Annual Report 2005

The activities of

SIDI

and its partners in

2005

InternationalSolidarity

for

Development

and

Investment

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A

CTIVITIESOF

SIDI

ANDITSPARTNERSIN

2005

2

Glossaire

ACAD:

Arab Center for Agricultural Development (Palestine)

ADI

-Ki

vu:

Association pour le Développement intégré au Kivu (DR of Congo)

AF

D:

Agence Française de Développement (France)

ADIE:

Association pour le Droit à l’Initiative Economique (France)

AM

SSF:

Association Marocaine Solidarité Sans Frontières (Morocco)

AMRET:

ex-EMT “Ennatien Moulethan Tchonnebat”(Cambodia)

AOPP:

Association des Organisations Professionnelles Paysannes (Mali)

ASPR

ODEB:

Association Sénégalaise pour la Promotion du Développement à la Base (Senegal)

BMS:

Banque Malienne de Solidarité (Mali)

CAC:

La Florida :Cooperativa Agraria Cafetalera La Florida (Peru)

CCFD:

Comité Catholique contre la Faim et pour le Développement (France)

CCG:

Coopérative de Cautionnement et de Gestion (Haiti)

CCRD:

Caisse de Crédit Rural pour le Développement (DR of Congo)

CD

C :

Caisse des Dépôts et Consignations (France)

CEP:

Capital Aid Fund for Employment of the Poor (Vietnam)

CERI

SE:

Comité d’Echanges,de Réflexion et d’Information sur les Systèmes d’Epargne Crédit (France)

CERUDEB:

Centenary Rural Development Bank (Uganda)

CG

AP:

Consultative Group to Assist the Poor (consortium of 33 public and private development agencies)

CID

A:

Canadian International Development Agency (Canada)

CIDR :

Centre International de Développement et de Recherche (France)

CIRAD:

Centre de Coopération Internationale en Recherche Agronomique pour le Développement (France)

COD-EMH:

Coordination des Opérations de Développement – Methodist Church (Haiti)

CONFI

AN

ZA:

Entidad de Desarrollo para la pequeña y micro empresa (Peru)

CONSOLIDAR:

Cooperativa Corfas de Crédito Solidario (Colombia)

CO

ODEFI:

Coopérative Financière et de Développement Economique (DR of Congo)

CORDAID:

Catholic Organisation for Relief and Development (Netherlands)

CRG:

Crédit Rural de Guinée (Guinea)

CRS:

Catholic Relief Services (United States)

CRSM:

Caja Rural San Martín (Peru)

CTA:

Technical Centre for Rural and Agricultural Cooperation (ACP-EU)

DGRV:

Deutscher Genossenschafts- und Raiffeisenverband e.V.(International Raiffeisen Union / Germany)

E

ACD

:

Egyptian Association for Comprehensive Development (Egypt)

EDAPRO

SPO:

Equipo de Aseroramiento a Actividades Productivas de Sectores Populares (Peru)

EDPYME:

Entidad de Desarrollo para la Pequeña y Microempresa (Peru)

E

SD:

Epargne Solidarité Développement Association (France)

EU:

European Union

F

AEF:

Fonds d’appui à l’Entrepreunariat Féminin (North Kivu)

F

APE

CAFE

S:

Federación Regional de Asociaciones de Pequenos Cafetaleros Ecologicos del Sur (Ecuador)

FEN

ACO

OP:

Federación Nacional de Cooperativas Agropecuarias y agroindustriales (Nicaragua)

F

C:

Fonds Coopératif (Laos)

FEBE

A:

European Federation of Ethical and Alternative Banks

FEN

AGIE Pê

che:

Fédération Nationale des Groupements d’intérêt Economique de Pêche(Senegal)

FID:

Fonds d’Incitation au Développement (France)

FINANS

OL:

Association for Solidarity Financing (France)

F

ONDEFER:

Fondo de Fomento Economico Rural (Nicaragua)

F

ONHSUD:

Fonds Haïtien d’appui au développement du Sud (Haiti)

F

OROLAC FR:

Foro Latinoamericano y del Caribe de Finanzas Rurales

FPFD:

Fédération des Paysans du Fouta Djalon (Guinea)

GTZ:

Gesellschaft für Technische Zusammenarbeit (German technical cooperation)

GRET :

Groupe de Recherche et d’Echanges Technologiques (France)

HI

V

OS :

Humanist Institute for Development Cooperation (Netherlands)

IF

C:

International Finance Corporation (member of the World Bank Group)

IMOF

OR:

Institut Mobile de Formation (Haiti)

IN

AI

SE:

International Association of Investors in the Social Economy

INDES:

Inversiones para el Desarrollo (Chile)

INDEP

CO:

Institut National pour le Développement et la Promotion de la Couture (Haiti)

IRAM :

Institut de Recherces et d’Applications des Méthodes de Développement (France)

JEMENI:

Union des Caisses Mutuelles d’Epargne et de Crédit (Mali)

KNFP:

Conseil National pour le Financement Populaire (Haiti)

KRK:

Kreditimi Rural I Kosoves LLC (Kosovo)

KOKARI:

Coopérative de services d’intermédiation en crédit rural (Niger)

L

A-CIF:

Latin American Challenge Investment Fund (South America)

LIDE:

Ligue pour le Développement (North Kivu)

MAF:

Microfinance Alliance Fund (Asia)

MAIN:

Microfinance African Institution Network

ME

C PROPEM:

Mutuelle d'Epargne et de Crédit pour la Promotion de la Pêche à Mbour (Senegal)

MFI:

microfinance institution

MP

GM:

Mouvement Paysan de Gros Morne (Haiti)

MICROF

UND:

Mutual institution (Togo)

MIGA:

Multilateral Investment Guarantee Agency (member of the World Bank Group)

MIS:

Management Information System

MISERE

OR:

Aktion Gegen Hunger Und Krankheit In Der Welt (Germany)

OMIPA:

Oruchinga Microfinance Promotion Agency (Uganda)

PARME

C:

Projet d’Appui à la Réglementation des Mutuelles d’Epargne et de Crédit

PR

OFUND:

Investment Fund incorporated in Panama

PREFED:

Programme Régional de Formation et d’Echanges pour le Développement (Rwanda)

S

AINDE

SUR:

Inversiones para el desarrollo (Uruguay)

S

AP

C

A-E

G

AS (

f

ormerl

y U

GIE

):

Société d’Approvisionnement,de Production,de Commercialisation et de ConseilAgricole des Ententes des Groupements Associés du Sénégal (Senegal)

SDC :

Swiss Agency for Development and Cooperation (Switzerland)

SEFE

A:

European Ethical and Alternative Financing Company

SIPEM:

Société d’Investissement pour la Promotion de l’Entreprise à Madagascar (Madagascar)

SME

AF:

Stromme Microfinance East African Fund

TIMPAC:

Tous impliqués dans la mobilisation des ressources locales et la promotion des actions communautaires (Togo)

TI

SE:

Société d’Investissements Socio-Economiques (Poland)

TITEM:

Union des Mutuelles d’Epargne et de Crédit (Madagascar)

TRI

OD

OS:

Social bank (The Netherlands,United Kingdom and Belgium)

UCAC:

Université Catholique pour l’Afrique Centrale (Cameroon)

UGPM

:Union des Groupements Paysans de Meckhé (Senegal)

UMU :

Uganda Martyrs’ University (Uganda)

VE

C

O :

Vredeseilanden country office

WAGE

S:

Women Association for both Gain Economic and Social (Togo)

WAMU:

West African Monetary Union (Benin,Burkina Faso,Côte d’Ivoire,Guinea Bissau,Mali,Niger,Senegal,Togo)

Message from the Chairman of theExecutive Board 3Results of the 2003-2005 strategic plan4

Activities in full expansion...6...around the leading issues…8Rural areas to the fore8Priority for Africa10Financial instruments tailored to our partners’ needs10Building a regional approach12A strategy of alliances14Emphasis on social viability16Opening up to new areas of intervention18Support for large-scale institutions20

SIDI’s institutional life22

The Solidarity chain for financing:the North mobilises its efforts22Increasing SIDI’s capital 25

SIDI’s 2005 financial statements26Address book28

I

NTERNATIONAL

S

OLIDARITY FOR

D

EVELOPMENT AND

I

NVESTMENT

12,rue Guy-de-la-Brosse75005 ParisPhone:33(0) 1 40 46 70 00Fax :33(0) 1 46 34 81 18Web site :www.sidi.fr

Design and production:SIDIPoussières d’Étoiles - Courtabœuf (91)01 60 92 42 75

T a b l e o f c o n t e n t s

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message

fromthe chairman of the Executive

board

T

hanks to the determination of eve-ryone,the mobilisation of thousandsof supportive citizens,the generosi-ty of the savers of the Faim &Développement investment fund,the solidarity of the institutionaland individual shareholders andthanks,finally,to the teamwork,the persistence and the perseveranceof our partners in the field,the objec-tives we set for ourselves three years agohave been largely attained.SIDI completed the implementation of its 7th three-year plan,atthe end of 2005.Its first plan was launched with a capital of lessthan €100,000.Twenty years later,more than €5 million havebeen invested in a sustainable fashion with 48 partners from theSouth and East.Thanks to a tremendous leverage effect,morethan 500,000 people have gained access to tailored financial ser-vices to develop their economic activities and improve their livingconditions and those of their families.

Over the course of these three years,SIDI has rein-forced its role of social investor and has beenrecognised for its innovations,shared risks,thequality of its services and its long-term commit-ment.

The strategic plan set in motion between 2003 and 2005 bene-fited from the resources mobilised during the capital increaseeffected at the end of 2001.Many actions were conducted underthis plan.You will read about them,and about the innovativeand enriching experiences that were pursued during the periodwith our partners on several continents,accompanied by detailedfigures.You will also learn about the priority accorded to ruralareas,to Africa,to financial solutions and to products adapted forthe context and particular settings of each country.In severalcases,a strengthening of the regional approach has optimisedavailable human and financial resources and work carried outtogether within the framework of alliances has generated signi-ficant leverage effects for the benefit of our partners.As a result,areas of activity such as fair trade financing,housing,integratedfinancing for family holdings,financing and support for produ-cers’ organisations,the development of credit unions in difficultregions,the consolidation of an approach to social viability anddevelopment were all strengthened and invigorated.In accordance with the wish expressed by the shareholders at theextraordinary general meeting of 8 June 2005,the year endedwith a capital increase.This increase,amounting to €3.68 million,marked the arrival of new institutional shareholders,in particularEuropeans,as well as many individuals,thanks to a vigorousmobilisation by the Epargne,Solidarité,Développement (ESD)association.

If SIDI is to remain faithful to its development mis-sion,such mobilisation needs to be pursued

.Alongside present and future portfolio growth,the technical sup-port and training that SIDI provides to its partners must be sus-tained at the same level of quality.This mission is financed,forthe most part,by shared income from the Faim & Développementinvestment fund that was set up 20 years ago by the CCFD,withadditional contributions from the CCFD,co-funding from publicand private European alliances and by portfolio revenue.Theseresources are on the rise,but they need to be reinforced furtherso that SIDI may continue to pursue its support mission that,thanks to its high quality,has brought it recognition throughoutthe sector.To enable us to carry on with our activities,

a new 2006-2008activities plan has been drawn up.During this newperiod,SIDI will be making every effort to enhan-ce achievements and consolidate and develop itspartnerships.

SIDI’s actions will continue to be founded on:•partnerships with local financing structures,on the basis ofcontractual relations that respect each party’s decision-makingautonomy•giving priority to financing in the rural areas•the strengthening of the Solidarity Chain for Financing and thecreation of leverage through solidarity financing•flexibility and adaptation of financial instruments,implemen-ted in response to locally-expressed needs•a fortified team with a range of diversified and complementa-ry human resources•attachment to our fundamental values of Solidarity,Ethics andFinance.

SIDI thus intends to pursue this momentum withits numerous partners,shareholders and allieswho share its vision of a solidarity economy.

As asubsidiary of CCFD,SIDI is one of its strategic players and sharesits values and convictions to promote a solidarity economy andsociety and back the emergence of local dynamics and playersable to take charge of their future to improve living conditionsthrough a change in people,groups and the environment.XavierLamblin,who on 31 December 2005,finished his term of officeas President of CCFD,tirelessly encouraged SIDI’s incorporationinto CCFD as a subsidiary.This has generated group synergy andadded greater strategic coherence to SIDI’s actions in the field.Xavier Lamblin assumed the Chairmanship of SIDI’s SupervisoryBoard until April 2006.We are grateful to him for the high qua-lity of his commitment to SIDI over the past six years.To overseethe new 2006-2008 phase,we welcome Joël Thomas,the newCCFD President,who took office in January 2006,to the chair-manship of SIDI’s Supervisory Board.

Let us continue to push forward even further thefrontiers of solidarity financing and build,in part-nership with others,financial services that areequitable and adapted to the needs of the popu-lations for whom they are designed.

Christian SCHMITZ

Chairman ofthe Executive BoardParis,29 May 2006

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