MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Disburses Local-currency Loan Worth $800k to Uganda Microcredit Foundation (UMF)

The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, recently informed MicroCapital that it has lent EUR 700,000 (USD 800,000) in local currency to Uganda Microcredit Foundation (UMF) Limited to support its microfinance activities. Founded in 2008, UMF provides group and individual loans for business, education, agriculture, and housing. The term of the loans is usually six months, but a maximum of two years is allowable.

As of December 2018, UMF had 4,200 clients of whom 55 percent are female and 65 percent live in rural areas. The institution has a total of five branches in the districts of Kampala, Mukono, and Wakiso. Its mission is to provide “financial and non-financial services to small and medium enterprises in rural and urban areas of Uganda, through well-designed customer tailored products in order to facilitate economic growth and development.” The gross loan portfolio of UMF comprises UGX 3.9 billion (USD 1.1 million) in agriculture and livestock lending, UGX 8.7 billion (USD 2.4 million) in other individual loans and UGX 861 million (USD 230,000) in other group loans.

GCA Foundation was founded in 2008 by Credit Agricole SA, a French retail bank, in partnership with Bangladeshi NGO Grameen Trust and its founder, Muhammad Yunus. The foundation provides funding and technical assistance to microfinance institutions and other social businesses with the aim of creating a “better-shared economy.” As of January 2019, GCA Foundation has commitments of approximately EUR 82 million (USD 92 million) outstanding to 79 partners in 35 countries in Africa and Eurasia. Its partners serve approximately 3.9 million customers, of whom 75 percent are women and 79 percent live in rural areas.

By Anuhya Tadepalli, Research Associate

Sources and Additional Resources

Direct contact with the Grameen Credit Agricole Foundation

UMF homepage
http://www.umf.co.ug

GCA Foundation homepage
http://gca-foundation.org/

Oikocredit profile on UMF
https://www.oikocredit.coop/what-we-do/partners/partner-detail/10762/uganda-microcredit-foundation-ltd

GCA Foundation 2017 Annual Report
http://gca-foundation.org/data/grameen/media/documents/Grameen-Credit-Agricole-Foundation-Integrated-Annual-Report-2017-.pdf

MICROCAPITAL BRIEF: Grameen Crédit Agricole Microfinance Foundation Loans $1.2m to Kenya’s Juhudi Kilimo, Uganda Microcredit Foundation (UMF), Uganda’s Encot
https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-loans-1-2m-to-kenyas-juhudi-kilimo-uganda-microcredit-foundation-umf-ugandas-encot/

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