The Microfinance Index 2023 honours two of SIDI’s partners!

Fondo de Desarrollo Local (FDL)

For many years now, SIDI has been committed to the continuous improvement of its social and environmental performance (SEP) and that of its partners. To this end, we monitor a number of economic, social and environmental indicators each year, which we analyze and publish in our social report and our social responsibility report. However, we know that measuring impact itself is a far more complex challenge, but one that is nonetheless necessary if we are to track our progress towards our social objectives. That’s why SIDI has been testing a number of innovative models in recent years to advance our understanding of this crucial issue.

SIDI participated in the microfinance index of 60 Decibels, a company specializing in impact measurement based on listening to beneficiaries, thanks to funding from the Fondation Actes. It was a way of thinking about a new way of apprehending the results of its partners in the field, through analysis of the perception of change felt by the final beneficiaries.

The index is based on direct feedback from customers of over 100 microfinance institutions worldwide. The 60 Decibels team has developed a questionnaire to survey the beneficiaries of these institutions on their perception of the impact on their lives of the financial services to which they have access. This enables each participating institution to understand not only its strengths in the eyes of its customers, but also where there is still room for improvement, and to benchmark itself against its peers.

The participation of SIDI’s partners Kafo Jiginew and Fondo de Desarrollo Local in this initiative is already proof of their commitment to their clients and their desire to improve their practices in order to maximize their impact.

Kafo Jiginew is a mutual savings and credit institution based in Mali, in existence since 1987. Its mission is to give low-income Malians access to local financial services. Kafo Jiginew has formed a partnership with SIDI since 2017, and in recent years has demonstrated a willingness to evaluate the effects of its activity on its beneficiary populations. The microfinance index was an ideal way to start tackling this issue, due to the ease of the process and the limited cost compared to other impact study models. The results are very positive: Kafo ranks4th among Sub-Saharan African institutions, and scores impressively on almost every dimension of the report.

Kafo Jiginew customers seem to be particularly satisfied with the development of their business and thus their income since the first loan granted by the institution.

To the question “Has the revenue you earn from your business changed thanks to Kafo Jiginew’s services?”, 63% of respondents claim to have seen a significant increase in their revenue, compared to an average of 22% in the benchmark of all institutions participating in the index.

For 54% of customers, the fact of having been able to consolidate or grow their business or activity is what has most influenced their quality of life, through the generation of more profits enabling them to meet the needs of their family. The financing provided by Kafo also enables customers to generate local employment. Thus 36% of respondents claim to have hired at least one extra person.

Fondo de Desarrollo Local (FDL) is a leader in Nicaragua’s microfinance sector. Since its creation, first as an NGO in the 90s, then as a regulated financial company from 2016, FDL has been committed to improving the living conditions of the most vulnerable, by providing loans, training and support services.

In partnership with SIDI since 2015, FDL had already carried out an initial study with 60 Decibels in 2021, which focused on understanding how its customers had been affected by the Covid crisis, with the aim of setting up services to help them bounce back from this difficult context. This second study, launched in 2023 as part of the Microfinance Index, is part of FDL’s wider drive to collect recurring feedback from its customers, in order to improve over the life of their new strategic plan.

FDL’s results are also very encouraging, with the institution ranking 5th in the Index’s Latin American MFI rankings.

Almost all FDL customers say they have seen an overall improvement in their living conditions, and 60% of them consider this improvement to be particularly significant. FDL is well above the benchmark for this question, at 23%.

For approximately half of the respondents, this improvement is mainly due to the fact that the loan enabled them to buy or build their home, or carry out the necessary renovations. For 29% of them, the financing was used to grow their business. Finally, 9% of respondents say their quality of life has improved thanks to their ability to cope with everyday problems and improve their living comfort as a result of the financing. To the question “How has your quality of life improved thanks to FDL financing?”, one customer replied: “When I needed it, they gave me a loan to renovate the house and the store. Now I have a fireplace and can cook without smoke. It’s improved my health and I don’t bother the neighbors. I built a wall, my house is safe, and the store is more attractive.”

Although the study model proposed by 60 Decibels is more a perception study than an impact study in the strict sense of the term, it does give a voice to beneficiaries, and enables us to begin assessing the effects of an institution, in a way that is simple and relatively inexpensive for institutions. This test of the research model proposed by 60 Decibels was therefore conclusive for the partners, whether for Kafo, a partner rather new to monitoring their social performance and impact, but with very positive practices and highly satisfied customers, or for FDL, a more experienced organization seeking to measure its impact over the long term.

SIDI was also pleased with its partnership with 60 Decibels, and will be renewing this cooperation by taking part in the Coffee Index, a new initiative aimed this time at coffee cooperatives and SMEs in East Africa, and designed to assess the perception of their producer-suppliers regarding the services offered to them.

Discover SIDI’s Social and Environmental Report 2022

We are pleased to share with you SIDI’s new social and environmental report, which presents the partners’ results in 2022!

This report is organized around SIDI’s mission objectives, defined this year as part of the new strategic plan.

  • Through its financing and support activities, SIDI aims to reduce economic inequalities in developing countries through the emergence and empowerment of local economic players.
  • It seeks to combat poverty through an approach focused on the most vulnerable, in particular people living in rural areas, women and young people, who are the lifeblood of these countries and the promise of a more equitable, fairer and more united world.
  • Finally, SIDI is firmly committed to building a more sustainable world that respects the environment and is capable of adapting to climate change.

The team is proud to present the results of its partners from the point of view of its mission objectives, results which are the fruit of in-depth analysis made possible by the high-performance PSE evaluation system developed by SIDI in recent years. This system makes it possible to analyze the contribution of partners to SIDI’s objectives, highlighting their progress as well as areas where there is still room for improvement.

This report is an opportunity to find out more about SIDI’s partner organizations, and to delve into an analysis of their evolution in terms of economic, social and environmental performance.

  • Discover the results of two impact studies financed by SIDI in 2022
  • Find out more about gender mainstreaming at SIDI and its partners
  • Find out more about SIDI’s commitment to environmental protection, through its promotion of agroecology and sustainable practices among its partners, as well as through the development of a new “climate” portfolio, a key focus of the new strategic plan.
Voir le rapport

SIDI acquires a majority stake in Inpulse, a management company specializing in impact investment

SIDI is delighted to announce that it has taken a majority stake in the Belgian management company Inpulse Investment Manager, in which it previously held a 35% stake, through the partial buyout of Crédit Coopératif’s shares.

SIDI and Crédit Coopératif, the two shareholders in Inpulse, have decided to invert their respective shares in the company’s capital in order to consolidate it and support it in the development of its impact fund management activities in Europe and the South.

SIDI, more than Crédit Coopératif, has the experience of impact investment, both geographically and thematically (particularly in the financing of agricultural entities), to support development as a majority shareholder in the management company. By remaining a minority shareholder and member of the Board of Directors, Crédit Coopératif is demonstrating its determination to continue supporting the development of Inpulse alongside SIDI, of which it is also a shareholder and long-standing partner, and with which it has developed numerous collaborations in Africa and the Mediterranean Basin, notably within the framework of the FEFISOL and COOPMED Funds.

For SIDI, the strategy linked to this operation is based on 3 axes:

  • Consolidate the funds managed by Inpulse and ensure their economic viability, in particular the FEFISOL II fund, supported by SIDI.
  • Develop synergies between SIDI and Inpulse, notably through geographical complementarity at the operational level, the sharing of experience and best practices on the subjects of impact, social and environmental performance, compliance and the development of institutional relations.
  • Support the development of Inpulse in its efforts to diversify its activities, thanks to a competent team committed to the microfinance and social entrepreneurship sectors, in line with SIDI’s vision and strategy.

SIDI is taking a majority stake in a pioneering management company in the impact sector, with AIFM approval, which will also enable it to continue innovating socially in partnership with other investors and operators in the sector.

Discover FEFISOL’s Social & Environmental Report 2022

The social & environmental report on the first year of activity of the FEFISOL II fund has just been published!

FEFISOL II is an investment fund dedicated to financing rural microfinance and small-scale family farming in Africa. This is the successor fund to FEFISOL I, launched on the initiative of SIDI and Alterfin for 12 years.

The team is very proud to present achievements that are fully in line with the fund’s ambitious social and environmental objectives:

  • The fund has already financed 18 partners (12 agricultural entities, 6 microfinance institutions) in 11 sub-Saharan African countries.
  • 83% of the farms financed are certified fair trade and/or organic.
  • 69% of the portfolio is invested in countries with a low HDI (Human Development Index)
  • 85% of the microfinance portfolio is dedicated to Tier 2 and Tier 3 institutions: small and medium-sized institutions with assets of less than $50 million and less than $5 million respectively.
  • 1.2 million final beneficiaries, 51% of whom are women
  • The fund is aligned with the 2X Challenge, the multilateral initiative whose aim is to deploy unprecedented volumes of capital in support of projects that empower women.

The first closing of FEFISOL II took place in May 2022 for 22.5 million euros with the founders (SIDI, Alterfin), European development agencies (BIO, EIB, Proparco) and European private players (Banque Alternative Suisse, Banca Etica Populare, Crédit Coopératif, SOS Faim Luxembourg). This closing is accompanied by a technical assistance package of 1.3 million euros from Proparco and Bio.

On the strength of these results, the FEFISOL II fund aims to close a second closing with new investors by the end of the year.

Voir le rapport

Publication of SIDI’s 2022 Social and Environmental Report

The Social and Environmental Report brings together the figures and data from SIDI’s social investment activities, as well as the results in terms of the social and environmental performance of the partners we support.

The Social and Environmental Report is the result of extensive data collection and analysis work carried out by SIDI’s Social and Environmental Performance team. It will be supplemented by a detailed report on the partners’ social, environmental and financial performance, available in September 2023.

In 2022, SIDI is pursuing its mission as a solidarity investor and demonstrating the added value of its action.

It supports 120 partners in 35 countries, mainly rural or mixed microfinance institutions and agricultural entities, most of which are certified organic and fair trade.

SIDI continues to target the most vulnerable:

  • 78% of partners are located in high-risk countries;
  • 68% of partners are located in countries with a low or medium HDI ;
  • 52% of the portfolio is dedicated to sub-Saharan Africa;
  • 66% of partners target rural areas.

It maintains as a priority the empowerment of partners in the process of consolidation:

  • 70% of MFIs supported are small (Tier 2/3)
  • Loans granted are on average 3 times lower than those granted by other investors in the sector.

SIDI’s partners adopt responsible and sustainable practices:

  • 73% of farming units are certified organic and/or fair trade;
  • 78% of MFIs have set up a system for collecting and analyzing beneficiary complaints.
Voir le bilan

The Muungano agricultural cooperative wins the Grands Prix de la Finance Solidaire!

“We’re very inspired by this award,” confides Daniel Habamungu, the cooperative’s CEO. It further strengthens our determination to work together. It’s very important for the collective, because it gives courage and loyalty to the members of the cooperative”.

The award is in recognition of the remarkable work carried out by the Muungano team. In recent years, the cooperative has tripled its membership to 4,100 small family producers, 43% of whom are women. It produces very high value-added coffee in a particularly difficult context: limited infrastructure, transport difficulties, chronic insecurity in the region, and the area’s vulnerability to climate change.

The plantations are located between 1400 and 2600m altitude, and these volcanic highlands offer optimal conditions for growing Arabica coffee. The cooperative is certified fair trade and organic. Coffee growers take advantage of the great plant diversity to use agroforestry methods that combine shade and fruit trees with coffee plants. This naturally fertilizes the soil, reduces the risk of landslides and diversifies members’ sources of income.

SIDI has been a partner of Muungano since 2015. In a sector where other financiers charge high rates and also require property guarantees, SIDI can offer loans at attractive rates, enabling the cooperative to pre-finance coffee campaigns. At the same time, SIDI offers tailor-made support in key areas such as accounting and financial management, performance management and development strategy. Lastly, it supports the promotion of sustainable farming practices, particularly agro-ecology.

Despite the major challenges facing the cooperative, it has been able to resist, progress and supply the gourmet coffee sought after by connoisseur buyers in a niche sector with very high added value. SIDI is very proud to support the dynamism and resilience of the people of Kivu and the members of Muungano.

Well done to the great team at the Muungano agricultural cooperative and to all the coffee growers!

Beni Ghreb and Muungano, two SIDI partners nominated for the Grands Prix de la Finance Solidaire!

Beni Ghreb is a small company that markets dates produced in the Hazoua oasis in southern Tunisia, on the border with Algeria. It was set up in 2002 in response to the desire of a group of farmers to facilitate the marketing of their produce and increase their income. Beni Ghreb buys all its date production from the Groupement pour le Développement de l’Agriculture en Biodynamie, which groups together 130 families in the oasis. These dates, produced biodynamically (DEMETER certification), are marketed in Europe. The quality of the Deglet nour variety is excellent.

The company provides growers with a technical team that monitors the palms from flowering onwards, and takes care of harvesting. The dates are then sorted, washed and packed in the factory, before being exported to Europe.

Beni Ghreb, a company with a strong social and environmental mission to benefit the inhabitants of the Hazoua oasis. In fact, biodynamic certification enables producers to benefit from a purchase price for their dates that is up to 40% higher than on the conventional market. The company is also one of the main sources of employment for women in the town, mainly the wives and daughters of Groupement farmers. Beni Ghreb’s environmental impact is also very significant. In particular, it has set up a program to regenerate the oasis’ traditional ecosystem based on agroforestry, and has developed sprinkler irrigation systems that save 70% of water consumption.

SIDI entered into a partnership with Beni Ghreb in 2017 to finance date campaigns through annual loans. The partnership will take on a new dimension with the acquisition of a stake in the summer of 2022, enabling BGH to continue strengthening its technical and financial position in the years to come, and thus offer the best possible service to its growers.

In the Democratic Republic of Congo, Muungano is an organic and fair trade coffee cooperative located on the steep shores of Lake Kivu between 1400 and 2600 m altitude. It brings together more than 4,100 members, small-scale family coffee growers, 43% of whom are women.

The cooperative collects and processes the coffee produced in this disadvantaged region of South Kivu, which is highly vulnerable to climate change. Muungano, which means “living together” in Swahili, was created in 2009 as part of a reconciliation initiative to bring together ethnic groups divided by successive conflicts in the region through coffee production. SIDI became a partner of the cooperative in 2015 to finance its agricultural campaign and salutes the extraordinary work accomplished by this cooperative specializing in high-quality gourmet Arabica coffee.

Muungano is a model cooperative in terms of its democratic governance, its social and environmental performance and its economic impact, all in an unstable, fragile and impoverished East Congolese (Kivu) context in terms of living standards and the development of infrastructure and services.

The cooperative employs 25 permanent staff and up to 550 people in high season. In addition to organic certification, Muungano encourages the use of more resilient and soil-regenerating farming practices through training workshops in agoecology, agroforestry and the promotion of mixed cropping-livestock farming. Fair trade premiums are used not only for productive investment, but also to finance community projects. Muungano’s two major achievements are the construction of a small hydroelectric power station that now supplies the entire village of Kiniezire, where the cooperative’s head office is located, and a health center that is currently being finalized and is open to all. Muungano also offers growers a 2nd coffee payment at the end of the campaign. The cooperative also pays a premium to women producers, mostly used to provide them with goats.

Despite the major challenges facing the cooperative, it has been able to resist, progress and supply a highly sought-after gourmet coffee, sold at a better price, which increases the income of the growers and their families. Muungano illustrates the powerful social and environmental impact that an agricultural cooperative can have for its members and for the development of the area in which it operates.

We look forward to seeing you on November 8 in Lille to discover the winners of the Grands Prix de la Finance Solidaire and, in particular, the International Prize.

Further information: Beni Ghreb Muungano agricultural cooperative

Publication of SIDI’s 2021 Social and Environmental Report

SIDI’s Bilan Social et Environnemental 2021 (Social and Environmental Report 2021) presents the key figures of its activity in favour of the development of inclusive economies, mainly in rural areas.

 

In 2021, SIDI is pursuing its mission as a solidarity investor and demonstrating the added value of its action.

It supports
144 partners in 36 countries: rural or mixed MFIs, agricultural entities mostly certified organic and fair trade.

It continues to target the most vulnerable:

✔️ 73% of partners are located in countries vulnerable to climate change

✔️ 73% of partners are located in countries with a low or medium HDI

✔️ 57% of partners are located in low-banking countries

✔️ 53% of PF dedicated to Sub-Saharan Africa

Empowering partners remains a priority:

📌 51% of PF is devoted to capital investment ;

📌 1/3 of loans are for more than 36 months

It reinforces the customized support provided to partners via three channels:

→ participation in decision-making bodies

→ personalized support

→ technical assistance

Find all the figures and data from the Social and Environmental Report 2021