MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation Loans $2.4m in Kenya to Juhudi Kilimo, Musoni Kenya, ECLOF

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to microfinance institutions (MFIs), recently informed MicroCapital that it has loaned the local-currency equivalent of EUR 1.2 million (USD 1.3 million) to Juhudi Kilimo, a for-profit organization servicing small businesses and farmers in Kenya; EUR 500,000 (USD 550,000) to first-time investee Musoni Kenya, an MFI that lends exclusively via mobile money; and EUR 488,000 (USD 540,000) to the Kenyan arm of the Ecumenical Church Loan Fund (ECLOF International), a network of 120 MFIs in nineteen countries across Latin America, Asia and Africa.

As of the quarter ending in June 2014, the most recent period for which data are available, Juhudi Kilimo reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 9.4 million, a gross loan portfolio of USD 6.6 million outstanding to approximately 18,000 borrowers, return on assets (ROA) of -14 percent and return on equity (ROE) of -89 percent. As of 2014, Musoni Kenya has total assets of USD 8.9 million, a gross loan portfolio of USD 5.3 million and 16,000 active borrowers. Neither MFI accepts deposits. As of 2015, ECLOF International reported total assets of USD 22 million, a gross loan portfolio of USD 42 million, USD 2.6 million in deposits and 135,000 clients.

As of December 2014, GCAMF reported total assets of EUR 51 million (USD 57 million) and return on assets (ROA) of 6.6 percent. Since its inception in 2008 through March 2016 it has invested in 46 MFIs, 13 social-business projects, and one fund.

About Juhudi Kilimo

Juhudi Kilimo is a for-profit Kenyan microlender that started operations in 2004 within the Kenyan nonprofit organization K-Rep Development Agency. It provides agricultural asset insurance, start-up capital for agribusinesses and loans to small-scale farmers to purchase “productive” agricultural assets. As of the quarter ending in June 2014, Juhudi reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 9.4 million, a gross loan portfolio of USD 6.6 million outstanding to approximately 18,000 borrowers, return on assets (ROA) of -14 percent and return on equity (ROE) of -89 percent. Juhudi does not accept deposits.

About Musoni Kenya Limited

Established in 2010, Musoni Kenya is a microfinance institution based in Nairobi, Kenya, that disburses loans only via the M-Pesa mobile money service. It offers three types of products: Nawiri Loans, for individuals; Stawi Loans, to assist in growing small businesses; and Tuelimike Loans, specifically for school fees. Each product offers flexible loan amounts and repayment schedules. According to 2014 data from the US-based nonprofit Microfinance Information Exchange (MIX), Musoni has total assets of USD 8.9 million, a gross loan portfolio of USD 5.3 million and 16,000 active borrowers. Musoni does not accept deposits.

About the Ecumenical Church Loan Fund

The Ecumenical Church Loan Fund (ECLOF) is a network of 120 ecumenical microfinance institutions (MFIs) in nineteen countries across Latina America, Africa, and Asia. Each national ECLOF has its own board and local staff. The International Secretariat, based in Switzerland, provides additional oversight, technical support, policy development, exchange of regional and country experience, and resource mobilization. Loan requests are considered by national ECLOFs. As of 2015, ECLOF International reported total assets of USD 22 million, a gross loan portfolio of USD 42 million, USD 2.6 million in deposits and 135,000 clients.

About Grameen Credit Agricole Microfinance Foundation

Grameen Credit Agricole Microfinance Foundation (GCAMF) provides financial services to microfinance institutions (MFIs) and other social businesses. GCAMF was founded in Luxembourg in 2008 by Credit Agricole SA, a French retail bank, and Grameen Trust, a non-profit microfinance organization affiliated with the Grameen Bank of Bangladesh. In financing MFIs, GCAMF focuses on those that prioritize rural development, transparency, consumer protection and serving women. The foundation has been active in 18 countries in Africa, Asia and Europe. As of December 2014, GCAMF reported total assets of EUR 51 million (USD 64 million) and return on assets (ROA) of 6.6 percent. Since its inception in 2008 through October 2015, the foundation has invested in 46 MFIs, 13 social-business projects and one fund in 22 countries.

By Petra Barbu, Research Associate

Sources and Additional Resources:

[1] MicroCapital Brief: https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-loans-340k-in-local-currency-to-senegals-mec-fadec-930k-to-tajikistans-humo-partners/

[2] Juhudi Kilimo: http://juhudikilimo.com/who-we-are/

[3] Musoni Kenya: http://musoni.co.ke/

[4] Ecumenical Church Loan Fund: http://www.eclof.org/

[5] ECLOF Annual Report

[6] MicroCapital Universe Profile: Juhudi Kilimo

[7] MicroCapital Universe Profile: Musoni Kenya

[8] MicroCapital Universe Profile: ECLOF

[9] MicroCapital Universe Profile: GCAMF

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