exeSIDIgb2005 - cor 20/07/06 11:40 Page 1

The activities of SIDI

and its partners in 2005

International
Solidarity
for Development

and Investment
exeSIDIgb2005 - cor 20/07/06 11:40 Page 2

Table of contents
Message from the Chairman of the
Executive Board 3
Glossaire
ACAD: Arab Center for Agricultural Development (Palestine)
ADI-Kivu: Association pour le Développement intégré au Kivu (DR of Congo)
AFD: Agence Française de Développement (France)
ADIE: Association pour le Droit à l’Initiative Economique (France)
Results of the 2003-2005 strategic plan 4 AMSSF: Association Marocaine Solidarité Sans Frontières (Morocco)
AMRET: ex-EMT “Ennatien Moulethan Tchonnebat” (Cambodia)
Activities in full expansion... 6 AOPP: Association des Organisations Professionnelles Paysannes (Mali)
ASPRODEB: Association Sénégalaise pour la Promotion du Développement à la Base (Senegal)
... around the leading issues… 8 BMS: Banque Malienne de Solidarité (Mali)
Rural areas to the fore 8 CAC: La Florida : Cooperativa Agraria Cafetalera La Florida (Peru)
CCFD: Comité Catholique contre la Faim et pour le Développement (France)
Priority for Africa 10 CCG: Coopérative de Cautionnement et de Gestion (Haiti)
Financial instruments tailored to our partners’ needs 10 CCRD: Caisse de Crédit Rural pour le Développement (DR of Congo)
CDC : Caisse des Dépôts et Consignations (France)
Building a regional approach 12 CEP: Capital Aid Fund for Employment of the Poor (Vietnam)
A strategy of alliances 14 CERISE: Comité d’Echanges, de Réflexion et d’Information sur les Systèmes d’Epargne Crédit (France)
CERUDEB: Centenary Rural Development Bank (Uganda)
Emphasis on social viability 16 CGAP: Consultative Group to Assist the Poor (consortium of 33 public and private development agencies)
Opening up to new areas of intervention 18 CIDA: Canadian International Development Agency (Canada)
Support for large-scale institutions 20 CIDR : Centre International de Développement et de Recherche (France)
CIRAD: Centre de Coopération Internationale en Recherche Agronomique pour le Développement (France)
COD-EMH: Coordination des Opérations de Développement – Methodist Church (Haiti)
SIDI’s institutional life 22 CONFIANZA: Entidad de Desarrollo para la pequeña y micro empresa (Peru)
CONSOLIDAR: Cooperativa Corfas de Crédito Solidario (Colombia)
COODEFI: Coopérative Financière et de Développement Economique (DR of Congo)
The Solidarity chain for financing: the North mobilises its efforts 22 CORDAID: Catholic Organisation for Relief and Development (Netherlands)
Increasing SIDI’s capital 25 CRG: Crédit Rural de Guinée (Guinea)
CRS: Catholic Relief Services (United States)
CRSM: Caja Rural San Martín (Peru)
CTA: Technical Centre for Rural and Agricultural Cooperation (ACP-EU)
DGRV: Deutscher Genossenschafts- und Raiffeisenverband e. V. (International Raiffeisen Union / Germany)
SIDI’s 2005 financial statements 26 EACD: Egyptian Association for Comprehensive Development (Egypt)
EDAPROSPO: Equipo de Aseroramiento a Actividades Productivas de Sectores Populares (Peru)
EDPYME: Entidad de Desarrollo para la Pequeña y Microempresa (Peru)
ESD: Epargne Solidarité Développement Association (France)
EU: European Union
Address book 28 FAEF: Fonds d’appui à l’Entrepreunariat Féminin (North Kivu)
FAPECAFES: Federación Regional de Asociaciones de Pequenos Cafetaleros Ecologicos del Sur (Ecuador)
FENACOOP: Federación Nacional de Cooperativas Agropecuarias y agroindustriales (Nicaragua)
FC: Fonds Coopératif (Laos)
FEBEA: European Federation of Ethical and Alternative Banks
FENAGIE Pêche: Fédération Nationale des Groupements d’intérêt Economique de Pêche(Senegal)
FID: Fonds d’Incitation au Développement (France)
FINANSOL: Association for Solidarity Financing (France)
FONDEFER: Fondo de Fomento Economico Rural (Nicaragua)
FONHSUD: Fonds Haïtien d’appui au développement du Sud (Haiti)
FOROLAC FR: Foro Latinoamericano y del Caribe de Finanzas Rurales
FPFD: Fédération des Paysans du Fouta Djalon (Guinea)
GTZ: Gesellschaft für Technische Zusammenarbeit (German technical cooperation)
GRET : Groupe de Recherche et d’Echanges Technologiques (France)
HIVOS : Humanist Institute for Development Cooperation (Netherlands)
IFC: International Finance Corporation (member of the World Bank Group)
IMOFOR: Institut Mobile de Formation (Haiti)
INAISE: International Association of Investors in the Social Economy
INDES: Inversiones para el Desarrollo (Chile)
INDEPCO: Institut National pour le Développement et la Promotion de la Couture (Haiti)
IRAM : Institut de Recherces et d’Applications des Méthodes de Développement (France)
JEMENI: Union des Caisses Mutuelles d’Epargne et de Crédit (Mali)
KNFP: Conseil National pour le Financement Populaire (Haiti)
KRK: Kreditimi Rural I Kosoves LLC (Kosovo)
KOKARI: Coopérative de services d’intermédiation en crédit rural (Niger)
LA-CIF: Latin American Challenge Investment Fund (South America)
LIDE: Ligue pour le Développement (North Kivu)
MAF: Microfinance Alliance Fund (Asia)
MAIN: Microfinance African Institution Network
MEC PROPEM: Mutuelle d'Epargne et de Crédit pour la Promotion de la Pêche à Mbour (Senegal)
I NTERNATIONAL MFI: microfinance institution
MPGM: Mouvement Paysan de Gros Morne (Haiti)
S OLIDARITY MICROFUND: Mutual institution (Togo)
MIGA: Multilateral Investment Guarantee Agency (member of the World Bank Group)
FOR D EVELOPMENT MIS: Management Information System
MISEREOR: Aktion Gegen Hunger Und Krankheit In Der Welt (Germany)
AND I NVESTMENT OMIPA: Oruchinga Microfinance Promotion Agency (Uganda)
PARMEC: Projet d’Appui à la Réglementation des Mutuelles d’Epargne et de Crédit
PROFUND: Investment Fund incorporated in Panama
PREFED: Programme Régional de Formation et d’Echanges pour le Développement (Rwanda)
SAINDESUR: Inversiones para el desarrollo (Uruguay)
SAPCA-EGAS (formerly UGIE): Société d’Approvisionnement, de Production, de Commercialisation et de Conseil
12, rue Guy-de-la-Brosse Agricole des Ententes des Groupements Associés du Sénégal (Senegal)
75005 Paris SDC : Swiss Agency for Development and Cooperation (Switzerland)
SEFEA: European Ethical and Alternative Financing Company
Phone: 33(0) 1 40 46 70 00 SIPEM: Société d’Investissement pour la Promotion de l’Entreprise à Madagascar (Madagascar)
Fax : 33(0) 1 46 34 81 18 SMEAF: Stromme Microfinance East African Fund
TIMPAC: Tous impliqués dans la mobilisation des ressources locales et la promotion des actions communautaires (Togo)
Web site : www.sidi.fr TISE: Société d’Investissements Socio-Economiques (Poland)
TITEM: Union des Mutuelles d’Epargne et de Crédit (Madagascar)
TRIODOS: Social bank (The Netherlands, United Kingdom and Belgium)
UCAC: Université Catholique pour l’Afrique Centrale (Cameroon)
UGPM: Union des Groupements Paysans de Meckhé (Senegal)
UMU : Uganda Martyrs’ University (Uganda)
Design and production: SIDI VECO : Vredeseilanden country office
WAGES: Women Association for both Gain Economic and Social (Togo)
Poussières d’Étoiles - Courtabœuf (91) WAMU: West African Monetary Union (Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal, Togo)
01 60 92 42 75
2 ACTIVITIES OF SIDI A N D I T S PA R T N E R S I N 2005
exeSIDIgb2005 - cor 20/07/06 11:40 Page 3
message from
the chairman of the Executive board
T hanks to the determination of eve-
ryone, the mobilisation of thousands
of supportive citizens, the generosi-
ty of the savers of the Faim &
Développement investment fund,
the solidarity of the institutional
and individual shareholders and
thanks, finally, to the teamwork,
the persistence and the perseverance
of our partners in the field, the objec-
tives we set for ourselves three years ago
have been largely attained.
SIDI completed the implementation of its 7th three-year plan, at
the end of 2005. Its first plan was launched with a capital of less
than €100,000. Twenty years later, more than €5 million have
been invested in a sustainable fashion with 48 partners from the
South and East. Thanks to a tremendous leverage effect, more
than 500,000 people have gained access to tailored financial ser-
vices to develop their economic activities and improve their living
conditions and those of their families.
Over the course of these three years, SIDI has rein-
forced its role of social investor and has been
recognised for its innovations, shared risks, the
quality of its services and its long-term commit-
ment.
The strategic plan set in motion between 2003 and 2005 bene-
fited from the resources mobilised during the capital increase
effected at the end of 2001. Many actions were conducted under
this plan. You will read about them, and about the innovative
and enriching experiences that were pursued during the period
with our partners on several continents, accompanied by detailed
figures. You will also learn about the priority accorded to rural
areas, to Africa, to financial solutions and to products adapted for
the context and particular settings of each country. In several
cases, a strengthening of the regional approach has optimised
available human and financial resources and work carried out
together within the framework of alliances has generated signi-
ficant leverage effects for the benefit of our partners. As a result,
areas of activity such as fair trade financing, housing, integrated
financing for family holdings, financing and support for produ-
cers’ organisations, the development of credit unions in difficult
regions, the consolidation of an approach to social viability and
development were all strengthened and invigorated.
In accordance with the wish expressed by the shareholders at the
extraordinary general meeting of 8 June 2005, the year ended
with a capital increase.This increase, amounting to €3.68 million,
marked the arrival of new institutional shareholders, in particular
Europeans, as well as many individuals, thanks to a vigorous
mobilisation by the Epargne, Solidarité, Développement (ESD)
association.
If SIDI is to remain faithful to its development mis-
sion, such mobilisation needs to be pursued.
Alongside present and future portfolio growth, the technical sup-
port and training that SIDI provides to its partners must be sus-
tained at the same level of quality. This mission is financed, for
the most part, by shared income from the Faim & Développement
investment fund that was set up 20 years ago by the CCFD, with
additional contributions from the CCFD, co-funding from public
and private European alliances and by portfolio revenue. These
resources are on the rise, but they need to be reinforced further
so that SIDI may continue to pursue its support mission that,
thanks to its high quality, has brought it recognition throughout
the sector.
To enable us to carry on with our activities, a new 2006-2008
activities plan has been drawn up. During this new
period, SIDI will be making every effort to enhan-
ce achievements and consolidate and develop its
partnerships. SIDI’s actions will continue to be founded on:
• partnerships with local financing structures, on the basis of
contractual relations that respect each party’s decision-making
autonomy
• giving priority to financing in the rural areas
• the strengthening of the Solidarity Chain for Financing and the
creation of leverage through solidarity financing
• flexibility and adaptation of financial instruments, implemen- Christian SCHMITZ
ted in response to locally-expressed needs Chairman of
• a fortified team with a range of diversified and complementa- the Executive Board
ry human resources Paris, 29 May 2006
• attachment to our fundamental values of Solidarity, Ethics and
Finance.
SIDI thus intends to pursue this momentum with
its numerous partners, shareholders and allies
who share its vision of a solidarity economy. As a
subsidiary of CCFD, SIDI is one of its strategic players and shares
its values and convictions to promote a solidarity economy and
society and back the emergence of local dynamics and players
able to take charge of their future to improve living conditions
through a change in people, groups and the environment. Xavier
Lamblin, who on 31 December 2005, finished his term of office
as President of CCFD, tirelessly encouraged SIDI’s incorporation
into CCFD as a subsidiary.This has generated group synergy and
added greater strategic coherence to SIDI’s actions in the field.
Xavier Lamblin assumed the Chairmanship of SIDI’s Supervisory
Board until April 2006. We are grateful to him for the high qua-
lity of his commitment to SIDI over the past six years. To oversee
the new 2006-2008 phase, we welcome Joël Thomas, the new
CCFD President, who took office in January 2006, to the chair-
manship of SIDI’s Supervisory Board.
Let us continue to push forward even further the
frontiers of solidarity financing and build, in part-
nership with others, financial services that are
equitable and adapted to the needs of the popu-
lations for whom they are designed.
3
exeSIDIgb2005 - cor 20/07/06 11:40 Page 4

Results of the 2003-2

SIDI in brief • its capital held by CCFD, its founding shareholder;

The International Solidarity for Development and
Investment Company, known by its French initials , SIDI,
was set up in 1983 on the initiative of the Catholic
Committee against Hunger and for Development (CCFD)
to promote economic initiative and encourage the crea-
tion of a social and economic fabric in developing coun-
tries.
Over the course of its history, SIDI’s concept of the
Solidarity Chain for Financing has underpinned its
actions. In the North, SIDI mobilises funds, via institutions
and private individuals, that it then makes available to
local financing entities offering financial services to the
poor in the South and the East. The funds mobilized in
the North come from the following sources:
French and European institutional shareholders; and
individual shareholders represented in the Epargne
Solidarité Développement (ESD) Association.
• shared income from solidarity savings in France
through the Faim et Développement investment fund,
created by the CCFD and managed by the Crédit
Coopératif
• financing negotiated with development organisations
• income from its investment portfolio
SIDI works with local partners who provide financial ser-
vices by offering financial support in the form of equity
participations, associated financings, loans and guaran-
tees, and also institutional accompaniment, technical
assistance and training, to help them achieve operational
autonomy and/or their institutionalisation.

TISE
(POLAND)
MICROINVEST
(MOLDOVA)
KRK
(KOSOVO)

AMSSF NAJDEH
AL AMANA ACAD (LEBANON)
(MOROCCO) (PALESTINE)
COD/EMH
FONHSUD BMS
KNFP MEC PROPEM NIAKO
FENAGIE PECHE AOPP JEMENII KOKARI - TAANADI FONDS COOPÉRATIF
INDEPCO (LAOS)
FENACOOP (FONDEFER) (HAITI) ASPRODEB - UGPM (MALI) CEP
(NICARAGUA) SAPCA/EGAS (NIGER) MAF
MAIN (VIETNAM)
PROFUND (SENEGAL) ASIENA - MOGTEDO (ASIA)
CRG (BURKINA-FASO) NETWORK AMRET
(LATIN AMERICA) (AFRICA)
FPFD HATTHA KAKSEKAR
CONSOLIDAR (GUINEA) WAGES - UCMECS (CAMBODIA)
(COLOMBIA) TIMPAC CERUDEB - OMIPA - SMEAF
MICROFUND (UGANDA)
FAPECAFES - MCCH PREFED (TOGO)
BANCO SOLIDARIO AKIBA
(RWANDA) FAEF - ADIKIVU (TANZANIA)
(ECUADOR)
A
PREFED COODEFI - CCRD
CRSM - EDAPROSPO (BURUNDI) (DR CONGO)
CONFIANZA - CAC LA FLORIDA
(PERU) LA-CIF
(LATIN AMERICA) SIPEM - TITEM
FOROLAC FR (MADAGASCAR)
(LATIN AMERICA)
AMRU - UGC CPC
(MOZAMBIQUE)

SAINDESUR TEMBEKA
(URUGUAY) (SOUTH AFRICA)
INDES
(CHILE)

SIDI and
its partners

4 ACTIVITIES OF SIDI A N D I T S PA R T N E R S I N 2005

 exeSIDIgb2005 - cor 20/07/06 11:40 Page 5

03-2005 strategic plan

The year 2005 was marked by the completion of the

2003-2005 strategic plan. This activity report is an oppor-
tunity to take stock of the rewarding experiences acquired
over the past three years, characterised by an extensive
development of SIDI’s activities and crowned by a capital
increase. The implementation and achievements of this
plan are to the credit of all the members of the Solidarity
Chain for Financing : the shareholders, who renewed their
trust by increasing the capital, the savers, volunteer
Timpac’s custo-
consultants, SIDI-CCFD local correspondents, organisa-
mers, Togo.
tions with whom we work in alliance, SIDI staff members
and, most important, our partners in the South and the
East. Thanks to all these people, who share SIDI’s vision
for a solidarity economy, SIDI has managed to strengthen
its role of social investor and has been recognised for its
innovations, risk-sharing approach and the quality of its • establishment of financial arrangements for protecting the
services. local financial service providers, their customers and their
environment, in cooperation with partners in the South
The first part of this report is devoted to the work carried and allies in the North.
out with partners in the South and the East over the last • Teamwork, in order to pool expertise
three years, while the second part focuses on mobilisation • Working with alliances in order to mobilise resources for
in the North. The last part contains SIDI’s financial state- the local partners providing financial services.
ments. • strengthening of the Solidarity Chain for Financing.

Family
of farmers,

The broad outline of the

Haiti.

2003-2005 strategic plan

The 2003-2005 strategic plan takes up where the preceding
three-year period (2000-2002) left off, with the aim of pur-
suing the momentum generated by many of SIDI’s partners,
shareholders and allies who share its vision of a solidarity
economy.

In this respect, SIDI set itself the goal of reinforcing and

expanding solidarity financing practices initiated by local
organisations:
- with focus on rural areas and Africa,
- by emphasising demand-driven financial services,
- in coherence with CCFD’s goals of promoting an econo-
my and a society founded on solidarity.

To achieve this goal, SIDI has set up a plan emphasizing the

following five points:
• reinforcement and diversification of partnerships and the
portfolio

5
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Results of the 2003- 2

During the 2003-2005 strategic plan, SIDI’s acti-
vities registered a sharp increase, as seen in the
expansion of the portfolio, of the resources
devoted to follow-up support and of the number
of partners.
The gross portfolio has been increasing
steadily since 2002. At the end of 2005, it
amounted to €5.3 million. Over the three
years covered by the strategic plan this trans-
lates into a €2 million, or 61% increase. 85% of
the overall target set for the portfolio was rea-
ched (see table 1). The achievements exceeded
forecasts in Latin America, Asia and Eastern
Europe. For Africa, 75% of the objectives were
attained. On the other side of the coin, the tar-
get set for the Caribbean was attained at a rate
of only 46% because of the political difficulties
in Haiti, the only country in the region where SIDI
is active. In terms of flows, investments made by
SIDI over the three years, in the form of partici-
pations, loans and guarantees, amounted to €3
million.
Equity participations - in the amount of €2.7
million at the end of 2005 - remain the ins-
Branch of the
Credit Rural de
Guinée, Guinea.
Table 1: SIDI’s gross portfolio
(in €000s) 31.12.2002 31.12.2003 31.12.2004 31.12.2005
Participations
and related 2206 2366 2568
claims
Loans* 1055 1475 1893
Guarantees 0 0 109
TOTAL 3261 3841 4570
* including loans to institutions of which SIDI is a shareholder
**in relation to the 2003-2005 objectives
trument of choice and accounted for more than
half of the portfolio. Participations, in the plan as
a whole, recorded a 22 % increase. When SIDI is
not able to buy a stake in the capital, it grants
other types of financial assistance, usually loans,
but also, since 2004, guarantees. It does so by
offering terms and conditions adapted to the
degree of development of the local partners. At
the end of 2005, loans amounted to €2.4
million, i.e. 46% of the portfolio. Their sharp
increase during 2003-2005 is mainly attributable
to the development of SIDI’s activities in West
Africa, where the regional portfolio increased by
200% and where the PARMEC law, which
governs the microfinance sector in the MUWA
countries, hampered the development of alterna-
tive systems outside “mutuals”, and reduced the
possibilities of capital investment. Guarantees
weighed in at €159,000 at the close of
2005, equal to 3% of the portfolio, and benefi-
ted 3 African institutions – OMIPA in Uganda,
FPFD in Guinea and CCRD in the Democratic
Republic of the Congo.
Follow-up support, which consti-
tutes, along with financing, the core activity
of SIDI, mobilised €3.1 million over
2003 and 2005, of which a little
over €1 million in 2005 alone. The
goals of the strategic plan were the-
refore exceeded (see table 2). This
support is the sign of SIDI’s solid
commitment to its partners and
consists of activities in the fields of
technical assistance, monitoring,
counselling and institutional sup-
port over the medium and long-
Variation Portefolio Realisation
2005/2002 planned for rate**
end 2005
2694 +22 % 3715 73%
2411 + 129 % 2512 96%
159 +100 % - -
5264 + 61 % 6227 85%
activities in
terms. This support is tailored to the needs
of each partner and concerns fields as
varied as management, accountancy, strate-
gy, governance and human resources (see
Focus opposite).
The development of financing and support
activities was accompanied by a considerable
increase in the number of partners.
At the end of 2005, SIDI had 48 partners who
received financial and technical assistance,
compared to 31 at the end of 2002. In light of
the five disinvestments that occurred over the
period, no fewer than 22 new partners were
added to the portfolio since the end of 2002.
These partners are spread out over five large
geographical zones (see map on page 4). They
are located in Africa (21 partners at the end of
2005), Latin America (12 partners), Asia (5
partners), Eastern Europe (4 partners), the
Mediterranean basin (3 partners) and the
Caribbean (3 partners in Haiti). In addition to
these 48 partners, who receive financial sup-
port, there are 19 other organisations that, for
the time being, are receiving only technical
assistance from SIDI. This latter group com-
prises three regional and national networks:
MAIN in Africa, FOROLAC FR in Latin America
and KNFP in Haiti.
The partners are characterised by a wide
diversity. They may be local or national orga-
nisations (at the end of 2005, SIDI’s partners
were distributed among 24 countries) or regio-
nal institutions. Of the 48 partners, 4 are regio-
nal in scope: MAF in Asia, PROFUND and
LACIF in Latin America, and SEFEA1 in Europe.
Diversity is also found in the size of the part-
ners with institutions serving a large number of
people (Al Amana in Morocco, CERUDEB in
Uganda, Banco Solidario in Ecuador, AMRET in
Cambodia, CRG in Guinea and Jemeni in Mali,
to name just a few), and smaller institutions.
Other partners are producers’ organisations
(FPFJ in Guinea, AOPP in Mali, UGPM in
Senegal, FAPECAFES in Ecuador, La Florida in
Peru, etc.), or refinancing funds (e.g. Tembeka
in South Africa), or credit cooperatives (OMIPA
in Uganda, KOKARI and TANADI in Niger,
CCG/INDEPCO in Haiti), or non-bank financial
institutions (such as SIPEM in Madagascar,

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3- 2005 strategic plan

s in full expansion…
COODEFI and CCRD in the Democratic Table 2: Expenditure devoted to partners support
Republic of the Congo, INDES in Chile, Total Planned Rate of
Confianza in Peru, etc.), or banks (such as (in €000s) 2003 2004 2005 2003/2005 expenditure realisation
CERUDEB in Uganda, BMS in Mali, Banco 2003/2005
Solidario in Ecuador, etc.). SIDI also supports Africa 433 467 415 1315 1244 106%
institutions that are active in particular Latin America 63 124 81 268 348 77%
contexts, such as in crisis zones – Palestine, Asia 127 129 98 354 311 114%
Lebanon, the Great Lakes and Haiti – as well Mediterranean 79 96 91 266 268 99%
as in remote, far-flung areas. Also worthy of basin
note is the expansion of activities in the Eastern Caribbean 157 136 128 421 355 119%
European countries. During the plan, SIDI Europe 38 81 48 167 97 172%
invested in the capital of KRK in Kosovo and Horizontal(1) 72 95 177 344 313 110%
granted a convertible loan to MICROINVEST, in TOTAL 969 1128 1038 3135 2936 107%
Moldova. (1)
work performed by the SIDI’s team on the priority themes of the strategic plan that tie in with partner
support.
This wide range of partners reflects a diversity
of approaches and guarantees a response expected to receive financing from SIDI. For
adapted to the socio-economic context of each example, new partnerships will be set up star-
area of intervention. ting in 2006 in Uganda with the Stromme EAF
fund and the tea producers’ organisation,
The increase in the number of partners is the IGARA. A partnership is also expected to be
outcome of extensive work to identify future created in Egypt with EACD.
partners and to bolster the portfolio. During the 1
SEFEA is active throughout the region of the Council of Europe
2006-2008 plan, 33 additional institutions are and responded favourably to a request from SIDI for Kosovo.
Focus

Vision, values and human resources

The financial and social viability of any financial structure rests neces-
sarily on the workers who are in the field on a daily basis. Their moti-
vation and involvement in a collective project for the beneficiaries
and the adaptation of their skills to the needs of their function are key
considerations for the sustainability of the institution. Several part-
ners, aware of this reality and striving to consolidate their internal
social cohesion in order to improve services offered to the beneficia-
ries, have called upon SIDI to help them set up or improve the eva-
luation and remuneration system of their employees. Two of these
partners are the Crédit Rural de Guinée (CRG) and TIMPAC (Togo).
In the case of the CRG, work centred on the introduction of a new
employee evaluation system. This evaluation system for field officers
was built around the identification - by a group of employees and
selected individuals - of values that guide their mission on a daily
basis. Once identified, these values were classified by priority and
then broken down by skills or the professional conduct expected or
needed, thereby constituting a basis for assessing the action of the
field officers. This evaluation system, applied to one and all, helped
to determine how the positions should be adapted, the training
needs and possible or desirable changes in the officer or the institu-
tion. The same mechanism was also applied to other positions at the
CRG. Next, the remuneration system, i.e. salaries including the
variable portion, will be re-examined in light of these evaluations, so
that both the components of the salary and any changes to it will
reflect the actions of each individual in pursuing the vision, values
and missions of the CRG.
TIMPAC in Togo inherited a project-type remuneration system that
was poorly adapted to the realities of the new independent institu-
tion. In order to set up a system more in tune with reality, SIDI hel-
ped a group of employees and managers to identify TIMPAC’s
values. This exercise will lead to a common system of reference that
included motivation on the one hand and the evaluation of skills and
training needs, on the other. SIDI will support Timpac in this new
phase.
In both cases, the institutions, faced with growth in their activities
requiring improved human resources and management techniques,
re-examined the basic values of their mission. The only way to set
up a reference system for defining the skills, qualities and compe-
tencies expected from each department of the institution in the pur-
suit of the institution’s mission, was to identify and share these
values collectively. This exercise was an opportunity to confirm the
mission of the institution’s members and participants and to lay the
foundation for future discussions on strategy and financial and
social viability.

7
exeSIDIgb2005 - cor 20/07/06 11:40 Page 8
Rural areas
to the fore
Today, more than 1.2 billion human beings
continue to live in extreme poverty and try
to make ends meet with less than one dol-
lar a day. Around three-quarters of them -
some 900 million people - live in rural
areas1. This poverty leads to low and spo-
radic income, a lack of infrastructure and
basic services such as running water, elec-
tricity, health services, education, etc., and
also limited access to financial services. It
is true that rural areas have certain risks
and characteristics that are difficult to
grasp for a financial institution. These
areas are far from the cities, have a low
population density and some are in a land
locked situation, all of which means high
transaction costs that many financial insti-
tutions, which need to turn a profit, cannot
bear. The rural areas also suffer from the
lowest rates of literacy and management
skills. The financing of agricultural activi-
ties - with higher risks and the need for
long-term investment, etc. - brings with it
additional constraints. All these considera-
tions explain why many investors are wary
of adventuring in rural areas.
SIDI has always backed institutions that are
Members of the
La Florida co-
op, Peru
8 ACTIVITIES
… around the
active in rural areas, but, in the 2003-
2005 plan, rural financing became a
focal point of its strategy. This orientation is
in line with the shareholders’ wish to ensu-
re that funds and technical assistance go in
the first instance to those who most need
them. This orientation is also in agreement
with the requests from our partners. SIDI’s
approach to rural financing was devised first
and foremost through interaction with our
partners.
The priority accorded to rural areas is
clearly reflected in SIDI’s portfolio. Of
the 48 partners receiving financial
support under the 2003-2005 plan,
nearly two-thirds devote all or part of
their activities to rural areas.
In general, SIDI has no preference for a par-
ticular model or methodology, but rather
seeks to support a variety of partners and
approaches so as to provide a better res-
ponse to needs. SIDI works with national
institutions that operate in rural
areas, such as the Fonds Coopératif in
Laos, Kokari in Niger, the Crédit Rural in
Guinea, Amret in Cambodia, Banco
Solidario in Ecuador, etc., and with produ-
cers’ organisations offering loans to their
members, such as AOPP (Mali), FPFD
(Guinea) and CAC la Florida (Peru).
Results of the 2003- 2
lead
Moreover, SIDI supports organisations, like
ACAD in Palestine, that operate in difficult
situations. It also backs innovative expe-
riences such as those carried out in Senegal
by UGPM through its programme to support
financing for family holdings. In many
countries of the South, the concept of the
family is different from ours (sometimes
more than 20 people live under the same
roof, sharing food and abiding by decisions
taken by the household). The family farm is
often a major component of the claims put
forward by farmers’ organisations in the
South, especially in Africa, although these
holdings are not very well understood and
well financed. One major innovation by
UGPM, in partnership with SIDI, was to
grant simultaneous and diversified finan-
cing (investment loans, working capital,
etc.) to family holdings to enable them to
bridge the gap between crop cycles and get
out of debt thanks to a project that they
devise themselves with the support of
UGPM organizers. Thirty households from
Meckhé in Senegal are today benefiting
from this approach and the number of
beneficiaries will increase to 80 at the end
of 2006. Alongside this financial support,
studies are being prepared by SIDI with the
support of the CTA2 in order to have a bet-
ter understanding of these family holdings
and meet their needs more effectively.
Another innovative approach is the solida-
rity mutuals. A solidarity mutual is a group
of people who decide to pool their
resources for the purpose of granting loans.
A solidarity mutual operates with three
boxes: a green box, which receives mem-
bers’ contributions that are then used for
loans; a red box, which receives contribu-
tions for helping out members in a difficult
situation, such as serious health problems;
and a blue box for funds mobilised from
outside institutions, such as MFIs, NGOs,
etc. The solidarity mutuals are able to ope-
rate independently, without outside inter-
vention, and are particularly well-adapted
to remote, low-population areas that are far
from the cities, politically unstable and are
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 exeSIDIgb2005 - cor 20/07/06 11:40 Page 9
3- 2005 strategic plan
ading issues
not served by conventional financial institu-
tions. The idea of creating such mutuals
came out of UGPM in Senegal in the 1990s.
Since then, they have developed in many
countries on the initiative of several organi-
sations. Apart from Senegal, solidarity
mutuals are operating in Haiti, where they
have been set up by organisations such as
FONHSUD, and in Madagascar, where they
are being promoted by TITEM. Solidarity
mutuals have also been launched in Burkina
Faso (with ASIENA), in Mali (with AOPP) as
well as in the African Great Lakes region
(with ADI-KIVU, LIDE and PREFED). In order
to promote the development of solidarity
mutuals, SIDI supports organisations
wishing to set up solidarity mutuals (trai-
ning, and development of tools such as the
Solidarity Mutual Guide and a dedicated
MIS).
Furthermore, in pursuing its commitment to
rural areas, SIDI has led a reflection concer-
ning the players in various agricultural
channels, in particular the producers, mer-
chants and industrialists. SIDI’s goal is to
back producers in their bid to enhance the
value of their work and increase their inco-
me. For instance SIDI provides support to
producers’ organisations that are involved
in fair trade (see page 18). In addition, since
2003, SIDI has been supporting AOPP, a far-
mers’ federation in Mali that wants to pro-
duce seeds locally in a sustainable manner
in order to achieve food sovereignty.
SIDI’s activities in rural areas also involve
fishermen, who are suffering from the fall in
fish stocks and who need assistance to opti-
mise their catches. At the end of 2005, SIDI
granted a loan to MEC PROPEM, a credit
union for the promotion of fishing in Mbour,
Senegal.
Support for producers via a sectoral approach
will most likely be pursued in the coming
years and several projects are being exami-
ned. An identification mission was conduc-
ted in Uganda to the tea-producing region
and, in Haiti, a partnership is under conside-
ration with the Mouvement Paysan de Gros
Morne (MPGM), in the mango sector. In
Madagascar, a partnership is planned with a
federation of rice producers from the Lake
Aloatra region, the country’s chief rice-pro-
A customer
ducing area. Lastly, in Burkina Faso, SIDI will
of ACAD,
be providing financial assistance to the
Palestine.
Mogtedo cooperative that brings together
378 rice producers.
Furthermore, on the basis of its commitment
to the rural areas, SIDI has initiated a reflec-
tion on its financial instruments. Providing
services adapted to the needs of its partners
is one of its major concerns (see page 10).
In the rural areas, this requires an increase
in the length of financing. People in the interest rates. SIDI is therefore working to
countryside are not able to invest in the pro- improve the adaptation of the services on
cessing or sale of their products under bet- offer with CAC La Florida, which contributes
ter conditions unless they receive long-term to the livelihood of small coffee producers in
financing. In parallel with its recent capital the Chanchamayo region; the CajaRural San
increase, SIDI is considering the granting of Martin (CRSM), which is active in the San
financing over longer terms, possibly as long Martín region; and the CONFIANZA microfi-
as 10 years, that is compatible with rural nance institution.
repayment cycles.
Lastly, SIDI’s activities in support of the
Another way to help the rural areas is to rural areas also include backing for
work on the diversification of financial the MAIN network in Africa, FOROLAC
products. This task was taken up by FR in Latin America and KNFP in Haiti,
OMIPA with dairy producers’ organisations which continue to mobilise on the
during a workshop organised jointly by theme of rural financing and to per-
MAIN and SIDI in 2005. In Mali, SIDI is also suade public opinion and policy-
assisting JEMENI in its efforts to improve its makers of its importance.
offer of loans in rural areas. In Nicaragua,
SIDI and CCFD are working closely to pro-
mote FENACOOP, a federation of producers’
co-ops that was created in the 1970’s to
assist small, isolated rural producers get
organised. Today, FENACOOP has 67 co-ops
and a financing instrument, called FONDE-
FER (Development Fund for Rural Economic
Promotion). FENACOOP asked SIDI to rein-
force FONDEFER in order to broaden the
range of financial services offered in rural 1
United Nations statistics: http: //www.un.org/ffd/statements/ifadF.htm
areas. In Peru, SIDI decided to focus on the
country’s central macro-region as part of a
2
CTA: The Technical Centre for Rural and Agricultural Cooperation was
created in 1983 under the Lome Convention between the European
multi-partnership approach (see page 13). Union and the ACP group of countries (Africa, Caribbean, Pacific). The
The financial services proposed to rural pro- CTA’s mission is to develop and provide services that improve access by
ACP countries to information for rural and agricultural development and
ducers in this region were often poorly to strengthen the capacity in these countries to produce,acquire,exchan-
adapted in terms of amounts, term and ge and make use of information in this field (http//www.cta.int).
9
exeSIDIgb2005 - cor 20/07/06 11:40
Priority for Africa
Africa remains the poor relation in the field of
foreign investment in microfinance. According
to a study by the Consultative Group to Assist
the Poor (CGAP), only 7.2% of the more than
1 billion dollars invested in the sector by some
46 investors (including SIDI), actually benefi-
ted Africa, compared to more than 50% for
Eastern Europe and Central Asia1.
SIDI has striven to overturn this trend by
paying particular attention to the African
continent. This priority, which was reinforced
during the 2003-2005 plan, is also evident in
the portfolio figures and those concerning
support and the number of partners.
Africa accounted for 46% of the portfo-
lio in 2005, compared to 40% in 2002
(see graph 1). The Africa portfolio has increa-
sed by 87% since the end of 2002 and stood
at €2.4 million in 2005. Of the €3 million
invested by SIDI during the 2003-2005 plan,
more than half went to sub-Saharan Africa.
The African continent also received
43% of all resources devoted to sup-
port during the 2003-2005 strategic
plan (graph 2).
In addition, at the end of 2005, 45% of
partnerships were located in sub-
1
Foreign Investment in Microfinance: debt and equity from
quasi-commercial investors, Focus Note No. 25, CGAP, January
2004.
Graph 1: Evolution of the geographical breakdown of SIDI’s portfolio between 2002 and 2005.
Geographical breakdown of the portfolio at the end of 2002
Eastern Europe
3%
Asia 8%
Latin
America 32%
Caribbean 9 %
10
Page 10
Saharan Africa, up from 35% in 2002
(graph 3). SIDI now has 21 partners in the
region, compared to 11 at the end of 2002, a
nearly twofold increase in three years.
In general, SIDI’s activities in Africa conform to
the broad guidelines of the plan, with an
emphasis on rural areas. Of the 21 partners
financed, nearly two-thirds operated exclusi-
vely or partially in the countryside. SIDI is also
active in areas that have often been neglected
by other organisations and investors, both
from the North and the South, because they
are far from large cities, difficult of access,
politically unstable, with low profitability and
higher risks, compared to other areas.
However, SIDI does not shy from backing ins-
titutions that operate in politically unstable
areas, such as the CCRD in the Democratic
Republic of the Congo, and Microfund,
Timpac and Wages in Togo.
SIDI has partners in all African regions, but the
bulk of its financing goes to West Africa. This
region received more than €1 million, equal
to 68% of investments carried out during the
plan. The West Africa portfolio increased by
200% between 2002 and 2005.
Financial instruments
tailored to our
partners’ needs
SIDI’s financial relationship with its part-
ners is founded on two basic principles: a
Geographical breakdown of the portfolio at the end of 2005
Asia 12%
Africa 40 %
Latin
America 27%
Mediterranean
basin 8% Caribbean 4%
ACTIVITIES
Results of the 2003- 2
long-term commitment and risk-sharing.
SIDI positions itself as a patient solidarity
investor who gives precedence to the
development and reinforcement of its part-
ners’ equity. SIDI’s partners need stable,
long-term resources to consolidate their
operations and attract additional financing
in order to grow.
Since its creation more than 20 years ago,
SIDI has used equity participations as an
instrument of choice. Today, these
account for more than half of the portfolio
(see page 6). These are long-term invest-
ments, over 10 to 15 years on average,
that reflect a genuine commitment and
risk-sharing. These investments are highly
appreciated because they generate no
financial charges for the partners. In addi-
tion, they are often accompanied by a seat
on the board of directors (SIDI generally
asks to sit on the board when it partici-
pates in the capital of an institution) and
thus involves SIDI in the institution’s gover-
nance, thereby adding to the partner’s ins-
titutional strength.
If SIDI is a shareholder of a partner institu-
tion and does not wish to increase its
stake, it can increase its investment
through associated loans. At the end of
2005, such financial assistance was provi-
ded to the following four institutions:
Tembeka in South Africa, Hattha Kaksekar
in Cambodia, the Fonds Coopératif in Laos
Eastern
Europe 4%
Africa 46%
Mediterranean
basin 7%
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 exeSIDIgb2005 - cor 20/07/06 11:40 Page 11

3- 2005 strategic plan

and Microinvest in Moldova.

However, in many cases, equity participa-
tions are not possible. For example, in
Morocco, granting micro-credits is reserved
by law to associations. Similarly, in the West
African Monetary Union (WAMU) countries,
the microfinance sector is governed by the
PARMEC law, which applies to mutuals.
Non-mutual institutions can be authorised
to undertake microfinance activities under
special agreement with the finance ministry.
However the duration of these agreements
is uncertain and they are not uniform, but
rather made to fit a particular institution.
Therefore, in most of the WAMU countries,
the microfinance sector is dominated by
mutuals, in which equity participations are,
by definition, not possible.
Apart from these legal restrictions, equity
participations may be excluded for reasons
of overall capital structure, since SIDI is
careful to avoid - with a few fully justified
exceptions - to acquire a majority sharehol-
ding in partner institutions.
When the acquisition of equity is not pos-
sible, SIDI uses other financial instruments.
In some cases, it can grant loans directly
from its own equity capital. The institutions,
such as co-ops, mutuals or associations,
that are granted such loans usually have a
clause in their statutes that prohibits the
Graph 2: Geographical breakdown of resources devoted to support services (total 2003-2005).
Eastern
Europe 5%
Caribbean 13%
Mediterranean
basin 8%
Asia 11%
acquisition of their capital. Of the 23 part-
ners in the portfolio that receive only loans,
11 are located in the WAMU countries. In
these cases, SIDI ensures that it offers sui-
table conditions to these partners. As a
result, the loans are for a relatively long
term (up to five years). In recent years,
these terms, as well as the grace periods,
have tended to be longer. These facilities
have interest rates that are limited and set
in relation to the overall cost of resources to
the partner, the local market and the interest
rate policy vis-à-vis final beneficiaries. Such
loans are usually denominated in the local
currency.
In a bid to meet its partners’ needs more
Horizontal 11%
Africa 43%
Latin
America
9%
effectively, SIDI continually seeks to
improve its financial instruments within
the bounds of the goals set forth in its
2003-2005 plan. Since 2004, SIDI has
been providing guarantees, enabling its
partners to secure loans from other
financial institutions. This provides a leve-
rage effect that helps to mobilise local capi-
tal. At the end of 2005, guarantees had
been granted on behalf of three organisa-
tions: OMIPA in Uganda for a loan from the
CERUDEB bank, FPFJ in Guinea for a loan
from BICIGUI and the CCRD in the
Democratic Republic of the Congo for finan-
cing obtained from the COODEFI co-op.
Adapting financial instruments points us

Graph 3: Evolution of the geographical breakdown of the number of partners between 2002 and 2005.

Geographical breakdown of the partners at the end of 2002 Geographical breakdown of partners at the end of 2005

Caribbean 10% Eastern Caribbean 6% Eastern

Europe 3% Europe 8%
Mediterranean
basin 10% Mediterranean
Africa basin 6% Africa
35% 45%

Asia 16% Latin Asia 10%

America 26% Latin
America 25%

11
exeSIDIgb2005 - cor 20/07/06 11:40 Page 12
to the issue of divestment. Knowing how
to adapt also means knowing when to
leave. During the 2003-2005 plan, SIDI
withdrew - partially or fully - from 5 institu-
tions – three in Latin America, one in Asia
and one in Africa. Certain divestments arise
in the wake of differences in terms of vision
or mission that may arise over the course of
time. Others occur as a result of predeter-
mined and limited time spans (e.g. PRO-
FUND, the Latin American investment fund
officially terminated its operations at the
end of 2005).
Divestment can also be undertaken by SIDI
when a partner institution has attained a
certain degree of operational independence
and gained access to other sources of
financing enabling it to carry out its mission
without SIDI’s assistance, as in the case of
Bancosol in Bolivia. Additionally, in 2003,
SIDI began to withdraw from INDES in
Chile, which today benefits from conside-
rable local financing.
The funds recovered from such
divestments are redeployed toward
new partners, in accordance with
SIDI’s mission to support the institu-
tions that are most in need of bac-
king.
Building a regional
approach
At the end of 2005, SIDI’s partners numbe-
red 48 in 24 countries. This number has
undergone a sharp and rapid increase in
recent years (see page 6). This growth
should in no way have an impact on the
quality of the support offered to the part-
ners in the form of support adapted to spe-
cific needs and situations. However, SIDI’s
means are limited, both in terms of
12
Results of the 2003- 2
finances and human resources, and the 10- ted by SIDI. Up to the end of 2005, SIDI
person permanent team handling opera- was committed to four regional funds:
tions in the field has not grown. This team PROFUND and LACIF in Latin America,
is backed by volunteer consultants, but MAF in Asia and SEFEA in Europe.
resources are nevertheless insufficient in
light of the scope of the tasks. The experience of getting involved with
PROFUND was particularly valuable. Set up
In order to work with these limitations, a in 1995 for a statutory term of 10 years,
strategy had to be set up to enable SIDI to with the aim of consolidating the equity of
fulfil its mission and attain the goals set in microfinance institutions in Latin America
the 2003-2005 plan, in particular the aim and the Caribbean, PROFUND terminated
of expanding its scope of action without its operations at the end of 2005, when it
diminishing the quality of its interventions. successfully fulfilled its mission. SIDI com-
This strategy is carried out as follows : mitted itself at the fund’s design stage,
investing in 1.6% of the capital, and sat on
Multi-partnerships: This concerns the the institution’s two main governing
establishment of ties with more than one bodies, the board of directors and the
partner in a given country or sub-region in investment committee, and took an active
order to allocate time and resources more part in defining strategy and conducting
efficiently. This requires that particular operations.
attention be paid to the choice of local
organisations and their operations, to the Today, SIDI’s experience in the manage-
ment and support of refinancing funds has
intervention area (urban or rural) and the
field of activity (microfinance, agri-produ- been acknowledged, as a result of which
SIDI was brought into the MAF project in
cers support, etc.) within SIDI’s defined
Asia (see sidebar opposite).
priorities, the situation in the intervention
country, etc. A further aim is to position
ourselves so as to avoid any conflict of
interest. In recent years, the multi-partner-
ship strategy has led to a concentration of
partnerships in several countries – 3 in
Ecuador, 4 in Peru, 3 in Haiti, 3 in Guinea,
3 in Senegal, 4 in Togo, 4 in Mali, etc., or in
certain sub-regions, e.g. in the Mekong
region, the Andean region, West Africa or
the Great Lakes region in Africa. A multi-
partnership experience in Peru is described
in the sidebar opposite.
Regional instruments: The aim here is to
identify instruments such as regional
investment funds that operate in accordan-
ce with SIDI’s mission and vision and to
assume an active financial and technical
role in such vehicles. This type of instru-
ment is conducive to cooperation with
other investors, to improving knowledge of
a given region and to securing a conside-
rable leverage effect for the funds commit-
ACTIVITIES OF SIDI A N D I T S PA R T N E R S I N 2005
 exeSIDIgb2005 - cor 20/07/06 11:40 Page 13
3- 2005 strategic plan
Focus
An example of participation in a regional fund: MAF
The Microfinance Alliance Fund (MAF) is a refinancing and technical assis-
tance fund devoted to microfinance institutions in South-East Asia that was
launched in 1999 by CRS (USA) and CORDAID (the Netherlands). SIDI joi-
ned the initiative in 2004, at the invitation of these two organisations. SIDI’s
commitment was motivated by MAF’s choice of supporting emerging MFIs
and the fact that SIDI on its own cannot cover a zone as vast as South-East
Asia. Lastly, the support extended to MAF was also an opportunity to streng-
then our cooperation with two organisations from the North – CORDAID1
and CRS – who share our values.
MAF’s management is based in the Philippines and its financing, to the tune
of $ 2.1 million, currently involves three countries: Cambodia, Indonesia and
the Philippines.
Today operating as a project, MAF is expected to be transformed into an
investment fund (scheduled for 2006), with its own legal personality and an
independent management, to be entrusted to a team of Asian professionals.
An example of multi-partnership in Peru
In Peru, as in other countries, during the 2003-2005 strategic plan,
SIDI set in motion a multi-partnership strategy, which led to an
increase in the number of partners in this country. At the end of
2005, SIDI had four partners in Peru, compared to only one in 2002.
The new partners were selected on the basis of several criteria. Since
Peru is twice the size of France, it was necessary to place a geogra-
phical limit on our actions. Because the south of the country and the
Andean Altiplano region had already received considerable outside
assistance, SIDI turned to the relatively neglected areas. The partners
were also selected in light of the rural financing situation and micro-
finance profiles in Peru, which are essentially urban. Lastly, SIDI’s
commitment tied in with work already done in the country by SIDI’s
allies, such as CCFD, SOS Faim, ALTERFIN and CORDAID. In the end,
SIDI focused its action on the central macro-region, ravaged by poli-
tical unrest, but that today is on the road to development and now
benefits from a recently-built road to the capital city, Lima, which will
provide many opportunities to producers. SIDI’s aim is to help
strengthen the region’s economy so as to forestall an exodus to the
capital city by improving the provision of financial services and sup-
port for producers’ organisations. At the end of 2005, SIDI worked in
partnership with the following four Peruvian institutions:
• Edaprospo, the first Peruvian partner and the only one in 2002, is
an NGO set up in the 1970s and has developed a credit program-
me called Prosperidad. CCFD, which has been working with
Edaprospo for several years, proposed this partnership to SIDI.
Today, SIDI provides support for the Alcancias Comunales, which
are small community banks that help the poorest of the poor to
launch an economic activity.
• Grupo Empresarial La Florida brings together CAC La Florida (a
coffee marketing co-op) and Crediflorida (a savings and loan
Once the transformation has been completed, its scope of action will be
expanded to include South Asia (India, Pakistan, Bangladesh, etc.). MAF’s
three promoters (CRS, CORDAID and SIDI) are also working on increasing its
financial capacity, by inviting new investors. This institutionalisation will be
accompanied by a new name :The Microfinance Alliance Fund will become
the Microfinance Asia Fund.
Breakdown of the MAF portfolio at December 31, 2005 (in US dollars)
Country Number of institutions financed Amount of financing
Cambodia 4 1 000 000
Indonesia 9 857 500
Philippines 5 269 560
TOTAL 18 2 127 060
1
CORDAID is a shareholder of SIDI.
coop). CAC La Florida has more than 1,500 members, comprising
small coffee producers who group together to market their pro-
duction and improve their earnings. CAC sets up contracts direct-
ly with foreign importers. The expansion of outlets went hand in
hand with a diversification of production, including organic coffee,
which received the Max Havelaar label, the first in Peru. CAC has
also acquired a coffee processing unit, has set up a training centre
and participates in regional development by contributing funds for
road-building, health clinics, etc. Today, CAC’s activities have been
recognised by the Junta Nacional del Café (national coffee coun-
cil), which brings together the country’s small producers. SIDI’s
work with La Florida focuses on providing financing for the coffee
season, medium-term financing and reinforcing its social viability.
• Confianza is an edpyme1, one goal of which is to offer financial
services in rural areas. It has expanded significantly in recent years,
thanks to its good management and support from external inves-
tors. Today, Confianza covers the entire central macro-region, from
Lima to the Amazon border with Brazil. This partnership was initia-
ted at the invitation of ALTERFIN (Belgium). SIDI is a shareholder
of Confianza.
• Caja Rural San Martin (CRSM) is active in the San Martin region in
the Amazon Forest, in the northeast of the country. The region is
expanding rapidly, thanks primarily to the roads that are now
being built and that will pull the region out of its isolation. CRSM
is known for its involvement in financing agriculture and its ope-
rations in small cities forsaken by other financial institutions. SIDI
committed itself to CRSM after accepting an invitation from COR-
DAID (the Netherlands), and is now a shareholder of CRSM.
1
Edpyme: Entidad de desarollo para la pequena y microempresa (small and micro-enterprise deve-
lopment entity)
13
exeSIDIgb2005 - cor 20/07/06 11:40 Page 14
A strategy
of alliances
Several years ago, SIDI set up a stra-
tegy of building alliances in the
North, in order to secure added leve-
rage for its partners. SIDI is a member of
two French networks, FINANSOL and
Epargne sans frontières; and two European
networks, FEBEA - the European Federation
of Ethical and Alternative Banks - and INAI-
SE - the International Association of
Investors in the Solidarity Economy. SIDI has
also developed partnerships with other
organisations, such as the SICAV Nord-Sud
in France; ALTERFIN, and the GILLES
Foundation in Belgium, SOS Faim (Belgium
and Luxembourg); CORDAID, the Rabobank
Foundation and HIVOS in the Netherlands;
OIKOS in Denmark; DGRV and MISEREOR in
Germany; the STROMME Foundation in
Norway; ETIMOS in Italy; and the Calvert
Foundation in the United States. Lastly, it
has relations with several public institutions
with whom it negotiates co-financings for
its partners: the French Foreign Ministry, the
French Development Agency (AFD), Swiss
Cooperation (SDC) and the CTA (European
Union), as well as MIGA and the IFC (two
members of the World Bank Group).
The aim of this strategy is to mobilise
Graph 4: Geographical breakdown of financial resources mobilised from alliances in 2003-2005.
Amount mobilised: €6.2 millions
Caribbean 12 %
Mediterranean
basin
22 %
Asia 21 %
14
resources to support and strengthen the
financing capacity of partner institutions
and to consolidate their equity, increase
their loan funds and risk coverage (equity,
loans and guarantees).
During the three years of the strategic
plan, SIDI obtained significant levera-
ge by mobilising from its alliances
€6.2 million for its partners, €3.5 mil-
lion of which was raised during 2005.
These funds were managed in part by SIDI,
who received the funds and transferred
them to the partners. Of the €3.5 million
mobilised from alliances in 2005, some
€500,000 were directly managed by SIDI,
€315,000 of which were financing negotia-
ted by SIDI for purposes of support and
strengthening partners’ operational capaci-
ty. These funds mainly benefited partners in
Haiti, for the IMOFOR training programme;
in Laos, for the Fonds Coopératif and its net-
work; and in Africa, for the MAIN network,
Mozambique and the Great Lakes region,
under a partnership agreement between
CCFD and the French Foreign Ministry. Most
of these funds came from the French
Foreign Ministry and the following
European institutions: MISEREOR in
Germany, CORDAID in the Netherlands and
the GILLES Foundation in Belgium.
More than €64,000 were added to the
€315,000, as a result of financing negotia-
Africa - MAIN
10 %
Africa 19 %
Latin
America 15 %
ACTIVITIES
Results of the 2003- 2
ted for specific technical assistance missions
carried out by SIDI at the request of its allies
or its partners, and €121,000 invested by
ALTERFIN in Niger and Morocco, and mana-
ged in consultation with SIDI.
In addition to these funds managed by SIDI,
its implication in identifying financings for
its partners succeeded in raising nearly
€3 million in 2005. Sent directly from the
financing institution to the beneficiary part-
ner, this financing was allocated as follows:
€2.6 million for loans granted to partners by
institutions such as ALTERFIN, CORDAID,
Sicav Nord-Sud, Oikos Denmark, AFD, etc.
and more than €400,000 for subsidies
granted by SIDI’s alliances - CCFD, COR-
DAID, Danish Church Aid and Christian Aid,
or by development agencies, such as CTA,
Walloon cooperation, French Embassies,
Intercooperation, etc. In 2005, the leading
beneficiaries of this leverage effect were
partners in Cambodia, Ecuador, Mali,
Morocco, Peru, Laos, South Africa, the
African MAIN network and the Haitian
KNFP network.
Looking at the strategic plan as a whole, the
bulk of resources raised from alliances went
to Africa, including MAIN. Africa came in
first place, with 29% of the €6.2 million
mobilised between 2003 and 2005 (see
graph 4).
Apart from the amounts, the purpose of
these alliances is to raise resources adapted
to the different needs expressed. The aim is,
on the one hand, to continue to mobilise
subsidies for innovation, development, rein-
forcing capacities and governance and, on
the other, to consolidate partners’ equity via
stable and long-term resources under
appropriate conditions (capital, quasi-capi-
tal, loans in local currency, etc.). Depending
on the region, the nature of the partner ins-
titution (MFI, co-op, producers’ organisa-
tion, etc.), and its stage of development
these needs continue to differ widely.
In order to better respond to these issues,
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3- 2005 strategic plan

SIDI has continually strengthened its
ties with the European institutions
that share its concept of solidarity
financing, such as ALTERFIN (see Focus
below), CORDAID, OIKOS, MISEREOR,
STROMME, and ETIMOS.
Focus
Apart from the financial aspects, SIDI’s
alliance strategy is also designed to
share its experiences, consolidate its
instruments and broaden the scope of
its actions. By developing synergies with
other solidarity investors, and by getting
involved in collective instruments, SIDI
creates strategic partnerships and operatio-
nal ties that strengthen it and serve to
consolidate the partners. It is in this spirit
that SIDI has been involved since 2004 in
the FEBEA and INAISE networks.

Working together in an alliance: the SIDI-ALTERFIN partnership in Togo

ALTERFIN is a Belgian cooperative society founded in 1994 by seven
development aid NGOs and two banks. It has set itself the goal of contri-
buting to building a financial network that is accessible to socially and
economically disadvantaged groups in developing countries.
As social investors that share the same vision of development
and of decentralised financial systems, SIDI and ALTERFIN have
agreed to work together in an alliance. A collaboration agreement
was signed in 1999 to seal the alliance. Since then, the two institutions
have become shareholders in one another and have forged joint partner-
ships in several countries (Cambodia, Laos, Morocco, Niger, Togo and
Latin America). This alliance is expressed through exchanges and joint
actions, from the identification of partners to the financing and follow-up
stage.
This cooperation has provided support for a variety of partners in Togo,
both in terms of geographical location (the savanna region in the North
and the coastal region in the South), the size or type of partner (from
urban MFIs to cooperatives in rural areas), as well as involvement in the
development stage.
Togo, which is one of the smallest countries in the WAMU, has experien-
ced economic, social and political difficulties for several years: highly
controversial presidential elections, bloody political events, a severe eco-
nomic crisis since 1991,etc. Imposing sanctions on the regime, the
European Union stopped its aid for more than 10 years, during which
period Togo maintained extremely delicate relations with the internatio-
nal financial institutions, in general. At the beginning of 2004, tentative
efforts were made to resume a dialogue with the EU, before being sus-
pended once again during the serious incidents that surrounded the pre-
sidential elections in April 2005. In November 2005, the new President
committed himself to re-opening the dialogue. Since then, multilateral
financial arrangements have gradually resumed.
It is therefore against this backdrop of a structural crisis in the country and
a feeble level of contact with the donors, that SIDI and ALTERFIN decided
to undertake joint action in Togo, at the end of 2002.The decision to work
together in an alliance, was born out of the shared desire to make progress
together in a country in which there continue to be precious few investors.
The first investment in Togo was made at the end of 2002 and was pro-
vided to WAGES, an NGO that works in urban areas and which, since the
departure, in 1996, of the American organisation that had created it, and
in the wake of the withdrawal of international aid, no longer had access
to a stable source of funding. The next organisation to benefit from our
joint support, in 2004, was TIMPAC, a rural NGO in the North of the coun-
try that had a similar background and was experiencing the same diffi-
culties.These two partners were both identified by SIDI and, in both cases,
the financial investment made by SIDI in the form of a loan was imme-
diately consolidated by further loans made by ALTERFIN. For its part,
ALTERFIN identified a third partner, MICROFUND, a mutual from the
coastal area, to which it accorded a loan that was then followed by a cre-
dit facility from SIDI. Both SIDI and ALTERFIN have followed up and assis-
ted these three partners in a coordinated fashion, both in terms of pay-
ment schedules and contents. The final Togolese partner to date is the
UCMECS, an umbrella group of seven farmers’ cooperatives from the
Savanna region. ALTERFIN accorded an initial credit facility in 2005 and
SIDI is due to provide a loan in the near future. Furthermore, in 2005, SIDI
and ALTERFIN submitted, together with the African MAIN network, a joint
application for funding to the EU so as to provide support for their part-
ners, including the four in Togo.The receipt of European funds will further
serve to strengthen cooperation between SIDI and ALTERFIN.
Working together in an alliance allows the partner institution to
benefit from dual expertise, a wider appreciation of its own situation
and greater financial support. The support of two different institu-
tions also increases the partner’s credibility and provides it with
more opportunities to mobilise new sources of funding. For SIDI and
ALTERFIN, this cooperation enables the enhancement of their finan-
cial and human resources in favour of partners from the South, to
gain better knowledge of the country and of the people, to share
networks and contacts in the country, etc. However, the two institu-
tions remain autonomous, both retaining their own operational and
decision-making processes and freedom to make their own choices
as to the allocation of resources to potential partners. In order for an
alliance to function and continue over a relatively long period of
time, it requires regular communications based on mutual trust and
approaches and practices that are similar. Both SIDI and ALTERFIN
are committed to ensuring that they maintain this closeness.

15
exeSIDIgb2005 - cor 20/07/06 11:40 Page 16
Emphasis on social
viability
Since its creation, SIDI has been concerned
with the need to participate in development
processes, particularly social development.
The SIDI Seminar, in 2001 represented a fur-
ther opportunity to reflect upon the “social
fecundity” of our investments. In order to
get a better grasp of this issue, in 2003 SIDI
set up a specific function - “Social Viability
and Development”.
The aim is to enable the partner institutions
to place themselves in the social dimension
of their activity and to promote the develop-
ment of a new culture, of social performan-
ce, as a complement to financial and opera-
tional performance.
In its approach to social viability, SIDI is not
proposing a “one-size-fits-all” product
applicable in all circumstances. Rather, it is
working closely with other actors such as
CERISE1, in order to put in place, in collabo-
ration with the partner institutions, the most
appropriate tools to manage, guide and
pursue the social objectives of the local
financing projects. During the period 2003-
2005, SIDI began working specifically on an
in-depth analysis of the social dimension
with three types of partners: farmers’ orga-
nisations, microfinance institutions and net-
works.
Two farmers’ organisations:
UGPM in Senegal and CAC
La Florida in Peru
UGPM has developed a programme to sup-
port and strengthen family farms, known as
the KKG (Kiiraayu Kër Gi in Wolof means
“everything that we do works in favour of
greater protection”). The aim of this pro-
gramme is to help families to emerge, on a
sustainable basis, from the vicious circle of
bridging loans and debt to moneylenders. In
this context, SIDI provides financial support
to UGPM in order to finance its family farm
16
projects and is also creating a follow-up tool
in order to assist the families during this pro-
cess, as they attempt to emerge from this
situation. It also assists UGPM in its efforts to
understand the financial and social dynamics
of the family farms. To achieve this goal, it has
helped UGPM to put together a software pro-
gramme that enables it to express, in figures
(balance sheet, income statement…) the dia-
gnosis, forecast, realisation and evaluation of
the family farm projects. SIDI also supports
the preparation of studies of the family farms.
These studies represent a real socio-economic
diagnostic tool and enable a better unders-
tanding of the reality of family farms (and the-
refore ensure that a better response is given
to their needs). In the future, SIDI will conti-
nue to provide its support to the KKG, parti-
cularly in partnership with the CTA (produc-
tion and circulation of some twenty-odd
public studies and the cross-analysis of these
studies for use by all organisations contem-
plating the financing of family farms).
CAC La Florida is a cooperative of coffee
producers that has set up a credit fund for
the creation of family-sized plots of land.
One of the challenges for La Florida is rele-
vant involvement in the “social field”. SIDI
was approached to support its efforts to
guarantee the social viability of the family
units, with a view to reducing their vulnera-
bility and poverty (diagnosis of the family
units in the area covered by the cooperative
and classification of these units according
to their social and economic characteristics).
Methodological support for the preparation
of family unit projects was then put in place.
Finally, the management and follow-up tool
was enhanced so as to integrate social data
in order to allow the analysis of the needs
and requirements of the different types of
family units.
Three microfinance
institutions: CRG in Guinea,
SIPEM in Madagascar and
Al Amana in Morocco
As part of a workshop2 in 2004, SIDI began
ACTIVITIES
Results of the 2003- 2
a process of reflection with the CRG on
social viability and the measurement of
social performance, on the basis of the
association’s social objectives, with the aim
of translating them into measurable indica-
tors. SIPEM also benefited from support for
the establishment of social performance fol-
low-up and evaluation tools. A workshop
was organised with the Moroccan associa-
tion Al Amana in 2005 in order, on the
basis of the institution’s vision and mission,
to introduce the concept of social viability,
to raise awareness regarding the various
approaches that exist in the measurement
of social performance and to define a stra-
tegy for its measurement, taking into
account what Al Amana had already done in
this area and its development programme
for the period 2005-2009. The workshop
also made it possible to identify the social
dimensions that are relevant for Al Amana
and to draft an action plan for the follow-up
and evaluation of social performance.
Two networks: the MAIN in
Africa and FOROLAC FR in
Latin America
Networks are particularly effective when it
comes to raising awareness of a large num-
ber of institutions regarding the importance
of social factors. That is why, over the last
three years, SIDI has worked with MAIN
(Africa) and FOROLAC FR (Latin America
and the Caribbean). MAIN, which groups
together some 70 African institutions, orga-
nises annual university-level training
courses for the senior managers of MFIs
(with a course for English speakers at the
Uganda Martyrs’ University in Uganda, and
one for the French speakers at the Catholic
University for Central Africa in Cameroon3).
In 2004, a module called “Impact evalua-
tion and social viability” was added to the
training course for French speakers (this
module is moderated by SIDI4). A similar
module should be added to the course for
English speakers, in the near future.
Furthermore, in 2005, MAIN organised a
seminar on the development and perfor-
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3- 2005 strategic plan

Working meeting on
mance of MFIs in Africa, and SIDI was invi-
social viability, CAC La
ted to address the topic of social viability
Florida, Peru.
and the various approaches to the mana-
gement and measurement of social perfor-
mance. In June 2005, SIDI signed a colla-
boration agreement with the Latin
American network FOROLAC FR that
includes social viability. Within this
context, in 2005 SIDI participated in a
workshop on rural financing in Oaxaca
(Mexico) and in an international seminar
on the measurement of the social perfor-
mance of MFIs, which was held in Santa
Cruz (Bolivia). 1
CERISE: Comité d’Echanges, de Réflexion et d’Information sur les Systèmes d’Epargne Crédit
SIDI’s involvement in the events (Committee for exchanges, reflections and information on credit savings systems). Created in 1998 by
organised by MAIN and FOROLAC FR 4 organisations (CIDR, IRAM, GRET, CIRAD), this is a platform for capitalisation, reflection, research,
exchanges, information and publications on microfinance. SIDI collaborates with CERISE, which also has
gave it the opportunity to participa- links with other European and international actors, as well as being an important resource in France.
te in a collective reflection on this 2
Workshop led by SIDI and the IRAM.
issue and to present its approach to 3
This training course previously took place at the Centre Africain de Management et de
members of the network, some of Perfectionnement des Cadres (CAMPC) in Abidjan, but then had to relocate following the political
troubles in the Côte d’Ivoire. In 2005, it took place in Rwanda. From 2006, it will be organised at the
whom may well request support in the Université Catholique pour l’Afrique Centrale (UCAC) - Catholic University for Central Africa -, in
future. Yaoundé, Cameroon.
4
In 2005, this training course was delivered by an expert from Madagascar.
Focus

About social viability

A social viability approach makes it possible to understand, follow and
accompany the social sustainability of SIDI’s local financial partner
organisations, as well as the social changes and their sustainability at
the level of the final beneficiaries and at the global level (social, politi-
cal and environmental). The concept of social viability highlights the
social dimension of the activities of the local financial entities (without
in the least denying the importance of the economic and financial
aspects) and particularly the sustainability of the social changes
brought about by their activities. Social viability can be considered at
three levels: the institution, the beneficiary and the overall context.
At the level of the institution, social sustainability pre-supposes the exis-
tence of “compromises, areas of compatibility, agreements on interests and
standards between the various actors”1 directly concerned by the institution’s
activity (employees, management, clients, etc.).This is a matter of internal via-
bility. Internal sustainability rests upon elements such as management capa-
city, relationships between the actors within the local financial structure
(employees/management, for example), governance, etc. Social sustainabi-
lity may also be considered from an external angle, in other words, an
approach that takes into account the actors indirectly concerned by the ins-
titution’s activity (local authorities, religious authorities, moneylenders, etc.).
External viability exists when the institution manages to ensure that it is
“recognised as an actor that is at the service of the local community in its
social, cultural, legislative and political environment”1. External viability is
based on elements such as the institution’s capacity to interact with the
local authorities, the financial sector, the professional organisations, etc.
With regard to the beneficiaries, social viability may also be analysed
at the internal level (by taking into account economic factors such as inco-
me, and social factors such as the degree of harmony that exists between
family members or gender relations, social cohesion) and at the external
level (relations with the social and economic environment)2. The aim is to
follow the changes in the situation of the beneficiaries so as to reduce their
degree of vulnerability (understanding, equity, etc.) and to reinforce the fac-
tors of social success.
At the level of the context, social viability is part of the concept of
socially sustainable development, in other words a form of development
that “protects potentialities, strengthens the capacities of a given genera-
tion and facilitates their transfer to the next generation”3.This is a question
of access for all to goods and services, of capacity building and equity in the
context of available resources. At this level, SIDI, its partners and the net-
works to which it lends its support, are all interested in public policies (eco-
nomic, social or ecological) and trying to ensure that these policies do not
bring about social difficulties that undermine the progress made to date
and the transmission of the capacities required to improve the global well-
being of both current and future generations.
1
GTZ /IRAM, «The social viability of an MFI», 2001.
2
Marc Berger, « De l’impact du micro crédit à la viabilité sociale des services financiers de proximité: la
démarche de la SIDI », Techniques Financières et Développement, March 2003.
3
Jérôme Ballet, Jean-Luc Dubois et François-Régis Mahieu, «A la recherche du développement sociale-
ment durable : concepts fondamentaux et principes de base », Revue Développement Durable et
Territoires, 2002 -2005 http://developpement durable. revues. org/document. html?id=1165

17
exeSIDIgb2005 - cor 20/07/06 11:40 Page 18
Opening up to
new areas of
intervention
As part of its 2003-2005 strategic plan,
SIDI's operations went beyond support for
traditional microfinance activities. In
response to requests made by its partners
and the suggestions made by its
shareholders, it has broadened its area of
intervention and this new approach has been
given concrete expression, through the
financing of housing. In 2003, SIDI
provided a loan to the JEMENI network of
savings and credit banks in Mali in order to
help finance the provision of housing for the
disadvantaged populations in that country.
However, it is really through its commitment
to the rural world that SIDI has been
introduced to new areas of action such as
fair trade. It is now quite clear that we
The President of the Fonds
Coopératif and the members of
the KASI cooperative, Laos
18
cannot reasonably hope for an
improvement in the living conditions of the
rural populations in the South if the rules
that govern world trade continue to remain
the same. Indeed, small producers in the
South have no control over the prices of
their products and bear the full brunt of any
fall in market prices and the pressure
applied by middlemen.
By introducing different marketing and
consumption methods, fair trade enables
the establishment of trading relations satis-
factory for everyone1. Within the limitations
of its means, SIDI contributes to the deve-
lopment of fair trade, by supporting organi-
sations such as FAPECAFES or MCCH in
Ecuador (see Focus on next page), that
enable small producers to sell their products
at the best possible conditions. SIDI’s com-
mitment to fair trade has also led it to esta-
blish a strategic alliance with organisations
that are specialised in this area. In this way,
a tri-partite partnership has been set up
between SIDI, the CCFD and Solidar’Monde,
ACTIVITIES
Results of the 2003- 2
in order to market craft and food products
purchased from disadvantaged producers.
Current discussions on the financing of fair
trade companies in Laos, in partnership with
the Fonds Coopératif (in which SIDI is a sha-
reholder), should soon be successfully
concluded.
Another new area in which SIDI has become
involved over the last three years is that of
health insurance mutuals: a study was
undertaken to define an outline of SIDI’s
mid-term strategy in this area. However,
since this area is not amongst the identified
priorities in the plan, progress has been less
concrete than in other areas. Nevertheless,
it represents an important area for reflection
that will be analysed in greater detail and
will no doubt give rise to more specific
actions in years to come.
1
For more information, see the website of the Plate-Forme pour le
Commerce Equitable (PFCE), an umbrella organisation for some 30
organisations involved in the promotion of fair trade in France
(CCFD is a member). http://www. commercequitable. org
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 exeSIDIgb2005 - cor 20/07/06 11:40 Page 19
3- 2005 strategic plan
Focus
Supporting fair trade with FAPECAFES and MCCH in Ecuador
Until the end of 2003, SIDI had only one partner in Ecuador
(Banco Solidario). In the context of the priority accorded to the
rural world, new partnerships were established with two orga-
nisations that work directly with small agricultural producers:
FAPECAFES and MCCH.
The first was FAPECAFES: This federation, based in the town of
Loja, was created in 2002 by four regional associations of small-
holder coffee producers, from the Loja, El Oro and Zamora
Chinchipe provinces in the south of the country, in order to
manage the marketing of their production. Responsibility for the
Federation’s rules and strategy lie with a board composed of two
elected members from each of the four associations, whilst the
management of the federation is in the hands of a highly moti-
vated team of three people (an executive director, a secretary
and an accountant).
When they created FAPECAFES, the aim of the founding associa-
tions was to establish an independent and competitive marke-
ting structure that would handle volumes that were sufficiently
high to give the producers a certain degree of bargaining power
in their negotiations with the buyers. At a time when the price
of coffee from Ecuador is being kept low on the international
markets since it is not considered to be one of the best available
coffees, FAPECAFES set itself the goal of improving productivity
and of becoming the leading exporter of organic coffee to North
American and European markets, by focusing on organic and fair
trade related transactions. The main advantage of these markets
is the “premium” that can be added to the base price charged
on the traditional markets and it is this “premium” that helps to
improve the standard of living of the producers. Today, FAPE-
CAFES’ main export markets are Canada (28% of the federa-
tion’s exports), Austria (18%), the United States (16%), France
(13%) and Belgium (11%).
As a result of the efforts made by the producers over the years
and the support provided by the international organisations1,
FAPECAFES now enjoys a selling price that is, on average, 40%
higher than the world market price for traditional coffee.
Furthermore, despite the costs that it has to bear (processing,
storage, transportation, insurance, etc.), the federation is still
able to pay the producers’ associations 95% of the final sale
price.
The second organisation with whom SIDI established a partner-
ship in 2005 is MCCH, a foundation created some twenty years
ago. MCCH works with grass-roots organisations in two main
areas:
• social development programmes, through integrated, intensi-
ve and systematic work in the poor geographical areas of the
country. These activities include training, helping local people
to create associations to defend their interests, technical
assistance in order to improve production and some small-
scale microcredit activities. At the end of 2004, MCCH was
managing some thirty projects with the support of internatio-
nal organisations (mostly European) in various parts of the
country (four provinces).
• fair trade-led economic activities. These activities are divided
into five areas: the export of primary (mostly cocoa beans) and
processed agricultural products, the production and sale of
agro-industrial products (preserves, jams, cane sugar…), han-
dicrafts, “responsible tourism” and the local marketing of
staple products, particularly for the benefit of the rural popu-
lation.
During the twenty years of its existence, MCCH has always dis-
played its will and capacity to overcome obstacles in a country
that has experienced and indeed continues to experience serious
political and financial crises. It has therefore obtained a domina-
ting role in the marketing of cocoa beans2, to the extent that it
now features amongst the countries top exporters, with a volu-
me of more than 9,000 tonnes exported in 2005. MCCH has an
annual global turnover in the region of US$ 15 million and
handles approximately 15% of the national cocoa bean produc-
tion. In terms of sales, 76% go to the major processing compa-
nies (Ferrero, Bloomer) and to international brokers (in Europe
and the United States). Since it is well aware of the higher prices
offered by the fair trade and organic produce markets, MCCH is
striving to increase its share of this market by promoting the
development of small farms that practise the diversification of
their crops (cocoa beans, maize, fruit and vegetables) and also
related activities (rearing of pigs and chickens) so as to guaran-
tee a better level of food security for the family and to ensure
that waste is recycled organically. Furthermore, the percentage
of the selling price passed on to the producers by MCCH is
higher than the amount paid by other buyers. However, given
the specific nature of growing cocoa beans (production is spread
out over a 12 month period), MCCH needs a sufficient level of
cash flow to be able to buy the product from the small produ-
cers in cash. That is the main aim of the financing provided by
SIDI.
1
VECO (Belgium), CIDA (Canada), GTZ (Germany), etc.
2
Ecuador has its own native variety called "criolla", which is well known for its distinct taste and low fat
content.
19
exeSIDIgb2005 - cor 20/07/06 11:40 Page 20
Support for large-
scale institutions
SIDI’s partners are characterised by their
diversity, which enables a better coverage of
the specific needs and requirements. Some
of the partners are large-scale institutions -
both in terms of their scope (the number of
clients served) and their market position
(they are often the leading organisation in
the country or region where they operate).
As is the case for all of its partners, it is
first and foremost the quality of the
actions of these institutions that
determine whether or not SIDI will
commit itself to working with them.
Their vision and mission must be in cohe-
rence with the vision and mission of SIDI,
particularly with regard to SIDI’s desire to
CERUDEB,
Uganda.
20
support institutions that are identified as
being actors for social change and which
propose financial services that are tailored
to meet the needs of people who would not
normally have access to such services.
If these conditions are fulfilled, then
support for these large-scale institu-
tions that then extend their financial
services to the widest possible num-
ber of people, has a considerable mul-
tiplier effect on SIDI’s investments.
Working along side these large-scale
institutions is also a source of new
experience and leads to a better
knowledge of the market as well as
collaboration with investors with dif-
ferent backgrounds and objectives.
Indeed, these institutions are often
those that most attract investors -
whether local or international - interested in
ACTIVITIES
Results of the 2003- 2
the microfinance sector. They are thus able
to mobilise relatively large amounts of
resources, enabling them to reach out to a
larger population, to train their staff and to
ensure that they are properly equipped.
The economies of scale from which
they benefit are translated into lower
costs and in turn this means that, as long
as the institution continues to be driven by
social aims (a prerequisite for SIDI), then
this will also be of benefit to their clients.
This is how the Moroccan association Al
Amana (the leading microfinance operator
in both Morocco and the whole of Africa,
with some 300,000 active clients) is today
able to offer a nominal interest rate that is
close to the ceiling rate to which Moroccan
banks are subject. Furthermore, Al Amana
anticipates that it will continue to lower its
rates. Similarly, Amret, one of the leading
microfinance institutions in Cambodia, cut
OF SIDI A N D I T S PA R T N E R S I N 2005
 exeSIDIgb2005 - cor 20/07/06 11:40 Page 21

3- 2005 strategic plan

its rate by 0.5% in 2003, while increasing

the number of its clients. It is also worth
pointing out that the CRG, in Guinea, has
A shop made of
not raised its rates in line with the galloping
recycled contai-
rate of inflation in the country.
ners by one of
Tembeka’s
Not only do the large-scale institutions have
clients, South
substantial resources, but they also pro-
Africa.
vide wider geographical coverage. For
example, CERUDEB in Uganda (which has
some 150,000 active borrowers and
300,000 savers) has the largest network in
the country with 22 branches spread across
the whole of the country (further branches
are also planned). In Morocco, Al Amana is
present in 150 locations throughout the
country and also has a series of itinerant
offices to reach the most isolated areas. In
Guinea, the CRG has 114 local banks, some
of which are in the most far-flung corners of
the country.

Additionally, the big institutions often offer

diversified services. Amret offers its
clients two loan products and one savings
product. Al Amana offers five loan products:
solidarity loans in the urban, suburban and
rural areas, solidarity loans for farming acti-
vities, individual loans for the purchase of
equipment, individual housing loans and
loans for the rural electrification scheme.
Institutions that have the status of a bank
usually offer the most diversified range of
services. In keeping with this, Banco
Solidario in Ecuador is able to offer a wide
range of services, from deposit and savings
accounts to loans (microloans for small
companies, property loans, farming loans,
etc.) as well as services for migrants1.
Similarly, by acquiring the status of a com-
mercial bank in 1994, CERUDEB (which had
previously been a trust managed by a group
of Catholic dioceses) was able, beyond cre-
dits, to expand its services to savings pro-
ducts, money transfer services and, from a
general point of view, all of the traditional
banking activities (accounts, payments, cash
dispensers, etc.). Becoming a bank is some-
thing that is welcome not only for the small
entrepreneurs, but also for the rest of the
population in a country in which, for
example, school fees must be paid by bank
transfer.
Large-scale institutions are also sub-
ject to a regulatory framework and
greater monitoring from the regulato-
ry authorities (central banks, finance
ministries, …) and this provides a
greater degree of security for their
clients. They also have greater bargaining
power than the smaller organisations when
confronted with these authorities.
However, although they have relatively sub-
stantial means and resources, large-scale
institutions still require support in certain
areas. For example, SIDI is working with Al
Amana on aspects of social viability (see
page 16). In Mali, SIDI provides support to
the BMS (Banque Malienne de Solidarité),
whose main shareholders are the country’s
decentralised financing organisations. The
BMS specifically targets disadvantaged
groups and focuses its activities on the refi-
nancing of the decentralised financing orga-
nisations. Together with the BMS, SIDI is
involved in a process of reflection on the
adaptation of financial products, particular-
ly with a view to meeting the needs of the
rural world. It should be pointed out that
SIDI has expressed an interest in the BMS
practically since its creation in 2002 and
that it was the bank’s first foreign sharehol-
der. The same thing applies to other organi-
sations that we have been supporting for a
number of years, often before they became
flagship institutions and began to finally
attract other investors as well.

1
Money transfers made by migrant workers represent the
second largest source of foreign currency for the country.

21
exeSIDIgb2005 - cor 20/07/06 11:40 Page 22
The solidarity chain for financi
Once our children had completed their studies and had become financially independent, our
incomes allowed us to accumulate fairly substantial savings. We had worked as volunteers for
the CCFD for a long time and were already aware of the existence of the “Faim et
Développement” investment fund. It was quite natural for us to subscribe to this fund during the
summer of 1998 to the tune of 10,000 French Francs each and this was something that we did
again in October 2002 and June 2003.
By contributing to this fund, we are demonstrating our solidarity with the poorest, to whom
access to credit (ultimately to trust) is denied by the traditional banking system. We know that
our savings are used to develop income-generating activities. In this way, SIDI’s partners, such as
those we met in Senegal, are able to work and to live in dignity in their own country
Anne-Marie and Alain, subscribers to the «Faim et Développement » investment fund
SIDI was born from the realisation that, although absolutely indispensable, donations do not
respond to all of the needs of our partners. It then became a question of responding to the finan-
cing needs of the poor who did not have access to the banking system. ESD’s concern, just like
that of SIDI, of the CCFD and of many other bodies, is to be at the service of the poor, in order
to contribute to the construction of a fairer world.
ESD has enabled me to gain a better understanding of the partners’ needs, the specific nature of
SIDI’s actions and the need to expand and to develop the number of SIDI’s shareholders. What
struck me the most was the constant care taken to always listen to, and be at the service of, all
of those who make appeals to us.
Our responsibility as shareholders is rooted in this spirit of always being prepared to be at the
service of others. This very same spirit guided the ESD leaders I came across. In fact, everyone has
the right and even the duty, if he or she considers it necessary, to ask: “where are the poor?”
For we can never remind ourselves often enough of this question. It must guide us in our deci-
sions and in the way we go about our everyday lives. Is it completely utopian? I don’t think so.
It is a way of “expressing the hope that is in all of us”.
François, SIDI/CCFD correspondent and member of the ESD Board
Some real estate property inherited from my parents, money earned in rent; obviously a little of
this money was given every now and then to one association or another…and then a couple of
ideas began to take shape:
- why not provide a loan rather than a donation, it does not have such a negative impact on the
dignity of the beneficiaries.
- the thing that allows people to live in the greatest dignity, standing on their own two feet, is
money earned through their own work. So I looked for ways to achieve this and came across SIDI
and the «Faim et Développement » investment fund and I converted some real estate property
into hard cash in order to feed this idea. And what is in it for me? Unknown friends on the other
side of the world, participation in projects that help people to move away from a situation in
which “another world might just be possible” to one in which “another world is possible and it
is here now”, providing hope…
Odile, shareholder and subscriber in «Faim et Développement » investment fund
SOFFAB, a financial holding company of a family-run group, has realised part of its assets and
has decided, with the backing of all of its shareholders, to place part of them in ethical and soli-
darity-based investments. Having examined various possibilities, we have decided to split the
amount in question between two forms of aid:
• international aid focusing on micro-projects, for which we have chosen SIDI, on the one hand
because of its links with the CCFD (since one our shareholders has a connection with this orga-
nisation), and on the other hand because of the effectiveness of its network;
• national aid to address the problem of the lack of housing for people or families who are expe-
riencing difficulties and at a national level we have chosen “Habitat et Humanisme”.
We consider that these actions are part of what is known as Corporate Social Responsibility.
P. F. for SOFFAB
22
SIDI’s insti tu
D uring the course of its history, SIDI has introduced the
concept of the “Solidarity Chain for Financing”,
which has then been implemented in the area of the solidarity-
financing of the solidarity-based development goals promoted
by the CCFD. In the North, this chain is dependent upon the
mobilisation of actors who take the decision to invest in
a “responsible” way in order to finance and to work along-
side actors in the South by offering local financial services that
are indispensable to the development of small urban and rural
producers. This part of the report is dedicated to the actors in
the North. Rather than quoting facts and figures, this year we
have preferred to give these actors the opportunity to voice their
own views and to invite them to express their commitment to
SIDI in their own words. These personal accounts put things in
a different light and give a more vivid, living point of view, rather
than mere figures.
Over the more than 20 years of its existence, SIDI has been able
to create and to lead a genuine network that is mobilised
around shared saving schemes and solidarity-based investment:
• subscribers to the “Faim et Développement“
Investment Fund: the first financial investment fund of its
type in France, created by the CCFD and the Crédit Coopératif.
By the end of 2005, it had an outstanding assets of €52 mil-
lion generated by more than 6,000 subscribers.The truly origi-
nal aspect of this fund is that each subscriber commits to give
the CCFD, each year, either half or three-quarters of the reve-
nues generated. This donation provides the CCFD with stable
resources each year and enables it to finance SIDI’s develop-
ment mission (to work alongside its partners, to provide sup-
port, advice, training…).
• individual shareholders grouped together in an
association: ESD (Epargne Solidarité Développement –
Solidarity Development Savings). Today, this association
counts more than 700 (380 in 2002) members who wish to
express their solidarity and jointly hold almost one quarter of
SIDI’s capital.The vocation of ESD is to make people aware of
the actions undertaken by SIDI and its partners and to promo-
te its shareholding. The ESD President represents the associa-
tion’s members on the SIDI governing bodies (Supervisory
Board and the General Assembly).
• entrepreneurs who care about the social responsibility of
their companies.
• religious congregations that are shareholders and are
closely linked to the CCFD: since its creation in 1983, several
religious congregations have been heavily involved in SIDI,
both in the capital build-up and the launch of the “Faim et
Développement” Fund. They have always been steadfast in
their financial commitment (both by contributing the various
increases in SIDI’s capital and by subscribing one-third of the
assets of the investment fund) and have always been both
loyal and reliable in their participation in the decision-making
ACTIVITIES OF SIDI A N D I T S PA R T N E R S I N 2005
 exeSIDIgb2005 - cor 20/07/06 11:40 Page 23
ti tutional life
ncing: the North mobilises its efforts
bodies. Two of these congregations, the Sœurs Auxiliatrices
and the Sœurs Ursulines de Jésus, have signed a sharehol-
ders’ agreement with the CCFD, which guarantees the social
objectives of SIDI.
• French institutional shareholders that participated
in SIDI’s capital build-up and participate in its deci-
sion-making bodies: the Agence Française de
Développement, the Caisse des Dépôts et Consignations,
Crédit Coopératif and the SICAV Nord-Sud Développement.
• French and European institutional shareholders
who have joined forces to be involved in solidarity-based
investment projects and who are likely to carry out joint awa-
reness-raising or advocacy actions: Alterfin (Belgium),
Autonomie & Solidarité (France), Cordaid and Oïkocredit (the
Netherlands), Oïkos (Denmark), RAFAD (Switzerland), SEFEA
(multilateral) and Stromme (Norway).
• volunteer SIDI/CCFD correspondents who share SIDI’s
convictions and lead meetings throughout France to present
the solidarity-based economy through SIDI’s activities.
Through the efforts deployed by these correspondents in col-
laboration with local CCFD committees, 120 meetings were
organised in 2005, bringing together more than 2,500
people. These mobilisation activities are supported by SIDI,
which in turn carries out communication actions in order to
lead and to develop the network. People who perform these
tasks for SIDI/CCFD regularly receive all of the necessary
documentary material (information leaflets, posters, slide
shows, a “facilitator’s guide” …). In 2005, SIDI also produced
and widely circulated a DVD that presents the organisation,
as well as its newsletter, “InfoSIDI” (which this year focuses
on Senegal and was written by the shareholders and subscri-
bers who participated in the exposure visit to SIDI’s local part-
ners in Senegal). SIDI has also been actively involved in the
Solidarity Savings Week organised by Finansol in the Pays de
Loire and Ile-de-France regions.
• the team of full-time SIDI staff who combine know-how
and an action-based philosophy that goes beyond financial
expertise.There are three categories of people working at SIDI:
-18 employees who accompany the partners in their work,
provide assistance and carry out the tasks associated with
accounting, administration, communication, the daily run-
ning of the office and management duties,
- office juniors/trainees (there are almost always two or three
of them at any one given time) also help to support on-going
actions for a six-month period. They are able to contribute
new technical skills and have inquiring minds. In return, SIDI
provides them with both experience and knowledge of the
sector. This educational element is one of the roles played by
SIDI: in this way, over the last twenty years, more than one
hundred young people have been given direct experience of
solidarity-based financing.
Since our Congregation is international and is present in the working class areas of 24 coun-
tries, our communities and sisters are concerned by the daily realities of the people that sur-
round us. By providing specific services to the families, and with the families, groups, and asso-
ciations, we strive to achieve and to promote better living and health conditions in a spirit of
justice, sharing and solidarity.
Thus, in 1977 we created an International Solidarity Fund financed by contributions made by
each community and managed centrally. These funds are then allocated to requests that meet
with our criteria: the holistic development of the person, with priority being given to those
who are without a voice and are powerless and who wish to be able to stand on their own
two feet. At the same time, we are anxious to work with other Congregations and Church
groups to establish how we can collectively choose important options regarding justice and the
rights of the human person.
That is why we joined forces with SIDI. As well as the financial support given to individuals and
groups excluded from traditional banking systems, SIDI also works along side the partners and
provides training for the leaders, on a real partnership basis, fully respecting local cultures.
Over the course of time, we have seen that SIDI’s main concern was always to place its skills
at the service of the populations it works with, with a view to promoting their autonomy. As
far as we are concerned, being able to use our resources to help increase SIDI’s capital in 2005
also meant helping to boost its efforts and activities and to develop its network of partners.
Congregation of the Petites Sœurs de l’Assomption
The main reason for wanting to participate in the process of increasing SIDI’s capital is that it
is not just a question of increasing the capital or of simply providing additional financial sup-
port, rather it is a demonstration of the will and desire to work with the partners, to help them
to be able to continue their efforts.
SIDI represents the most complete and articulated French provider of microfinance services for
developing countries. Furthermore, SIDI represents a perfect model of coherence between, on
the one hand, the various ways of mobilising resources in France (the mix of solidarity-based
savings and resources made available by the public and private financing institutions), and, on
the other hand, the exercise of its duty as a shareholder in micro-credit institutions in some
thirty different countries, sharing financial risk and assuming its responsibility with regard to
the training and qualification requirement of these operators. It is this link between solidarity-
based saving and responsible investment that is the real common capital.
Hocine Tandjaoui, representative of the Caisse des Dépôts et Consignations, on SIDI Supervisory Board
Cordaid has invested in SIDI’s capital for the second time in the context of the strategic coope-
ration between the two organisations. This cooperation is based, first and foremost, upon
complementarity. SIDI is very strong in the area of technical assistance, capacity building and
governance. Furthermore, SIDI also becomes involved in the capital of organisations, particu-
larly during their development phase that is, of course, the most precarious period for them.
With this collection of instruments, SIDI provides extremely important support for these orga-
nisations at the time of their creation and throughout their early years. Once these organisa-
tions have been successfully launched, they then require even greater amounts of funds to
finance their growth and that is where Cordaid steps in.
At Cordaid, we are very pleased with the partnership with SIDI. We now have more than 10
common partners, including the Microfinance Alliance Fund (MAF), which is an investment
fund for emerging MFIs from South-East Asia. As part of our strategic cooperation with SIDI,
we will continue to support innovatory initiatives.
Jacob Winter, Cordaid
23
exeSIDIgb2005 - cor 20/07/06 11:40 Page 24

SIDI’s insti tu

- volunteer consultants, 12 of whom work for SIDI on a
permanent basis. They are selected according to three cri-
teria: first of all they must have high level skills, they must
share the reference values and be willing to work on a
voluntary basis. These consultants spend about one third
of their time working for SIDI and usually assist the (geo-
graphical) desk officers, for example, in dealing with com-
plex financial operations and, more generally, following up
the work carried out with the partners.
The Chain of Solidarity for Financing draws its meaning and
its raison d’être from the exclusion of urban and rural produ-
cers from the financial services required for their develop-
ment. From this point of view, the success achieved in increa-
sing SIDI’s capital, which mobilised all of the actors involved
in the Solidarity Chain, provided an opportunity to reiterate
the ties that bind us in this solidarity-based approach.

I am now in retirement, having previously worked for a cooperative and a mutual
bank, “from the very outset”. I participated in the development of the agricultural
sector in the 1960’s, thanks to the loans that we made available at that time to
young people. I remain fully convinced that the provision of loans is an indispensable
condition for the development of poor countries.
When I was asked to become a correspondent, in other words to “sell” SIDI to the
general pubic, I suppose that, as a former banker, I was not too convinced. How can
we lend money to poor people, people who have no experience, in poor countries,
countries that are often at war and that are often subject to huge currency devalua-
tions?
I have changed a lot since then, and I now see how easy it would be to make mis-
takes by just referring to past experiences and what we already know. Today, I am
astounded by SIDI’s level of effectiveness, of the incredible multiplier effect of its
work and, above all, by the fact that poor people really do want to reimburse their
debt, as long as you have trust in them. What I really like about microfinance is that
it promotes the emergence of responsible people within a normal economic system.
I often find that the mission that has been entrusted to me, namely to explain how
SIDI works and the solidarity-based saving scheme that provides its resources, is a
great source of satisfaction. When I set up a stand and see the interest that this
arouses in some people who come up to me and say, “what you are doing is fan-
tastic, but why isn’t SIDI better known?” Or when a farming couple who were just
about to retire, said to me “thank you for helping us to find what we were looking
for. We are happy to invest part of our savings to help the small farmers in Senegal”.
I say to these people, “thank you for setting a good example and don’t hesitate to
tell those around you that solidarity-based savings will help, to a certain extent, to
re-establish justice between the North and the South”.
Gérard, SIDI/CCFD correspondent
The desk officer is delegated by the Chairman of the Executive Board to present pro-
posals for SIDI’s commitment to certain projects and then to follow them up once
the management has approved them.
The desk officer looks at all of the actors in the country for which he is responsible
and then puts his proposals together, according to the strategy defined by SIDI for
the current planning period.
He learns how to get to know the orientations and the actions of the microfinance
and solidarity-based financing institutions, as well as the producers’ associations in
these countries. Contacts with local NGOs and other service providers lead to the
establishment of forms of collaboration, often designed to reinforce the partners.
In cases in which SIDI has a stake in the capital of local institutions, it is often the
desk officer who represents it on the governing bodies. It is at this level that the
issues of governance, business planning, portfolio, long-term sustainability of the
organisation, strategic guidelines and so on, are discussed. In general, the desk offi-
cer’s contribution to discussions at this level focus upon the strengthening of the
three main pillars of the long-term sustainability of the institution: the institution
itself, the clients and the context. Finally the desk officer also selects the areas of col-
laboration for the social viability study.
Dominique, Desk Officer
In a world in which people never stop separating the economic dimension from the
social dimension, SIDI proposes combining the two. The solidarity chain for finan-
cing is a perfect illustration of this!
There is another way of promoting development: by giving significance and mea-
ning to the money provided by people and organisations in the North, so as to make
the economy accessible to the largest possible number of people in the South. SIDI
is engaged in this dynamic process!
As a budding professional in the field of solidarity-based financing, I am extremely
pleased to be able to put both my values and activities in practice in a coherent way,
on a daily basis.
Bastien, Trainee
I would like to talk about the users of micro-credits that I meet: they are absolute-
ly everywhere, in France, in Cambodia, in South Africa, in Kosovo…
I am always struck by their ability to react to an often dramatic situation (unemploy-
ment, extreme poverty, exclusion). One thing that they all have in common is that
they all wish to leave this situation behind.
My involvement in the work carried out by SIDI and ADIE (a micro-credit association
in France) has given me the opportunity to meet so many different people and to
enjoy enriching experiences:
- the farmer from Kosovo who was able to purchase and to rear a few pigs so that
he could sell them at the market,
- the Cambodian fisherman who was able to invest in a new net or motor for his
fishing boat,
- the Frenchman on welfare benefit who is now going to be able to look after his
clients’ gardens with the little van that he would never have been able to buy if he
had not obtained the loan that had previously been refused to him by a bank.
- the South African pensioner who is finally able to build a permanent home in a
township in Cape Town.
My commitment is rooted in these experiences. These are the partners that remind
me of the sense and the meaning of the actions carried out and of the work that
we do with the support of the SIDI team. I would summarise it all in very simple
terms: helping people to stand on their own two feet and using the means neces-
sary to establish a relationship based on trust within which each individual is reco-
gnised in his or her skill and dignity. We should never forget that being a partner is
first of all about knowing how to accept and to recognise other people’s values.
This gives a sense to professionalism and the need to promote and to optimise a
tool that can be adapted to all cultures and to all types of society.
Pierre Yves C., Volunteer Expert

24 ACTIVITIES OF SIDI A N D I T S PA R T N E R S I N 2005

 exeSIDIgb2005 - cor 20/07/06 11:40 Page 25

i tutional life

Increasing SIDI’s capital

The decision to increase SIDI’s capital was taken by the
General Assembly in order to respond to the needs and
requirements expressed by SIDI’s partners. In fact, as of 31
December 2005, the capital of €5.32 million had all been
invested. The General Assembly therefore decided to
increase the capital to a figure of €9 million in order to be
able to implement the strategic plan for the period 2006-
2008.

The efforts to increase the capital were successful thanks

to all the shareholders and were characterised by:
• the loyalty of CCFD, the founding organisation,
• the cohesion of the Shareholder’s Pact between CCFD
and the two religious congregations,which guarantees
the social objective of SIDI,
• the loyalty of all its French and European shareholders,
• the increase in the contribution made by the Caisse des
Dépôts et Consignations,
MICROINVEST clients, in Moldova.
• the high increase in the number of socially responsible
individuals who have chosen to express their solidarity
through involvement in ESD: currently 700 persons
• the expansion of the European dimension through the The significant efforts that were successfully mobilised
participation of SEFEA (European institution) and of the around SIDI’s capital increase give us all great confidence
Stromme Foundation, a Norwegian organisation. in a solidarity-filled future.

2005 2004
Breakdown of SIDI’s capital capital of capital of
€9 million €5,3 million
Pact of shareholders 55,4% 58,7%
CCFD 31,1% 30,7%
Congregation of the Sœurs Auxiliatrices 17,3% 18,0%
Congregation of the Sœurs Ursulines de Jésus 7,0% 10,0%
Epargne Solidarité Développement 22,2% 24,4%
French financial institutions 11,2% 9,6%
Caisse des Dépôts et Consignations 7,2% 4,3%
Agence Française de Développement 1,9% 3,1%
SICAV Nord-Sud Développement 1,1% 1,1%
Crédit Coopératif 1,0% 1,0%
European partners 6,1% 4,5%
Cordaid (Netherlands) 2,6% 2,1%
Alterfin (Belgium) 1,1% 1,4%
Oïkocredit (Netherlands) 1,0% 0,1%
Stromme Foundation (Norway) 0,5%
Oïkos (Denmark) 0,3% 0,3%
Autonomie et Solidarité (France) 0,3% 0,3%
RAFAD (Switzerland) 0,2% 0,3%
SEFEA (Europe) 0,1%
Others (Church movements and services,
5,1% 2,8%
foundations, associations…)
TOTAL 100,0% 100,0%

25
exeSIDIgb2005 - cor 20/07/06 11:40 Page 26

SIDI’s 2005 financ

3
At the end of 2005, SIDI’s
1
Fixed Financial assets: these SIDI’s balance sheet (in € 000s) capital was increased from
€5.35 million to €9 million.
are the net financial assets
after depreciation. This item
principally groups together sha-
ASSETS 2005 2004 PASSIF 2005 2004
reholdings (€2.6 million) and Net intangible assets 5 1 Capital 3 9000 5320 4
The FID - Fonds d’Incitation au
loans (€2.4 million) – see page Net tangible assets 116 138 Reserves 209 107 Développement, is a mecha-
27. Net financial assets 1 5236 4586 Profit/loss for the year 62 102 nism designed to cover risks
(exchange rate risks, political
Total fixed assets 5357 4725 Total equity 9271 5529 risks, trade-related risks…) and
Claims (net value) 655 1267 Provision 150 160 is applied, to the investments
Cash and cash equivalent 2 7748 4558 Loans 627 482 made by SIDI using its equity. It
2
The cash assets are, for the FID 4 2292 2592 is composed of shareholders
most part, invested in securities. Other debt 1420 1787 current accounts. These share-
The significant increase in this TOTAL 13760 10550 TOTAL 13760 10550 holders are convinced of the
figure compared to 2004 is importance for SIDI of protec-
related to contributions received ting its capital while targeting
for capital increase, at the end areas in which it is difficult to
of 2005 (+ €3.7 million). undertake action.

SIDI’s income statement (in € 000s)

1
This item is mostly compo- 2005 2004 2
The fall in wages and
sed of funds received from Operating income 1581 1653 social charges between
CCFD to finance support Services and additional financing1 1468 1496 2004 and 2005 is due to
activities (€1.1 million) and Other 113 157 the fact that two technical
Operating expenses 1855 1856
resources from alliances Current expenses 667 648
assistance projects were
that are either directly Wages and social charges 2 893 938 completed in Haiti and in
transferred to the partners Depreciation Kosovo.
in the South or are alloca- and amortisation 34 64
ted to SIDI’s support activi- Cofinancings
transferred to partners 3 261 206
ties. Operating profit/loss -274 -203 3
Resources from alliances
Financial income 496 369
Income from portfolio 4 233 214 transferred to partners in
Income from current assets 12 16 the South. These funds only
FID resources 71 111 transit through SIDI (they
Exchange rate gains 113 1 correspond to part of the
Provision write-off 52 27
income recorded under the
4
Income generated by sha- Other 15
Financial Expenses 160 130 item “services and additio-
reholdings and loans.
Reserve for contengencies 5 30 nal financing”).
Interest on loans 27 25
Loss on loans and shareholdings 77 0
Exchange rate losses 12 62
Other 39 13
Financial profit/loss 336 239
Exceptional income 189 304
Exceptional expenses 177 236
Exceptional profit/loss 12 68
Income tax 11 2
NET PROFIT/LOSS 63 102

“S.A. SOFIDEEC BAKER TILLY, a member of CRCC in Paris, represented by its Chairman, Fouad EL M’GHAZLI, has certified SIDI’s annual accounts closed on 31
December, without any qualifications.”

26 ACTIVITIES OF SIDI A N D I T S PA R T N E R S I N 2005

 exeSIDIgb2005 - cor 20/07/06 11:40 Page 27

ncial statements
Gross portfolio at 31 December 2005 (in € 000s)
Country Name of the institution Shareholding Loans and Total
and related claims guarantees portfolio
South Africa TEMBEKA 153 197 350
RD Congo CCRD 3 8 11
RD Congo COODEFI 5 5
Guinea CRG 18 18
Guinea FPFD 100 100
Madagascar SIPEM 236 236
Mali AOPP 15 15
Mali BMS 153 153
Mali JEMENI 152 152
Mali NIAKO 76 76
Niger KOKARI 3 58 61
Niger TAANADI 61 61
Uganda CERUDEB 460 460
Uganda OMIPA 72 72
Senegal MEC PROPEM 76 76
Senegal SAPCA / EGAS 31 31
Senegal UGPM 137 137
Togo MICROFUND 76 76
Togo TIMPAC 61 61
Togo WAGES 60 60
Tanzania AKIBA 224 224
Africa 1250 1185 2435
Chile INDES 103 103
Colombia CONSOLIDAR 79 79
Ecuador BANCO SOLIDARIO 165 165
Ecuador FAPECAFES 81 81
Ecuador MCCH 247 247
Peru CONFIANZA 142 142
Peru CRSM 100 100
Peru EDAPROSPO 104 104
Peru LA FLORIDA 125 125
Uruguay SAINDESUR 109 109
Multilateral / Latin America LACIF 102 102
Multilateral / Latin America PROFUND 62 62
Latin America 862 557 1419
Cambodia AMRET 54 54
Cambodia HATTHA KAKSEKAR 51 159 210
Laos FONDS COOPERATIF 150 34 184
Vietnam CEP 30 30
Multilateral / Asia MAF 157 157
Asia 412 223 635
Lebanon NAJDEH 46 46
Morocco AL AMANA 220 220
Morocco AMSSF 78 78
Mediterranean basin 344 344
Haiti CCG/INDEPCO 89 89
Haiti COD 98 98
Haiti FONHSUD 24 24
Caribbean 211 211
Kosovo KRK 25 25
Moldova MICROINVEST 19 50 69
Poland TISE 111 111
Multilateral / Europe SEFEA 15 15
Europe 170 50 220
Total Portfolio 2694 2570 5264
As % of thetotal 51% 49% 100%

NB: the accounting values shown in this table correspond NB: Shareholdings in European allied institutions are not
to the historical values. recorded in this table.

27
exeSIDIgb2005 - cor 20/07/06 11:40 Page 28
AFRICA
AFRICA - MAIN
Abidjan Office 20 BP.1359
Abidjan 20
Cote d’Ivoire
Addis Abeba Office
BP 278 -Addis Abeba Ethiopia
E-mail: mainafrica@aol.com
fantawmh@yahoo.fr
BURKINA FASO - ASIENA
04 BP 8151 - Ouagadougou 04
Phone:00 226 50 39 58 78
E-mail: asiena@liptinfor.bf
BURKINA FASO - MOGTEDO
Préfecture de Mogtedo BP 48
Mogtedo
Phone: 00 226 70 12 69 12
E-mail: fenop@cenatrin.bf
BURUNDI - PREFED
Rohero II,Avenue Mugamba 21
BP 3446 - Bujumbura
Phone: 00 257 24 47 07
E-mail: prefedbu@cbinf.com
DR CONGO -ADI-KIVU
Actions pour le Développement
intégré au Kivu
BP 1554 Bukavu
Phone: 00 243 81 105 649
E-mail: adikivu@yahoo.fr
DR CONGO - COODEFI
BP. 79 Butembo
E-mail: coodefi@yahoo.fr
DR CONGO - FAEF
BP 251 Kasese – Butembo
Phone: 00 242 07 37 33
Fax: 00 871 762 066 295
E-mail: baef3@yahoo.fr
DR CONGO - LIDE/CCRD
BP 94 Butembo - Nord Kivu
Phone: 00 243 98 38 66 84
E-mail: lidelitembo@yahoo.fr
28
GUINEA - Crédit Rural
de Guinée
BP. 3790 Conakry
Phone: 00 224 41 35 71/45 43 38
Fax: 00 224 41 12 78
E-mail: crg@mirinet.net.gn
GUINEA - Fédération des
Paysans Producteurs du Fouta
Djalon
BP 52 PITA
Phone Inmarsat :00 870 762 638 770
Fax Inmarsat : 00 870 762 638 772
E-mail:
fede.fouta@mail-agriculteur.com
Website: www.paysansdufouta.org
MADAGASCAR - SIPEM
Immeuble SANTA LOT V
24, rue Naka Rabemanantsoa
Antanimena
BP 8616 Antananarivo 101
Phone: 00 261 20 22 300 98
Fax: 00 261 20 22 355 34
Email: sipem@wanadoo.mg
MADAGASCAR - TITEM
Lot IVM 7 - Ambodivona
BP. 1291 Antananarivo 101
Phone: 00 261 20 22 658 67
Fax: 00 261 20 22 658 67
E-mail: titem@bow.dts.mg
MALI - AOPP
BP. 3066 - Bamako
Phone: 00 223 228 67 81
E-mail: aopp@cefib.com
MALI - Banque Malienne de
Solidarité - BMS SA
Immeuble Dette Publique
2ème Etage
BPE 1280 - Bamako
Phone:00 223 223 50 34 -223 50 44
Fax: 00 223 223 50 43
E-mail : bms-sa@bms-sa.com
MALI - JEMENI
Immeuble Gadjaba Dadjel
Face place OMVS – Marché Dibida
BPE 2100
Phone: 00 223 223 4755
Fax: 00 223 223 9405
E-mail: jemeni@cefib.com
MALI - NIAKO
Quartier Légal Ségou
KAYES
Phone/Fax: 00 223 252 44 05
E-mail:
reseauniako_kayes@yahoo.fr
MOZAMBIQUE -AMRU
P.O. Box 1892 -Maputo
Phone/Fax: 00 258 1 422 809
E-mail: asmru@zebrz.uem.mz
MOZAMBIQUE -UGC
Av Agostinho Neto -Maputo
E-mail: ugcapm@tvcabo.co.mz
NIGER - KOKARI
BP 11122 - Niamey
Phone /Fax: 00 227 75 25 12
E-mail: kokaris@intnet.ne
NIGER -TAANADI
BP 13376 Niamey
Phone: 00 227 74 15 69
Fax: 00 227 34 01 84
E-mail: crn@intnet.ne
RWANDA - PREFED
BP 1897 Kigali
Phone: 00 250 58 31 28 / 27
SOUTH AFRICA - TEMBEKA
P.O. Box 13859
Mowbray 7705
Cape town
Phone / Fax : 00 27 21 447 81 38
E-mail: tembeka@metroweb.co.za
UGANDA - CERUDEB
Plot 7, Entebbe Road
P.O. Box 1892
Kampala
Phone: 00 256 41 251 276
Fax: 00 256 41 251 273
UGANDA - OMIPA
P.O. Box 1240
Kabingo - Mbarara
Phone: 00 256 48 52 26 11
E-mail: omipa_micro@yahoo.com
UGANDA - Stromme
Foundation East Africa
P.O. BOX: 27200 - Kampala
Phone: 00 256 41 53 28 40
Fax: 00 256 41 53 28 34
SENEGAL - ASPRODEB
8, boulevard de l'Est X - rue 2 bis
Dakar
Phone: 00 221 825 56 65
Fax: 00 221 824 48 74
E-mail: fkdiop@cyg.sn
SENEGAL - FENAGIE PECHE
Quai de pêche de Hanneton
20374 Dakar Thiaroye
Phone: 00 221 832 11 00
E-mail: fenagiepeche@sentoo.sn
ACTIVITÉS DE LA SIDI
Address
SENEGAL - MECPROPEM
Quai de Pêche
BP 1384 – M’Bour
Phone: 00 221 957 38 79
E-mail: mecpropem@sentoo.sn
SENEGAL - SAPCA-EGAS
(ex UGIE-EGAS)
Quartier Diamagueune 1
BP 1120 M’Bour
Phone:
00 221 957 49 57/ 639 26 24
Fax: 00 221 957 40 07
E-mail: ugiegas@sentoo.sn
SENEGAL - UGPM
BP 43 - Meckhé
Phone: 00 221 955 51 13
Fax: 00 221 955 52 86
E-mail: ugpm@sentoo.sn
TANZANIA - AKIBA Commercial
Bank
TDFL Building (Phase II)
P.O. Box 669
Dar Es Salaam
Phone: 00 255 222 11 83 40
Fax: 00 255 222 11 41 73
E-mail:Akiba@cats-net.com
TOGO - MICROFUND
64 rue du Marché de N’kafu
Behind the Shell Gas Station,
Jean-Paul II -
BP 61652 Lomé
Phone: 00 228 226 63 20
Fax: 00 228 226 63 19
E-mail: microfund99@hotmail.com
TOGO - TIMPAC
BP 173 Dapaong
Phone: 00 228 770 83 70
E-mail: timpac@ids.tg
TOGO - WAGES
BP 1339 Lomé
Phone: 00 228 222 54 71
Fax: 00 228 222 78 99
E-mail: wages@cafe.tg
MEDITERRANEAN BASIN
LEBANON - NAJDEH
P O. Box 113
6099 - Beirut
Phone: 00 961 1 30 20 79
Fax: 00 961 1 70 33 58
E-mail: najdeh@cyberia.net.lb
MOROCCO - AL AMANA
28 rue Oum Errabia – Agdal
Rabat
Phone: 00 212 37 77 01 41
Fax: 00 212 37 68 67 12
E T D E S E S PA R T E N A I R E S E N 2005
 exeSIDIgb2005 - cor 20/07/06
ss book
E-mail : fouad@alamana.org.ma
Website : www.alamana.org
MOROCCO - AMSSF
33 résidence Essalam
Avenue Al Mohads – Appt. 1
Quartier de la Gare – Fès
Phone : 00 212 55 626 764
Fax: 00 212 55 733 431
E-mail: amssf@menara.ma
PALESTINIAN AUTONOMY -
ACAD
P.O. Box 3816 Al-Bireh
Via Israël
Phone: 00 970 2 240 96 50
Fax: 00 970 2 240 96 52
E-mail: acad@palnet.com
CARIBBEAN
HAITI - COD/EMH
Delmas 95 - # 15 Frères - P.O.Box 6
Port-au-Prince
Phone: 00 509 257 75 44
Fax: 00 509 257 92 28
E-mail: mdep_jr@yahoo.com
HAITI - FONHSUD
Rue Egalité - AQUIN
E-mail: fonhsud@hotmail.com
HAITI - INDEPCO
Rue Pierre Anselme N°3
Entrée Automeca, Route de
l’Aéroport - Port au Prince
Phone: 00 509 250 52 16 /52
17/52 18
Fax: 00 509 250 52 17
E mail: indepco@haitiworld.com
HAITI - KNFP/IMOFOR
173 bis Avenue Jean Paul II –
Turgeau
Port-au-Prince
Phone: 00 509 244 07 35
E-mail: knfphaiti@transnethaiti.com
SOUTH AMERICA
CHILE - INDES
Serrano n° 14
Dpto 202
Comuna de Santiago de Chile
Phone/Fax : 00 562 63 26 00
E-mail : indes@terra.cl
Website : www.indes.cl
COLOMBIA - CONSOLIDAR
Calle 55 N° 10-76 - Oficina 305
Bogotá
Phone : 00 571 248 99 01
E-mail : cconsolidar@etb.net.co
ECUADOR - BANCO SOLIDARIO
11:40 Page 29
Av.Amazonas 3887 y Corea
Edificio Grupo Enlace
PBX 260260 Quito
Phone: 00 593 2 26 85 34
Fax: 00 593 2 26 88 43
E-mail: bsolidario@enlace.fin.ec
Website: www.solidario.com.ec
ECUADOR - FAPECAFES
Av. Santiago de la Montanas 06-60
2do. Piso
P.O. Box L-11-01-23 Loja
Phone: 00 593 7 25 83 478
Fax: 00 593 7 25 88 403
E-mail: info@fapefaces.org.ec
Website: www.fapecafes.org.ec
ECUADOR - Fundacion MCCH
Avenida Rumichaca S26-365
y Calle Moro Moro esq.
Barrio Turubamba - Quito
Phone: 00 593 2 267 09 25/ 09 26
Fax: 00 593 2 262 39 27/267 33 66
E-mail: direccion@funcmcch.com.ec
NICARAGUA -FENACOOP
Managua
Phone/Fax: 00 505 270 70 00
E-mail: fenacoop@kurbonett.com
PERU - Caja Rural San Martin
Jr Martinez de Compagnon
# 235 Tarapota - San Martin
Phone: 00 51 94 52 60 11
Fax: 00 51 94 52 48 88
E-mail: caja@crsanmartin.com.pe
PERU - Edpyme CONFIANZA
Avenida Centenario # 356
San Carlos 6 Apartado 125
Huancayo
Phone: 00 51 64 217 000
Fax: 00 51 64 212 417
E-mail:
presidenciaconfianza@terra.com.pe
PERU - EDAPROSPO
Octavio Bernal 598 - Jesús María
Apartado Postal : 110325 Lima 11
Phone: 00 511 463 4173 / 461 6014
Fax : 00 511 463 0776
E-mail : david@edapr.org.pe
PERU - LA FLORIDA
Av. Peru # 432-444
Pampa del Carmen
La Merced - Chanchamayo
Phone: 00 516 453 11 93
Fax: 00 516 453 11 90
E-mail: laflorida@infonegocio.net.pe
SOUTH AMERICA - FOROLAC
FR
Edificio Montevideo -Piso 3
La Paz -BOLIVIA
E-mail: gerencia@finrural-bo.org
SOUTH AMERICA - LA-CIF
Bolivar # 472 -office 702/703
Lima 18
Phone: 00 511 446 8877
Fax: 00 511 446 8585
E-mail:lacifluc@amauta.rcp.net.pe
fernandol@cyrano-management.com
SOUTH AMERICA - PROFUND
P.O. Box 769-1005
San José de Costa Rica
Phone: 00 506 220 4122 / 290
2404 /296 8004
Fax: 00 506 290 2345
E-mail: asilva@intercentro.com
URUGUAY - SAINDESUR
Bulevar Artigas 1119 - Subsuelo
Montevideo
Phone/Fax : 00 598 2 402 27 80
E-mail: indesur@adinet.com.uy
ASIA
ASIA - MAF (Microfinance
Alliance Fund)
Catholic Relief Services-USCCB
Philippine Program
P.O. Box 1379, CPO Manila
CBCP Building -470 Gen. Luna St.
Intramuros 1002 Manila
Philippines
Phone: 00 63 2 527 8331 to 35
Fax: 00 63 2 527 41 40
CAMBODIA - AMRET
72/74, rue 598
Boeng Kok II - Toul Kok
BP 57 Phnom Penh
Phone : 00 855 23 880 942
Fax: 00 855 23 881 342
E-mail: phalarin@amret.com.kh
Website: www.amret.com.kh
CAMBODIA
HATTHA KAKSEKAR
# 39, Street 432
Sangkat Boeung Trabek
Khan Chamkar Morn
BP 2044 Phnom Penh 3
Phone: 00 855 23 994 304
Fax: 00 855 23 994 303
E-mail:
hatthakasksekar@online.com.kh
Website: www.hkl.com.kh
LAOS - Fonds Coopératif S.A.
N° 071/01, Nouay 01
Ban Thongkhankham-Tay
Muong Chanthaboury
BP 74 37 - Vientiane
Phone/Fax : 00 856 21 26 18 25
E-mail: FCSA@etllao.com
VIETNAM - CEP FUND
14, Cach Mang Thang Tam
Dist. 1 - Ho Chi Minh Ville
Phone: 00 848 822 33 21
Fax: 00 848 824 56 20
E-mail: van.nth@cep.org.vn
EASTERN EUROPE
KOSOVO - KRK (Kreditimi
Rural I Kosoves LLC)
MEB Building 3rd Floor-UCK
Street
Pristina - Kosovo
Phone: 00 381 38 24 35 54
MOLDOVA -MICROINVEST
16 Puskin Street
Chisinau, MD-2012
Phone: 00 373 22 21 27
64/65/68
Fax: 00 373 22 22 99 02
E-mail :microinvest@microin-
vest.md
POLAND - TISE
UL. Nalewki 8/27
00-158 Warsaw
Phone: 00 48 22 636 07 40
Fax: 00 48 22 636 29 02
E-mail: inwestycje@tise.com.pl
29
exeSIDIgb2005 - cor 20/07/06 11:40 Page 30

SUPERVISORY BOARD

LAMBLIN Xavier
Chairman

MESNY Philippe
Vice-chairman

CAISSE DES DEPOTS ET CONSIGNATIONS

Represented by Hocine TANDJAOUI

COMITE CATHOLIQUE CONTRE LA FAIM ET POUR LE DEVELOPPEMENT

Represented by Xavier LAMBLIN

CONGREGATION DES SŒURS AUXILIATRICES

Represented by Sister Geneviève GUENARD

CONGREGATION DES URSULINES DE JESUS

Represented by Sister Christiane GROSSIN

CORDAID
Represented by Jacob Winter

CREDIT COOPERATIF
Represented by par Laurence MORET

EPARGNE SOLIDARITE DEVELOPPEMENT

Represented by Henry KLIPFEL

BITSCH Gérard
Member

EXECUTIVE BOARD

SCHMITZ Christian
Chairman

COURTIN Christophe

MORINCOME Martine

EXTERNAL AUDITORS

Fouad EL M’GHAZLI

SOFIDEEC BAKER TILLY

30 ACTIVITIES OF SIDI A N D I T S PA R T N E R S I N 2005

exeSIDIgb2005 - cor 20/07/06 11:40 Page 31
exeSIDIgb2005 - cor 20/07/06 11:40 Page 32

I NTERNATIONAL
S OLIDARITY
FOR D EVELOPMENT
AND I NVESTMENT

12, rue Guy-de-la-Brosse

75005 Paris
Phone: 33(0) 1 40 46 70 00
Fax: 33(0) 1 46 34 81 18
Website: www.sidi.fr

Print in recycled paper

www.finansol.org www.inaise.org www.febea.org www.mfiain.org