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INTERNATIONALSOLIDARITYFORDEVELOPMENTANDINVESTMENT
THEACTIVITIESOFSIDIANDITSPARTNERS
2
2008-THEACTIVITIESOFSIDIANDITSPARTNERS
AbriefguidetoSIDIReviewoftheworkcarriedoutin2008
Solidarityfinancingin2008
Aportfolioof€9.3millioninvestedin62partnersin28countriesDisinvestmentsinlinewithforecastsAdualprioritconfirmedinAfricaandintheruralworldRisk-takinginaccordancewiththeshareholders’objectives
Solidaritysupportin2008
AmultipleandadaptedformofsupportSupportfinancedbthe“SolidaritChain”
Generatingsocialaddedvalue
1.Providingaccessibleandflexiblesupport
Adaptingtopartners’difficultiesPromotingmanagementofthesocialdimension
2.Sharingtherisksadequatelyandpatiently
ParticipatinginthecapitaloftheLFSsLendinginlocalcurrenciesMakingadifferenceincrisiszones
3.Adaptingservicestothelocalcontext
Financingtheproducers’organisationsPromotingvalue-addedinruralareasPromotingsolidaritcreditunions
4.EnsuringtheinstitutionalviabilityandsocialgoalsofLFSs
ReinforcingthegovernanceoftheLFSs
5.Sourcesofsupport
ConsolidatingtheSolidaritChainforFinancingInvestinginrefinancingtoolsInvestinginsecond-tierstructuresNetworkingandalliances
SIDI’s2008FinancialStatementsandPortfolio
BalanceSheetatDecember31,2008IncomeStatementatDecember31,2008SIDI’s2008MapofFinancialPartners2008ListofPartnershipsGovernanceatJune12,2009
19181774454191717151411108
TableofContents
ACP:
Africa, Caribbean, Pacific
EU:
European Union
JIF:
Joint investment Fund
LF
S:
Local Financial Services
MFI
: Microfinance Institution
MFIC:
Microfinance Institution engaged in a process of consolidation
MFIP:
Microfinance Institution with a high potential
Lev
era
ge ef
f
e
c
t:
When each SIDI financial contribution isaccompanied by financial contributions from other public or privatesources.
MUSO:
Solidarity Credit Union
P
O:
Producers' Organisation
PAVRA:
Promotion of Added Value in Rural Areas
SCF:
Solidarity Chain for Financing
T
A:
Technical Assistance
U
m
br
ell
a:
so-called secondary level institution whose role is tosupport MFI
INTERNATIONALSOLIDARITY FORDEVELOPMENTAND INVESTMENT
D e s i g n a n d p r o d u c 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 o e u f P h o n e : 3 3 ( 0 ) 1 6 0 9 2 4 2 7 2
G l o s s a r y
SOLIDARITÉ INTERNATIONALE POUR LE DÉVELOPPEMENTETL'INVESTISSEMENT
ACTIVITÉS DE LA SIDIET DE SES PARTENAIRES
12, rue Guy de la Brosse / 75005 ParisPhone: 33(0) 1 40 46 70 00Fax: 33(0) 1 46 34 81 18Website: www.sidi.fr
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2008-THE ACTIVITIES OF SIDI AND ITS PARTNERS
Chairman’s
message
25 years of financial solidarity
Dear friends,
dear solidarit shareholders, I wouldfirst of all like to warml thank all of those whogave a positive response to the call launched inOctober of last ear to increase SIDI’s capital inorder to provide our “instrument” with the fi-nancial resources required to continue to fulfil itsmandate as a social investor. After 25 ears ofworking at the service of solidarit financing, thesuccessful rights issue confirms the vitalit of the“solidarit chain for financing”, which is aimed atthose who are excluded from financial servicesthroughout the world.
The completion of the 2006-2008strategic plan.
On 31 December 2008, SIDI completed the im-plementation of its three ear plan for the period2006-2008, in which it established the priorit oftargeting the rural world, particularl on the Afri-can continent. All of the financing provided overthe course of this period has been directed at therural areas: toda, 63% of SIDI’s loans are provi-ded in those areas. Furthermore, the work carriedout in the rural areas led to the definition of amore “inclusive” approach known as the “Pro-motion of Added Value in Rural Areas - PAVRA.”Moreover,, the work carried out over a three earperiod to seek “social and developmental viabi-lit” in our actions and those of our partnersconfirmed SIDI’s “Social Added value”.Thanks to the choices made b its shareholders,SIDI is able to go a long wa in terms of sharingrisks with its partners. An analsis of the portfolioshows that the solidarit investment work carriedout does, indeed, bear fruit in the long run. Seve-ral investments made some ten ears ago in coun-tries that were experiencing difficulties at thattime, but which benefited from regular and conti-nuous support, are now showing prospects of areturn on investment and this encourages SIDI toopen up new fronts for solidarit financing in dif-ficult contexts (Palestine, Haiti...).SIDI is therefore striving to strike the right balancebetween the level of return on its investments andthe institutional, financial and social consolidationof its partners.
The 2009-2012 plan
For the 2009-2012 period, SIDI has decided topursue its goal of financing the rural worldthrough different categories of partners and tools,in order to provide a range of services adapted tomeet demand and to optimise the resources andthe Social Added value of its action:• Local actors striving to develop the PAVRA, bfavouring the access of people living in the ruralareas to the local and/or international marketwhich, in turn, guarantees them fair pament.• Networks of MUSO (solidarit credit unions). TheMUSO are not onl effective savings and finan-cing instruments, but also provide a platform forexchanges and mutual aid. The are also condu-cive to the creation of dnamics that drive localdevelopment and social change.• MFI that require consolidation: this tpe of part-ner is at the ver heart of SIDI’s core activities. MFIare institutions that require support at both the fi-nancial and institutional levels. The often havegreater technical assistance needs and require aparticularl demanding and patient form of sup-port.• MFI that have a great level of potential and havealread been SIDI partners for several ears. SIDIcontinues to be attentive to their investment re-quirements with a view to establishing comple-mentarities between the social partners and aspart of the on-going efforts to maintain a balancebetween SIDI’s financial and social viabilit.• National or sub-regional institutions that refi-nance the Local Financial Services (LFS). Since SIDIonl has limited resources, it seems appropriate toconcentrate its interventions through “secondarlevel” - umbrella - instruments and to search ad-ditional financial resources from public and pri-vate donors, in order to create a leverage effect.• Continental funds: SIDI has embarked on an in-tervention strateg with other European alliancesin order to provide an effective response to thesector’s needs (thanks to the leverage generatedthrough the mobilisation of public funds) and alsoto share risks. New funds specificall designed toaddress the needs of rural financing are currentlbeing created for Africa (FEFISOL) and CentralAmerica and the Andean countries (FOPEPRO).
Finally, here are the main lines of ac-tion that will guide us until 2012:
•Contribute to the long-term improvement ofrural producers’ income•Guarantee, support and communicate on theSocial Added Value and the environmental res-ponsibilit of both SIDI and of its partners•Guarantee SIDI’s equilibrium and social and fi-nancial continuitThanks to our recent rights issue, the amount ofloans planned between now and 2012 reaches€14 million. The leverage effect that is expectedto be generated through the regional financingmechanisms should enable us to achieve a port-folio of €60 million.I would now like to invite ou to discover the ac-tions undertaken and the values promoted withthem as ou read this 2008 activit report.
Christian Schmitz
Chairman of the Board, Ma 2009.
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