The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, recently granted a loan in local currency equivalent to USD 1.12 million to the Uganda Agency for Development Limited (UGAFODE) to support its provision of “affordable financial services” in Uganda. UGAFODE, which was established in 1994 as an NGO, became a for-profit institution in 2010. As of 2019, it is licensed and supervised by the Bank of Uganda, the country’s central bank. UGAFODE offers loans, savings products, mobile money transfers and bill payment services. Its loan products include those designed for business, personal development, housing and agricultural purposes. These group and individual loans are provided in amounts as small as UGX 100,000 (USD 27) for a maximum of 36 months. Its savings offerings include term, on-demand, business, group and youth options. The organization’s mission is “to transform the lives of our customers economically and socially by providing to them inclusive financial solutions.”
As of 2018, UGAFODE reported serving 17,300 clients, approximately 20 percent of whom are women, and 80 percent of whom live in rural areas. As of 2016, UGAFODE reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 13.84 million, deposits of USD 4.18 million and a gross loan portfolio of USD 9.68 million. Its largest shareholder, with a 29-percent stake, is the Accion Africa-Asia Investment Company, a subsidiary of the US-based NGO Accion.
GCA Foundation was launched in 2008 by the directors of Credit Agricole, a French retail bank, and Muhammad Yunus, the founder of the Grameen Bank of Bangladesh. The foundation provides funding and technical assistance to microfinance institutions and other social businesses with the aim of promoting financial inclusion and social entrepreneurship. As of April 2019, GCA Foundation has commitments of approximately EUR 85 million (USD 95 million) outstanding to 78 partners in 35 countries in Africa and Eurasia. Its partners serve approximately 4.1 million customers, of whom 75 percent are women and 77 percent live in rural areas.
By Daena McClintock, Research Associate
Sources and Additional Resources
UGAFODE homepage
https://www.ugafode.co.ug/
UGAFODE background
https://www.ugafode.co.ug/our-story/
UGAFODE annual reports
https://www.ugafode.co.ug/annual-reports/
Grameen Credit Agricole Foundation homepage
http://gca-foundation.org/
Grameen Credit Agricole Foundation approach
http://gca-foundation.org/approach
Grameen Credit Agricole Foundation publications
http://gca-foundation.org/publications-en
Grameen Credit Agricole Foundation 2017 Annual Report
http://gca-foundation.org/data/grameen/publications-gca/rapport-annuel/2017-Annual-Report-ENG.pdf
MICROCAPITAL BRIEF: ACEP Burkina Borrows $2.6m from Grameen Credit Agricole Foundation for Microlending
https://www.microcapital.org/microcapital-brief-acep-burkina-borrows-2-6m-from-grameen-credit-agricole-foundation-for-microlending/
MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lending Microloan Foundation (MLF) $292k in Local Currency for Microfinance in Rural Malawi
https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-foundation-lending-microloan-foundation-mlf-292k-in-local-currency-for-microfinance-in-rural-malawi/
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