The International Fund for Agricultural Development (IFAD), an agency of the United Nations, has chosen to prolong the mandate originally given in 2013 to Développement international Desjardins (DID), a nonprofit member of the Canada-based Desjardins Group, with a grant of USD 561,000 for microcredit in Cameroon. Under the contract DID created a loan fund for microfinance institutions to finance agro-pastoral equipment [1]. This project, known as Projet d’appui au développement de la microfinance rurale (PADMIR), was executed with the Ministry of Agriculture and Rural Development of Cameroon with the goal of increasing living standards in rural areas.
IFAD and DID also have committed USD 1,135,785 – USD 950,000 and USD 185,785 respectively – for a three-year project to be directed by the Senegalese office of DID with the goal of improving rural financing operations in West and Central Africa [2]. According to DID, the new capital will allow IFAD to “scale up the deployment of innovative approaches, products and services intended for rural households, support dialogue for the design and implementation of policies related to rural finance, [and] enhance the capacity of financial institutions in rural areas and other actors linked to the rural finance sector” [2].
During 2013 IFAD disbursed new commitments of USD 2.7 billion, bringing its portfolio of ongoing projects to USD 8.3 billion in 97 countries. DID works with organizations in approximately 30 nations in Africa, Asia, Central and Eastern Europe, and Latin America and the Caribbean. The Desjardins Group, a financial cooperative offering banking, insurance, securities and investment services, reports USD 188 billion in assets as of 2013.
By Jeff Pierce, Research Associate
About IFAD
The International Fund for Agricultural Development (IFAD), an agency of the United Nations, was established in 1977 as an outcome of the 1974 World Food Conference. IFAD is dedicated to eradicating rural poverty in developing countries by focusing on country-specific solutions. IFAD disbursed new commitments of USD 2.7 billion during 2013, bringing its portfolio of ongoing projects to USD 8.3 billion. IFAD operates in 97 countries as of 2013.
About DID
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 USD 188 billion in assets as of 2013. 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. 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 operates a network of entrepreneur financial centers (EFCs) in Dar es Salam, Tanzania; Kampala, Uganda; Lusaka, Zambia and Panama City, Panama, with further four EFCs scheduled to open in Tunisia and elsewhere in Africa and Latin America as of 2015. The EFCs in Tanzania, Uganda and Zambia accept deposits. The four EFCs claim aggregate assets of CAD 68 million (USD 54 million), a combined loan portfolio of CAD 53 million (USD 43 million), deposits of CAD 12 million (USD 9 million) and 32,000 clients.
Sources and Additional Resources:
Information provided by DID to MicroCapital via Email
[1] DID News: “DID works with IFAD to increase financial inclusion in rural West and Central Africa,” http://did.qc.ca/en/news/did-works-with-ifad-increase-financial-97/
[2] DID News: “IFAD extends DID mandate under Rural Microfinance Development Support Project (PADMIR) in Cameroon,” http://did.qc.ca/en/news/ifad-extends-did-mandate-under-rural-98/?utm_medium=email&utm_campaign=DID+Newsletter+-+April+2015&utm_content=DID+Newsletter+-+April+2015+CID_becfc9c53d2badce56f28928a480ddae&utm_source=Campaign%20Monitor&utm_term=Read%20the%20full%20article
MicroCapital Universe Profile: IFAD
MicroCapital Universe Profile: DID
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