The Grameen Crédit Agricole Foundation, a Luxembourg-based investor in social businesses, recently issued a two-year loan of EUR 600,000 (USD 660,000) to KosInvest, a Kosovo-based microfinance institution (MFI) affiliated with the US-based Christian NGO World Vision. KosInvest provides microinsurance as well as loans designed for purposes such as raising livestock, farming, commerce, housing upgrades and consumer purchases. These loans range in size from EUR 50 (USD 55) to EUR 10,000 (USD 11,000), with terms of three months to five years. They carry effective interest rates of 30 percent to 41 percent per year, and some have fees of up to 2 percent.
As of 2022, KosInvest reports a client base of 2,400, about 800 of whom are women and about 1,300 of whom live in rural areas. The organization is a part of World Vision’s VisionFund International, whose affiliates span 28 countries in Africa, Asia, Eastern Europe and Latin America. These entities hold an aggregate gross loan portfolio of USD 438 million and USD 63 million in client deposits as of the close of the 2021 fiscal year. As of September 2022, the network serves 1 million clients, mostly women living in rural areas. In addition to loans and savings, VisionFund provides insurance, financial education and training in business skills. Its parent organization, World Vision, brought in revenue of USD 1.4 billion during 2022 and is active in relief and development activities in approximately 100 countries.
Crédit Agricole, a French retail bank, in partnership with Muhammad Yunus, the founder of Grameen Bank of Bangladesh, 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 2023, GCA Foundation manages assets valued at EUR 89 million (USD 98 million) outstanding to 62 partners in 37 countries in Africa and Eurasia. These partners’ beneficiaries are mainly women living in rural areas.
By Rohit Dayanand, Research Associate
Sources and Additional Resources
GCA Foundation press release
https://www.gca-foundation.org/en/media-room/#the-foundation-grants-a-first-loan-to-kosinvest-in-kosovo
KosInvest homepage
https://www.kosinvest.org/
VisionFund Kosovo webpage
https://www.visionfund.org/where-we-work/eastern-europe/kosovo
VisionFund homepage
https://www.visionfund.org/
WorldVision FY 2022 Impact Report
https://wvusstatic.com/2023/financial-accountability/BC18561_FY22_AR_F2.pdf
GCA Foundation annual report
https://www.gca-foundation.org/wp-content/uploads/2022/06/GCAF_Integrated-Annual-Report-2021.pdf
Crédit Agricole Homepage
https://www.credit-agricole.com/
Previous MicroCapital story on the GCA Foundation
https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-foundation-lends-525k-to-smart-credit-for-microfinance-in-moldova/
Previous MicroCapital story on VisionFund
https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-foundation-lends-local-currency-equivalent-of-445k-to-microfinance-institution-visionfund-uganda/
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