MICROCAPITAL BRIEF: Développement International Desjardins (DID), Agence Française de Développement (AFD) to Support Faîtière des Unités Coopératives d’Epargne et de Crédit du Togo (FUCEC-TOGO) in Product Development

Développement International Desjardins (DID), a nonprofit subsidiary of Canadian cooperative Desjardins Group, and Agence Française de Développement (AFD), the country’s body for international development, recently announced an agreement to co-finance the creation of products and services for small and medium-sized enterprises (SMEs) that are served by members of Faîtière des Unités Coopératives d’Epargne et de Crédit du Togo (FUCEC-TOGO), a network of 39 financial cooperatives in Togo.

The plan is to widen the scope of services that FUCEC-TOGO offers to its members, implement more stringent monitoring of lenders and better identify needs of FUCEC-TOGO member cooperatives, as well as their clients. DID plans to carry out its activities in three stages: (1) assess the financing that FUCEC-TOGO members currently offer to SMEs, (2) test a new financing methodology, and (3) deploy the new finance methodology and appropriate new policies throughout the network. The mandate will be carried out over an 18-month period.

As of 2012, the members of  FUCEC-TOGO have a combined gross loan portfolio of USD 108 million and serve 65,000 active borrowers. As of the same year, Desjardins Group reports assets of CAD 31.9 million (USD 30.7 million) and AFD reported assets of USD 33 billion.

By Emily Teleposky, Research Associate

About Développement International Desjardins (DID):
DID is a Canadian corporation that specializes in providing technical support and investment for the community finance sector in emerging economies. It assists organizations in approximately thirty nations in Africa, Asia, the Caribbean, Central and Eastern Europe and Latin America. DID is a component of the Desjardins Group, an integrated financial cooperative offering banking, insurance, securities and investment services. DID coordinates Proxfin, the network constituted of its 29 community finance institutions which are located in 24 nations across four continents. As of 2012, DID reports total assets of CAD 31.9 million (USD 30.7 million).

About Faîtière des Unités Coopératives d’Epargne et de Crédit du Togo (FUCEC-TOGO)
FUCEC-TOGO is made up of 39 financial cooperatives, which have a total of 136.1 million in deposits, a gross loan portfolio of USD 108 million, USD 163.7 in assets and 65,000 active borrowers, in 105 service outlets, as of 2012. The organization is one of six members of the Confederation of Financial Institutions in West Africa.

About Agence Francaise de Developpement (AFD):
Established in 1941, Agence Française de Développement (AFD) is a bilateral development finance institution whose public mandate is to finance development according to the overseas development assistance policies of the French government. AFD finances development projects in approximately 90 countries across four continents. As of 2012, AFD reported total assets of USD 33 billion.

Sources and Additional Resources

[1] Improving Financing for Entrepreneurs in Togo, http://did.qc.ca/en/publications/newsletter/improving-financing-for-entrepreneurs-togo-79/

[2] MICROCAPITAL BRIEF: Developpement International Desjardins (DID) Loans $1m to Microfinance Institution (MFI) Humo & Partners of Tajikistan, November 2013, https://www.microcapital.org/microcapital-brief-developpement-international-desjardins-did-loans-1m-to-microfinance-institution-mfi-humo-partners-of-tajikistan/

[3] MICROCAPITAL BRIEF: Développement International Desjardins (DID) Invests in Microfinance Currency Hedging Company MFX Solutions, November 4, 2013, https://www.microcapital.org/microcapital-brief-developpement-international-desjardins-did-invests-in-microfinance-currency-hedging-company-mfx-solutions/

[4] MICROCAPITAL BRIEF: Developpement international Desjardins (DID) Loans $500k to Cambodia Community Savings Federation (CCSF) to Expand Financial Cooperative Sector, March 21, 2013, https://www.microcapital.org/microcapital-brief-developpement-international-desjardins-did-loans-500k-to-cambodia-community-savings-federation-ccsf-to-expand-financial-cooperative-sector

[5] MICROCAPITAL UNIVERSE PROFILE: Developpement International Desjardins, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Developpement+International+Desjardins+%28DID%29

[6] MICROCAPITAL UNIVERSE PROFILE: Faîtière des Unités Coopératives d’Epargne et de Crédit du Togo (FUCEC-TOGO), https://www.microcapital.org/microfinanceuniverse/tiki-index.phppage=Faîtière+des+Unités+Coopératives+d’Epargne+et+de+Crédit+du+Togo

[7] MICROCAPITAL UNIVERSE PROFILE: French Development Agency, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=French+Development+Agency

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