Annual Report 2007

INTERNATIONALSOLIDARITYFORDEVELOPMENTANDINVESTMENT

THEACTIVITIESOFSIDIANDITSPARTNERS

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Solidaritysupportandfinancing

Solidarityfinancingin2007Solidaritysupportin2007

Anactivitycentredonruraldevelopment

•BackingtheconsolidationanddiversificationofLFSinacontextofgrowth•Financingagricultureandtheruralareas•Thecreationoffinancialservicesinruralareasandincriseszones•Contributingtolocaldevelopmentandincreasingincome

TheSolidarityChainforFinancing

TheSolidarityChainforFinancingAlliancesintheNorthFutureprospects

SIDI’sfinancialstatementsandportfolio

AddressBook

161374

TableofContents

AC

A

D

: Arab Center for Agricultural Development (Palestine)

AC

P

: Africa, Caribbean, Pacific

ADI

-K

iv

u

: Association pour le Développement intégré au Kivu(RD Congo)

AF

D

: Development French Agency (France)

AK

IB

A

: Commercial Bank Akiba (Tanzanie)

ALA

MAN

A

: « respect du dépôt » (Morocco)

ALT

E

RF

IN

: Financial Cooperative (Belgium)

AMR

ET

: new name EMT "Ennatien Moulethan Tchonnebat "(Cambodia)

AMSSF

: Association Marocaine Solidarité Sans Frontière(Morocco)

ANE

D

: Asociacion nacional Ecumenica de desarrollo (Bolivia)

AOP

P

: Association des Organisations ProfessionnellesPaysannes (Mali)

ASI

EN

A

: Association Inter-Institut « Ensemble et Avec »(Burkina Faso)

BA

NC

OSOL

: Banco Solidario (Bolivie)

BA

NR

U

RA

L

: Rural Development Bank

BMS

: Banque Malienne de Solidarité (Mali)

BN

PP

: Banque Nationale de Paris Paribas (France)

CACLa F

lo

r

ida

: Cooperativa Agraria Cafetalera La Florida(Peru)

CCF

D

: Catholic Committee against hunger and fordevelopment (France)

CCRD

: Caisse de Crédit Rural pour le Développement (DR ofCongo)

CE

R

UDEB

: Centenary Rural Development Bank (Uganda)

CO

NF

IAN

Z

A

: Entidad de Desarrollo para la pequeña y microempresa (Peru)

CO

NSOLI

DA

R

: Cooperativa Corfas de Crédito Solidario(Colombia)

C

OOD

E

F

I

: Coopérative Financière et de DéveloppementEconomique (DR of Congo)

C

ORD

AI

D

: Catholic Organisation for Relief and Development(The Netherlands)

C

R

E

C

: Caisse Régionale d'Epargne-Crédit (Senegal)

C

R

G

: Rural credit of Guinea (Guinea)

EAC

D

: Egyptian Asociation for global development (Egypt)

ED

AP

ROS

P

O

: Equipo de Aseroramiento a ActividadesProductivas de Sectores Populares (Peru)

EF

SE

: European Fund for Southern Europe

ES

D

: Saving solidarity Development association (France)

ET

IM

OS

: Institution de second niveau de refinancement (Italy)

EU

: European Union

FA

P

E

C

AE

S

: Federación Regional de Asociaciones de PequenosCafetaleros Ecologicos del Sur (Ecuador)

F

E

NA

C

O

P

: Federación Nacional de CooperativasAgropecuarias y agroindustriales (Nicaragua)

F

C

: Fonds Coopératif (Laos)

F

E

B

E

A

: Fédération Européenne de Finances et BanquesEthiques et Alternatives (Belgique)

F

E

F

IS

OL

: Fonds Européen de Financement Solidaire

F

ID

: Fonds d'Incitation au Développement (France)

F

IN

ANS

O

L

: Association de Finances et Solidarité/SIDI

F

O

NDEF

ER

: Fondo de Fomento Economico Rural (Nicaragua)

F

ON

HS

UD

: Fonds Haïtien d’appui au développement du Sud (Haïti)

F

O

R

O

L

ACF

R

: Foro Latinoamericano y del Caribe de FinanzasRurales

F

P

F

D

: Fédération des Paysans du Fouta Djalon (Guinea)

I

NDE

S

: Inversiones para el Desarrollo (Chile)

J

APPO

O

: Solidarity in wolof (Senegal)

JE

ME

NI

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

JI

F

: Joint Investment Fund (Fonds Commun de Placement –solidarity-based savings product)

K

NF

P

: National Council for grassroot financial system (Haiti)

K

O

K

ARI

: Co-operative of intermediation in rural credit services(Niger)

K

RK

: Kreditimi Rural I Kosoves LLC (Kosovo)

L

A

-

CI

F

: Latin American Challenge Investment Fund (SouthAmerica)

LAOF

AR

ME

RSP

RO

DU

CT

S

: Société coopérative detransformation et commercialisation des produits agricoles etforestiers (Laos)

LF

S

: Local Financial services

LI

D

E

: Ligue pour le Développement (Northern Kivu)

MA

E

: Ministère des Affaires Etrangères (France)

MA

F

: Microfinance Alliance Fund (Asia)

MAI

N

: Microfinance African Institution Network (réseauafricain de microfinance) (Ethiopia)

MCCH

: Maquita Cushuncic Comercializando Hermanos(Ecuador)

ME

CP

R

O

P

EM

: Mutuelle d'Epargne et de Crédit pour laPromotion de la Pêche à Mbour (Senegal)MICROFUND:Institution mutualiste de droit togolais (Togo)

MICROF

UN

: Institution mutualiste de droit togolais (Togo)

MIS

E

RE

OR

: Aktion Gegen Hunger Und Krankheit In Der Welt(Germany)

MF

I

: Microfinance institution

MUSO

: solidarity credit union

N

IAK

O

: Union de caisses d'épargne crédit à Kayes (Mali)

O

M

IPA

: Oruchinga Microfinance Promotion Agency (Uganda)

O

P

: Projet d'Appui à la Réglementation des Mutuellesd'Epargne et de Crédit

PA

R

M

EC

: Producers' organisation

P

RE

F

ED

: Programme Régional de Formation et d'Echangespour le Développement (Rwanda)

P

RO

F

UN

D

: Fondo de Inversiones incorporado en Panamá

S

A

INDE

S

UR

: Inversiones para el desarrollo (Uruguay)

S

E

F

E

A

: Société Européenne pour la Finance Ethique etAlternative

S

ILAC

/

T

SIRY

: Société Industrielle et Agricole du LacAlaotra/Fédération TSIRY des groupements de producteurs(Madagascar)

S

IP

E

M

: Investment Company for Investment Promotion inMadagascar (Madagascar)

S

ME

A

: Stromme Microfinance East African Limited (Uganda) :

TA

ANA

D

I

: Coopératives de services financiers (Niger)

T

E

MB

E

K

A

: Social investment Company Limited (South Africa)

T

IM

P

A

C

: Tous impliqués dans la mobilisation des ressourceslocales et la promotion des actions communautaires (Togo)

T

IT

E

M

: Savings and credits for local associations (Madagascar)

U

CME

CS

: Union des Caisses Mutuelles d'Epargne et de Créditdans la région des Savannes (Togo)

U

GP

M

: Union des Groupements Paysans de Meckhé (Senegal)

U

N SOL M

O

N

: Fundatio Un Sol Mon (Spain)

WA

GE

S

: Women Association for both Gain Economic andSocial (Togo)

INTERNATIONAL SOLIDARITY FOR DEVELOPMENT AND INVESTMENT

D e s i g n a n d r e a l i z a t i o n : S I D I - P o u s s i è r e s d ’ É t o i l e s - C o u r t a b œ u f ( 9 1 ) 0 1 6 0 9 2 4 2 7 2

G l o s s a r y

INTERNATIONALSOLIDARITYFOR DEVELOPMENTANDINVESTMENT

THE ACTIVITIES OF SIDIAND ITS PARTNERS

12, rue Guy de la Brosse / 75005 Paris • Phone: 33(0) 1 40 46 70 00 • Fax: 33(0) 1 46 34 81 18 • website: www.sidi.fr

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3

THE ACTIVITIES OF SIDI AND ITS PARTNERS IN 2007

Chairman’s

Message

Dear friends,

Your commitment to support SIDI’s actions has a conside-rable leverage effect as part of the solidarity chain for fi-nancing. It enables SIDI to contribute to the creation ofconditions that lead to the well-being of the end benefi-ciaries of its action. Indeed, rather than just seeking to in-crease revenue, our efforts are also designed to improvethe social and economic conditions of our clients in theircountries, on a sustainable basis. In other words, to re-duce the causes of their precariousness and that of their fa-mily, in a manner that is environmentally friendly.The National Meeting of the CCFD, which was held in Gre-noble over the Pentecost weekend in 2008, provided theSIDI team that participated in this important event withthe opportunity to draw upon the momentum and moti-vation of the CCFD network. As a subsidiary of the CCFD,there is no doubt that SIDI represents a major instrumentfor the implementation of the CCFD’s mission regardingthe Social and Solidarity Economy. The SIDI guidelines areperfectly in keeping with the support policy for partners,as set out in the CCFD Orientation Report 2008-2012.During this national meeting, Majid Rahnema

1

remindedthe participants of the importance of “seeing a source ofstrength in the poor” and of “seeing, in each person, anindividual that has a huge potential that must be allowedto be expressed.” This is the real challenge for SIDI in itswork with millions of artisans, micro-entrepreneurs andsmall rural producers, as it strives to provide them with ac-cess to financial services that have been adapted to suittheir needs.By establishing an instrument such as SIDI some 25 yearsago, the CCFD was able to establish a form of solidarity fi-nancing to be at the service of populations that are bothdisadvantaged and excluded from financial services.SIDI develops an approach that promotes a social addedvalue to the actions it supports and it is this “additionalelement that makes it stand out”:

T

By giving priority to the in-depth knowledge of thesocio-economic context of the country, by de-ploying all of its efforts to understand different si-tuations.

T

By understanding the importance of taking thetime to listen, to develop the quality and potentialof the partners, to build trust, to adapt supply todemand.

T

By taking risks in areas that are difficult and poorlyserved.

T

By applying costs that are adapted to the localcontexts and needs, thanks to the donation ele-ment of its financial structure provided by the re-venue generated by the Faim & Développementinvestment fund.

T

By building upon the efficiency and social perfor-mance of SIDI over the course of time.SIDI is at the crossroads of the mobilisation of the ci-tizen who, in the northern hemisphere, is called uponto save and to invest in a different way and, in thesouthern hemisphere, is urged to establish systemsdesigned to provide local access to basic financial ser-vices for populations that are disadvantaged and/orexcluded from traditional financial services. SIDI is afully-fledged actor in the social and solidarity economy,since it contributes to the creation and developmentof the tools that are required in order to make pro-gress towards these objectives.SIDI is a social investor and draws support from theESD Association (A Solidarity Development SavingsAssociation) in order to mobilise individual sharehol-ders. Furthermore, SIDI continues to promote the de-velopment of a network of alliances with the publicinstitutional actors (the French Development Agency,the Ministry for Foreign Affairs, the Caisse des Dépôtset Consignations, the European Union, various formsof bilateral cooperation, …) as well as the private ac-tors in both France and in Europe : Cordaid, Oikocré-dit, Alterfin, ETIMOS, the Un Sol Mon and StrommeFoundations, Calvert, Oikos, etc. … who are now dis-covering the value and interest of the “solidarity chainfor financing” structure that has been established bySIDI.At 31/12/2007, SIDI had established a financial andtechnical relationship with 56 MFIs in some thirtycountries and had attained an investment portfoliolevel of 7.5 million Euros. Furthermore, SIDI has ini-tiated a technical assistance relationship with morethan thirty other partners, which, for the majority ofthem, should lead to investment being made over theforthcoming five year period. In order to achieve allof this, SIDI has mobilised a permanent team and alsoleads several teams of volunteers in order to providetechnical assistance on the one hand and, on theother, to reinforce the on-going promotion of the ethi-cal and shared financial products proposed by theCCFD.Whilst reading this report, you will discover differentforms of partnerships that reflect our search for a clo-ser and more “local” relationship with the clients/be-neficiaries, as well as the priority we have decided tofocus on Africa, the rural world and the concrete ex-pression of a common vision of the solidarity economy.In 2008, we hope to be able to establish new instru-ments that will enable us to broaden the scope ofour actions during the next strategic plan that is cur-rently being drawn up for the 2009-2012 period: aEuropean Solidarity Financing Fund (FEFISOL)

2

and afund for producers’ organisations in Latin America

3

.We also continue to provide our support for the de-velopment of regional tools across the various conti-nents, along the lines of what we are doing in Africawith Tembeka, SMEA in Uganda, BMS in Mali, etc. Inorder to reinforce and to support these projects in thefuture, at the Supervisory Board meetings held in2008, the SIDI shareholders gave their approval, inprinciple, to a proposal to increase capital so as tocover financing requirements for the period 2009-2012. The challenges that have been taken up sincethe beginning of the 2006-2008 plan will continueto be pursued both this year and over the course ofthe years to come, with particular emphasis beingplaced on:

T

The nature of the financial services offered to thepopulations, since far too often the emphasis is pla-ced on the provision of credit, even though the fi-nancial services and the needs of the populationsgo far beyond this. It is therefore necessary to conti-nue to diversify the provision of services that havebeen adapted in the best possible way to theseneeds.

T

The financial needs of the rural world: together withits partners, the SIDI team is striving to identify thebest strategies to help people in rural areas toemerge from the vicious circle of poverty.

T

The mobilisation of resources in the South: effortsto seek out financing in the South often come upagainst numerous constraints, notably a lack ins-truments to mobilise local funds. The challenge istherefore to strengthen the solidarity chain for fi-nancing the South.

T

Ensuring that the fairest possible cost structure isapplied to the financial support provided. In otherwords, the associated costs must respect SIDI’s fun-damental principles, so as to avoid penalising thepartner institutions.Thanks to you, the solidarity chain for financing cangrow and can be multiplied in each and every placein which there are people who wish to undertake ac-tion, based on the vast potential they have withinthemselves, in order to establish a living and dynamicsocial and economic fabric.

Christian Schmitz

Chairman of the Board, May 2008.

1

Majid Rahnema : former Iranian diplomat,former United Nations representative-resident in Mali, author of « Quand la misère chasse la pauvreté », published by Fayard/Actes Sud (Paris, 2003).

2

FEFISOL : see Chapter 3.

3

FOPEPRO : see Chapter 3.

Christian SCHMITZ

Chairman of the Board, Paris, 30 May 2008

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