MICROCAPITAL BRIEF: BIMAS of Kenya, AMZ of Zambia, PAIDEK of DR Congo Borrow $2m from Grameen Credit Agricole Microfinance Foundation

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to social businesses, recently informed MicroCapital that it has committed to extending the following local-currency loans in phases over three years: the equivalent of USD 838,000 to Business Initiatives and Management Assistance Services (BIMAS) of Kenya, the equivalent of USD 582,000 to Agora Microfinance Zambia (AMZ), and the equivalent of USD 582,000 to Promotion et Appui aux Initiatives de Développement Economique du Kivu (PAIDEK) of the Democratic Republic of the Congo.

BIMAS is an NGO that was established in 1994 and is headquartered in the city of Embu. It offers rural communities services including insurance and financing for agriculture, education, solar products and dairy production. As of 2013, the most recent year for which data is available, BIMAS reported total assets equivalent to USD 6.7 million, a gross loan portfolio of USD 4.2 million and 11,400 active borrowers.

AMZ aims to effect positive social change through microcredit. It does not accept deposits. As of 2015, AMZ had total assets of USD 910,000, a gross loan portfolio of USD 703,000 and 10,300 active borrowers. As of 2014, AMZ reported return on assets (ROA) of -103 percent. It is a unit of Netherlands-based Agora Microfinance, which was established in 2009 also has microfinance affiliates in Cambodia and India.

PAIDEK is a microfinance institution that was established in 1996 with the aim of providing enterprise loans in the Kivu region. As of December 31, 2015, PAIDEK had total assets worth USD 4.76 million, a gross loan portfolio of USD 3.4 million, and USD 100,000 in deposits.

GCAMF was founded in Luxembourg in 2008 by Credit Agricole SA, a French retail bank, and Grameen Trust, a nonprofit microfinance organization affiliated with the Grameen Bank of Bangladesh. GCAMF focuses on supporting organizations 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 57 million) and ROA of 6.6 percent. Since its inception through March 2016, it has invested in 46 microfinance institutions, 13 social-business projects and one fund.

By Ryan Gauthier, Research Associate