Two microfinance institutions (MFIs) in Central Asia are among those that recently borrowed from the Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg. Both of the loans are denominated in local currency and have terms of three years. Neither MFI accepts deposits.
The Asian Credit Fund, an MFI controlled by US-based NGO Mercy Corps, borrowed the equivalent of USD 1.8 million. The other shareholders of the MFI are Base of Pyramid Asia (BOPA), a Singapore-based equity investor in Asian MFIs, and a group of employees of the Asian Credit Fund. BOPA holds just under 48 percent of the MFI’s equity, and its employees together hold just under 2 percent. Formed in 1997, the Asian Credit Fund offers group and individual loans with terms of six months and one year. The microloans, which are all denominated in local currency, are intended for business or housing purposes. In addition to loans, the MFI offers financial literacy and environmental education. As of 2018, the Asian Credit Fund has 37 offices, most in rural areas. Of its 21,000 borrowers, 92 percent are women. As of December 2016, the MFI reported total assets of KZT 3.6 billion (USD 11 million) and a gross loan portfolio of USD 8.7 million.
Oxus Tajikistan, which was created by the French nonprofit Agency for Technical Cooperation and Development (ACTED), borrowed the equivalent of USD 1.2 million from GCA Foundation. One fifth of the MFI’s portfolio is disbursed to borrowing groups, and over 45 percent of the MFI’s borrowers make a living from livestock and horticulture. Oxus Tajikistan has 273 staff members and a gross loan portfolio of EUR 14.5 million (USD 18 million) outstanding to 13,000 clients as of 2018.
The MFI is a member of the Oxus Group, which also operates in Afghanistan and Kyrgyzstan. In total, it serves 41,000 clients with a gross loan portfolio of EUR 32 million (USD 39 million) as of 2018. In addition to microfinance via the Oxus Group, ACTED is active in areas such as disaster resilience and “cultural promotion.” Founded in 1993, the NGO operates in 30 countries as of 2018.
The GCA Foundation was founded in 2008 by Credit Agricole SA, a French retail bank, and Grameen Trust, a nonprofit microfinance organization affiliated with the Grameen Bank of Bangladesh. The foundation focuses on supporting organizations that prioritize rural development, transparency, consumer protection and serving women. As of December 2017, the GCA foundation had outstanding loans of EUR 62 million (USD 76 million) and experience with 69 partners in 28 countries in Africa and Eurasia.
Sources and Additional Resources
Direct contact with the Grameen Credit Agricole Foundation
Asian Credit Fund annual report 2016
http://asiancreditfund.com/wp-content/uploads/2013/09/LLC_Financial_statement_ENG-2016.pdf
Asian Credit Fund profile with the Microfinance Information Exchange
https://www.themix.org/mixmarket/profiles/acf
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