GBéxé rapport SIDI_2004 20/07/05 15:00 Page 1

The activities of SIDI

and its partners in 2004

International
Solidarity
for Development
and Investment
GBéxé rapport SIDI_2004
Table of Contents
2 ACTIVITIES
20/07/05 15:00 Page 2
Chairman’s message
Solidarity finance
3
Glossary
ACAD: Arab Center for Agricultural Development (Palestine)
ADER: Association for Regional Economic Development (Mali)
ADI-Kivu: Association pour le Développement intégré au Kivu
and the realities of support
to partners 8
AFD: Development French Agency (France)
ADIE: Association pour le Droit à l’Initiative Economique (France)
ALTERFIN: Financial Co operative (Belgium)
AMSSF: Association Marocaine Solidarité Sans Frontière (Morocco)
AMRET: new name: EMT “Ennatien Moulethan Tchonnebat” (Cambodia)
AOPP: Association des Organisations Professionnelles Paysannes (Mali)
SIDI and its activities 10 ASPRODEB: Senegal Association for Promotion and Development à la Base (Senegal)
BANCOSOL: Banco Solidario (Bolivia)
Financing for our partners 10
BANCO SOLIDARIO: Banque Solidaire (Ecuador)
Supporting partners 16 BMS: Solidarity Malian Bank (Mali)
Identifying partners, the search for finance CAC La Florida: Cooperativa Agraria Cafetalera (Peru)
and mechanisms to cover risks, analysis of social viability 19 CCFD: Catholic Committee against Hunger and for Development (France)
CCG: Cooperative for guarantee security and management (Haïti)
CCRD: Caisse de Crédit Rural pour le Développement (DR of Congo)
CCSP: Credit Co - operative to support Small Producers (Laos)
Mobilising the solidarity chain CDC: Caisse des Dépôts et Consignations (France)
CEP: Capital Aid Fund for Employment of the Poor (Viet Nam)
to exchange, innovate and capitalise 22 CERUDEB: Centenary Rural Development Bank (Uganda)
CFS: Community Finance Structure
COD-EMH: Co ordination of Development Operations - Methodist Church (Haïti)
CONFIANZA: Entidad de Desarrollo para la pequeña y micro empresa (Peru)
SIDI’s financial statements 26 CONSOLIDAR: Cooperativa Corfas de Credito Solidario (Colombia)
COODEFI: Coopérative Financière et de Développement Economique (DR of Congo)
CORDAID: Catholic Organisation for Relief and Development (The Netherlands)
CRG: Rural Credit of Guinea (Guinea)
EDAPROSPO: Equipo de Aseroramiento a Actividades Productivas de Sectores Populares (Peru)
ESD: Saving Solidarity Development Association (France)
ESF: Epargne Sans Frontière (France)
EU: European Union
FAEF: Fonds d’appui à l’Entrepreunariat Féminin (North Kivu)
FAPECAFES: Federacion Regional de Asociaciones de Pequenos Cafetaleros Ecologicos
del Sur (Ecuador)
FENACOOP: Fédération Nationale des Coopératives de Producteurs (Nicaragua)
FC: Fonds Coopératif (Laos)
FENAGIE Pêche: Fédération Nationale des Groupements d’intérêt Economique de Pêche (Senegal)
FID: Fond d’Incitation au Développement (France)
FONHSUD: Haïtian Fund to promote Local Development in the Southern Province (Haïti)
GRET: Groupe de Recherches et d’Echanges Technologiques (France)
HIVOS: Humanist Institute for Development Cooperation (The Netherlands)
IMOFOR: Mobil Institute for Training (Haïti)
INDES: Inversiones para el Desarrollo (Chile)
INDEPCO: Institut National pour le Développement et la Promotion de la Couture (Haïti)
IRAM: Institut de Recherches et d’Application des Méthodes de développement rural (France)
JEMENI: Union des Caisses Mutuelles d’Epargne et de Crédit (Mali)
KNFP: National Council for Grassroot Financial system (Haïti)
KRK: Kreditimi Rural I Kosoves LLC (Kosovo)
KOKARI: Co - operative of intermediation in rural credit services (Niger)
LA-CIF: Latin American Challenge Investment Fund (South America)
LIDE: Ligue pour le Développement (North Kivu)
MAF: Microfinance Alliance Fund (Asia)
MAE: Ministry of Foreign Affairs (France)
MAIN: Microfinance African Institution Network
I NTERNATIONAL MFI: Microfinance Institution
S OLIDARITY MICROFUND: Institution mutualiste de droit togolais (Togo)
MISEREOR: Aktion Gegen Hunger Und Krankheit In Der Welt (Germany)
FOR D EVELOPMENT MUFED: “Women and development“ Credit Union (Burkina Faso)
AND I NVESTMENT MUSO: Solidarity Credit Union
OIKOS: Danish Cooperative Bank Investing microcredit schemes (Denmark)
OMIPA: Oruchinga Microfinance Promotion Agency (Uganda)
PROFUND: Fondo de Inversiones incorporado en Panamá
12, rue Guy-de-la-Brosse PREFED: Programme Régional de Formation et d’Echanges pour le Développement (Rwanda)
75005 Paris - France ROPPA: Réseau des Organisations Paysannes de l’Afrique de l’Ouest
Tél. : + 33(0) 1 40 46 70 00 SAINDESUR: Inversiones para el desarrollo (Uruguay)
SAPCA-EGAS (ex UGIE): Société d’Approvisionnement, de Production, de Commercialisation
Fax : + 33(0) 1 46 34 81 18
et de Conseil Agricole des Ententes des Groupements Associés du Senegal (Senegal)
Website : www.sidi.fr SIDA: Swedish International Development Agency
SIPEM: Investment Company for Investment Promotion in Madagascar (Madagascar)
TEMBEKA: Social Investment Company Limited (South Africa)
TIMPAC: Tous Impliqués dans la mobilisation des ressources locales et la promotion
des actions communautaires (Togo)
Design and production: SIDI TITEM: Union of credit and savings local associations (Madagascar)
Poussières d’Étoiles - Courtabœuf (91) TRIODOS: Social Bank (The Netherlands, England and Belgium)
+ 33 (0) 1 60 92 42 72
UGPM: Union of Peasant Associations from Meckhe (Senegal)
WAGES: Women’s Association for both Gain Economic and Social (Togo)
OF SIDI A N D I TS PA RT N E R S I N
Chairman’s
T
wo years of the 2003-2005 develop-
ment plan have just come to a close.
Have we fulfilled our mission to
strengthen support for community
financial services? Have we contri-
buted to the evolution of SIDI’s
portfolio, responded to our part-
ners’ new needs and consolidated
their financial innovations? Have
we contributed to the institutional
strengthening of SIDI ?
The answer is yes, thanks to the support of many partners,
shareholders and alliances who shared our vision of a solidarity
economy. We have boosted and increased solidarity financing
practices set in motion by local organizations. We have supported
the capacity of local economic players to become active and
productive in their own environment. We have also redoubled our
attention to rural areas. In 25 years, microfinance has provided
access to financial services to millions of families who had
previously been excluded from banking services. In the 1990s,
microfinance was heralded as the tool of choice for poverty reduc-
tion. The disasters that struck in 2004 amplified and expanded
poverty throughout the world. More than half of humankind does
not have access to formal financial systems and the divide between
rich and poor is growing daily. Microfinance is not a universal solu-
tion to poverty reduction, but rather an approach whose usefulness
and interest have been recognized at world level. In 2005, decla-
red the Year of Microfinance by the United Nations, microfinance
should serve more and more people throughout the world.
By offering loans and securing savings, microfinance is a source of
hope to thousands of low-income people that they will be able to
plan for their future. However, today it is still difficult to gauge and
assess the impact of microfinance on the fight against poverty.
That is why we must continue to come up with new solutions that
will boost the social impact of solidarity financing, so that we may
meet the different needs of family farms, make it possible for them
to invest in production equipment, promote marketing by farmers’
organizations and provide access to housing and medicine. The
engineering of solidarity financing has a long way to go before it
exhausts all its possibilities.
In order to cover the diverse need for financial services, a range of
innovative initiatives has been created. SIDI is already linked with
them and is working in partnerships with the CFSs* (Community
Financial Services) in the South and the East. These are true leaders
in their local solidarity economy and include credit and savings
unions, microfinance institutions, solidarity credit unions, NGOs,
people’s banks, producers’ organizations, associations, etc. They offer
financial services to people who have been excluded from banking
services. SIDI seeks to offer its partners financial support, institutional
monitoring, technical support, networking services on many
continents and an analysis of their social viability. SIDI, because it
covers these 5 dimensions with its own financial resources, is in a very
unique position in the solidarity finance landscape. Thanks to the
Solidarity Chain for Financing, we are able to set in motion our mis-
sion to consolidate the MFIs (see chapter 2) with a view to achieving
equitable and sustainable development.
2004
Message
Here in the North, innovative alternative mechanisms have been
developed in a number of areas, such as solidarity financing,
ethical investing, microfinance support operators, etc. In this
setting, SIDI holds a unique position because :
- it is not a bank in the process of discovering the size of the low-
income market,
- it is not a donor granting official financing,
- nor is it a consultancy firm that draws up and designs projects.
SIDI is a chain of solidarity activists. Our commitment to provide
solidarity financing services is founded more on values than on
tools. It is based on trust, social relationships, social cohesion and
the maximisation of solidarity over profit. We defer to local
conditions and culture, focusing on the needs of the beneficiaries
and on local practices (see chapter 1).
We are convinced that by building alliances, on the basis of our
experience in the field with our partners, we can build a viable
international system.
All the solidarity players who have put these innovations to work
already communicate well with each other, thanks to the develop-
ment of networks and modern means of communication. It is
now possible to pool their efforts, learn from others and transfer
know-how and skills from North to South, within the South and Christian SCHMITZ
from South to North. Chairman of the Board
of Directors
Since 2002, SIDI has been getting more deeply involved in the Paris, 8 June 2005.
Solidarity Chain for Financing and has been strengthening the
connection between the mobilization of solidarity savings in the
North and its use by institutions in the South and East that are
trying to improve the well-being of the populations they serve. In
order to achieve that goal, SIDI tracks the Social and
Development Viability of its partners in order to ascertain
the impact of financial services on local institutions and their
customers. The focus is on social, environmental and ethical
issues, to ensure that investments make good economic sense.
Notwithstanding the diversity, complementarity and the abun-
dance of the links in the Solidarity Chain for Financing, and
regardless of the number of participants, the level of skills and
degree of openness, SIDI and its partners will always be a “bell-
wether” in the world of microfinance.
At the close of the current 2003-2005 strategic plan, the total
estimated outstanding amount of investments is expected to be
on the order of 5.8 million euros (realizable with the current equi-
ty capital of 5.3 million euro and 0.5 million euros in borrowing).
But the need for new financing resources is pressing and at the
General Assembly of 8 June 2005 the SIDI shareholders
will propose an increase in capital to fund the new partnership
consolidation and development plan for the next 3 years (2006-
2008). Thanks to you and your support we will be able to pursue
our mission into the future.
* Comonly used MFIs, the denomination used in this report
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Focus on SIDI’s positioning and activities in 2004
Solidarity finance and the realities of support to partners
A look back at the
history of microfinance
At the end of the 1970s, microfinance began to develop in
order to enable populations that had been excluded from
banking services to gain access to financial services, such
as loans, savings and others. Over the past 25 years,
projects, NGOs, associations, credit unions and savings and
loan co-ops have flourished around the world and today
serve more than 60 million people across the globe.
Microfinance has had a remarkable career and more than
7,000 microfinance organizations are active today1.
Microfinance is now widely used as a poverty reduction
tool and has successfully proved that loans can be granted
to disadvantaged populations in an efficient and
sustainable manner.
Set up in 1983 by the Catholic Committee
against Hunger and for Development (CCFD),
SIDI was part of the very first initiatives to pro-
vide access to financial services for people
excluded from the banking sector, first in the
form of equity participation in micro-enterprises
in the South and then, starting in 1994, via sup-
port in the form of loans and participation in the
capital of microfinance institutions, with a view
to expanding the scope of their interventions.
Today, the achievements of microfinance have been
singled out and recognized as having made real
progress in terms of increased income, access to heal-
th care, education and housing. However, studies have
shown that it is not necessarily the most disadvanta-
ged populations that can make the best use of a loan.
The ones that most benefit are those who have an
economically viable project.
When the United Nations declared 2005 to be the Year
of Microfinance, it also set a number of ambitious
targets. Today, 60 million people have access to micro-
finance services; the UN target is to increase that
figure to 200 million in the next 5 years2. The goal
is therefore to achieve a much broader coverage of
financial services, in particular in rural areas.
SIDI designs its interventions with these two goals in
mind: to help a greater number of people gain access
to financial services and at the same time target the
disadvantaged.
4 ACTIVITIES
Solidarity finance at the
heart of SIDI’s activities
SIDI’s position in relation
to microfinance players3
Historically, these local institutions often began with
state subsidies or funding from public or private deve-
lopment aid agencies4, and technical assistance from
local and international specialized NGOs that contri-
buted greatly to the start-up of initiatives, such as the
creation of the CRG in Guinea, AMRET in Cambodia,
TIMPAC in Togo and AL AMANA in Morocco. In other
cases, such as SIPEM in Madagascar and INDES in
Chile, a few visionary local private businessmen com-
mitted to create a financing structure to meet
demand. Still others began as strong community orga-
nizations, such as local associations and farmers’
organizations that started by offering financial ser-
vices to their members.
At that time, it became clear that the microfinance pro-
grammes, until then funded by public and private sub-
sidies, had to become financially independent in order
to ensure their future. The aim was to transform them
into local structures able to provide financial services
over the long term. There was a need for stable
resources in order to consolidate operations, attract
additional financing and support growth. These local
microfinance structures went by the name of microfi-
nance institutions (MFIs).
SIDI was one of the first to recognize the need
for long-term resources, and to accept the risk
by contributing to the equity of local microfi-
nance institutions5, or to grant them medium-
or long-term loans to help them expand their
activities.
SIDI, a player in solidarity
finance
Solidarity financing is for people who have been eco-
nomically and socially sidelined. Its goal is to reduce
inequalities that hinder access to financial services.
The MFIs in the South are the focal point of solidari-
ty finance. Their strength lies in their knowledge of
and proximity to the customers and the relationship
of trust they enjoy with them.
OF SIDI A N D I TS PA RT N E R S I N
SIDI supports the emergence of new local
players able to act independently and provide
sustainable financial products and services to
disadvantaged populations. Forging partner-
ships based on trust, transparency and the res-
pect of values are key elements of SIDI’s vision.
SIDI, a solidarity investor
Today, there are 436 investment funds devoted to
microfinance with a total capital of 700 million euros
38 already existing and 5 new ones in creation. These
funds make a vital contribution to the MFIs in the form
of loans or capital participations, alongside bilateral
and multilateral agencies and private foundations that
also contribute to the capital of the MFIs. While some
of these funds aim for relative financial profitability,
others act to achieve strong social viability.
SIDI is a “responsible and patient investor”,
whose goal is to make capital available to the
MFIs in support of their development and
growth. SIDI is also a solidarity investor in the
sense that it contributes financing first and
foremost to achieve social viability and not
simply to attain financial results.
While SIDI acts alongside other solidarity investors,
it has a number of unique and noteworthy
characteristics.7
Our founders pursue a vision based
on social concerns and development
SIDI was created by CCFD, with which it shares
common values in terms of vision and mission.
The choice of our partners is based on the qua-
lity, motivation and the vision of the men and
women who work for them, and not on the pro-
fitability of the institution or the yield from our
investment. We share with CCFD the conviction
that our partners are the most appropriate
ones to promote our development mission.
Socially responsible investors
In all, SIDI has 500 shareholders, ranging from CCFD,
institutional investors, religious congregations and
2004
private individuals8, who together have accumulated
5.3 million euros in capital for the benefit of the MFIs
in developing countries.
A humane and committed
Solidarity Chain for Financing
The solidarity partnership promoted by SIDI is centred
on the Solidarity Chain for Financing from North to
South.
In the North, individual and institutional shareholders
and more than 6,000 solidarity savers who have
accrued savings of nearly 50 million euros in a shared
solidarity investment help to bring SIDI’s operations to
fruition. They constitute SIDI’s financial and moral
foundation.
In the South, the community finance structures use this
solidarity investment to grant financial services to the
disadvantaged.
In 2004, SIDI worked in 30 countries with
58 partner institutions, 4 of which are regional
in scope : the MAIN network in Africa, PROFUND
and LACIF in Latin America and MAF in Asia.
Institutional maturity
Since its creation in 1983, SIDI has been a pioneer in
this field; most of the investment funds having been
set up at the end of the 1990s, or later.9
Patient and tailored funds
combining loans, capital participation
and guarantees
Patient funds are set up for the long-term and for the
benefit of the MFIsin order to generate significant social
impact. SIDI combines the conventional finance tools
– loans, capital participations and guarantees – which
makes it possible to work with a wide range of partners
(see chapter 2) in accordance with a variety of tools.
SIDI’s financial commitments at 31 December
2004 to its partners in the South and East
amounted to 4.6 million euros, an 18% increa-
se over 2003. This breaks down as 4.5 million
euros for the loan portfolio10 and capital parti-
cipations, i.e. 2.6 million in capital participa-
tions plus 1.9 million in loans, in addition to
0.1 million euros in guarantees.
5
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Focus on SIDI’s positioning and activities in 2004

In a bid to fine-tune its activities to achieve institutio-
nal development, between 2001 and 2004 SIDI offe-
red loans in local currencies, thanks to the creation of
an exchange rate risk coverage mechanism called the
FID (Development Incentive Fund). At 31 December
2004, two-thirds of our portfolio was committed in
local currencies.
A preference for capital participation
Capital participations enable the MFIs to benefit from
a sustainable source of financing and to raise additio-
nal resources in the form of loans, thanks to a levera-
ge effect. At the end of 2004, 58% of our capital was
invested in the form of capital participations and 42%
in the form of loans.
SIDI assumes a high level of risk when it acquires a
stake in the MFIs, often when they are just starting
financial operations. SIDI participates in the capital of
young institutions that have high potential at the time
of their creation, which is precisely when they need
long term funds. SIDI’s recent investments include the
Crédit Rural of Guinea, Kokari in Niger, AMRET and
HATTHA KAKSEKAR in Cambodia, Caja Rural San
Martin and Confianza in Peru, MAF in the Philippines,
KRK in Kosovo, TEMBEKA in South Africa and the
Fonds Coopératif in Laos.
The need to redeploy our capital
From the standpoint of SIDI is shareholders, capital
of which were also granted loans, and twenty in the A significant advance - international financing partners (0.5 million
form of loans only. Furthermore, three partners - in SIDI investments in Africa euros), covering 28% of expenses;
OMIPA in Uganda (a SIDI partner since 2002), the - revenue from its portfolio (0.2 million euros),
Fédération des Paysans du Fouta Djallon in Guinea Only 6% of all microfinance investment funds are covering 11% of expenses.
and COODEFI in the Congo – benefited from a SIDI devoted to Africa12. On the other hand, since
guarantee in 2004. 2003, Africa has received SIDI’s largest financial The second year of its action plan, 2004, saw strengthe-
commitment, in the form of loans and participa- ned commitments in West Africa with new partnerships in
The average outstanding amount of loans tions, amounting to 45% in 2004, compared to Mali, Togo, as well as in Ecuador and Peru, and identifica-
granted by SIDI was 80,000 euros and 34% in 2003, followed by Latin America with 27%, tion missions in Benin, Ecuador, Peru, Nicaragua,
the average size of participations 122,000 euros, compared to 31% in 2003, a result of the transfer Moldavia and the Mediterranean Basin. In 2004, Africa
which are relatively small sums compared to of our capital from three MFIs in the region (see received 44% of SIDI’s support resources (see table no. 3).
those granted by other funds. This demonstrates graph no. 1).
SIDI’s desire to diversify its portfolio and illus- Total in 2004 Total in 2003 Table 1:
trates its philosophy to refrain from being the Africa is also the continent with the highest average in € Ks in € Ks destination of
biggest shareholder of a -MFI, other one excep- amount invested per country (224,000 euros), the out- Africa 604 274 SIDI financing:
tion being TEMBEKA in South Africa, in order to come of large sums invested in participations, in parti- Latin America 181 227 new investments
ensure that this young structure will find other cular in SIPEM in Madagascar, TEMBEKA in South Asia 233 100
investors. Africa and CERUDEB in Uganda (see table no. 2). Mediterranean basin 0 100
Caribbean 0 0
Financial commitments for diversified Creating a leverage effect Eastern Europe 0 25
partners: an example from 2004 with refinancing funds Total 1 019 728
of which loans 620 489
SIDI has chosen to pursue a policy of diversified SIDI has invested in three large regional refinancing of which participations 400 237
approaches and partners who offer a tailored res- funds, Profund and Lacif in Latin America and MAF in
ponse to the socio-economic context of their area of Asia. That has enabled SIDI to intervene in countries
Graph 1:
activity. In 2004, SIDI granted thirteen financing where it had not previously been active and to have a K€ SIDI portfolio as
packages worth a total of more than 1 million very significant leverage effect on certain partners, 2 500 of 31/12/2004
euros, comprising nine loans and four participa- such as Banco Solidario in Ecuador….
2 020 per continent
tions, six of which were first-time financing by SIDI. 2 000
(loans, equity
Five of these partners offer access to financing in
investments and
cities11 (SIPEM in Madagascar, CERUDEB in Uganda,
JEMENI and NIAKO in Mali and MICROFUND in SIDI, a solidarity sponsor 1 500
1 186
related claims)

participation implies specific management in terms of Togo), six operate in rural areas (UGPM in Senegal, 1 000
the risks, returns and above all the allocation of KOKARI in Niger, TIMPAC in Togo, CAJA RURAL SAN A combined development 561
resources (see study on page 15 entitled “The issues of MARTIN in Peru, FAPECAFES in Ecuador and 500 347
and investment mission 210
Disinvestment”). HATTHA KAKSEKAR in Cambodia), and two are 136
refinancing institutions (MAF in Southeast Asia and This is where SIDI’s originality in relation to other social 0
In 2004, three capital disposals took place in TEMBEKA in South Africa). investors is most evident. SIDI’s financing for partners

ba n
sin

an

Am atin
ca

ia

pe
ric

As
eri

ro
ne

be
Af

L
(See table no. 1 showing the geographical breakdown is always accompanied by a development support

Eu
rra

rib
Latin America: two partial disposals in INDES

Ca
ite
of new investments in 2004). mission, made possible thanks to the Solidarity Chain

ed
(Chile) and PROFUND (a Latin American instru-

M
ment) and a third involving the entire partici- for Financing. Some 6,000 solidarity savers share the
pation in Bancosol, in Bolivia. Developing appropriate financial instruments is a goal proceeds of their savings, which helps SIDI raise funds
that SIDI incorporated in its three-year strategic plan for its development mission. Average amount invested Average amount invested Table 2:

A small fund with numerous (2003-2005). per country in K€ per partner in K€ average

financial partners In 2004, SIDI raised 1.8 million euros to pay for Africa 224 16 partners 126 amount of SIDI
In 2004, three guarantees were issued for rural its activities and support our partners. These Mediterranean basin 173 3 partners 116 investments
SIDI, with its 5.3 million euros in capital, is classified partners: OMIPA in Uganda, COODEFI in the funds came from the following sources: Latin America 169 11 partners 108
among small funds, but it is unique in that it invests in Congo (for the solidarity credit unions in the Haiti 210 3 partners 70
a large number of local institutions. At the end of North Kivu region of the Congo) and the - CCFD and shared income from solidarity Asia 140 6 partners 94
2004, forty-one MFIs benefited from SIDI financing: Fédération des Paysans du Fouta Djalon in investment (1.1 million euros), which covered Europe 68 2 partners 68
twenty-one in the form of capital participations, four Guinea. 61% of expenses; Total 164 41 partners 109

6 ACTIVITIES OF SIDI A N D I TS PA RT N E R S I N 2004

7
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Focus on SIDI’s positioning and activities in 2004

A support mission Staff with diversified skills Getting involved in networks 4

AFD, MAE, USAID, ACDI, Rockdale Foundation and others.
for backing small institutions in the service of the partners 5
Local NGOs with a micro-credit activity, microfinance institutions, com-
SIDI’s staff, convinced that the professionalization of mercial banks, networks of co-ops or credit unions, farmers’ organizations
SIDI’s support mission consists of contributing SIDI’s paid staff is made up of sixteen persons, its partners, and of its own staff, requires exchanges offering financial services to their members, etc.
technical assistance for its partners, in addition to seven of whom have geographical responsibilities and training, have also got involved in supporting 6
Sources: “Fonds d’investissements internationaux, mobilisation des
investisseurs vers la microfinance”, Patrick Goodman, Appui au
support for small institutions in crisis zones, where and devote around half their time to field missions networks (see chapter III, page 22). SIDI backs the Développement Autonome, Luxembourg, November 2003. Followed by
SIDI’s only possibility is to conduct an ongoing and with partners, one institutional partnerships MAIN network, the organization of an Asian “Microfinance Investment Funds, key features”, Publication ADA/KFW,
February 2005.
thorough monitoring of their progress. coordinator, a social viability officer, and one exchange seminar in Cambodia, the participation in
person for support West Africa, who also carries out the Sanabel and the Foro Lac networks, among 7
These unique characteristics may be found in other social investment
funds as well, such as Alterfin, Oïkocrédit, Luxmint and others.
SIDI’s partners cover a wide range of profiles, e.g. missions abroad on a regular basis. The administra- others.
8
For further details, please see the SIDI presentation cassette entitled
large institutions that pursue a mission for access to tive staff comprises a person in charge of promo- “Donnons du sens à notre argent” (Let’s make sense of our money), March
financial services for a large number of customers, ting solidarity investment products, an accountant, 2005, produced by Guy Spica.
such as AL AMANA in Morocco with 140,000 custo- a management secretary and two operational assis- 1
Sources: Elizabeth Littlefield, CGAP, workshop at SIDI, April 2004. Of 9
ibid. 2.
these 7,000 microfinance organizations, fifteen cover more than half of all
mers, CERUDEB in Uganda with 52,000 borrowers tants. Volunteer consultants are recruited for their customers and the others each serve more than 1,000 customers. 10
The average length of SIDI loans disbursed in 2004 was 3.5 years.
and 400,000 depositors, BANCO SOLIDARIO in specific skills in management and accounting, 2
It is estimated that demand is equal to around 600 million, possibly as 11
According to the classification of our partners established in the activity
Ecuador, which serves more than 100,000 custo- banking, law and human resources. They share many as a billion, customers that have yet to be served, i.e. ten times grea- report of SIDI and its partners in 2003.
mers, JEMENI in Mali with 34,000 members and SIDI’s vision, reinforce the work carried out by ter than today’s coverage. 12
Excerpt from “Financing Microfinance Institutions: the context for tran-
10,000 borrowers, HATTHA KAKSEKAR and AMRET the geographical officers and provide important 3
Microfinance is the management of small sums of money used to provi- sitions to private capital”, Marc de Sousa-Shields, Cheryl Frankiewicz,
de a range of products and services. USAID, December 2004.
in Cambodia, the Crédit Rural in Guinea, and others. support to our partners.
SIDI’s partners also include smaller institutions that
act on the ground for social change and offer finan- The organization of SIDI’s staff revolves around
cial services in isolated areas, such as UGPM in missions and capitalization activities. For example,
Senegal, the Fonds Coopératif in Laos and OMIPA in in 2004, capitalization and an assessment were
Uganda; in crisis zones, such as Palestine, Lebanon, conducted on the financing of health care schemes
Haiti and the Great Lakes region in Africa; as well as and information and management systems.
producers’ organizations that provide financial ser-
vices to their members, e.g. AOPP in Mali, FAPE- Social viability
CAFES in Ecuador, CAC La Florida in Peru and FPFD
in Guinea. Unlike a bank, a microfinance institution assigns
itself a social responsibility goal for its clients and
SIDI and
SIDI support for sustainable pursues a moral commitment to achieve good social TISE
(POLOGNE) its partners
institutional development performance. The goal of social viability is to reduce
through the quality of the partners poverty, which is also a leading aim of solidarity KRK
(KOSOVO)
financing. It combines, on the one hand, access to
Table 3: SIDI’s development mission, without being a service financial services by various population groups and NAJDEH
ACAD (LIBAN)
expenses provider, features technical support, and institutional poverty reduction with, on the other hand, COD/EMH
AMSSF
AL AMANA
(PALESTINE)
(MAROC) BMS
in 2004 for follow - up in the medium- and long-term. Chapter 2 the notion of fairness so that financial services are FONHSUD
KNFP NIAKO
FONDS COOPÉRATIF CCSP
INDEPCO FENAGIE PECHE AOPP JEMENII
support deals with the various components of SIDI’s fields of evenly shared among the various strata of the popu- (HAITI) ASPRODEB - UGPM
SAPCA/EGAS
(MALI)
KOKARI
(NIGER)
(LAOS) CEP - WUSOP
(VIETNAM)
FENACOP MAIN AMRET
partners activity in 2004. lation. Social viability has been adopted by the SIDI PROFUND
(NICARAGUA) CRG
(SENEGAL) MUFEDE
(BURKINA-FASO) NETWORK
(AFRIQUE)
HATTHA KAKSEKAR
FPFD (CAMBODGE)
staff and ties in with the missions of the geographi- (COSTA-RICA) CONSOLIDAR
(COLOMBIE) (GUINEE-CONAKRY)
WAGES
TIMPAC CERUDEB - OMIPA
MICROFUND
Total in 2004 Total in 2003 cal officers, whether in the field of institutional FAPECAFES
BANCO SOLIDARIO
INTAMBWE
(RWANDA)
(TOGO) (OUGANDA)
FAEF - LIDE
AKIBA
(TANZANIE)
MAF
(PHILIPPINES)
in K€ in K€ viability, i.e. governance, business plans, etc. or insti- CSRM
(EQUATEUR) ADIKIVU - COODEFI
(RDCONGO)
EDAPROSPO - LA-CIF
Africa 581 624 tutionnal viability, i.e. innovation and adapting CONFIANZA - CAC LA FLORIDA
(PEROU)
SIPEM - TITEM
Mediterranean basin 96 84 services to the population, external relations with BANCOSOL
(BOLIVIE) (MADAGASCAR)

Eastern Europe 81 38 communities, etc. of the MFIs.

Asia 221 178 SAINDESUR TEMBEKA
(URUGUAY) (AFRIQUE DU SUD)
Latin America 124 63 A leverage effect for our partners INDES
(CHILI)
Caribbean 136 137
Transverse support 95 72 SIDI’s staff also seeks out complementary financing for
Total 1 307 1217 consolidating and increasing its partners’ operational
outreach (see chapter III).

8 ACTIVITIES OF SIDI A N D I TS PA RT N E R S I N 2004

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SIDI and its activities
Financing for our partners
Our role of solidarity investor form of loans or capital participations. SIDI gives
requires skills in financing and preference to equity participations in order to assume
technical support for our partners. a share of our partners’ risks and to make long-term
In addition, our mission to build resources available to them. Investing in the capital
long-lasting partnerships to promo- of the MFIs means immobilizing SIDI’s financial
te development missions, in asso- resources over the long haul, receiving no income for
ciation with our founders - also several years and adapting to the internal context (the
requires that we carry out capitali- vision) and the external context (see “Disinvestment
zation and reflections and locate issues at SIDI: why and under what conditions ?”,
financing in order to provide better page 15).
support to our partners.
Granting medium-term financing
This section of our activity report to our partners
deals with the work of SIDI’s tech- Jemeni in Mali, Niako in Mali,
nical staff. Using a few representa- AMRET in Cambodia and UGPM in Senegal
tive events from 2004, we will des-
cribe our financing and support It has been demonstrated that microfinance is
tasks. We will not be presenting better adapted to the needs of activities that have a
here all of our partners as the aim short cycle, such as trading, small restaurants,
is to explain, through examples, services and crafts, and that it is cautiously explo-
our activities. ring agriculture financing. Farming has its own
characteristics and limits, which explain why it is
difficult to meet demand in this sector. The difficul-
ties in mobilizing savings in the farming and rural
Consolidating the equity base sectors are an obstacle to the creation of sustai-
of the MFIs nable financing services.
New partners in 2004:
MAF - Microfinance Alliance Fund, Microfinance in Mali, as in many other countries, is a
and the Caja Rural San Martin (Peru) dynamic and innovative sector but a fragile one that
Reinforcing SIPEM (Madagascar), must innovate cautiously. JEMENI, a 35,000 member
An employee CERUDEB (Uganda) credit union, operates mainly in cities but, in response
in an office to heavy demand from organized rural groups, has
in Niako, Kayes,
Mali. S IDI makes use of shareholder resources from the
North to consolidate its partners’ finances in the
decided to offer its services to the rural areas. Thanks
to a 5-year loan granted by SIDI in 2004, JEMENI in
Bamako and NIAKO in Kayes can now grant loans to
the disadvantaged1 for building houses in Bamako
and for buying farm machinery. This 5-year loan
granted by SIDI have a significant impact on JEMENI
and NIAKO, demonstrating to the population that the
institution is solid, in good financial health and has a
promising future.
For SIDI, a massive policy for medium-term loans is
more difficult to implement because of the amounts
involved, which are often larger - the construction of
a house in Mali requires a 2,000 euros loan per
beneficiary - and the low capital turnover. To remedy
the situation, SIDI needs to find complementary
financing to meet the needs of our partners, such as
an alliance with CORDAID to complement our loan
Photo SIDI.
granted to JEMENI.
10 ACTIVITIES OF SIDI A N D I TS PA RT N E R S I N
Reinforcing financing for farmers
Financing in the rural areas has been a linchpin of
SIDI’s commitments and reflections in 2004. Several
financing packages have been granted specifically for
rural areas in Peru, Ecuador, Guinea, Kosovo, the Great
Lakes, Senegal, Mali and Morocco.
SIDI is convinced that financing for farmers, whose
access has been relatively low, must be increased.
Farmers’ organizations, grappling with an increasingly
complex, unstable and competitive sector, play a vital
role in providing services, both financial and non-
financial, to producers. They face the issue of financing
Photo SIDI.
with particular acuteness because they must fulfil the
following tasks:
- finance economic and technical initiatives that they and fertilizer buying campaign that it conducts on Truck loaded
develop for their members; behalf of its members. The Federation brings together with onions,
- improve access by farming communities to financial 280 farmers’ groups comprising 13,500 producers, Fouta Djalon,
services; organized in 18 specialized unions broken down by Guinea.
- generate resources to cover their own operating sectors. In order to increase producers’ income, the
expenses. FPFD works to improve yields of three crops: potatoes,
onions and tomatoes, mainly by supervising the supply
While UGPM and SAPCA-EGAS in Senegal, AOPP in of inputs and providing assistance on farm techniques
Mali and CAC la Florida in Peru opened the way in and marketing.
2002-2003, SIDI has managed in 2004 to strengthen
its financial commitment to two new farmers’ For each growing season, the Federation has to
organizations: the Fédération des Paysans du Fouta mobilize funds for financing the collective purchase of
Djalon (FPFD) in Guinea, and the Fédération des inputs, mainly seeds and fertilizer, that it provides to its
paysans producteurs de café (FAPECAFES) in Ecuador. members on credit, in exchange for payment in kind.
Furthermore, the debate on agricultural financing has SIDI has guaranteed a loan in local currency granted to
prompted SIDI to improve financing instruments and
guarantees in order to facilitate the opening of credit
lines with local banks.
FPFD by the local bank, BICIGUI (a subsidiary of BNP).
This guarantee was arranged quickly and helped us
take the first step in a financial relationship that may
well develop over the coming years.
Collateralising farm loans
The Fédération des Paysans du Fouta Djalon Getting to know the financial services offered
(Guinea) by the AOPP farmers’ organizations in Mali
Agricultural financing brings with it a high level of risk, The financing of farming activities by producers
both internal risk caused by price instability, weather organizations is a complex operation that requires
conditions, etc., and external risk, owing to the low a higher level of professionalism and the members’
level of the organizations’ structure, inadequate familiarity with the credit procedure, all of which is
management tools, etc. There is often a need to costly in time and energy.
securitize the risks taken on by the lender.
AOPP, a national federation of Malian producers, has
The Fédération des paysans du Fouta Djalon (Guinea) opted to set up credit services for its members for the
asked SIDI in 2004 for assistance in funding a seed production and marketing of certified seeds. Making
use of financing granted in 2003, SIDI and AOPP
1
For theses families, salary is less than 115 € monthly undertook in 2004 to analyse the situation and the
2004
11
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SIDI and its activities
impact of this financing on the members and the
organization, in order to learn lessons about the
difficulties encountered and make any necessary
adjustments (see Focus, page 15: “Financing a certified
seed-production and commercialization programme
with AOPP in Mali”).
Participating in marketing financing
FAPECAFES in Ecuador, CAC La FLORIDA in Peru,
SAPCA EGAS in Senegal, the Fair Trade mission
(South Africa and Madagascar)
The financing of the economic activities of the FOs2,
such as for marketing, requires large volumes
of resources. In Ecuador, FAPECAFES, the regional
federation of small organic coffee producers in the
South of the country, defends the interests of small
farmers, who are also its founders. The Federation,
created by 4 regional associations with the organiza-
tional support of VECO, a Belgian NGO, assigned itself
the task of setting up an independent, efficient and
competitive national and international marketing
structure for buying coffee from local producers and
exporting in sufficient volumes to secure a good posi-
tion when negotiating with wholesalers. In 2004, SIDI
granted a loan to finance FAPECAFES’ coffee season,
in conjunction with a loan from ALTERFIN, similar to
SIDI’s financial commitment to CAC la Florida in
Peru for coffee marketing. Financing from SIDI and
ALTERFIN meant that FAPECAFES was able to disbur-
se advances to producers’ associations in April and
May and pay producers at delivery of the harvest,
from June to August, without having to await sales
receipts (in September).
In Senegal, the privatization of the groundnut sector,
initiated by the state, has moved ahead. However,
SAPCA EGAS in Senegal has not yet succeeded in
overcoming its difficulties and will require a large
rescue plan.
Marketing, a vital task of the producers’ organizations,
requires large amounts of financing and, at times, a
search for outlets where farmers can sell their products
at the best price. In 2004, SIDI organized a mission
to South Africa and Madagascar with CCFD and
SOLIDARMONDE to hold talks between producers’
organizations and SOLIDARMONDE and to find com-
mon ground between SIDI and CCFD. The mission iden-
tified some potential but a number of difficulties remain
to be resolved before tangible results can be expected.
12
Developing ties between the MFIs and local banks:
CCRD/COODEFI in the Congo, FPFD in Guinea
and CERUDEB/OMIPA in Uganda
Intermediation is used to create a climate of trust bet-
ween two parties and the end result can take different
forms, such as a working relationship, the generation
of information, a security from a guarantee fund, etc.
SIDI has made headway in the use of such guarantees
in 2 new countries: Uganda, where a guarantee was
issued to facilitate a loan from CERUDEB to OMIPA
(see “A SIDI guarantee in Uganda”, page 17); and in
the Congo, with a guarantee for CCRD for refinancing
solidarity credit unions via COODEFI and in Guinea
with FPFD, as described above.
Consolidating refinancing funds
Profund (Latin America), LA-CIF (Latin America),
TEMBEKA (South Africa),
New in 2004: MAF (a fund for Southeast Asia)
Today, SIDI can draw on its experience, know-how and
relations developed in financial management and
institutional support of refinancing funds. In April
2004, it brought together in Paris the shareholders of
PROFUND3. During that event, SIDI organized an
information workshop with the participation of
like-minded people in order to share the experience of
PROFUND.
SIDI’s recognized experience in providing institutional
support to refinancing funds led it to take part in the
MAF project, a refinancing and technical assistance
fund operating in Southeast Asia. CORDAID and CRS,
the project’s founders, invited SIDI to take part in
the project’s institutionalization phase. This phase is
fundamental because it is when the future of the
initiative will be decided, i.e. whether or not a legally
independent fund, to which the MAF founders will
transfer their participation will be created.
SIDI’s participation in MAF meant it would be involved
in a new initiative, improve its knowledge of
the region, and support the financing of new MFIs in
association with other investors.
2
Farmers’ organizations
3
PROFUND is an international financing structure created in 1995 to pro-
mote the development of micro-enterprises by consolidating the sharehol-
der equity of MFIs that finance these micro-enterprises in Latin America.
See article in the quarterly review Techniques Financières et
Développement TFD published by Epargne Sans Frontière, no. 78, March
2005.
ACTIVITIES OF SIDI A N D I TS PA RT N E R S I N
Focus
The issues of Disinvestment at SIDI:
why and under what conditions?
SIDI invests in microfinance
institutions
Ever since the CCFD, along with other institu-
tions and individuals, embarked on the
creation of SIDI more than 20 years ago, they
were been conscious of the need to carry out
actions with an eye on the future. Throughout
the ensuing years, this consideration has been
at the fore of SIDI’s concerns, that is, how to
find the most appropriate and efficient way to
set up financial assistance and support for
micro-enterprises in developing countries so
as to facilitate their involvement in the econo-
mic fabric while at the same time safeguard
SIDI’s own exixtence.
Thus, in the past 10 years, SIDI altered the focus
of its interventions and decided to concentrate
on microfinance institutions (MFI), rather than
on micro-enterprises themselves. The MFIs that
act as SIDI partners range widely, from mutuals,
co-ops, NGOs, banks and financial institutions.
They provide quality community financial
services to the populations that have traditio-
nally been excluded from formal financial
circles. The MFIs also try to lift the initiatives of
these populations out of the under-develop-
ment pattern where, , they have been relegated,
owing to a lack of resources,.
One of the first organizations to recognize the
need for equity capital, to take the risks SIDI
contributed to the hard resources (shareolder
equity of MFI’s) the MFIs’ hard resources
(shareholder equity). MFIs need stable resources
over the long haul in order to consolidate their
operations and attract additional financing for
their growth.
Is SIDI disinvesting?
Participation in the capital of a MFI is a big
commitment for SIDI and has the following
characteristics :
• Risk, whether political, financial (devaluation
risks), operational or regulatory.
• Income: Unlike a loan that generates a regular
flow of cash from interest paid in accordance
with a specific timetable, shareholders in
general receive no dividends, particularly in the
first years of an MFI.
• Resources: When and how to recoup sums
invested in order to redeploy them on new
partnerships.
2004
This last issue is at the heart of SIDI’s conside- operations in 1995 and will terminate at the
rations relating to disinvestment. Of course, end of 20052. Most of the disinvestments were
SIDI’s aim is not to disinvest come what may, either pre-negotiated with local shareholders
but to ensure that its investment remains in (a reference group at a value relative to the
line with its mission and vision and that it balance sheet, with payment facilities), or sold
benefits the MFIs that most need it. to new investors, at times via MBOs3.
In its 20 years of operations has SIDI succeeded 3. An agreement and specific negotiations
in disinvesting in a satisfactory manner in SIDI tries to make sure that disinvestment
financial and social terms? takes place under the best possible conditions,
not subject to a rigid timetable. The economic
SIDI’s disinvestment experience conditions, the partner’s operational and
financial autonomy and access to resources,
The disinvestments already carried out or are SIDI’s main concerns.
underway have three different aspects :
At the end of 2004, SIDI withdrew from its
1. Differences of opinion concerning participation in BANCOSOL in Bolivia. Over
the mission arise over time. the years, SIDI’s stake had dwindled to 0.87%
In a small number of partnerships, the oldest of the MFIs shareholder equity. BANCOSOL ‘s
ones, the passage of time may lead to changes emblematic in the world of microfinance and
in the original vision. The environment changes name is well-known4. Via a joint operation
so do the people concerned - both in the involving two other shareholders, PROFUND
partnerships and at SIDI- as also the vision and and ACTIS, SIDI sold its stake in BANCOSOL.
the management of operations on the ground. It did so with the assurance that the financial
SIDI’s and the partner’s perception of the needs would be taken up and that the
mission may no longer be the same. How can institutional mission would continue, thanks
cooperation continue in this changing context ? to the quality of the new investors. The
This occurred with Rural Capital Partners (RCP) new shareholders are MIBANCO, a Peruvian
in Thailand, the SMED in Laos and SERFINDES microfinance bank, other international
in Columbia. Thanks to the good historical rela- investors, including Acción Internacional,
tionship, SIDI left these partnerships with the Bolivian individuals and members of the
agreement of the others shareholders and has management.
since continued to enjoy positive exchanges
and relations with them. INDES, in Chile, is among the oldest partners of
SIDI. This institution was set up as an LIC5, with
2. Predetermined disinvestment the mission of making capital contributions
In other cases, such as PROFUND and LACIF in to small and micro-enterprises and to offer
Latin America, disinvestment is planned and them technical support. INDES has enjoyed the
scheduled in the founding documents. In support of local shareholders, including the
the case of LACIF, a credit fund, the end of Fundación para el desarrollo6, Inversiones Norte
operations in their present form will cause Sur (INDES)7, as well as individuals. (Continued
no difficulties, as loans will be paid back on a on page 14)
scheduled date.
1
Investment is in full swing: thirteen participations in ten
PROFUND, an investment fund, consolidates countries, with a total close to US $20 million.
the shareholder equity of MFIs1 and works 2
July 2005 to June 2006 is the last accounting period.
under constraints similar to SIDI’s. However, 3
Employee buyouts
unlike SIDI, owing to the (i) size and institutio- 4
Figures at the end of February 2004: shareholder equity – US
nal maturity of the MFIs, (ii) the amounts $17,678.00; gross amount outstanding – US $89,666.00;
invested and (iii) the statutory requirements number of customers – 59,085.
imposed by the founding multilateral donors, 5
Local investment company
PROFUND has little room for manoeuvre 6
A fund of the Chilean Catholic church
to extend its duration i.e. investments and 7
A private investment fund that controls the Banco del
investors’ participations. PROFUND began Desarrollo (BDD), a Chilean commercial bank
13
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The issues of Disinvestment at SIDI:
why and under what conditions?
Five years after it was set up, INDES had spent
its equity on participations in various economic
projects. In Chile’s relatively sophisticated
regulatory environment, INDES would have
had to file for bankruptcy, unless fresh capital
were available, because it had no regular
income to pay its expenses. It was at that time
that the commitment of its Chilean promoters
demonstrated its value. They took up the
challenge to find local financing8 in order to
build an institutional dynamism for funding
the loan of enterprises (LFS – local financing
structure). INDES put together financial
products to satisfy the needs of small and
micro-enterprises for working capital (short-
term loans) and for a investment (medium-
The SIDI guarantee scheme in Uganda
I n its 2003-2005 strategic plan, SIDI set itself the
objective of developing its financial instruments.
The establishment of a guarantee scheme in
Uganda in 2004 was a part of this. You may well
ask why? The answer is that it was in response to
two requests, the first from a commercial bank
interested in collaborating with rural entrepre-
neurs and the second from a local organisation,
OMIPA, which required access to refinancing in
order to increase its loan portfolio. However, there
was another reason, namely that SIDI wanted to
develop an innovative approach and to promote
operational complementarity between local actors
in a country where innovations in the field of
microfinance flourish each and every day.
At the outset,
there were two Ugandan partners
SIDI has a privilegied, long-standing relation-
ship in Uganda with two local institutions:
CERUDEB, a national commercial bank that
specialises in microfinance, and OMIPA, an
organisation of local rural banks.
CERUDEB was originally created by the social ser-
vices of the Catholic dioceses as a local foundation,
before becoming a bank in 1994. In 2004,
CERUDEB had 22 agencies, more than 52,000 bor-
rowers and 425,000 deposit account holders. SIDI,
which has been a member of the Banks’ board
since 1997, has always been keen to maintain the
social objective of the structure, which is
divided between the desire to increase its financial
profitability and the wish to provide an innovative
range of services to its customer base.
14
and long-term loans and leasing). Vital
logistical support was provided by the Banco
Del Desarrollo (BDD), a member of the INS
group. As a result, by the year 2000, INDES
had succeeded in (i) negotiating sizeable
financial support from FOMIN9 for its
institutional development, (ii) attracting
additional financing with the assistance of
SIDI and (iii) turn a profit, a prerequisite for
attracting new investors.
In 2003, SIDI began the partial transfer of its
participation, spread over three years. The new
investors are varied. One is an investment
fund, Inversiones Norte Sur; another is a
European social investor; a group of
In 2001, SIDI decided to develop a partnership
with OMIPA, a rural microfinance organisation
located an hour away, by improved road, from
Mbarara (300 km south of the capital,
Kampala). OMIPA is a network of rural
banks and was established as the result of the
institutionalisation of a programme run by the
international organisation ACORD (of which the
CCFD is a member). In January 2002, SIDI provi-
ded a loan of US$56,000, over a two-year per-
iod, in order to increase OMIPA’s loan portfolio,
which is geared exclusively towards the rural
population. Thanks to the efforts and motivation
of its team and to the will and involvement of its
members, over the last three years OMIPA has
increased the number of member banks.
Indeed, there are now 35 member banks (there
were initially 20) and it has been able to main-
tain a constant growth of its loan portfolio.
SIDI’s aim:
To bring these two partners
closer together
In fact, it is quite clear that, given its actions
in a remote rural area, the fact that it has a
farming client base and a mutualist working
method, OMIPA is complementary to CERUDEB.
It is also true that CERUDEB has been trying for
several years to diversify its actions and portfo-
lio in rural areas. However, the disadvantaged
rural populations continue to be difficult custo-
mers to manage for a commercial bank, due to
the limited volume of business and in lack of
collateral. SIDI therefore volunteered to bring
individuals close to INDES has also
expressed interest.
For INDES closer ties with INS/BDD a means
to broaden its horizons by gaining access to
local resources and expanding its operations
in the field of micro-leasing. For SIDI, this
gradual disinvestment will enable it to
redeploy resources towards new partnerships
in the area and consolidate the vision of its
promoters.
8
From CORFO – a public social development financial institution
9
The Multilateral Investment Fund, managed by the
Interamerican Development Bank.
CERUDEB and OMIPA closer together. Indeed,
at the time OMIPA’s loan from SIDI was about
to reach its maturity and the organisation the-
refore required a new line of credit.
SIDI thus proposed that the loan requested by
OMIPA should be made available by CERUDEB,
subject to the same conditions originally agreed
upon by OMIPA and SIDI. In order to facilitate this
arrangement, SIDI secured the totality of the loan,
by depositing, in an account with CERUDEB, an
amount equivalent to the balance of the loan
made available to OMIPA by CERUDEB in
Ugandan shillings. In this way, SIDI acts as the
guarantor and has assumed a dual responsibility:
• on the one hand it is responsible for ensuring
that OMIPA has made a good choice, since
as a result of this decision it has become a
CERUDEB client. The quality of the relation-
ship that SIDI has with OMIPA, as well as the
regularity with which scheduled repayments
of interest and capital have been made, has
meant that it was possible to enter into this
arrangement in full confidence.
• on the other hand, it is serving 100% of the
CERUDEB loan, in case OMIPA fails to make
the necessary repayments.
The strengths….
and the weaknesses
Although it is too early to assess this approach,
there are nevertheless several points that
deserve to be highlighted,
ACTIVITIES OF SIDI A N D I TS PA RT N E R S I N
Focus
Focus
in terms of weaknesses:
• the lengthy negotiations that proved to be necessary
between CERUDEB and SIDI in order to set up the
transaction.
• SIDI is involved in the analysis and follow-up
of the financial situation of the institutions it sup-
ports, whereas CERUDEB limits its intervention
to the minimum, with the existence of tangibles
guarantees.
• A certain feeling of mistrust on the part of CERUDEB,
A production and marketing programme for certified seeds with AOPP in Mali
A commitment to rural financing
For several years, SIDI has been focussing its efforts
on the financing of the rural world, particularly in
Western Africa.
SIDI has been working in Mali since 2003 with the
Association of Professional Small Farmers’
Organisations (AOPP), which brings together more
than 140 local small farmers’ organisations and
has a membership of almost 800,000.This national
federation acts as a proactive lobbyist in the public
debate to defend the interests and the future of the
rural world in Mali.
Rural development requires
locally produced seed.
AOPP provides services to its members so as to
assist them in meeting the challenge of food secu-
rity and sovereignty, for the whole of the country.
Against the backdrop of State withdrawal
of support from the agricultural sector, the real
challenge today for small farmers in Mali is to have
permanent access to a stock of selected and
certified seeds. AOPP’s activities in favour of small
farmers are driven in this political context and
one of its priorities has been to set up a facility
to produce improved seed.
AOPP has decided to enhance the role played
by the producer : to this end, it is attempting to
establish a self-sufficient seed production unit that
is both viable and sustainable. Groups of small
farmers, who were selected and organised before-
hand, are multiplying and marketing the improved
seed stock produced as a result of the research
undertaken. This seed stock improves yields, or
shortens the production cycle, so as to limit
drought-related risks. The real challenge for AOPP
was to contribute to the dialogue between small
farmers and researchers, at the same time bringing
them closer together in order to ensure that the
2004
the commercial bank, regarding a local organisation • The creation of a collabora-
such as OMIPA.
… and strengths:
• And above all, the mobilisation of local
• The absence of any cost repercussions on
OMIPA with regard to the guarantee.
• CERUDEB’s acceptance of the interest rate initially
agreed upon by SIDI, which is lower than the rate
it would normally apply. CERUDEB also accepted a
longer repayment period (three years).
seed varieties produced really did respond to the
needs of small farmers and to make sure that the
small farmers are trained in the multiplication of the
improved seed stock. On the basis of tests carried
out in 2002 amongst several small farmers, AOPP
selected 40 small farmers in order to widen
its promotion of the improved seed programme,
together with SIDI’s support.
In fact, in 2003 SIDI broke new ground by joining
forces with AOPP in the latter’s efforts to control the
production and marketing of the improved, public
laboratory-certified seed stock. To this end, SIDI
provided a loan of €15,000. This loan was used to
finance the first production and marketing season
for seeds for four local products that are part of the
staple diet in Mali: millet, sorghum, maize and
groundnut.
Focus on SIDI’s role
SIDI undertook an evaluation of this programme in
2004, together with a representative of AOPP. It is
true to say that the last seed production season
did not meet all expectations in terms of yields,
certification, marketing and the achievement of a
good level of financial viability. However, the yields
had increased substantially compared to previous
years. Furthermore, small farmers had committed
themselves to the process and taken ownership of
it : in indication of strong social viability for any
programme. On the basis of recommendations
made in the evaluation report, this dynamic pro-
cess should be further reinforced over the next few
years.
SIDI’s commitment to working alongside AOPP work: the need to accompany and work alongside
highlights several aspects of SIDI’s role, vocation a partner, including the capitalisation of the pro-
and positionning:
• the diversity of SIDI’s partners
It is this variety that requires SIDI to adapt its attitu- experience, enable to replication in other places.
tive relationship between
CERUDEB and OMIPA that could
take on other forms in the future.
capital in favour of a microfinance institution
that would probably not have access to this
capital without SIDI’s guarantee. Only the
future will tell whether or not this relation-
ship will continue beyond the guarantee
provided by SIDI.
de and approach and also means that it must
have a wide variety of skills (with regard to guiding
a project and the development of suitable financial
products, etc.).
• the financing of agriculture by small farmers’
organisations themselves.
Small farmers’ organisations are particularly
vulnerable to this issue since they must resolve
the problem of financing their own development
and their own economic activities, and at
the same time they must meet the financing
requirements of their members’ farming
activities. SIDI’s role changes somewhat with the
development of financial instruments for small
farmers’ organisations, irrespective of whether
they are managed by the organisations
according to their capabilities and the possibili-
ties that exist of collaboration with the existing
local financing institutions.
• Know-how regarding the putting together of
financial instruments
Rural financing in particular cannot be descri-
bed solely as the financing of the small-scale
trade sector, which tends to be the main
objective of the majority of microfinance
institutions. The rural and agricultural sector
has many financing requirements, and this
means that you have to provide a varied and
adapted response, developed in consultation
with partners.
• the capitalisation of experience
SIDI’s work with AOPP illustrates one aspect of
solidarity-based financing and of development
cesses and experiences, during the developmental
phase of an institution or of a product. SIDI has
fully appropriated the lessons learnt from this
15
GBéxé rapport SIDI_2004 20/07/05 15:00 Page 16
A look at SIDI’s core business
A s well as the provision of financing, SIDI’s core
business is to support and to councel its partners.
Participation in the Board of Directors
of the following local financing
structures (CFSs)
Profund, Lacif, Sipem (Madagascar), Confianza
(Peru), AMRET and HATHHA KASEKAR
(Cambodia), Fonds Coopératif (Laos), KRK in
Kosovo, CERUDEB (Uganda), Al Amana (Morocco),
CRG (Guinea), KOKARI (Niger)
In 2004, SIDI was invited to sit on the Board
of a new partner, the Caja Rural San Martin (Peru).
Participation in the capital of a MSI is SIDI’s preferential
form of investment, since it is the expression of a highly
committed form of solidarity: a long-term commitment
(8 to 10 years), the absence of financial costs for the local
institution… When SIDI participates in the capital of a
MFI, it asks for a seat on the Board. In this way it under-
Coffee’s takes to attend regularly the Board of Directors’meetings
producers, (these meetings take place between 2 and 4 times a year).
Fapecafes, SIDI therefore has to deploy the necessary skills to active-
Ecuador.. ly play its role in terms of guidance, supervision and regu-
lation of the management of the organisation.
The time and the funds invested in this func-
tion are part of the investment made in the
services provided to partners.
In concrete terms, being on the Board of
Directors of a MFI means the following for the
SIDI team (desk officers, the Director or the
volunteer consultants who are frequently
called upon to perform this role since they
have experience in this area and are prepared
to make themselves available for this purpose):
Monitoring and advisory services
This monitoring function relates to both the
financial and operational performance, as
well as ensuring that the organisation
continues to respect its vision and social
mission, the social audits, the way in which
the budget is followed, the portfolio…It is
essential so as to be able to:
• be responsive to the management’s
concerns.
Photo FAPECAFES.
• anticipate risks and propose solutions.
• effectively undertake the Board of
Director’s mission of monitoring the MFI.
16
Supporting partners
Reflecting on concrete strategic proposals over the
long term
An organisation’s ability to develop and to adapt is based on
its capacity to undertake a critical appraisal, its ability to
manage problems and the extent to which it is able to anti-
cipate the future evolutions. This work generally takes the
form of prior discussions and dialogue with the Board mem-
bers, meetings with clients, participation in discussions with
the staff, participation in strategic workshops, committees…
Participating in the implementation of the business
plan
For the SIDI team, participation in the implementation of
the strategy developed may mean the search for financing
sources to foster growth, the search for other potential
investors (which was to SIPEM’s advantage in 2004, for
example), the analysis of interest rates and costs… For
example, the Finance Committee of Al Amana, of which
SIDI has been a member since 2003, is currently working
on the implementation of financial projections drawn up
by the management on the basis of job descriptions, etc.
Seeking and mobilising local shareholders
SIPEM in Madagascar, HATTHA KAKSEKAR
in Cambodia, KRK in Kosovo,TEMBEKA (South Africa)
The aim of “good governance” is to ensure that the
institution’s social mission is pursued over time. In SIDI’s
view, the creation of good governance is rooted in the
building of local capacity – both financial (local sharehol-
ders) and technical (Board members) (Cf. Focus on “SIDI’s
participation in the governance of a MFI in Kosovo”, page
20). In 2004, SIDI lent its support to the efforts made to
encourage SIPEM employees to become shareholders in
the organisation by helping to draft the statutes and by
acting as a guarantor for the process on behalf of CORDAID
who provided the resources.
Consolidating the governance of MFIS
Crédit Rural de Guinée (Guinea), KOKARI (Niger),
HATTHA KAKSEKAR (Cambodia),
TEMBEKA (South Africa)
New in 2004 : TIMPAC (Togo)
Governance may be defined as the “process used by the
Board of Directors to help an institution to accomplish its
mission and to protect the institution’s assets over the
course of time (Rock, 1998)”. The governance of MFIs can
be a decisive factor in the success or failure such institutions.
ACTIVITIES OF SIDI A N D I TS PA RT N E R S I N
Contributing to capacity building
As well as sitting on the Board of Directors, SIDI also strives to
GRET, IRAM…) helps to reinforce the solidity of the MFI.
It also allows SIDI to accompany the institution in the
course of a period in which it is growing quickly and is
reinforce the governance of the institution which means called upon to perform many tasks.
taking into account all the actors involved (employees,
management,directors,…).SIDI can organise workshops and Contributing to the monitoring
training sessions that can help to strenghten governance. of the portfolio and the methodology
TIMPAC, which is a new SIDI partner in Togo, is an excel- used to grant loans
lent illustration of this approach. In order to mobilise
TIMPAC’s human resources around the institution’s values, Monitoring the development of the portfolio
SIDI and the TIMPAC management organised a workshop Wages (Togo), Kokari (Niger), AMSSF (Morocco)
that brought together all the employees and the Board
members for the first time. The mission/vision of a MFI is Monitoring the portfolio of outstanding loans (in terms of
underpinned by a set of values that must be shared and their number, amounts, per agency/bank, quality…) and of
used to inspire the way in which everyone goes about their the savings collected represents an essential aspect of the
work on a daily basis. The positive effects of this process is solidity of a MFI. For this reason, it represents an important
cohesion and mobilisation of the team. part of the monitoring carried out by the SIDI team. In
2004, SIDI endeavoured to work on the articulation that
Participating in the creation of a genuinely com- exists between the achievement of financial viability by
mitted Board of Directors. AMSSF in Morocco and the maintenance of the quality of
services (in particular through an analysis of the reduction
From a governance point of view, Kokari, which has been a in the interest rates applied). With Kokari in Niger, on the
SIDI partner since 2000, is incorporated as a service co-ope- basis of a business plan drawn up by an external consultan-
rative. Under the terms of this statute its members and direc- cy, SIDI focused its efforts on an analysis of the financial sta-
tors are the employees.Although this statute serves to avoid bility of the institution, taking the product portfolio as
a potential conflict between a group of employees and the its starting point, so as to gradually establish a degree An AMRET
elected representatives, it is somewhat limited in that a of autonomy with regard to subsidies from external client,
Board of Directors formed in this way does not include any projects. In Togo, which is caught up in the urgency of Cambodia.
outside members. SIDI and Alterfin became members of the
co-operative in 2003 and now have a seat on the Board.
In Guinea-Conakry, the Crédit Rural de Guinée is present
across the country and has 100,000 customers. These cus-
tomers are all members of the institution because the CRG
chose to involve both its customers and its employees in the
management of the bank and in the governance of the ins-
titution. Together with IRAM and the State of Guinea, SIDI
is a director within the third college of directors, whose
members are drawn from external partners who are able to
contribute an indispensable external vision. In Niger, just like
in Guinea, SIDI is playing a role in the creation of a Board
of Directors that is a real protagonist in the life of the
institution, in other words a Board that is capable of taking
well informed decisions in order to steer the institution in
the right direction. Alongside IRAM, SIDI has set up a
system attended by all the directors (most of whom are
small farmers) in the absence of the management, so that
they are able to work together on documents to be
discussed at the Board meeting (financial accounts…).
Photo AMRET.
SIDI’s support for the governance of the MFI itself, along-
side other institutional partners (such as Alterfin, Cordaid,
2004
17
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A look at SIDI’s core business

Identifying partners, the search

for finance and mechanisms to cover risks,
analysis of social viability
efficiency and profitability often imposed by external finan- their efforts. This requires the deployment of several skills Identifying partners

cial institutions, WAGES has achieved excellent financial
results, but in order to do this they had to adjust their port-
folio and exposed themselves to higher risks. SIDI is current-
ly looking at this situation with WAGES with a view to main-
taining the initial vision of the institution and ensuring that
the development of portfolio is in conformity with it.
Creating financial products for rural communities
UGPM (Senegal), TITEM (Madagascar),
MUSO in the Great Lakes Region,
MUSO training in Mali, IMOFOR (Haiti)
Over the last few years, SIDI has done a significant
amount of work in respect to the creation and promotion
of financial products that are customised to meet the
needs of isolated areas and that provide access to finan-
cial services and the involvement of the loan beneficiaries
in the management and monitoring of the savings and
loans operations, so as to reduce the costs: the solidarity-
based mutuals known as MUSO4.
In addition to providing regular financial support to its
partners who have developed the MUSOmodel, SIDI also
completed the MUSO training guide in 2004. SIDI used
this guide to train AOPP members in Mali and to assist in
setting up solidarity - based mutuals in the landlocked
rural areas of Mali.
Furthermore, SIDI is also involved in the creation of
financial products that are tailored to meet the needs of the
rural communities: with TITEM in Madagascar it has helped
to create a product that takes the form of Village Community
grain banks.The extension of this product to other areas has
been helped by support from CCFD and the SAHA program-
MUSO training me of Intercoopération Suisse. In Senegal, where rural finan-
organised for cing is the main focus of SIDI’s work with UGPM, SIDI has
AOPP in Mali. collaborated in the production of brief studies on village
farms, to better understand the
linkages between the resources
Photo SIDI.
that touch upon different aspects of the management of
MFI. Thanks to the financial autonomy that SIDI enjoys, the
sustainable and flexible nature of our relationships, plays a
decisive role in our network of partnerships and in the rela-
tionship of mutual trust that SIDI promotes with its partners.
Providing management support :
accountancy, audit, creation of monitoring
tools, human resource management
Producing tools to monitor the portfolio:
Kokari (Niger), MUSO in the Great Lakes Region,
UGPM (Senegal), FONHSUD (Haiti),
FENACOOP (Nicaragua)
In 2004, SIDI devised a portfolio monitoring tool called
MUSO SIG, which is an Excel-based tool designed to guide
a group of 300 MUSO over a period of approximately
10 years. It also created a portfolio monitoring tool for
KOKARI and FONHSUD and worked on producing software
to analyse family farms in Senegal, now used by UGPM.
Performing audit missions and providing
accountancy support
Fonds coopératif in Laos, Kokari in Niger
In Laos, SIDI is supporting the introduction of an accoun-
tancy function that will make it possible to track loans and
monitor expenditure, on the basis of reliable data, so as to
consolidate the network of CCSPs. This is an essential
activity for several reasons: to support the transparency of
the accounts, to detect and to understand the causes of
problems related to defaulted repayments, to train the staff,
to allow for innovations to take place.
Accompanying the training of human resources
CRG (Guinea), HATTHA KASEKAR (Cambodia),
Photo SIDI.
New partners were sought in 2004 in Egypt (in
close collaboration with CCFD), in Nicaragua
(also with CCFD), in Benin and in Togo (with
Alterfin), in Burkina Faso, in the Great Lakes
region (linked to the Great Lakes strategy that
is being carried out with CCFD), in Haiti (in the
mango sector), in Moldavia, in Mali (Banque
Malienne de Solidarité).
The desk officers spend a considerable amount of
their time (approximatively 25%) identifying and
appraising new partners to respond to the partner-
ship requests received by SIDI or requests to establi-
sh alliances. This work takes place either in the new
countries SIDI is now working (pursuant to our
strategic plan or linked to an alliance), or in the The search for mechanisms to cover risks: Market
countries where SIDI is already working so as to give the financing of partners in crisis areas: scene,
concrete expression to our “multi-partnership” ACAD in the West Bank, NAJDEH in the Lebanon, HaÏti.
strategy. There is a cost element for SIDI in this the Great Lakes region, Haiti, Colombia.
identification work, which covers both small and
large initiatives, and we should bear in mind that Not only do the conflicts that these countries are faced
it does not always lead to the establishment of a with have disastrous consequences in human terms,
financial or technical partnership. but they also have an impact on the way in which the
microcredit institutions operations . The context within
The identification work initiated by SIDI in Egypt which work is carried out with the MFIs in conflict
was carried out following its participation in the zones (Lebanon, Palestine..) as well as in politically uns-
second annual meeting of SANABEL, a microfinan- table areas (Great Lakes, Haiti, Colombia), means that
ce network for Arab countries, that was held in the working methods must be adapted accordingly and
Cairo from 6 to 8 December 2004. Once it had this generally requires the creation of local, solidarity
completed an information-gathering analysis of - based financial tools (cf. Focus on “SIDI’s work in a
the country’s socio-economic situation and of its conflict zone”, page 21).
microfinance sector, SIDI became acquainted with
partners from the Egyptian civil society supported The incentive fund (FID), that was created in 2000 following
by CCFD, as well as with partners supported by joint reflection and discussions between the CCFD, SIDI and
other international development bodies (Cordaid, the religious congregations that are SIDI shareholders, is
CRS…) and was able to establish initial contacts able to cover the main risks incurred by solidarity investors,
with the institutions in Egypt. The mission it is due in relation to the economic and political conditions of the

Fonds Coopératif (Laos)

of a village family and its econo-
mic and financial plans.
With TITEM in Madagascar
UGPM in Senegal,
HATTHA KAKSEKAR in
Cambodia - for whom we have
a technical support contract
with AFD - TEMBEKA in South
Africa, KOKARI in Niger… SIDI
has committed itself to accom-
panying these institutions in
The reinforcement of the solidity of a MFI requires a clear divi-
sion of responsibilities and of powers,as well as positive incen-
tive schemes (bonuses, promotions) and deterrent schemes
(sanctions), all of which must be both adaptable and appli-
cable. Along the lines of what it has done with the CRG, SIDI
can make its skills available to support the MFIs’ in their efforts
to reinforce their human resources and remuneration policies.
4
A solidarity based mutual is a group of people who know each other and decide to
pool their resources with a view to converting the sums of money collected into loans
they then make available to the members. These mutuals have a simplified manage-
ment system based on three different coloured boxes (green, red and blue).
to undertake in 2005 will enable SIDI to carry
out a financial, economic and social diagnosis
according to the parameters established by SIDI,
for these institutions.
The search for financing and leverage
for our partners
A significant part of the work of the desk officers, with the
support of the team specialised in this area, is dedicated
to the search for sources of complementary financing for
SIDI partners (cf. Chapter III, page 23).
country in which the intervention takes place.
Analysing social viability
In 2004: UGPM (Senegal), Peru (la Florida),
Guinea (CRG)
Since 2003, with the introduction of a new function within
its team and as part of its efforts to reinforce its solidarity-
based approach, SIDI has started to analyse the social via-
bility of its partners.This work is led by a staff member spe-
cialised in this area and is carried out in co-ordination with
other members of the team (cf. Chapter III, page 24).

18 ACTIVITIES OF SIDI A N D I TS PA RT N E R S I N 2004

19
GBéxé rapport SIDI_2004 20/07/05 15:00
SIDI’s participation in the governance of a CFS in Kosovo
T he KRK (Kreditimi Rural i Kosoves), a
microfinance institution dedicated to rural
financing in Kosovo, began its work in 2004.
A partnership with ADIE
International
A short while after the end of the war in
1999, re-launching the economy of Kosovo
was a matter of utmost urgency and this was
particularly the case for the agricultural
sector which employs 60% of the active
population. The European Agency for
Reconstruction (EAR) entrusted ADIE
International with the task of setting up a
microfinance programme called the RFPK
(Rural Finance Programme for Kosovo). ADIE
International is a subsidiary of ADIE, which is
a microfinance institution that works, in
France. With the financial support of the
EAR, AFD1 and SIDA2, ADIE International
developed an original system based on a
network of credit associations that brought
together several villages and hundreds of
KRK’s customers
in Kosovo.
Photo SIDI.
20
Page 20
inhabitants. A credit committee elected
amongst the associations. KRK’s credit agent
has a seat on this committee with the power
of veto.
The committee has the task of evaluating
the moral integrity of the borrower and
his/her position within the village communi-
ty, whilst KRK’s credit agent analyses the
financial and economic aspects of the pro-
ject. This dual evaluation scheme, which
covers both social and technical aspects,
guarantees the quality of the promoters and
of the projects, since the risk portfolio
(> 30 days) is only 0.2 %. More than 50 %
of the loans are for amounts less than
€2,000 and this also serves to highlight
KRK’s vocation to provide financial products
to people who receive a modest income. By
the end of 2004, KRK had financed 26 asso-
ciations which in turn granted 3,800 loans
for a total amount of almost 4 million Euro.
2004 was also the first year of financial
autonomy, since KRK was able to generate a
net profit of €65,000.
Given the small scale of the territory covered
and the dense banking network, all payments
are made through the banking system, there-
by limiting the physical transfer of funds.
Since the very outset, the aim has been to
promote an autonomous microfinance
institution. The idea of creating a joint-stock
company has rapidly gained ground in
this context. In 2003, ADIE International
contacted SIDI so as to assess the extent to
which SIDI could participate in the institutio-
nal conversion of the RFPK programme into a
registered autonomous entity. SIDI was asked
to become a shareholder of KRK, together
with ADIE International and FIEK, the federa-
tion of credit associations.
The quality of the work carried out, the good
financial results achieved and KRK’s mission to
provide loans to the most modest households
quickly persuaded SIDI to take a €25,000 stake
in KRK’s capital, to place it on an equal footing
with the other two shareholders.
SIDI’s involvement
in the strategic definition of
the challenges faced by KRK
SIDI’s strategic objective is to accompany
KRK’s development in the medium term so
as to consolidate its equity and to enable
the development of the institution on a
good foundation to facilitate the gradual
tranfer of control to FIEK and to support
KRK in the diversification of its financial
products.
Most of SIDI’s support is designed to
ensure the regular monitoring of all activi-
ties, including back - office activities, in
close collaboration with ADIE International.
This technical support takes the form, in
particular, of participation in the strategic
guidance of KRK, ensuring that KRK
establishes contacts with other financial
institutions and supporting KRK in seeking
and negotiating new lines of refinancing.
SIDI also provides support in the field of
communications and in this area it has
helped to draw up the activity report, set
up a website and produced a CD-ROM for
promotional purposes.
1
AFD : French Development Agency
2
SIDA : Swedish International development Agency
ACTIVITIES OF SIDI A N D I TS PA RT N E R S I N
Focus
Focus
SIDI’s work in a conflict zone
In the Lebanon and on the West Bank
For many years, SIDI has recognised the involvement
of the local actors who are working in occupied
Palestine with Palestinian refugees, to enable the
families to live on the income they generate through
their work, both in urban and rural areas.
A fraught everyday life
in a conflict zone
The last four years have been very difficult in the
Palestinian territories.The intifada1 is an evidence of
anger against the occupation, the violence to which
the people have been submitted, the confiscation
of land, the denial of sovereignty and the daily
humiliations. The response to the intifada has been
the construction of an 8 metre high wall that fur-
ther isolates the Palestinian people and pushes
back their land, using security as a pretext… Not
all Palestinians have left their country, even though
the majority of them live in Jordan, in the Gulf
States, in camps in Lebanon or even further away.
On the West Bank and in the Gaza Strip, the inha-
bitants have to live on the income they generate
through the work they are able to carry out where
they live, since working as a labourer in Israel is only
to be considered a far from satisfactory stopgap.
The NGOs are working hard to keep the socio-econo-
mic fabric as active as possible.Amongst these NGOs
there are local financing structures, such as ACAD,
offering loan and credit services to small producers
and to the emerging savings and credit co-operatives.
We often hear people say “why are you involved in
microfinance in Palestine? It is impossible!” It is
certainly difficult, but organisations such as ACAD
or ASALA have shown how determined they are to
continue their activities, even in the face of the
“check points” which disrupt and delay economic
flows, despite the wall that has been built that
obliges people to go on long detours, despite the
pot-holed and worn roads which link Jerusalem
with the many plantations on the West Bank.
Although everyday life is fraught and difficult, it
nevertheless goes on, the people take initiatives
and put together requests for loans.
SIDI has entered in another difficult, but worthwhile,
commitment alongside NAJDEH in the Palestinian
refugee camps located in the south of Lebanon. SIDI
has been providing financial support and accompa-
nying services since 2000. The project, which was
launched by NAJDEH on the basis of CFSI2 funds, will
have provided services to 317 clients by the end of
February 2005 with outstanding loans of
$US60,000. The project has managed to obtain
2004
further donated capital and hopes to increase its
client base to 700 by the end of 2005 with outstan-
ding loans of $US110, 000. It also plans to extend its
that not all small businessmen are able to provide.
Both SIDI and ACAD are working on the creation of
a financial guarantee mechanism that will facilitate
services in the Beqaa valley villages in order to pro- the intervention of other forms of solidarity.
vide services to groups of refugees and to the disad-
vantaged Lebanese people in the area. • Ensuring that the services continue to be
provided over time
It almost seems superfluous to point out all the The feeling of insecurity surrounding the possible
constraints with which the refugees are faced: they resumption of combat makes it difficult to plan any-
are banned from undertaking 76 professions, they thing. If the institutions function like NGOs, then it
are not allowed to buy property, there are constraints will be impossible to guarantee the longevity of the
regarding succession procedures between services that is expected of them. This means that
Palestinians and Lebanese in the case of mixed mar- they must become institutionalised, in other words
riages, they experience difficulties in obtaining a visa they must convert themselves into a legal entity
to return to Lebanon after a trip abroad… whose statutes are coherent with the activities they
are involved in.This not only requires a change in the
Life in the camps is extremely difficult: over-popula- legal framework for the microfinance sector at the
tion, lack of basic infrastructures, deterioration in national level, but it also requires a redefinition of
the quality of education, shortage of jobs, an eco- the operational aims that have to integrate what
nomy which is vulnerable to the vagaries of the has now become a structural crisis. Credit agents
army which may decide to close access to the must do their utmost to meet with the needs of their
camps during periods of heightened tension… clients and must closely monitor them, through an
improved and organised contact scheme, so as to be
However, the major constraint is perhaps the psy- able to anticipate changes to the context.
chological impact of an exile that has been going
on now since 1948, of the confrontations with the From time to time the tension is eased as a result of
host populations in the not too distant past and the a cease-fire and then hope returns and people
hypothetical future compromise: the right to return, begin to dream of a sovereign State that may, as is
what will the outcome be? The entitlement to rights the case everywhere else, guarantee its authority
in the host country, when will that happen…? and create the supervisory bodies of the financial
institutions in general and of the microfinance sec-
Given that the political situation in Lebanon is han- tor in particular.
ging by a thread and that the Lebanese economy is
in total disarray, the refugees are left waiting and • The impact of micro-credit
are keeping as low a profile as possible so as not to In a context in which even the informal Lebanese
be taken hostage in internal conflicts or in foreign sector appears to be on its last legs and in which a
efforts at destabilisation. feeling of insecurity reigns on the West Bank,
clients are not necessarily sufficiently motivated to
The offer of loans that signals take out loans. Figures in Lebanon show that the
a commitment to solidarity project has a fairly limited scope. However, the
project does play an important role since it pro-
As well as having disastrous consequences in vides access to employment and gives people a
human terms, destroying physical and social capital, small element of dignity and hope.
these conflicts also have an impact on the way in
which microcredit institutions are able to function. Whilst waiting for further developments, these
Supplying local financing services in this context local organisations believe in the need to develop
means that the institutions have to adapt and financial services by becoming part of the Solidarity
review the ways in which they function with regard Chain for Financing with SIDI, which has decided
to important issues such as: to maintain its support, in spite of the crisis.
Indeed, it is SIDI’s original nature and profile that
• Securing credit endows it with the institutional and financial inde-
Physical guarantees are hard to achieve and in any pendence to undertake and assume this choice.
case turn out to be insufficient. Personal guarantees
must be set up, such as the endorsement by an Popular uprising involving stone throwing.
1
employee in the formal sector, which is something French Committee for International Solidarity
2
21
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SIDI’s institutional life

Mobilising the solidarity chain to exchange, innovate and capitalise

Taking part in the life
the networks
SIDI’s approach in favour of the sustainability and
diversity of MFIs means that networking is one of the
fundamental priorities of the professionalisation of
MFIs, at both a technical and institutional level.
SIDI is an active, founder member of the African network
MAIN that was created in 1995 and that is today acknow-
ledged as being an important actor on issues regarding
capacity-building within MFIs (cf. Insert n° 1 “Extract
from the MAIN evaluation carried out in 2004”). SIDI
participates in the institutional development of the net-
microfinance which is due to take place in 2005 in
Yaoundé and a South/South exchange between two
network members (TEMBEKA and SIPEM) on the subject
of the financing of housing in South Africa.
SIDI has also integrated, within its group of actors, the soli-
darity-based financing networks from other continents,
such as FORO-LAC3 in Latin America, SANABEL – a micro-
finance network of the Arab countries and the MFC,
a microfinance centre for Eastern Europe and central Asia.
In the North, SIDI is member of FINANSOL4, of Epargne
Sans Frontière, of INAISE5, a European social economy net-
work, and of the FEBEA6.
MISEREOR, CORDAID and the RAIFFEISEN Foundation
made financial contributions for the organisation of this Les participants
seminar. Thanks to the excellent relations maintained, SIDI du 5ème séminaire
was able to call the support of the Cambodian National Asie, Cambodge.
Bank, whose General Manager accepted to open the
seminar, as well as participants from the Rural
Development Bank.
Seeking leverage
for our partners
In 2004, almost €345,000 of financing was mobilised
through the alliances we have forged to accompany our

Photo SIDI.
The SIPEM work and provides support for seeking ressources, training SIDI’s support for networks was further reiterated in 2004 partners in Laos, in Africa (for the MAIN network), in Haiti,
team and programmes… Indeed, 2004 was a year of transition for by the organisation of a seminar in Asia7 that took place in in the Great Lakes region, in Madagascar, in Palestine, in
the Managing MAIN: following its 2001-2003 programme, an evaluation Phnom Penh in Cambodia from the 15 to 18 November. Uganda for the organisation of a workshop. AFD, MISE-
Director of of its activities was carried out amongst its members and This seminar brought together 65 participants from MFIs REOR, DGRV and CORDAID also made more than €30,000 Graph 3: geographical breakdown of financial resources
TEMBEKA face financial partners. in the region (Cambodia, Laos, Vietnam, India, Indonesia, available for the organisation of the fifth Asian seminar. mobilized in 2004 via alliances.
to a catering Philippines), who are partners of SIDI, CCFD and others. Mobilized amount : 1 104 757 €
Caribbean France 0%
activity financed In 2004, it also provided two training sessions for the SIDI organised this seminar in collaboration with its A further €564,000 in supplementary resources should be
1%
by TEMBEKA African professional and managerial staff involved in two local partners, AMRET and HATTHA KAKSEKAR and added to these co-financing amounts. These additional
during an microfinance (one session was for English speakers and benefited from the assistance and financial support of: resources are the result of SIDI’s lobbying of its alliances PECO 4% Africa - MAIN
exchange was held in Uganda at the UMU1, whilst the other session AFD Cambodia (through its PASMF8 programme), and the funds are granted directly to the partners. 21%
organized was for French speakers and was held in Abidjan in Mediterranean
by MAIN in partnership with CAMPC2). Other activities included a facilitate the assimilation and adaptation of microfi- basin
Insert n° 1: Extract of the MAIN evalua- 2%
South Africa. preparatory workshop for the seminar on the impact of tion (evaluation report prepared by nance practices within the reality of the African
SOFI (Belgium) and IRED (Zimbabwe) setting. This applies both to MAIN’s practices and to Asia 13%
the training it organises, particularly the sessions
“ The MAIN network is one of the largest networks provided by the UMU. Not only is this programme Africa 24%
of African MFIs. If we count the number of direct designed to continue over a long period of time, it Latin America
26 %
members then we could even say that today; MAIN is has also become a reference point in its own right
the largest network in Africa. Out of its 57 members, across the African continent, through the develop-
51 are African MFIs. ment of a programme that leads to a certification. CCFD 30,67% Table 4:
MAIN is a learning organisation and is not merely a Congregation of the Sœurs Auxiliatrices 18,02% breakdown
The specificity of MAIN in terms of membership vector for the transmission of external knowledge. Congregation of the Sœurs Ursulines de Jésus 10,03% of SIDI’s capital
• The MAIN members are diverse in nature since Its programmes are designed as a response to the Total contributed by the Pact of shareholders 58,72% at December 31,
they include MFIs, credit co-operatives, universities, needs expressed by its members. AFD 3,14% 2004
investors. This is certainly an advantage and promotes Caisse des Dépôts et Consignation 4,29%
complementarity. From a geographical point of view, The thematic specificity of MAIN Crédit Coopératif 1,00%
the members have a wide variety of origins and are It is the sheer variety of these topics and their SICAV Nord Sud Développement 1,14%
both French and English speaking. transversal nature, that is one of the main Société Coopérative Autonomie et Solidarité 0,29%
• The majority of the members are medium-sized features of the MAIN training programmes and Total contributed by the financial institutions 9,86%
organisations . Generally speaking, the MFI members seminars. Association Epargne Solidarité Développement 24,42%
rely heavily on local savings, are sensitive to the need ALTERFIN (Belgium) 1,43%
for viability and are customer- driven. MAIN has developed a substantial training program- CORDAID (Netherlands) 2,13%
me over the last three years. It organises three or four OIKOCREDIT (Netherlands) 0,09%
The specificity of MAIN from the point of view of annual events, mobilising between 100 and 200 MFI OIKOS (Denmark) 0,25%
its actions professionals. There is no doubt that this is one of the Total contributed by the European partners 3,90%
Photo SIDI.

By its very nature and the duration of its training most well - developed programmes on the African Others (associations, foundations…) 3,07%
sessions and its sectoral seminars, MAIN strives to continent”. TOTAL 100%

22 ACTIVITIES OF SIDI A N D I TS PA RT N E R S I N 2004

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SIDI’s institutional life

The main beneficiaries in 2004 were the MAIN network,
Microfund and Timpac in Togo (Alterfin granted loans to
these two institutions), the Co-operative Fund in Laos,
OMIPA in Uganda (thanks to support given by SCAC
Uganda).
Finally, more than €195,000 of financing was negotiated
for specific missions carried out by SIDI at the request of
its alliances and of its partners (missions in Benin for a
French NGO, in Eritrea and Nicaragua for CCFD, in Mali
for the Coopération Suisse, in South Africa for
Solidar’Monde, in Kosovo for ADIE, in Haiti for the KNFP,
in the Ivory Coast and in Uganda, as part of the training
sessions organised by the MAIN network, etc.).
In total, in 2004 all of these efforts at leveraging supple-
mentary funds raised more €1.1 million, 45% of which
was used in Africa (cf. Chart n° 3).
The links created by SIDI with European institutions
that share its vision of solidarity - based financing,
such as Alterfin in Belgium, Cordaid in the
Netherlands, Oikos in Denmark, MISEREOR in
Germany, continue to grow stronger. A collaboration
agreement was signed in September 2004 between
SIDI and CORDAID, so as to provide an institutional
framework for the various partnerships which are
jointly supported in the countries in which both orga-
nisations operate (Mali, Haiti, Madagascar, Senegal,
the MAF regional tool in Asia…).
today the local and international actors who provide
support to this sector are asking the MFIs to explicit-
ly state their approach to social viability and to
explain how they reconcile, at the same time, social
objectives and the aim of financial sustainability.
SIDI’s approach to capitalisation and the progress it
has made in this area has not only been welcomed,
but also embraced by partner MFIs and international
operators.
A specific position
The concept of social viability focuses attention on the
social dimension of our activities with our partners and
more particularly on sustainability of the impact and
the social changes engendered. The work undertaken
around the notion of social viability is not based on
SIDI’s needs and expectations, but rather on those of
our partners. SIDI believes that it is important that the
actors on the ground have social objectives, that they
be aware of the changes in people’s lives and what
they want to change, not as a justification to the exter-
nal partners, but so as to assess the social
relevance of their action and to be able to adjust their
strategies accordingly.
An experimental approach
in three countries
The approach to social viability may take different forms
according to the country, the partner and the context
typology of clients, at three levels: the family farm, the
co-operative (its social role) and the region (the articu-
lation between local development services provided by
the co-operative to the region and their invoicing).
• In Guinea with the Crédit Rural de Guinée. From its
very beginning, this institution has always applied
a firmly expressed social mission: interventions in iso-
lated rural areas, the provision of products to the most
marginalised rural communities, equalisation mecha-
nisms between the various rural banks so that the CRG
can contribute to those that are unprofitable… On the
basis of indicators already produced by the CRG, the
social viability approach is now being developed to
identify the relevant indicators that are the most likely
to provide an understanding of social viability.
Savers and shareholders
who express their solidarity:
the life of the Solidarity
Chain in the North
Solidarity investment
Since the last increase of capital in October 2001, the
ESD (Savings, Solidarity and Development) association
has sold more that 1,500 shares to individual
shareholders, thus promoting the enlargement of the
number of actual individual shareholders who support
The Solidarity Chain in action
In November 2004, twenty shareholders and subscribers
gained first hand experience of a series of exceptional
meetings in Senegal. Thanks to an excellent preparation
of their visit, the quality of the relations that exist
between CCFD and SIDI and their partners and the
excellent service provided by “Voyager Autrement”, the
participants were able to meet actors on the ground at
a local, regional (meeting of the USE, of the Fenagie, of
the SAPCA EGAS, of UGPM) and national level.
The visitors were impressed by the welcome they
received9 and by the receptiveness of all concerned.
Upon their return they were very keen to report on
what they had discovered by organising meetings
that serve to reinforce the support for financial
solidarity introduced by SIDI.
1
UMU: Ugandan Martyrs University
2
African Centre for the Management and Improvement of professional and
managerial staff
3
The FORO-LAC is a grouping of national networks in nine Latin American
countries
4
FINANSOL is the French umbrella organisation of solidarity-based financing
5
International Association of Investors in the Solidarity Economy
6
European Federation of Ethical and Alternative Banks A meeting with
7
http://www.sidi.fr/asie/index.html a MUSO, UGPM
8
Support Programme for the Microfinance Sector. in Senegal.
9
Issue 15 of InfoSIDI will carry a report on the richness of these meetings

within which the intervention takes place: SIDI’s activities.

Moving towards
• In Senegal with UGPM. With SIDI’s support, this
social viability partner adopted a social viability approach to assess
Solidarity-based savings

Since the SIDI workshop in October 2001, the
Solidarity Chain for Financing has been engaged in a
reflection in the “social fecundity of its investments” in
order to better understand how our investments
contribute to the well-being of the populations that
benefit from financial services.
This approach has provided us with the working
basis to introduce considerations on “social viability
and development” within our team and in our rela-
tions with our partners. The real challenge lies in lin-
king this to SIDI’s core business and that of its part-
ners, as well as the latter’s understanding of SIDI’s
core business. Whilst in the 1990s the efforts to gua-
whether the work on family farms could contribute to
reducing the negative effects of having to make ends
meet and of indebtedness to money-lenders, a
position which people often find themselves. This
work consists in the preparation of small studies
and logbooks regarding the family farms that have
received a loan.
• In Peru with CAC la Florida, an organisation of
coffee producers that is heavily involved in local
development activities. In both its mission and vision,
this organisation focuses on the integration of young
people, so as to ensure the sustainability of its
activities and to ensure appropriations by future
The regional correspondents of SIDI/CCFD, who now
total 25 in number, continue to promote the Mutual
Fund known as “Hunger and Development”,
together with the Diocesan Committees of CCFD. The
Fund’s shared product helps to finance services
and technical support provided by SIDI. A
“Correspondent’s Charter” has been drawn up and
highlights the aims (informing people about solidari-
ty financing and increasing its value), requirements
(to be trained, to share the same convictions) and the
means made available (promotional material,
videos…). At the end of 2004, the outstanding
amount of the “Hunger and Development” Mutual
Fund, managed by the Crédit Coopératif, stood at

Photo SIDI.
rantee the continuity of the MFIs were focused on generations. Their work on the issue of social viability is €49 million provided by 5,000 subscribers, with
issues regarding financial and institutional viability, being carried out along the lines of a diagnosis and a €520.000 resources shared.

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SIDI’s institutional life

SIDI’s financial statements in 2004

SIDI’s financial statements as of 31 December 2004 in thousands of euro Cross portfolio as of 31 December 2004
in thousands of euro
ASSETS 2004 2003 2002 LIABILITIES 2004 2003 2002
Capital 5 320 5 320 5 320 Equity Total Granted
Unpaid subscribed capital 22 441 Balance carried forward 0 -319 -397 Country Partner investments Loans portfolio guarantees as
Provisions for risks and exceptional charges 107 at 31/12/2004 of 31/12/2004
Net intangible assets 1 Profit/loss for the year 102 426 78 LEBANON NAJDEH 27 27
Net tangible assets 138 156 41 Total equities 5 529 5 427 5 001 MAROCCO AMSSF 100 100
Net financial assets 4 586 3 875 2 801 MAROCCO AL AMANA 220 220
Of which shares and claims 2 663 2 479 2 317 Provisions for risks and exceptional charges 160 98 127
Mediterranean basin 347 347
Of which loans 1 893 1 475 1 055
SOUTH AFRICA TEMBEKA 153 197 350
Of which other financial assets 86
CONGO COODEFI 5
MADAGASCAR SIPEM 236 236
- Provisions on shares and loans - 56 - 79 -571 Loans for activities 482 451 516
MALI AOPP 15 15
Other debt 1 102 756 805
MALI JEMENI 152 152
Total fixed assets 4 725 4 054 3 282
MALI NIAKO 46 46
F.I.D. Internal guarantee fund 2 592 2 592 2 592
NIGER KOKARI 3 19 22
C.D.C. funds 328 320 313
UGANDA CERUDEB 438 438
CCFD guarantee 358 432 507
UGANDA OMIPA 25 25 54
Claims (net value) 1 267 872 1 101
SENEGAL UGPM 137 137
Cash assets 4 558 5 150 5 477
SENEGAL SAPCA/EGAS 61 61
TOTAL 10 549 10 076 9 860 TOTAL 10 549 10 076 9 860
TOGO MICROFUND 38 38
TOGO TIMPAC 76 76
TOGO WAGES 136 136
SIDI income statement as at 31 December 2004 in thousands of euro GUINEA CRG 18 18
GUINEA FPFD 50
2004 2003 2002 TANZANIA SELFINA 45 45
Income Total 1 653 1 581 1 340 TANZANIA AKIBA 224 224
Services (CCFD and additional financing) 1 496 1 502 315 Africa 1 118 902 2 020 109
Other products and provision reversal 157 80 25 HAÏTI FONHSUD 24 24
Charges Total 1 856 1 730 1 492 HAÏTI CCG/INDEPCO 89 89
Current operating charges 648 588 548 HAÏTI COD-EMH 98 98
Wages and salaries 939 868 737 Carïbbens 210 210
Depreciation expense 64 21 16 CHILE INDES 115 115
Additional financing transferred to partners 206 254 190 COLOMBIA CONSOLIDAR 79 79
Operating profit/loss - 203 -149 - 152 COSTA-RICA PROFUND 135 135
Income Total 369 796 518 ECUADOR BANCO SOLIDARIO 165 165
Income from portfolio (loans and shares) 214 120 91 ECUADOR FAPECAFES 81 81
Income from current assets 16 44 67 URUGUAY SAINDESUR 109 109
FID resources 111 87 86 PANAMA LA-CIF 102 102
Exchange rate gains 0 1 10 PERU CAJA RURAL SAN MARTIN 100 100
Provisions reversal 27 544 264 PERU CONFIANZA 96 96
Charges Total 130 185 362 PERU EDAPROSPO 104 104
Provisions for risks on shares and loans 25 135 PERU LA FLORIDA 100 100
Interest on loans 25 18 29 Latin America 901 285 1 186
Loss on loans 13 CAMBODIA EMT 54 54
Conversion rate adjustment 5 5 51 CAMBODIA HATTHA KAKSEKAR 51 77 128
Exchange rate losses 62 140 134 LAOS FONDS COOPERATIF 150 38 188
Other charges 13 23 PHILIPPINES MAF 157 157
Financial profit/loss 238 611 156 VIETNAM CEP 30 30
Exceptional income 304 25 102 VIETNAM WUSOP 4 4
Exceptional charges 236 19 28 Asia 412 149 561
Exceptional profit/loss 68 6 73 KOSOVO KRK 25 25
Income taxes 2 41 - POLAND TISE 111 111
Net profit/loss 102 426 78 Europe 136 136
Total portfolio in €K 2 568 1 893 4 461 109
% of total 58% 42% 100%
“SOFIDEEC BAKER TILLY Agency, external auditor, member of the Paris CRCC, represented by his chairman, Mr Fouad
EL M’GHAZLI, certified without reservations financial statements of SIDI for the fiscal year ended December 31, 2004”. N.B.: the book value shown in this table includes N.B.: participation in european institutions are not
currenty differentials reported in this table

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GBéxé rapport SIDI_2004 20/07/05 15:00 Page 28
Adress book
AFRICA
MAIN
Abidjan Offices -Ivory Coast
20 B.P. 1359 - ABIDJAN 20
Addis Ababba – Ethiopia Offices
P.O. Box 278 - Addis Abbaba
E-mail : mainafrica@aol.com /
fantaw@telecom.net.et
SOUTH AFRICA - TEMBEKA
P.O. Box 13859
Mowbray 7705
CAPE TOWN – South Africa
Phone : 00 27 21 447 81 38
Fax : 00 27 21 447 81 38
E-mail : tembeka@metroweb.co.za
BURKINA FASO – MUFEDE
Immeuble Le Walkoye
Avenue de la Résistance du 17 mai
Ouagadougou
Phone : 00 226 318 827
E-mail : mufede@senatrim.bf
GUINEA – Crédit Rural de Guinée
B.P. 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
www.paysansdufouta.org
MADAGASCAR - SIPEM
Immeuble SANTA LOT V
24, rue Naka Rabemanantsoa
Antanimena
B.P. 8616
Antananarivo 101
Phone : 00 261 20 22 300 98
Fax : 00 261 20 22 355 34
Email : sipem@wanadoo.mg
28
MADAGASCAR - TITEM
Lot IVM 7 - Ambodivona
B.P. 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
B.P. 3066 – Bamako
Phone : 00 223 228 67 81
E-mail : aopp@cefib.com
MALI – JEMENI
Immeuble Gadjaba Kadjel
face place OMVS – Marché Dibida
B.P.E. 2100
Phone : 00 223 223 4755
Fax : 00 223 223 9405
E-mail : jemeni@cefib.com
MALI – Banque Malienne
de Solidarité – BMS SA
Immeuble Dette Publique
2ème Etage - BPE 1280 – Bamako
Phone : (223) 223 50 34 - 223 50 44
Fax : (223) 223 50 43
E-mail : bms-sa@bms-sa.com
MALI - NIAKO
Quartier Légal Ségou
KAYES
Phone/Fax : 00 223 252 44 05
E mail : reseauniako_kayes@yahoo.fr
NIGER – KOKARI
B.P. 11122 - Niamey
Phone /Fax : 00 227 75 25 12
E-mail : kokaris@intnet.ne
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
B.P. 1240
KABINGO - MBARARA
Phone : 00 256 48 52 26 11
E-mail : omipa_micro@yahoo.com
RD CONGO - ADI –KIVU
Actions pour le Développement
intégré au Kivu
B.P. 1554
Bukavu
RD CONGO - CODEFI
BP 78 Butembo
RD CONGO – FAEF
BP 561 Butembo
E mail : baef3@yahoo.fr
RD CONGO – LIDE/CCRD
BP 94
Butembo – Nord Kivu
Phone : 00 243 98 38 66 84
E-mail : lidelitembo@yahoo.fr
RWANDA – Coopérative
INTAMBWE
B.P. 7018
KIGALI
Phone : 00 250 510.536
Fax : 00 250 510.537
E-mail : intambwe2001@yahoo.fr
SENEGAL – UGPM
B.P. 43 - Meckhé
Phone : 00 221 955 51 13
Fax : 00 221 955 52 86
E-mail : ugpm@sentoo.sn
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
SENEGAL – SAPCA-EGAS
(ex UGIE-EGAS)
Quartier Diamagueune 1
B.P. 1120 M’Bour
Phone :00 221 957 49 57/ 639 26 24
Fax : 00 221 957 40 07
E-mail : ugiegas@sentoo.sn
ACTIVITIES OF
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
derrière la station Schell, 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
B.P. 1339 Lomé
Phone : 00 228 222 54 71
Fax : 00 228 222 78 99
E-mail : wages@cafe.tg
MEDITERRANEAN
BASIN
LEBANON
ASSOCIATION 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 – ALAMANA
28 rue Oum Errabia – Agdal
Rabat
Phone : 00 212 37 77 01 41
Fax : 00 212 37 68 67 12
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
SIDI A N D I TS PA RT N E R S I N
PALESTINIAN TERRITORIES
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
CARÏBBEAN
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 : idurandis@cod-emh.org
HAITI – FONHSUD
Rue Egalité - AQUIN
E-mail : fonhsud@hotmail.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
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
E-mail : indepco@haitiworld.com
SOUTH AMERICA
BOLIVIA – BANCOSOL
Casilla 13176
Calle Nicolás Acosta N° 289
Esq. Cañada Strongest/Plaza San
Pedro
La Paz
Phone : 00 591 2 39 28 10
Fax : 00 591 2 39 19 41
E-mail :
KKoenigsfest@bancosol.com.bo
2004
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
COSTA RICA – 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
ECUADOR – BANCO SOLIDARIO
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
NICARAGUA – FENACOOP
Phone/fax : 00 505 270 70 00
E mail : fenacoop@kurbonett.com
PERU
CAJA RURAL SAN MARTIN
Jr Martinez de Compagnon # 235
Tarapoa, San Martin
Phone : 00 51 94 52 60 11
Fax : 00 51 94 52 48 88
E mail : caja@crsanmartin.com.pe
PERU – EDAPROSPO
Octavio Bernal 598
Jesús María
Apartado Postal : 110325
Lima 11
Phone : 00 511 463 4173 / 00
511 461 6014
Fax : 00 511 463 0776
E-mail : david@edapr.org.pe
PERU – LA-CIF
Bolivar # 472 - bureau 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
PERU – LA FLORIDA
Av. Peru N° 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
PERU – Edpyme CONFIANZA
Avenida Centenario N° 356
San Carlos 6 Apartado 125
Huancayo
Phone : 00 5164 217 000
Fax : 00 5164 212 417
E-mail :
presidenciaconfianza@terra.com.pe
URUGUAY – SAINDESUR
Bulevar Artigas 1119 - SUBSUE-
LO - Montevideo
Phone/Fax : 00 598 2 402 27 80
E-mail : indesur@adinet.com.uy
ASIA
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
B.P. 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 COOPERATIF
Rue T2 B, Sibounheuang
Muang Chanthabury
VIENTIANE
Phone : 00 856 21 26 18 25
E-mail: fc.sisaliao@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
PHILIPPINES – Microfinance
Alliance Fund Administrator
Catholic relief Services – USCCB
Philippine Program
PO Box 1379, CPO Manila
CBCP Building – 470 Gen. Luna St
Intramuros 1002 Manila
Phone : 00 63 2 527 8331 to 35
Fax : 00 63 2 527 41 40
EASTERN EUROPE
POLAND - TISE
UL. Nalewki 8/27
00-158 Varsovie
Phone : 00 48 22 636 07 40
Fax : 00 48 22 636 29 02
E-mail : inwestycje@tise.com.pl
KOSOVO – KRK (Kreditimi Rural
I Kosoves LLC)
MEB Building 3rd Floor
UCK Street
Pristina - Kosovo
Phone : 00 381 38 24 35 54
29
GBéxé rapport SIDI_2004 20/07/05 15:00 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 Sœur Geneviève GUENARD

CONGREGATION DES URSULINES DE JESUS

represented by Sœur Christiane GROSSIN

CORDAID
represented by Jacob Winter

CREDIT COOPERATIF
represented by Laurence MORET

EPARGNE SOLIDARITE DEVELOPPEMENT

represented by par Henry KLIPFEL

BITSCH Gérard
Member

BOARD OF DIRECTORS

Christian SCHMITZ
Chairman of Board of Directors

Christophe COURTIN

Martine MORINCOME

EXTERNAL AUDITORS

Fouad EL M’GHAZLI

SOFIDEEC BAKER TILLY

30 ACTIVITIES OF SIDI A N D I TS PA RT N E R S I N 2004

GBéxé rapport SIDI_2004 20/07/05 15:00 Page 32

I NTERNATIONAL
S OLIDARITY
F OR 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