MICROCAPITAL BRIEF: Grameen Crédit Agricole Foundation Disburses $10m to Microfinance Institutions for On-lending in Indonesia, Myanmar

The Grameen Crédit Agricole (GCA) Foundation, whose head office is in Luxembourg, recently announced it has disbursed loans in local currency to three microfinance institutions (MFIs) active in Indonesia and Myanmar. GCA Foundation loaned the approximate equivalent of: USD 6.0 million to Mitra Bisnis Keluarga Ventura (MBK) of Indonesia, USD 2.6 million to Komida of Indonesia, and USD 1.7 million to Proximity Finance for on-lending in Myanmar. The investment in Proximity Finance closed in February.

Established in 2006, MBK is an MFI whose vision is to raise the living standards of the lowest-income women in Java by providing access to group microloans for use as working capital. As of January 2021, MBK reported USD 208 million in loans outstanding to approximately 1.1 million clients, three quarters of whom earn less than the local poverty level.

Established in 2004, Komida provides low-income women in rural areas collateral-free loans and savings services. As of 2021, the MFI serves approximately 720,000 women via 318 branches. It reports outstanding loans of IDR 1.79 trillion (USD 124 million) and total deposits of IDR 608 billion (USD 42 million).

Proximity Finance is a unit of Proximity Designs, which was founded in 2010 and is incorporated as an NGO in the US. The organizations serve Myanmar exclusively with technical assistance, research services, savings and income-generating products including loans for farming, raising livestock, relocation and small businesses. As of 2021, Proximity Designs has 900,000 customers, including 200,000 borrowers, of whom nearly all reside in rural areas and 69 percent are women. The organization has not published client savings data for 2020 or 2021.

Credit Agricole, a French retail bank, in partnership with Muhammad Yunus, the founder of Grameen Bank, established GCA Foundation in 2008. The organization seeks to reduce poverty by providing funding and technical assistance to MFIs and other social businesses. As of May 2021, GCA Foundation has a portfolio of EUR 86 million (USD 103 million) outstanding to 89 partners in 37 countries in Africa and Eurasia. Approximately 85 percent of its investees’ clients live in rural areas, and 73 percent are women.

By Sophie Fiala, Research Associate

Sources and Additional Resources

GCA Foundation press release
https://www.gca-foundation.org/en/media-room/#the-foundation-continues-to-support-its-partners-in-asia

Komida homepage
https://mitradhuafa.com/

MBK homepage
https://www.mbk-ventura.com/

Proximity Designs homepage
https://proximitydesigns.org/

GCA Foundation homepage
https://www.gca-foundation.org/

Komida April 2021 report
https://mitradhuafa.com/works/001-mps-report-april-2021/

Previous MicroCapital brief on GCA Foundation
https://www.microcapital.org/microcapital-brief-pahal-financial-services-borrowing-3-5m-from-grameen-credit-agricole-foundation-for-microfinance-for-women-in-india/

Previous MicroCapital brief on Komida
https://www.microcapital.org/microcapital-brief-komida-of-indonesia-borrows-2-4m-in-local-currency-from-grameen-credit-agricole-foundation-for-microenterprise-lending-for-rural-women/

Previous MicroCapital brief on MBK
https://www.microcapital.org/microcapital-brief-symbiotics-issues-bonds-supporting-sme-rural-finance-12m-for-costa-ricas-banco-improsa-10m-for-indonesias-mitra-bisnis-keluarga-mbk-ventura-6m-for-armeni/

Previous MicroCapital brief on Proximity Finance
https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-foundation-loans-3-7m-to-proximity-chamroeun-for-microfinance-in-myanmar-cambodia/