1 / 10

AFD’s Experience in Cooperative Finance Aude FLOGNY-CATRISSE Agence Française de Développement,

Cooperative Finance Global Good Practices Washington D.C., April 10-11, 2007. AFD’s Experience in Cooperative Finance Aude FLOGNY-CATRISSE Agence Française de Développement, Head of Financial Sector and Private Sector Development. AFD : French Development Agency.

inga
Télécharger la présentation

AFD’s Experience in Cooperative Finance Aude FLOGNY-CATRISSE Agence Française de Développement,

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Cooperative Finance Global Good Practices Washington D.C., April 10-11, 2007 AFD’s Experience in Cooperative Finance Aude FLOGNY-CATRISSE Agence Française de Développement, Head of Financial Sector and Private Sector Development

  2. AFD : French Development Agency • The main operator for French bilateral development aid • Operating in over 60 countries: Africa, Mediterranean, Asian and Caribbean areas • A public financial institution, under French banking regulation: rated AAA • A large customer base and a comprehensive range of financial tools • 2006 Commitments: 2.5 billion €

  3. 20 years of experience • 267 M€ cumulated investments in the microfinance sector • A main objective: direct support to the MFIs (50) • 28 active investments with 17 in Sub-Saharan Africa • A dedicated team of 3 people who appraised 12 projects amounting to 36 M€ of commitments in 2006

  4. Microfinance institutions financed by AFD 1988 - 2006

  5. AFD’s member based MFI’s portfolio • 36% of MFI’s currently supported by AFD are cooperatives or other type of member based institutions (rural & urban) • 100% of coop in Sub-Saharan Africa. A model promoted by the regulators (UEMOA, Madagascar) • 24 coop financed: 5 closed, 9 still operating without AFD’s support, 10 currently supported (5 since the 1990’s) • 2001 CMG failure (Guinée)- depositors’ compensation

  6. Challenges for cooperatives in Sub-Saharan Africa • Increasing competition, various business models • Expansion and governance issues: balance between the financial and social objectives (board & management) • Integration of banking principles and functions: • IMS, Products diversification & marketing • Internal audit, risk management • Complexification: legal, fiscal, valuation issues (institutionnal tranformation, creation of « faitière ») • One strength: ability to collect deposits

  7. Evolution of the MFIs’ needs • New skills, capacity building funding and the critical role of the technical partner • Improved articulation with the banking sector with more transparence • Flexibility of DFI’s support: AFD’s answer -The Microfinance Investment Facility and ARIZ Guarantee Fund

  8. Microfinance Investment Facility • 20 M€ subsidies (25M$), • Equity and quasi-equity (differed profitability, high risks), local currency and soft loans (small size investments) • Cost and repayment depend on performance and institutionnal structure, • Contractualisation of subordinated debt between MFI and AFD with exit and repayment conditions, • Possible combination with other AFD products (TA, guarantee, etc.)

  9. ARIZ Guarantee fund • Fund procedures adapted to MFIs’ specific needs • Guarantee up to 75% of a bank’s loan or line of credit with a guaranteed ceiling of 0,75 M € (almost 1M$) • Fees: 2% of guaranteed amount • Quick credit decision process

  10. THANK YOU FOR YOUR ATTENTION AFD’s micro-finance team:

More Related