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.

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

Official launch of the new European solidarity financing fund for Africa, FEFISOL II!

[chapeau]SIDI announces the1st closing of the new FEFISOL II fund, dedicated to financing rural microfinance and small family farms in Africa, at 22.5 million euros, with a technical support envelope of one million euros.[/chapeau]

The FEFISOL II Fund is designed to help meet the crucial challenges of financing vulnerable populations in rural areas of Africa, with a particular focus on financing the agricultural sector.

Financing the agricultural sector is of crucial importance in terms of food security, employment and resilience in the face of climate change, and also in terms of the financial inclusion of women who, despite representing more than half of the agricultural workforce, often do not have the same access to financing as men.

Although it makes a major contribution to many African economies, and its growth directly contributes to poverty reduction, the agricultural sector is still poorly served financially, as it is often perceived as too risky or not profitable enough.

FEFISOL II is structured to provide financial and technical support for solutions designed locally to meet these challenges. The fund will continue to target agricultural entities sourcing most of their supplies from sustainable family farming. It will be managed by Inpulse, a Brussels-based management company Рa subsidiary of SIDI and Cr̩dit Coop̩ratif.

In addition to the two founders, SIDI and Alterfin, most of the investors in FEFISOL have renewed their commitment to the new fund. In particular, Agence Française de Développement’s private sector subsidiary Proparco, the European Investment Bank and the French social banks Crédit Coopératif and Banca Etica in Italy have renewed their commitment. New investors are also joining the initiative: the Belgian investment company for developing countries BIO, the Alternative Bank of Switzerland (BAS), and the NGO SOS Faim Luxembourg. The technical support package is financed by Proparco.

These commitments will enable the Fund to pursue its social mission and be even more ambitious in terms of social and environmental performance. FEFISOL II will be implemented in over 28 African countries, and should eventually support 110 microfinance institutions or agricultural companies and cooperatives sourcing from smallholders, most of them Fair Trade or organic certified. The first disbursements will be made in July 2022.

By supporting the implementation of socially and environmentally sustainable practices, FEFISOL II directly aims to improve the living standards of vulnerable populations in rural Africa, reduce inequalities and promote sustainable agricultural development.

Read the press release here

SIDI acquires a stake in ACEP Burkina

[chapeau]SIDI acquires a 20% stake in ACEP Burkina by purchasing the shares of the Incofin CVSO fund.[/chapeau]

Today, ACEP Burkina is the second largest microfinance institution (MFI) in Burkina Faso by portfolio size and reach: over 32,000 active customers, 23% of whom are women, and more than 15,000 borrowers. It focuses mainly on micro, small and medium-sized businesses.

Through this acquisition, SIDI wishes to strengthen its commitment to the development of inclusive finance in Africa and more particularly in the Sahel region. Given the multiple challenges facing the region – political and security issues, the impact of climate change on the agricultural sector, lack of employment opportunities particularly for young people – SIDI considers it a priority to develop its activities in the area in order to achieve its mission of social and environmental transition.

SIDI is currently working with 9 partners in Burkina Faso in a wide variety of sectors: inclusive finance, sustainable agricultural value chains, renewable energies and seed capital for small-scale industries that create jobs and added value. In Burkina Faso, 40% of the population still lives below the poverty line.

Becoming a shareholder of ACEP Burkina is a strong commitment on the part of SIDI and an opportunity to strengthen and diversify its activities in the country by including in its portfolio one of the leading and strong MFIs in the financial inclusion market. SIDI will therefore play an active role in governance to help strengthen the institution and promote social and environmental performance alongside financial and operational viability.

Read the press release here

 

View the webinar on partner support

[chapeau]You can watch or re-watch this new edition of Les Témoins en Actes webinar on support, the cornerstone of the solidarity investor’s mission.[/chapeau]

The webinar featured Abdou-Rasmané OUEDRAOGO, Managing Director of Union des Baoré Tradition d’Epargne et de Crédit (UBTEC). UBTEC is a microfinance institution that operates mainly in rural areas of northern Burkina Faso, in the Sahelian zone, while maintaining a strong peasant base thanks to the fact that it was founded by Burkina Faso’s main peasant federation.

SIDI’s General Manager, in dialogue with SIDI’s partnership manager, came to talk about the relationship forged with SIDI to support farmers in the Ecological and Social Transition. Support from the ACTES Foundation has made it possible to finance and support the agro-ecological practices of UBTEC members.

 

Webinar: Partner support

[chapeau]To strengthen its support for its partners, SIDI has created the ACTES Foundation under the aegis of the Terre Solidaire Foundation. In this new webinar, Les Témoins en Actes focuses on support, the cornerstone of the solidarity investor’s mission.[/chapeau]

To find out more about the tailor-made support provided by the ACTES Foundation to SIDI’s partners, we invite you to a new ” Témoins en ACTES ” event on Thursday March 31 from 5 to 6.30pm.

This time we welcome Abdou-Rasmané OUEDRAOGO, Managing Director of Union des Baoré Tradition d’Epargne et de Crédit (UBTEC).

UBTEC is a microfinance institution that operates mainly in rural areas of northern Burkina Faso, in the Sahelian zone, while maintaining a strong peasant base thanks to the fact that it was founded by Burkina Faso’s main peasant federation.

The Managing Director of SIDI will give us his account, in dialogue with SIDI’s partnership manager, of the relationship forged with SIDI to support farmers in the Ecological and Social Transition. Support from the ACTES Foundation has made it possible to finance and support the agro-ecological practices of UBTEC members.

1h30 of discussions to better understand the links between SIDI’s investment and support activities, and the challenges it faces in consolidating its support mission with its partners.

→ Register for the webinar here

The first edition of Les Témoins en Actes webinar welcomed Assata DOUMBIA, producer and president of the ECAM cooperative in Côte d’Ivoire. You can read his testimonial and watch the webinar again:

ECAM wins the international Grands Prix de la Finance Solidaire!

[chapeau]SIDI partner ECAM, a cocoa producers’ cooperative, wins the International prize at the 12th Grands Prix de la Finance Solidaire organized by FAIR-Finansol and Le Monde newspaper. A highly deserved reward for this exemplary Ivorian cooperative in terms of both its social and environmental impact. [/chapeau]

Assata Doumbia, producer and president of the cooperative: “I’m delighted to receive this award for our cooperative. In Côte d’Ivoire, it’s rare to find cooperatives with good governance. This prize also crowns all the work we’ve put into our governance. Today I’m very happy for the producers and for the whole community!

The Entreprise Coopérative des Agriculteurs de Méagui (ECAM) was created in 2004 on the initiative of 87 cocoa producers, including Assata Doumbia. A very dynamic cooperative, ECAM now has a membership of 2,466 cocoa farmers and, remarkably, 367 women. As cocoa is traditionally a “man’s business”, ECAM encourages planters to hand over part of their plots to their wives, enabling these women to become producer-members of the cooperative and thus securing their situation.

Solidarity finance has played a crucial role in ECAM’s development, with the number of members more than doubling since it first became available. This financing, since 2017 through FEFISOL, the investment fund in which SIDI is a founding shareholder, and then from SIDI since 2020, has first enabled it to limit payment delays to its producers. And, more generally, to guarantee a degree of autonomy vis-à-vis its buyers, whose pre-financing is both uncertain and insufficient in terms of duration and amount. Today, it’s the banks that come to us with their offers,” smiles the President of ECAM, “but we prefer to stay with our partner SIDI because only solidarity finance enables us to have, beyond financing, the support that is essential to us.

With nearly 7,000 tonnes of production per year from an area of over 1,2883 ha, ECAM is now one of Côte d’Ivoire’s best-known cocoa cooperatives. ECAM provides its members with strong added value, stemming directly from its social and environmental vision: to strengthen the financial autonomy of its members and their families while respecting the environment. In cooperation with its members, the cooperative decides how to use the premiums linked to the Fair Trade and UTZ/Rainforest certifications it has acquired: almost half of these premiums are paid back to producers in proportion to the volumes delivered. The remainder is used for social projects providing direct aid to the poorest, or for public services such as building schools or pumps.

The environmental issue, crucial in the cocoa sector, has been central to the cooperative’s approach since 2016: distribution of shade trees to planters as part of an agroecological approach, geolocation of plots to respect protected forest areas. In 2018, it started a program to convert some of its members to organic: 55 are certified organic to date, making it one of the country’s 5 organic cooperatives. Around a hundred growers have also begun conversion.

SIDI wishes ECAM every success in the future and will continue its commitment to the development of cocoa that respects producers and their environment.

VAHATRA and ECAM nominated for the Grands Prix de la Finance Solidaire!

[chapeau] Every year, FAIR and the newspaper Le Monde join forces to award the Grands Prix de la finance solidaire. This year, for the 12th edition, two SIDI partners have been nominated in the International Prize category: the ECAM cocoa cooperative in Côte d’Ivoire and Vahatra, a social micro-finance institution in Madagascar. [/chapeau]

In Madagascar, the Vahatra association – Malagasy for roots – was created in 2002 by two associations, one French and the other Malagasy, with the aim of combating extreme poverty in the center of the island. The originality of its intervention lies in the fact that it combines savings, credit, social support and mutual health insurance services.

Vahatra targets people living below the poverty line (less than 2USD/day) and 67% of its customers are women. In addition, 77% of its portfolio is dedicated to agricultural financing. Its integrated approach, combining economic and financial tools with social and health support, makes it a unique partner in a country that suffers from a lack of public support and dramatic inaction in rural areas. The association gives these poor people the opportunity to benefit from advice, training and loans, enabling them to develop an income-generating activity. This economic support is backed up by individualized social follow-up to help families resolve other problems, such as children’s schooling, lack of identity documents, health or family budget management.

Vahatra has benefited from solidarity finance since 2015 through SIDI in the form of guarantees that have enabled it to take on debt with local banks in order to develop its portfolio. This contribution is necessary for an MFI that targets populations considered too risky by other players. In addition, solidarity finance provides Vahatra with support for its future institutional transformation. Although Vahatra will be supporting 17,277 borrowers in 2020, it is not yet self-sufficient and needs to step up its activities to break even. In order to be able to receive capital financing and comply with the requirements of the regulator, it has therefore embarked on a transformation into a limited company. With the separation of microcredit and social activities, the latter should be fully covered by subsidy programs, enabling the microcredit component to boost its profitability. The association will retain a majority shareholding in the SA dedicated to microfinance in order to guarantee its social mission. SIDI is also examining the possibility of acquiring a stake in the future entity, to help ensure the sustainability of its unique and essential service offering in this very poor region of Madagascar.

The Entreprise Coopérative des Agriculteurs de Méagui (ECAM) is located in the southwest of Côte d’Ivoire, in the country’s leading cocoa-producing region. The cooperative was created in 2004 on the initiative of 87 cocoa producers. A very dynamic cooperative, ECAM currently has 2113 cocoa farmers, including 322 women. As cocoa is traditionally a “man’s business”, ECAM encourages planters to hand over part of their plots to their wives, enabling these women to become producer-members of the cooperative.

ECAM brings strong added value to its members as a direct result of its social and environmental mission. The cooperative thus has a five-year development plan drawn up in cooperation with its members, which it uses to determine how to use the premiums linked to the fair trade and UTZ/Rainforest certifications it has acquired. Half of these premiums are paid directly to producers in proportion to volumes delivered, in line with our policy of improving their income. The cooperative also helps them diversify their income, mainly through market gardening and poultry farming. At the same time, part of the premiums is used for social projects: direct aid to the poorest – distribution of food and school kits, for example – and public service projects such as the construction of schools or pumps.

Solidarity finance has played a crucial role in the development of ECAM, which has seen the number of its members double since it gained access to it. This financing, since 2017 through FEFISOL, the investment fund in which SIDI is a founding shareholder, and then from SIDI since 2020, has first enabled it to limit payment delays to its producers. And, more generally, to guarantee a degree of autonomy vis-à-vis its buyers, whose pre-financing is both uncertain and insufficient in terms of duration and amount.

With nearly 6,500 tonnes of production per year from an area of over 1,202 ha, ECAM is now one of Côte d’Ivoire’s most recognized cocoa cooperatives, as much for its operational performance as for its social and environmental impact.

ECAM is a cooperative that supports its producers while respecting the environment. The environmental issue, crucial in the cocoa sector, has been central to its approach since 2016. The cooperative geolocates plots to preserve protected forests, and is developing a nursery project to distribute shade trees to planters, with the aim of limiting evaporation in the dry season and recreating biodiversity in the plots. In 2018, it started a program to convert some of its members to organic: 55 are certified organic to date, making it one of the country’s 5 organic cooperatives. Around a hundred growers have also begun conversion.

Join FAIR and Le Monde in Lyon on November 9 to discover the 2021 winners!

Further information: www.vahatra.mg www.ecam-meagui.com