MICROCAPITAL BRIEF: DiD Supports Microfinance Institution Kafo Jiginew in Offering “Input Savings” Voucher Plan to Help Farmers in Mali Buy Improved Pesticides

Developpement international Desjardins (DiD), a nonprofit unit of Canada’s cooperative Desjardins Group that promotes financial services in developing countries, recently partnered with Kafo Jiginew, a microfinance institution in Mali, to help it introduce a savings plan intended to address the fact that small-scale farmers often run out of funds between harvest and planting time. At harvest time when farmers have more cash, they deposit money into the account, and a portion is “frozen” in return for a voucher that farmers can use to purchase pesticides at a later date. Agricultural input retailers approved by Kafo Jiginew can redeem the vouchers for cash through the microfinance institution. Approved pesticides are safer for the farmers and the environment and are paired with technical support regarding application dosage.

As of 2015, Kafo Jiginew had EUR 64 million in total assets, a gross loan portfolio of EUR 35 million (USD 39 million), return on assets of 0.82 percent, return on equity of 4.52 percent, EUR 36 million (USD 40 million) in deposits, and 375,000 customers. DiD is a component of the Desjardins Group, a financial cooperative offering banking, insurance, securities and investment services, with approximately CAD 248 billion (approximately USD 197 billion) in assets as of 2015.

By Petra Barbu, Research Associate

About Développement international Desjardins

Développement international Desjardins (DiD) is a Canadian nonprofit corporation that specializes in providing technical support and investment for the community finance sector in emerging economies. It assists organizations in approximately 30 nations in Africa, Asia, the Caribbean, Central and Eastern Europe and Latin America. DiD is a component of the Desjardins Group, a financial cooperative offering banking, insurance, securities and investment services, with approximately CAD 248 billion (approximately USD 197 billion) in assets as of 2015. DiD has two funds that provide loans and investment capital to microfinance institutions and funds specializing in microfinance, the Partnership Fund and the Desjardins Fund for Inclusive Finance. As of 2015, the two funds under management had a combined budget of CAN 40 million (approximately USD 30 million). In the past, DiD managed the now-closed Guarantee Fund, and it is currently winding down Fonds d’investissement pour le développement international (FONIDI).

DiD also organizes the Proxfin network of 30 community finance institutions and directly operates “entrepreneur financial centers” (EFCs) in Panama, Tanzania, Tunisia, Uganda, Zambia as of 2015. The EFCs in Tanzania, Uganda and Zambia accept deposits. The four EFCs other than the one in Tunisia claim aggregate assets of CAD 68 million (USD 54 million), a loan portfolio of CAD 53 million (USD 43 million), deposits of CAD 12 million (USD 9 million) and 32,000 clients. Data from the EFC in Tanzania, which was founded in 2015, are not yet available.

About Kafo Jiginew

Founded in 1987, Kafo Jiginew is a microfinance institution (MFI) in Mali and a federation composed of nineteen credit unions. In 1995, Kafo Jiginew began providing loans to cotton farmers guaranteed by Companie Malienne de Developpement et de Textiles (CMDT), Mali’s quasi-governmental cotton manufacturer. These “Cotton Loans” constitute 75 percent of Kafo Jiginew’s loan volume. As of 2015, Kafo Jiginew had EUR 64 million in total assets, a gross loan portfolio of EUR 35 million (USD 39 million), return on assets of 0.82 percent, return on equity of 4.52 percent, EUR 36 million (USD 40 million) in deposits, and 375,000 customers

Sources and Additional Resources:

[1] Input Savings Plan DiD: http://www.did.qc.ca/en/publications/newsletter/increasing-agricultural-productivity-and-food-security-113/

[2] MicroCapital Universe Profile: Développement international Desjardins

[3] MicroCapital Universe Profile: Kafo Jiginew

[4] CIF: Kafo Jiginew

[5] Kafo Jiginew Annual Report: http://www.kafojiginew.com/images/pdf/Rapport_RI_Kafo%20Jiginew_Mali.pdf

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