years. The original aim was to give genuine enthusiasm for this service. Based on these very
the women of Lomé the financial means to develop income- encouraging results, WAGES would now like to consolidate
generating activities and to promote a range of economic its savings policy and its products by means of an evaluation
activities. The suspension of international aid in 1998 in the of its clients’ needs. In addition, WAGES would like to pro-
wake of the contested electoral victory of General Eyadema mote a real savings culture, with the help of a teaching
precipitated the departure of CARE from Togo. The project method developed and disseminated by the loan officers,
was then institutionalised in the form of an association in who are usually the first to come into contact with the
1999, with an initial loan fund of 205,000 euro, and served clients.
more than 5,500 women. Thanks to its intense unity and a
proactive management, the WAGES staff managed to pro- SIDI and its alliances support consolidation targets
long and diversify its financial services by introducing the
collection of savings in 2001. Today, with its 17 loan officers In 2002, WAGES applied for a loan to SIDI, when promised
and 15 savings collectors, WAGES is recognised as a quality financing from donors in the form of credit lines and subsi-
urban institution in the area of loan distribution to disad- dies never materialised, and when a loan from a specialised
vantaged populations. WAGES operates a head office in programme (PUFS) of the Banque Ouest Africaine pour le
Lomé and has two branches, in Tsévié and Sokodé, located Développement fell due. WAGES’ members met SIDI’s quali-
30 km and 150 km from Lomé, respectively. ty and motivation conditions. In addition, WAGES’ had a
clear vision, made the right choices in a difficult period,
Solidarity loans based on prior savings sought to preserve human potential despite a lack of subsi-
dies, and opted to maintain both the quality and quantity
From the outset, based on the principles of group solidarity, of its instruments and extend them over time. Furthermore,
WAGES’ methodology for the granting of loans is founded the involvement of the board of directors, made up of 9
on the following principles : members (3 borrowers’ representatives, 3 from the civil
- the organisation of women’s solidarity groups, of around society, 2 employees and 1 representative from CARE) and
12 members each the fact that the management was very involved and sup-
- the prior establishment of savings amounting to one-third ported by the managerial staff, who were also very motiva-
of the amount applied for ted and cohesive, were all positive aspects during this diffi-
- a progression in the granting of released loan funds, from cult stage of loan project institutionalisation.
300 euro to 3,000 euro The granting of a 150,000-euro loan by SIDI in two instal-
- and an interest rate of 1.5% per month (constant interest) ments, topped up by a 100,000-euro loan from ALTERFIN-
Belgium, released in November 2002, meant that the insti-
WAGES finances the full range of its female clients’ urban tution was able to consolidate its finances. With a view to
and suburban activities. The commercial sector comes in first strengthening WAGES’ institutional and human capacities,
place, at 62%, compared to 22% for farming activities. In SIDI will continue to search for financing and will assist in
the suburban areas, WAGES officers train and support soli- the creation of an information and management system to
darity groups for three months in the fields of savings edu- formalise procedures and look into new savings products.
cation, the day-to-day management of an association and SIDI will also work to ensure that WAGES’ actions are more
how to structure solidarity groups. This methodology, which socially viable by means of impact questionnaires produced
does not require prior savings, helps to reach the most dis- by WAGES on a regular basis.
advantaged populations. The loan amounts vary from 30 to
120 euro and only 2% of the amount of the loan is charged
at the time the loan is granted. WAGES’ portfolio is an indi-
cation of its success: its loans outstanding of 1.1 million euro
at 31 December 2002 serve more than 9,000 active clients in
737 solidarity groups.
PERU EDAPROSPO
The three loan portfolios at 31 December 2001 illustrate
the diversification of products. The Alcom loan portfolio
involved 140 groups, for a total of 2,400 people,
the Credin individual loan portfolio included 1,000
microentrepreneurs and the loan portfolio of the solidari- 19
ty groups covered 90 groups, totalling 200 people.
A development NGO guided by social values The working staff, comprising 6 loan officers and 12
technicians, handles three complementary financial
The Equipo de Asesoramiento a Actividades Productivas de products, which enable it to reach out to a clientele from
Sectores Populares (EDAPROSPO), involved in the social different social backgrounds. The complementarity of
movement of the 1970s, was created during the big strike these activities with training and support services enables
of 1977 after which many trade unionists lost their jobs. The impoverished women and microentrepreneurs to change
three founders, including a French priest, then began to set their lives for the better.
up small-scale bakeries in the working class areas of Lima in
order to provide jobs to people and enable them to survive. Institutionalise or remain an NGO?
After a request from CCFD, which has been supporting this
partnership for several years, SIDI got to know EDAPROSPO In Peru, the vast majority of NGOs offering financial
in 1998. services have opted to institutionalise, i.e. they have
chosen to become a small-scale finance company (known
EDAPROSPO’s strong base in the working class neighbour- by the Spanish acronym, EDPYMES), supervised by the
hoods of Lima arose out of a strong commitment to solida- banking authorities. This change in structure allows them
rity, transparency, responsibility, fairness and social justice, to gain access to public resources, to collect savings and
innovation and tolerance. Led by a deep-seated vision and broaden their activities.
a community mission, EDAPROSPO offers three types of ser-
vices to its clients : EDAPROSPO is one of the few institutions that has decided
- the promotion of health in poor neighbourhoods not to take that step because it wishes to preserve a broad
- training of microentrepreneurs range of services for its clients, who request financial
- financial services that provide financing for microentre- services in the form of individual loans and non-financial
preneurs and promote credit and savings unions services, such as support and training. EDAPROSPO belie-
ves that the flexible status of an NGO allows it to provide
EDAPROSPO’s activities are concentrated in the densely quality services in both fields at the same time and to keep
populated working class areas of the northern and eastern taxes down to a manageable level.
cones of metropolitan Lima.
The NGO status also means that EDAPROSPO can work
« Prosperidad », a financial service closely tied to with a broadened segment of the market, as shown in the
non-financial activities following sidebar. However, EDAPROSPO is preparing for
the future and is looking into the possibility of merging
EDAPROSPO believes that loans alone cannot ensure the with a similar programme, CREDIVIDA, in order to expand
overall development of a microenterprise, but a loan com- its scope and impact. EDAPROSPO recently opened a
bined with non-financial services can do so. Although today branch in San Juan de Lurigancho, the largest district in
this viewpoint and this type of experience are controversial, the country, located east of Lima, where there is a large
EDAPROSPO has chosen its path and has succeeded in com- demand for loans.
bining microfinance and non-financial services, brought In 2002, SIDI granted a 3-year, US$ 80,000-loan, the capital
together in the Prosperidad programme, which provides of which falls due in June 2003, to finance individual loans.
three different types of products: That time will be used to examine whether the loan
- individual loans, called Credin, to promote self-employ- should be renewed or enlarged, with a view to backing
ment EDAPROSPO’s growth in new product areas, in particular
- the Alcancias Comunales, or Alcoms, which function as the ALCOMS.
community piggy banks. This consists of self-promoting
Analysis of Peru’s financial market
groups of 15 to 30 people who are encouraged to save
in order to develop small economic activities for women according to EDAPROSPO
{{
in the shanty towns and poor areas of Lima.
- lastly, the solidarity groups, whose members can access Traditional Large
the Credin after their 4th loan. microenterprises microenterprise
Origin :
capitalisation
Objective : Medium-sized
profit microenterprise
Banks
{{
Finance
institutions Small
COOPEC microenterprise
EDPYMES
Microenterprises
Loans Developing
Origin :
individual microenterprise
lack of jobs
Photo : EDAPROSPO
Objective : ONG’s
NGOs’ survival Solidarity Emerging
groups microenterprise
Surviving
« Community microenterprise
piggy banks »
Sidebar N°2
A meeting to discuss the community piggy banks, Peru
3545-SIDI/2003_GB 4/09/03 10:39 Page 20
20
DR OF CONGO BAEF
Financing women’s economic activities : the start Supporting an institution during a difficult
of a process… transition
The Convention d’Objectif Grands Lacs, which SIDI The year 2002 was marked by BAEF’s independence
signed in 2001 with the CCFD, provides a promising fra- from COTEDER, which gradually brought to a close its
mework for identifying new partnerships in the region. payment of BAEF’s operational costs. This transition
COTEDER, the Conseil Technique pour le stage was facilitated by a US$ 2,000 subsidy that BAEF’s
Développement Rural, has been active in this region for small staff, comprising 5 people, received from the
many years. Great Lakes Convention.
In the same year, BAEF asked COTEDER for technical
The BAEF, Banque d’Appui à l’Entreprenariat Féminin, and financial support. Before seriously considering the
grew out of two COTEDER programmes that came to a idea of institutionalising, BAEF will have to improve its
close : a support programme for economic activities poor loan situation, including long-standing, large
and, a women’s promotion programme. It had been arrears and a manual record-keeping system that provi-
observed that men have difficulties paying back loans, des only a limited overview of the clients and the port-
and that combining loans and subsidies creates confu- folio. BAEF will have to find the way to achieve finan-
sion in people’s minds. Therefore, the women benefi- cial viability.
ciaries of these programmes wished to develop their SIDI wants to encourage BAEF’s staff in this difficult
own financial instrument. stage and in 2003 will help to computerise the portfolio
Furthermore, in a crisis, it turns out that women are in order to have a clearer and up-to-date view of its
better at business matters than men and tend to make activities.
better use of household income. COTEDER decided to
support this initiative by contributing a special loan Furthermore, BAEF is aware that it needs to diversify its
fund for women’s activities, in order to improve the financial products and to lower the rates of interest it
living conditions of families. The fund is used by BAEF charges. Once the computerisation is in place, new
for start-up capital. Given the increased insecurity in the developments can be considered, such as the promotion
rural areas, BAEF decided to start its loan activities in of solidarity credit unions.
the city of Butembo, in the North Kivu province, in sup-
port of women working in the informal economy.
Taking the first steps towards institutionalisation
The loan methodology is based on local support, with
the following features: BAEF, whose sole shareholder is COTEDER, will have to
draw up an institutionalisation plan in 2003. Besides
- women organise in small solidarity groups SIDI, which may acquire a stake in BAEF’s capital in 2003
- training is provided prior to the granting of loans of around US$ 10,000, BAEF’s clients, now organised by
- prior local enquiries are made to ascertain the borro- sectors of activity, may also buy shares in the bank via a
wer’s activities and character US$ 10,000 fund made available by a German coopera-
- loans are granted progressively, with amounts varying tion programme, GTZ.
from US$ 10 to US$ 650, the average being US$ 130 The role of these clients in BAEF’s future organisation
- the maximum duration is three months. will therefore have to be spelled out. A tripartite part-
nership convention, bringing together COTEDER, GTZ
Rather harsh loan conditions are imposed by BAEF, in and SIDI, will help to clarify their role.
particular high interest rates, because of the concern to
preserve the small amount of capital it has available
(US$ 16,000) in a context where arrears are high, owing
to the war and reigning insecurity.
REINFORCING FINANCING
IN THE RURAL WORLD
21
SIDI is seeking to shore up financing in rural areas over the forthcoming years. This decision was reached after hea-
ring what our partners had to say, particularly in Africa. During its 2000-2002 plan, SIDI undertook to listen to them,
because the problems were difficult and recent. SIDI then set in motion a number of financing and support activities
that were designed to test the waters to see how this complex issue of rural financing could be handled in Asia,
Africa and in Latin America. Our partners’ insistence and an in-depth inventory of West Africa convinced us of the
need to strengthen our activities in that area. Moreover, the choice was made as well in the wake of questions rai-
sed by our shareholders, who wanted SIDI to make a contribution to rural financing.
Today, more than one billion people in the world survive on less than 1 euro a day, and 75% of them live in rural
areas. Moreover, the capital cities are continuously expanding and there will be more and more poor people in the
cities, precisely because the grim living conditions and the lack of any national policy in the rural areas encourage
people to leave the countryside for the cities. Things would be different if the farmers and craftsmen in the coun-
tryside could produce and sell more, at better prices. Today that is not possible, neither in Africa nor in the rest of
the world.
• The first steps… range of activities and coordinating with organisation and
development programmes focusing on the food sector (rice
In Africa, in the year 2000, SIDI provided financial support to
production) or that finance cash crop (such as coffee) pro-
KOKARI, a credit and savings union that helps farmers in
ducers.
Niger, as well as to UGPM, a producers’ organisation in
Senegal. KOKARI grew out of the institutionalisation of a • Encouraging dialogue between farmers and
former project, and carries out the difficult task of interve- microfinance institutions
ning in most of the regions in Niger, often at distances of In December 2002, SIDI had the task of leading a seminar
1,000 km from the capital city, where its headquarters is organised by the MAIN network in Addis Ababa, which
located. KOKARI provides a range of loans and a training brought together farm organisations and microfinance insti-
programmes tailored to the needs of rural organisations. In tutions. In Latin America, SIDI, along with the Fondation
Asia, SIDI has developed its financing commitments in rural pour le Progrès de l’Homme and other partners, gave sup-
areas with the CCSP credit and savings union network in port to the Foro Latino y del Caribe de Finanzas Rurales (the
Laos and with EMT and HATTHA KAKSEKAR in Cambodia. Latino and Caribbean Rural Financing Forum). Although it
The process continues to forge ahead. grouped mainly national associations of microfinance insti-
• Diversification: farmers’ organisations face the tutions, this Foro Permanente was designed to develop a
financing issue working agenda around this theme in the hope of attrac-
ting as many participants as possible.
During the 2002-2003 farming season in Senegal, SIDI, along
with CORDAID, gave technical and then financial support to
• Backing a rural producers’ organisation
UGIE-EGAS, which was later renamed SAPCA-EGAS, for
groundnut marketing. Unfortunately, the marketing season, In Latin America, the problems relate more to the marketing
which recently came to a close, was not very successful of farm produce, such as coffee. Agricultural development
because of the scant groundnut production, a result of banks are increasingly thin on the ground. Many were poor-
insufficient rainfall and a lack of seeds. In spite of that, the ly managed and were liquidated, ceding their place to the
organisation was able to diversify and become active in mar- commercial banks, usually private ones that support econo-
keting commodities. mic activities in the cities, but very few of them have bran-
ches in the villages. Given that context, cooperatives, which
• Supporting financial products in far-flung rural areas best meet the expectations of rural producers, are enjoying
SIDI is supporting organisations, both with financing and a revival.
technical assistance, that wish to promote self-managed
financial vehicles, such as solidarity credit unions in Senegal, In 2002, SIDI became interested in the Peruvian La Florida
Haiti, Madagascar and in the Great Lakes region, savings Coffee Cooperative, which set up its own financing instru-
and loans in Uganda, etc. These organisations are funded by ment with its savings and loan cooperative. This institution’s
member’s contributions. programme deserves further study because one does not
• Backing family holdings often see small producers in Latin America who are able to
create financial instruments in their own rural environment.
Since 2000, SIDI has been providing technical and, subse-
With its rural financial services programme in the Sierra
quently, financial support to UGPM in Senegal. After assis-
Norte region, BANCO SOLIDARIO, backed by the NGO
ting the organisation of 82 villages into solidarity credit uni-
Fundación Alternativa, intends to increase its rural activities
ons, with financial support from SIDI, UGPM then decided to
and serve 4,000 rural clients by 2004.
explore the financing of family farms, defined as socio-eco-
nomic entities in which a family carries out a range of acti-
During its next action plan, for the 2003-2005 period, SIDI
vities. UGPM’s approach is different from that of banks and
will be reinforcing its support to solidarity financing initiati-
even microfinance institutions, which usually finance an
ves in rural areas on a number of continents. More particu-
individual and a particular purpose of the loan, such as pur-
larly, SIDI will focus its thoughts on the following points:
chase of seeds, labour costs, equipment, etc.
- the building of a financing strategy for rural areas in West
• Buttressing institutional governance in rural areas Africa
An examination of governance is today an essential compo- - the promotion of easy-access savings and loan instruments
nent for ensuring the sustainability of institutions operating adapted to the needs of populations
in rural areas. In Guinea-Conakry, SIDI sits on CGR’s board of - capitalising on the impact of financial services, with their
directors. This institution helps family farms by financing a promoters.
3545-SIDI/2003_GB 4/09/03 10:39 Page 22
SIDI’S INSTITUTIONAL
SIDI’S INSTITUTIONAL ACTIVITIES
ACTIVITIES
22
Promoting solidarity savings and investment At the end of 2002, the amount outstanding in the
investment fund, which is managed by the Crédit
The promotion of Faim et Développement investment Coopératif, amounted to 47.5 million euro with 3,500
fund was stepped up thanks to the activities of 20 regio- subscribers, a 4% increase over 2001, despite the down-
nal SIDI/CCFD correspondents, in conjunction with turn in the financial markets in 2002. Furthermore, the
Diocesan Committees. The shared proceeds from the regional correspondents contributed to the increase in
investment fund will help to finance, via the CCFD, SIDI’s the number of subscribers during 2002 (see sidebar 3).
development mission, consisting of monitoring and sup-
porting partners, as well as training and backing regional A large part of SIDI’s capital is still held by CCFD, the
networks. founder and holder of 31% of the shares that, along with
two women’s religious congregations that hold 28%,
guarantee that SIDI’s social aims and its mission will be
The SIDI/CCFD regional correspondents, a link in the Solidarity Chain maintained. Since the capital increase of October 2001,
for Financing the association Epargne Solidarité Développement has
sold more than 1,000 shares to individuals, thereby pro-
Why did I agree to become a SIDI/CCFD correspondent? Not because of my financial skills (I work
in telecommunications), but because during the "Jubilee 2000" I organised, with the support of
moting an increase in the number of people who support
CCFD, a roundtable session on Solidarity Financing that made me want to pursue this type of acti- SIDI’s financing activities through its partners in the field.
vity.
For two years now I have been leading actions that, in my opinion, made this occupation of pro- In 2002, the FINANSOL association, a French solidarity
moting solidarity financing so attractive. I make presentations explaining how to make the best financing network bringing together finance institutions,
of savings as part of a citizen’s commitment to solidarity. I present my experiences to the backers and qualified individuals, renewed the issuing of
Diocesan Committees in CCFD, to trade unions, the Catholic Action movement, to teachers, etc.
its quality label to SIDI, a guarantee of the solidarity com-
I also take part in various events such as association forums and local or regional gatherings in
which the spirit of solidarity is always apparent. ponent and transparency, to the shares of SIDI shares,
those of the Faim et Développement investment fund
and to Eurco Solidarité.
As you can see, the scope of action is broad and requires a lot of personal initiative, but I do not
feel alone. I take part in two annual gatherings of SIDI/CCFD correspondents held in Paris, which
help me to improve my knowledge on solidarity financing and exchange my personal experien-
ces with the 20 other correspondents. My motivations for becoming a promoter of solidarity Graph 6 : Breakdown of SIDI’s capital
financing are founded in my deep conviction of the need to carry out indispensable action at the
right time: at 31 December 2002
- Indispensable action: Disadvantaged people in developing countries aspire for a dignified life.
We can contribute to the support of local people capable of taking the initiative to change their Development
living conditions. Solidarity financing is like an extraordinary lever that fully respects the indivi- European partners solidarity savings
dual’s dignity. 4% 24%
Financial institutions Others
- The right time: I believe that we are beginning to see some alternatives to the ultraliberal eco- 10%
nomic model. I look around me and see that many people want to devote a portion of their 3%
savings to helping the most disadvantaged people. Now is the moment to offer them the solu-
tions put together by CCFD and SIDI, so that they can participate in the building of a world of
greater solidarity. Cong. des Sœurs
auxiliatrices CCFD
18% Cong. des Sœurs 31%
Ursulines de Jésus
Sidebar N°3 Bertrand Desmonts, Vannes 10%
Capitalising on the SIDI Workshops of October 2001 practices and experience, also had questions concerning the real impact of
financial services. Their questions related to challenges posed by the “world
The SIDI Workshops were an opportunity for the participants, especially the culture of production and consumerism”; to the development of individua-
savers’ and shareholders’ spokespersons, to ask questions and have their say. lism reinforced by a microcredit system that is excessively targeted on the
Their statements focused on values and principles, such as sharing, respect individual microentrepreneur rather than taking account of the family unit
for cultures and the human dimension that goes with investment choices. and its immediate environment; and to the limits of microcredit when the
These were also underpinned by the idea of social productiveness, a princi- aim is to find the means to finance investment and the processing of farm
ple that informs financial investment. This kind of investment must produce products, etc.
human benefits, such as improved well-being of the beneficiary population
These questions led to proposals for the future. In order to better unders- 23
receiving the financial services.
tand the future, impact studies would shed light on fundamental issues in
relation to the aims pursued. What is the impact of loans on relations bet-
These affirmations and deeply-felt convictions led to questions and propo- ween men and women? Does credit facilitate the participation of women in
sals concerning the impact of financial services on the well-being of the decision-making? What is the impact on savings?
beneficiaries, on their living conditions, on decreasing their vulnerability, Excerpt from the document capitalising on the SIDI Workshops of October
etc. 2001, K. Verhagen, May 2002
The questions from representatives of savers and shareholders in the North
were understood by the partners in the South who, on the basis of their Sidebar N°4
1200 tK
Graph 8 : Funds mobilised for our financial
1 000 000
partners in 2002
1000 tK
CORDAID et Entraide et fraternité
Sicav Nord Sud Développement
800 tK
SOS Faim Luxembourg
CRIF/DÉSIR D’HAÏTI
600 tK
CORDAID
Alterfin
400 tK
UE/EBAS
HIVOS
MPDF
CTA
176 225
200 tK 153 850
31 627 30 000 16 000 50 000 50 000 12 759 9 727
0 tK
Financial partners
SIDI’S FINANCIAL
SIDI’S FINANCIAL STATEMENTS AS OF 31 DECEMBER 2002
24
STATEMENTS
SIDI BALANCE SHEET AS AT 31 DECEMBER - IN THOUSANDS OF EURO 1 Euro = 6,55957 FF
ASSETS LIABILITIES
2002 2001 2000 2002 2001 2000
Total fixed assets 3282 2785 1849 FID - Internal garantee fund 2592 2592 2592
C.D.C. funds. 313 305
Funds dedicated to Palestine 507 507 507
Claims (net value) 1101 1091 416 Contributions for increase of capital 1015
Other debts 805 797 471
Cash assets 5477 6047 5830
«HLB SOFIDEEC Agency, external auditor, member of the Paris CRCC, represented by his Chairman, Mr Fouad EL M’GHAZLI,
certified without reservations financial statements of SIDI for the fiscal year ended December 31, 2002.»
3545-SIDI/2003_GB 4/09/03 10:39 Page 25
% of total 68 32 100
N.B.: the book value shown in this table includes currency differentials.
N.B.: participations in European institutions are not reported in this table
3545-SIDI/2003_GB 4/09/03 10:39 Page 26
ADDRESS
ADDRESS BOOK
BOOK
26
AFRICA
AFRICA
MAIN
BURKINA FASO – URCSONA
BP 171 Tougan
Tèl : (226) 53 41 13
E-mail : wupakwe@fasonet.bf
NIGER – Coopérative KOKARI
Avenue des Zarmakoye
BP 11122 Niamey
Tel/Fax : (227) 75 25 12
SENEGAL – UGPM
B.P. 43 - Mechhé
Tél. : 00 221 955 51 13
Fax : 00 221 955 52 86
E-mail : kokaris@intnet.ne Email : ugpm@sentoo.sn
Abidjan Office - Ivory Coast IVORY COAST – FIDI
c/o FIDI - 04 BP 2237 - ABIDJAN 04 Riviera Golf - Immeuble N'ZI - 2ème UGANDA – CERUDEB TANZANIA - AKIBA Commercial Bank
Addis Abeba Office - Ethiopia étage - App 489 - 04 BP 2237 - Plot 7, Entebbe Road - P.O. Box 1892 - TDFL Building (Phase II)
B.P. 278 - Addis Abeba Abidjan 04 Kampala P.O. Box 669 - Dar es Salaam
Tèl : (225) 22 43 52 23 Tél.: 00 256 41 232 393
Tél. : 00 225 22 43 52 23 Tél. : 00 255 222 11 83 40
Fax : (225) 22 43 61 89 Fax: 256 41 251 273 ou 278
Fax : 00 225 22 43 61 89 Fax : 00 255 222 11 41 73
Email : mainafrica@aol.com / fan-
Email : fidi-ong@globeaccess.net Email : crdb@imul.com Email : Akiba@cats-net.com
taw@telecom.net.et
GUINEA – CREDIT RURAL DE GUINEE UGANDA - OMIPA TOGO – WAGES
SOUTH AFRICA – MENNGOS
45, Castle Street - 3rd Floor - Cape BP 3790 Conakry KABINGO Angle rue Aniko Palako et avenue
Town 801 - PO Box 24121 Tèl : (224) 41 35 71 ou 45 43 38 MBARARA Maman N’Danida
Tél. : 00 27 21 424 1775 Fax : (224) 41 12 78 Tél. : 00 256 48 52 08 77 BP 1339 Lomé
Fax : 00 27 21 424 1841 E-mail : crg@mirinet.net.gn Tèl : (228) 22 54 71
Email : menngos@nweb.co.za SENEGAL - ASPRODEB Fax : (228) 22 78 99
MADAGASCAR – SIPEM 8, boulevard de l'Est X - rue 2 bis - E-mail : wages@cafe.tg
TEMBEKA Immeuble SANTA LOT III – 24, rue Dakar
C/O SOUTH CROSS Naka Rabemanantsoa Antanimena Tél. : 00 221 825 56 65
135 Main Road - 1st Floor - B.P. 2337 B.P. 8616 – Antananarivo 101 Fax : 00 221 824 48 73
Claremont 7740 – Le Cap Tél. : 00 261 20 22 300 98 Email : fkdiop@cyg.sn
Tél : 27 21 683 71 00 Fax : 00 261 20 22 355 34
Fax : 27 21 683 71 03 Email : sipem@dts.mg SENEGAL – SAPCA-EGAS
(Ex UGIE-EGAS)
BURKINA FASO – MUFEDE MADAGASCAR - TITEM Quartier Diamagueune 1
Immeuble Le Walkoye – Avenue de la Lot IVM 7 - Ambodivona BP 1120 M’Bour
résistance du 17 Mai B.P. 1291 - Antananarivo 101 Tèl : (221) 957 49 57 ou 639 26 24
Ouagadougou Tél. : 261 20 22 658 67 Fax : (221) 957 49 07
Tèl : (226) 318 827 Fax : 261 20 22 658 67 E-mail : ugiegas@sentoo.sn
E-mail : mufede@senatrim.bf Email : titem@bow.dts.mg
MEDITERRANEEN BASIN
MOROCCO – AMOS
2, rue 26, Quartier Amalou - Khénifra
MEDITERRANEAN BASIN Tél./Fax : (212) 55 39 43 07
Email : aosmck@iam.net.ma
ALGERIA – TOUIZA LEBANON - ASSOCIATION NAJDEH MOROCCO – AL AMANA
18, rue Abdelaziz Mouzaoui - 16027 P.O. Box 113-6099 – Beyrouth 28 rue Oum Errabiaa, Agdal, Rabat PALESTINIAN TERRITORIES – ACAD
Alger Tél. : 00 961 1 30 20 79 Tèl : (212)37 77 01 41 P.O.Box Al-Beireh – 3816 – Jérusalem
Tél. : 00 213 2 64 99 92 Fax : 00 961 1 70 33 58 Fax : (212) 37 68 67 12 51001
Fax : 00 213 2 61 81 05 Email : najdeh@cyberia.net.lb E-mail : fouad@alamana.org.ma / Site Tél.: 00 972 2 298 93 50 or 51
Email : Touiza.Solidarite@wanadoo.fr : www.alamana.org Fax : 00 972 2 298 93 52
(Marseille) ou touiza@wissal.dz Email : acad@palnet.com
CARIBBEAN
HAITI – GRAIFSI HAITI – KNFP
17, ruelle O, Turgeau - Port-au-Prince c/o COD - Delmas 95 - N° 15, Frères -
CARIBBEAN Tél./Fax : 00 509 245 4819 P.O. Box 6 – Port-au-Prince
Email : Dlustin@hotmail.com Tél. : 00 509 57 74 44
HAITI – COD/EMH HAITI – FONHSUD Fax : 00 509 57 92 28
Delmas 95 - # 15 Frères - P.O.Box 6 - Rue Berne, # 19, Bois Vernat - BP HAITI – CCG/INDEPCO Email : idurandis@cod-emh.org
Port-au-Prince 1041 - Port-au-Prince 13 rue Capois
Tél. : 00 509 257 75 44 Tél. : 00 509 245 42 86 Port au Prince
Fax : 00 509 257 92 28 Fax : 00 509 222 39 38
Email : idurandis@cod-emh.org Email : : fonhsud@workmail.com
SOUTH AMERICA
SOUTH AMERICA
BOLIVIA – BANCOSOL
Av. Amazonas 3887 y Corea - Edificio
Grupo Enlace - PBX : 260260
Tél. : 00 593 2 26 85 34
Fax : 00 593 2 26 88 43
Octavio Bernal 598 - Jesús María –
Apartado Postal : 110325 - Lima 11
Tél. : 00 511 463 4173 / 00 511 461
6014
Casilla 13176 - Calle Nicolás Acosta N° COLOMBIA - CONSOLIDAR Email : bsolidario@enlace.fin.ec Fax : 00 511 463 0776
289 Calle 54 # 10-81 - Piso 2nd Email : david@edapr.org.pe
Esq. Cañada Strongest/Plaza San Pedro Santa Fé de Bogotá PERU – LA-CIF
- La Paz Tél. : 00 571 212 10 88 Calle Bolivar # 472 – bureau 702/703 URUGUAY – SAINDESUR
Tél. : 00 591 2 39 28 10 Fax : 00 571 348 14 06 – Miraflores – Lima 18 Bulevar Artigas 1119 - SUBSUELO -
Fax : 00 591 2 39 19 41 Email : consolid@latino.net.co Tél. : 00 511 446 8877 Montevideo
Email : KKoenigsfest@bancosol.com.bo Fax : 00 511 446 8585 Tél./Fax : 00 598 2 402 27 80
COSTA RICA – PROFUND Email : lacifluc@amauta.rcp.net.pe ou Email : indesur@adinet.com.uy
CHILE – INDES P.O.Box 769-1005 - San José de Costa fernandol@cyrano-management.com
Bernardo O’Higgins N° 1468 – Rica
Comuna de Santiago de Chile Tél. : 00 506 220 4122 / 290 2404 /296
Tél./Fax : 00 562 696 09 16 8004
Email : indes@terra.cl Fax : 00 506 290 2345
Email : asilva@intercentro.com
ASIA
ASIA
CAMBODIA – HATTHA KAKSEKAR
Road No 4 Peal Ngek I Village
Phteash Prey Commune –
Sampovmeas District
THAILAND – RCP
2044/21 New Petchburi Road - Khet
Huai Khwang - Bangkok 10310
Tél. : 00 662 321 57 18
VIETNAM - Union des Femmes de
la province de Soctrang
WUSOP
09 Tran Hung Dao
CAMBODIA – EMT Pursat Province 50 m from highway 5 Fax : 00 662 718 07 53 Ward 3
72/74, rue 598 – Boeng Kok II - Toul Tél. : 855 52 951 404 Email : sifudf@mail.gsb.or.th and Ville de Soctrang
Kok Email : Kaksekar@camintel.com trrm@bangkok.com Province de Soctrang
BP 57 - Phnom Penh Tél : Phone : 84 79 82 42 41 - 84 79
Phone: 00 855 23 881 342 LAOS – CCSP VIETNAM – CEP Fund 82 10 - 28 - 84 79 82 22 02
Email: emt@bigpond.com.kh ou 271, rue Nongbone – Ban Phonxay 14, Cach Mang Thang Tam – 8 st - Fax : : 84 79 82 10 28
fred.emt@everyday.com.kh, BP 7437 - Vientiane Dist. 1 - Ho Chi Minh Ville
Tél. : 00 856 21 41 54 57 Tél. : 00 848 822 33 21
Fax : 00 856 21 215 628 via BOX 03 Fax : 00 848 824 56 20
Email : CCSP@laonet.net Email : cep@saigonet.vn
EASTERN EUROPE
POLAND – TISE
UL. Nalewki 8/27 – 00-158 Varsovia
EASTERN EUROPE Tél. : 00 48 22 636 07 40
Fax : 00 48 22 636 29 02
Email : inwestycje@tise.com.pl
3545-SIDI/2003_GB 4/09/03 10:39 Page 27
SUPERVISORY
SUPERVISORY BOARD
BOARD
27
Xavier LAMBLIN
Chairman of the Supervisory Board
Chairman of the CCFD (Catholic Commitee against Hunger and for Development)
Philippe MESNY
Vice-Chairman
Antoon BIERINGS
Jean PERE
Jean-Pierre PLUQUET
Arthur POTOCKI
DIRECTORATE
DIRECTORATE
Christian SCHMITZ
Chairman of the Directorate
Christophe COURTIN
Bernard MAZZASCHI
AUDITOR
AUDITOR
Fouad EL M’GHAZLI
HLB SOFIDEEC
3545-SIDI/2003_GB 4/09/03 10:39 Page 28
INTERNATIONAL SOLIDARITY
FOR DEVELOPMENT AND INVESTMENT
12 rue Guy De La Brosse
75005 PARIS
Tél. 33 (0) 1 40 46 70 00
Fax. 33 (0) 1 46 34 81 18
site web : www.sidi.fr
Photo : CIRIC