pamiga finance s.a. annual impact report 2017 · mrs renée chao-béroff, director, managing...

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Pamiga Finance S.A. ANNUAL IMPACT REPORT 2017

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GLOSSARY

Editorial……………………………………….…………… PFSA at a glance……………………………………….. Our team………………………………………………….. ESG and impact management …………………..

Environmental, Social and Governance Management …………………………………. Social audit of the fund ……………………… Impact thesis ……………………………………… Impact monitoring system ………………….

Our impact …………..……………………….…………. Our investees ………………..…….......................

CAURIE……………………………………………..… CVECA Pays Dogon ………………............... ICS …………………………………………………….. MEA …………………………………………………… Orb Energy ………………………………………… PEBCo-BETHESDA ………………………………. RENACA. ……………………………………………. Sidian Bank ………………………………………… Vola Mahasoa .…………………………………..

Our participation in industry initiatives…….. What’s next …………………………………………….. Our investors ……………………………………….….. Contacts …………………………………….……………..

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EDITORIAL

By Renée Chao-Béroff, Managing Director of PFSA

PFSA Compartment B, oriented towards innovations, sustainable growth, depth and breadth of outreach for microfinance institutions, achieved its first closing in March 2017, thereby joining PFSA Compartment C, dedicated to access to water and renewable energy in Sub-Saharan Africa, which was launched in 2016.

Hence, 2017 was a year of deployment in the field. It was also a year of active sourcing, to expand our network as planned in PAMIGA’s Business Plan 3, diversify risks, and achieve impact with a variety of Financial Intermediaries (from self-managed village funds, to MFIs focused on empowering women entrepreneurs, to full-fledged commercial banks with a dynamic microfinance focus willing to serve rural markets). All of this was done in close coordination with technical assistance players, among which PAMIGA, our sole shareholder and founder, to accompany upstream and downstream portfolio institutions in their growth and innovation.

Our highlight of the year is PFSA investing in Kenya, in two companies: SIDIAN Bank, a very interesting commercial (microfinance) bank that

addresses three segments of clientele: microfinance, SME and Agribusiness. All three segments are especially relevant for access to solar energy, which can generate a transformational break-through.

ORB ENERGY, a solar energy provider who is a manufacturer (in Bangalore, India) and a distributor, in grid and off-grid peri-urban and rural locations (in our case in Kenya), with products ranging from solar home systems (SHS) for households, to domestic and commercial solar water heating, as well as rooftop solar energy for SMEs.

SIDIAN Bank wants to make access to solar energy its differentiation into the highly competitive market of medium-size banks in Kenya and is very eager to partner with PAMIGA and PFSA to serve its various clients. Out of the loans received, SIDIAN has affected two-thirds into financing access to solar energy for SMEs and agribusinesses across its nationwide network of 40 branches.

ORB Energy, who is already well known in Kenya for adopting a very original approach of selling SHS through partnership with 10 MFIs, is eager to explore the new and promising market of SMEs, where its manufacturing capacities are true assets compared to competitors. ORB will join SIDIAN Bank in assessing the needs of SME clients in peri-urban and rural areas, especially in agricultural value chains that involve small farmers.

Besides ORB Energy, PAMIGA is also introducing SIDIAN Bank to other energy and water solution providers, identified in a very comprehensive market scan that has been conducted in Kenya.

We are bringing these investment cases to illustrate our ecosystem approach: in our experience, this is the most promising approach to yield efficiencies, productivities and profitability at the client level and also achieve tangible and measurable impacts at scale at local, regional and national levels.

We are looking forward to replicating such ecosystem investments in other geographies where we see good potentials in pipeline companies.

PFSA has also been able to lend to impactful institutions in fragile countries: In Mali (CVECA Pays Dogon), in a region where only community-owned and

managed MFIs have had the resilience and the trust of local people to be able to continue to bring financial services to rural populations.

In Cameroon (ICS, MEA), a country that has been suffering from terrorist attacks in the Northern region and social unrest in the South-West and where, again, locally owned and managed institutions are better placed to sustain basic services to the people.

We, at PFSA, believe that this is what an Impact Investment Fund aims at and can efficiently achieve: innovating in high potential markets to unlock economic potentials of SMEs, like in Kenya with our two iconic investment of 2017, while at the same time investing in the resilience of local, well-rooted, community-owned financial institutions in fragile states to maintain basic services to rural populations.

In 2017, we also overhauled our Monitoring & Evaluation system to be able to track, assess and report on performance on a triple bottom line (financial, social, environmental) and are proud to have our REM+ reporting approved by EIB.

This is our first Impact Report in the present format. We look forward to hearing your feedback about its presentation, its content, and your suggestions on information that you would like to find in our next report. We would indeed like PFSA reporting to be a benchmark for what Impact Investment really is and what it can achieve, the difference it can make in lives of people and in sustainable growth of enterprises, while remaining an attractive investment opportunity for those who care where their money goes and what it does.

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PAMIGA FINANCE S.A. AT A GLANCE

Who we are PFSA (Pamiga Finance S.A.) is an impact investment vehicle, created in 2012 under Luxembourg law, founded, owned and controlled by PAMIGA Association (not-for-profit organization). PFSA provides adapted long-term financing to impactful financial institutions and SMEs.

The fund Fund size of 18 M€ Investing between 300 k€ and 1.8 M€ 2 active dedicated compartments (B and C) on debt financing For innovation and development in rural finance, as well as access to

renewable energy and water

Investment criteria Financial institutions and SMEs Located in Sub-Saharan Africa, in particular in coverage zone of

PAMIGA Association Looking for both financial and social performance Generating high social impact on farmers, the agribusiness sector, and

low income rural populations Engaged in inclusive finance, access to basic goods (energy, water)

and agricultural development

Combining financing with technical assistance PFSA has opted for an integrated approach to support its portfolio companies with both financing and technical assistance to help them scale up and achieve considerable impact in rural areas. For this purpose, PFSA closely works with PAMIGA Association, which provides demand-driven technical assistance to portfolio companies in various areas, such as MIS and accounting systems, digital finance and agency networks, governance, product diversification, staff capacity-building, knowledge sharing, etc.1

1 For more information on PAMIGA Association’s areas of expertise and activities, please refer to PAMIGA Annual Report.

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OUR TEAM

Board

Mr Ira Lieberman, President, Senior specialist of investment funds;

Mrs Jennifer Isern, Director, Practice Manager at IFC Asia;

Mr Massimo Longoni, Director, CEO of Electa Group;

Mr Kimanthi Mutua, Director, Founder of K-REP Group, Kenya;

Mr Bruno Tassart, Director, Head of Financing Solutions, BNP-Paribas

Mrs Renée Chao-Béroff, Director, Managing Director PFSA

Admin & Finance Officer

Olivier Chesnais

Managing Director

Renée Chao-Béroff

Former member of CGAP Executive Committee, with over 30 years of experience in economic development and inclusive finance in Africa

Impact Manager

Marion Allet

TECHNICAL ADVISORY TEAM (PAMIGA ASSOCIATION) OPERATIONAL TEAM (part time)

INVESTMENT TEAM

Investment Director

El Mansour Magah

Over 12 years of investment experience including with OikoCredit and Africinvest Capital Partners

Investment Officer

Charline Jan

Over 8 years of experience in banking and investment in microfinance and social business

Financial Management Expert

Julie Crenn

COO – TA team Governance and Risk Management Expert

René Azokly

Social Performance Expert

Snezana Jovic

Energy, Water & Rural Finance Expert

Kerman Wildberger

Digital Finance Expert

Jacinta Maiyo

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ESG AND IMPACT MANAGEMENT

Environmental, Social and Governance (ESG) management

As specified in its Environmental, Social & Labor Policy (2016), PFSA finances only companies that:

E Comply with local and national environmental and occupational health and safety regulations, EIB Environmental and Social Handbook, and PFSA exclusion list;

S Have adopted or undertook to adopt the Smart Campaign Client Protection principles;

Treat their employees in a responsible way;

G Have a qualified and professional management team, as well as experienced and competent Board members.

ESG criteria are integrated in all steps and documents of the investment process (initial screening eligibility criteria, due diligence questionnaire, credit memo template) and considered in the final investment decision.

In line with our integrated approach, portfolio companies also receive adapted technical assistance from PAMIGA to help them improve their ESG performance:

E Green Index assessment Development of green financial products for access to clean water and energy

S SPI4 assessments Social performance management action plans Integration of client protection principles Adaptation of financial education modules and Training of Trainers Development of client-centric products and services Client satisfaction surveys Staff satisfaction surveys Set-up of client complaint mechanisms Social marketing

G Governance assessment Training for employees and board members Development of tools and manual for the boards

Smart Campaign Client Protection Principles

PFSA is fully engaged in the Smart Campaign, a global campaign committed to embedding client protection practices into the institutional culture and operations of the microfinance industry. According to the Smart Campaign, the Client Protection Principles are the “minimum standards that clients should expect to receive when doing business with a microfinance institution.” The Smart Campaign promotes the following principles:

Appropriate product design and delivery Prevention of over-indebtedness Transparency Responsible pricing Fair and respectful treatment of clients Privacy of client data Mechanisms for complaint resolution

The Green Index

PFSA promotes the use of the Green Index, a practical tool to assess the environmental performance of microfinance institutions. This “green” performance is assessed along three dimensions: (1) formal environmental strategy; (2) environmental risk management – for both internal and external risks; and (3) green opportunities. The tool has been developed in a collaborative way by the Microfinance & Environment Action Group of the European Microfinance Platform, under the leadership of PAMIGA. It has been integrated as an optional module into CERISE social performance assessment tool, SPI4, and is systematically proposed by PAMIGA to partner FIs undertaking a SPI4 assessment.

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Social Audit of the fund In March-May 2017, PFSA underwent a social audit to identify strengths to build on and areas to improve in terms of the fund’s social practices. The social audit was conducted by CERISE2, using their sector-wise recognized tool: the Social Audit tool for Microfinance Investment Intermediaries (SAM).

The social audit highlighted in particular the following:

Investment objectives are well defined, with clear added value compared to MIV universe. All current investors see PFSA as a force of innovation, in the microfinance investment space and for their own organizations. PFSA allows investors to reach down scale to institutions they cannot otherwise reach, with innovative funding mechanisms. Stakeholders also agree that PFSA’s added value is the PAMIGA Association network, the history PAMIGA has with its members, the rural focus, and the integrated approach with technical assistance.

Products and services are aligned with PFSA mission and offer clear added value. Products are flexible, diverse, sector specific (RE and WASH, DFS and general lending; loans, credit lines for product innovation, loans for capex, longer term loans. – partners appreciate flexibility of terms, medium-term loans (not offered by local banks),

For PFSA, this first social audit is an engagement to keep improving its social and environmental practices in areas of improvement identified by CERISE. The present annual report is already a first step in that sense.

2 CERISE is a non-profit service provider that promotes ethical and responsible finance as a form of social and economic development. They facilitate collaborative knowledge creation on microfinance, social business and rural finance, and offer training and support to institutions to carry out social audits, analyze social data and define their social strategy.

“Their value added is a deep expertise, their network culture whereby they are open to learning from others.”

“Long-standing relationships with MFIs who received TA – that level of insight is certainly helpful, particularly if things don’t go well.”

“We are happy to have found them. In terms of impact, PAMIGA is an important project for us.”

What our investors said about us

Added value of PFSA compared to Microfinance Investment Vehicles (interviewed in Symbiotics MIV survey)

PFSA MIVs

Rural 75% 45%

Sub-Saharan Africa 100% 10%

Local currency 90% 30%

Average remaining maturities 120 months (average maturity)

21.7 months

PFSA

Compartment C MIVs

% of total assets allocated to Energy

75% 45%

% of investees in MF portfolio that offer green loans

100% 10%

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Impact thesis

PFSA PFSA provides adapted long-term financing, together with technical support (through PAMIGA Association),

to impactful financial institutions and SMEs that serve rural communities

FIs and SMEs Thanks to PFSA, FIs and SMEs are able to develop their business, increase their production, improve their outreach to rural areas,

and thereby increase their revenues, profitability and sustainability.

Contributing to the following Sustainable Development Goals (SDGs):

Rural communities As a consequence, rural populations have better access to essential products and services in the following sectors:

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Financial inclusion

With access to adapted and affordable financial services (credit, savings, micro-insurance, money transfer, financial education, etc.), including through digital finance, rural populations are expected to (i) be better able to develop their micro or small businesses; (ii) diversify their activities / sources of revenues, (iii) increase their resilience to shocks, (iv) reduce risks linked to cash-handling, (v) improve their budgeting capacities,; and thereby (vi) increase their revenues and improve their living conditions.

Contributing to the following SDGs:

Access to productive water

Access to improved irrigation solutions will (i) reduce smallholder farmers’ dependence on rainfall and seasonality, (ii) facilitate improved monitoring of crops, (iii) increase crop production and provide more reliable incomes, (iv) improve resilience to climate change, (v) enable a more efficient use of water resources and contribute to protecting the environment, (vi) allow rural farmers to farm larger areas, (vii) create better conditions for using agricultural inputs and further increase crop production and (viii) allow rural youth to spend less time watering crops and more time in school.


Access to clean energy

With better access to clean energy solutions, rural communities are expected to (i) decrease their consumption of kerosene, (ii) limit their exposure to health and sanitary risks linked to the use of kerosene, (iii) decrease CO2-equivalent emissions linked to use of kerosene, (iv) reduce their energy expenditures, (v) extend the number of hours of lighting at home, (vi) provide better conditions for children to study in the evening, and (vii) improve their feeling of security.

Access to clean energy will also provide rural communities with opportunities to increase the revenues of small enterprises (e.g. improved productivity via mechanisation, attracting clients, etc.) or develop new business activities (e.g. mobile phone charging, cold beverage selling).


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Impact monitoring system Impact management is integrated in all steps of our work, in a systematic way (deal sourcing, due diligence, investment decision, contracting, monitoring, reporting, etc.).

The impacts of the fund are tracked at two levels:

The impacts that PFSA has on client FIs and SMEs

The impacts that client FIs and SMEs have on target rural populations.

To do so, PFSA has put in place a full monitoring system allowing systematic, reliable and efficient data collection and analysis.

A number of impact metrics are systematically tracked for all investments and reported to investors on an annual basis. These impact metrics are largely based on impact reporting standards, such as IRIS or GOGLA standardized impact metrics, to facilitate comparisons and aggregations at investors’ level.

In addition to this annual portfolio-wide data, more in-depth studies are conducted on a regular basis, such as client satisfaction surveys, focus group discussions or outcome surveys (using a difference-in-difference methodology).

OUTPUTS at PFSA level

e.g. amounts invested

OUTCOMES at investees' level

e.g. no. of irrigation loans disbursed

OUTCOMES at rural communities' level

e.g. surface of irrigated land

Use of scientifically-backed formula to extrapolate community-level outcomes based on investees’ reported indicators

Ad hoc studies: Focus Group discussions, client satisfaction surveys, outcome surveys

Quarterly report by investees, on a set of standardized indicators defined and agreed during the contracting phase

PFSA monitoring system

SOURCES OF DATA

Partnership with the MIX

In order to limit the reporting burden for partner FIs, promote harmonized reporting practices in the industry, while still allowing for systematic and accurate data collection, PFSA is partnering with the MIX as a MIX Gold member.

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OUR IMPACT (as of December 2017)

How PFSA contributes addressing the Sustainable Development Goals

GOAL 1: End poverty in all its forms

GOAL 9: Build resilient infrastructure, promote sustainable industrialization and foster innovation

GOAL 8: Promote inclusive and sustainable economic growth, employment and decent work for all

5.6 M€ invested countries 6

investments 9

GOAL 5: Achieve gender equality and empower all women and girls

GOAL 10: Reduce inequality within and among countries

million people using deposit accounts, which create opportunities for investments and improved resilience

1.2

active borrowers that invest in their business development

229,000

80% of women entrepreneurs among partner FIs’ active borrowers, empowered to develop their businesses

partner financial institutions 7 partner clean energy SME +2

50% of rural entrepreneurs among partner FIs’ active borrowers, empowered to develop their businesses

supported to improve their outreach profitability and sustainability

1,270 jobs sustained

by portfolio companies

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GOAL 2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture

* Impacts calculated based on GOGLA standardized impact metrics for off-grid energy sector

GOAL 7: Ensure access to affordable, reliable, sustainable and modern energy for all

GOAL 6: Ensure access to water and sanitation for all

GOAL 13: Take urgent action to combat climate change and its impacts

FIs offering loans for access to irrigation 2

130 water pumps and irrigation systems distributed

52 hectares of land with improved irrigation systems, enhancing agricultural yield and resilience

72,600 people with improved access to energy*

16,690 solar units distributed

kWp of renewable electric capacity installed* 160

tons of CO2-equivalent emissions avoided per year thanks to the distribution of solar solutions*

4,780

FIs offering loans for access to clean energy 2

partner clean energy SME offering quality solar energy solutions 2

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OUR INVESTEES

7 Financial Institutions 2 Clean Energy SMEs

in 6 Sub-Saharan African countries

Madagascar Vola Mahasoa

Benin PEBCo-Bethesda

RENACA

Kenya Orb Energy Sidian Bank

Cameroon ICS

MEA

Senegal CAURIE

Mali CVECA Pays Dogon

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Profile Status: Caurie-MF is a savings and credits cooperative.

Mission: To contribute to sustainable economic and social development of poor micro-entrepreneurs, especially women, by offering appropriate financial products and services.

History: Caurie-MF was a project started in 1999 by Caritas and CRS, which became a company in 2005 and transformed into a cooperative in 2009.

Target clients: Rural women micro entrepreneurs organized in groups of 30 to 100 women (called “Bancs Villageois”)

Location: Thiès, Kaolack, Diourbel, Kolda, Louga, Tambacounda, Sédhiou, Ziguinchor regions

Member of PAMIGA network since: 2012

TA support received Digital finance – PAMIGA is assisting CAURIE in digitalizing all key operations managed by women groups through the use of tablets, to reduce the administrative burden and improve quality of services.

Access to clean energy – With technical support from PAMIGA, CAURIE has started to disburse its first solar loans in the regions of Thiés and Tambacounda.

Institutional strengthening – PAMIGA assisted CAURIE in streamlining the operational and financial reports used for decision making and provided guidance on asset and liability management. Staff and Board members have been trained on good governance of MFIs in Dakar.

CAURIE-MF Financial institution Senegal

Date of 1st investment: 2015 / Purpose of investment: Finance the portfolio of rural clients, in particular for access to clean energy

Outreach and performance

Outreach Dec. 2016 Dec. 2017

No. active borrowers 73,321 80,126

Gross loan portfolio (M USD) 13.9 17.1

No. active depositors 83,445 92,326

Deposits (M USD) 5.8 8.1

No. employees 150 160

Financial performance Dec. 2016 Dec. 2017

Operational Self-Sufficiency 95% 115%

Operating Expense Ratio 21% 20%

PAR 90 3.02% 2.35%

Social performance Dec. 2016 Dec. 2017

Average loan size (USD) 190 213

% female borrowers 99% 99%

% rural borrowers 55% 57%

Environmental performance Dec. 2016 Dec. 2017

No. Solar Loans disbursed (cum) 37 42

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Profile Status: CVECA association of Pays Dogon is an umbrella association gathering

self-reliant village savings and credit banks (“caisses villageoises d’épargne et de credit autogérées”, or CVECA).

Mission: To provide financial services and non-financial services suited to the rural populations of the Dogon region that are engaged in income-generating activities in order to improve their living conditions.

History: CVECA Pays Dogon project was started in 1986 by CIDR and the former National Directorate for Cooperation Action, as one of the first MFIs in Mali. Different CVECAs were originally grouped under 3 associations and supported since 1995 by a Technical Support Entity. In 2012 these associations were transformed into branches and a single association was created, which internalized the Technical Support Entity.

Target clients: Low-income rural clients

Location: Mopti region (Bandiagara, Bankass and Koro districts)


TA support received Institutional strengthening – Top managers were trained in Dakar (Senegal) by PAMIGA on good governance of MFIs and in Ouagadougou (Burkina Faso) on individual lending methodology and loan recovery systems.

CVECA Pays Dogon Financial institution Mali

Date of 1st investment: 2015 / Purpose of investment: Finance the portfolio of rural clients, in particular for access to productive water







No. employees 21 21




PAR 90 6.10% 7.27%





SPI4 score 49% _


Green Index score 12% _

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Profile Status: ICS (“Institution de Crédit Solidaire”, institution of solidarity lending) is

a level-3-licensed microfinance association.

Mission: To facilitate access to credit to vulnerable women in Cameroon.

History: ICS was started as a project in 2007 by MIFED and CIDR and received its license to operate as a level-3 MFI in 2010. In order for the MFI to be financially sustainable and to raise debt from commercial banks, the promotors of the project decided to transform ICS into a level-2 MFI (which can collect savings) and an incorporated company (ICS S.A.). The institutionalization of ICS started in 2012. Unfortunately, the security problems (Boko Haram) in Northern Cameroon started at the same period. For that reason, it was decided in 2015 that ICS should open new branches in South-West Cameroon while becoming an incorporated company.

Target clients: Well-organized groups of women engaged in economic activities in urban and peri-urban markets (mostly informal market)

Location: 3 founding branches in Extreme North, North, and Adamawa regions; opening new branches in South-West regions

TA support received Institutional strengthening – PAMIGA is strongly involved in the transformation process of ICS and supports ICS on business plan development, governance organization and equity raising.

ICS Financial institution Cameroon

Date of 1st investment: 2017 / Purpose of investment: Support the development of new branches in the South-West region of Cameroon


Outreach Dec. 2017

No. active borrowers 6,797

Gross loan portfolio (M USD) 1.2

No. active depositors 6,797

Deposits (M USD) 0.5

No. employees 46

Financial performance Dec. 2017

Operational Self-Sufficiency 100%

Operating Expense Ratio 24%

PAR 90 1.82%

Social performance Dec. 2017

Average loan size (USD) 173

% female borrowers 100%

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Profile Status: Private Limited Company.

Mission: To improve access to solar energy for remote rural populations in Cameroon.

History: MEA is an early-stage Cameroonian social business. Officially created in January 2018, it is actually the result of over 5 years of experimentation within the “Access to Energy through Microfinance” program implemented by PAMIGA and its Cameroonian partner MIFED since 2013. MEA specifically targets isolated rural populations, providing them with (a) quality solar solutions; (b) last mile customer services, via its network of Energy Entrepreneurs in charge of awareness-raising, delivery, installation, customer education and after sales; and (c) access to financial solutions, through its partnerships with rural microfinance institutions offering solar loans.

Target clients: Off-grid rural households and MSMEs

Location: Central, Littoral, South, South-West, North and Far-North regions

TA support received In partnership with Enclude (under EIB-funded program), PAMIGA has been providing extensive technical support for the set-up of MEA:

Business Plan development and financial projections

Marketing and sales techniques: strategy, tools and trainings

Last mile distribution: strategy, tools

Governance: participation to steering committees

Mifed Energy Access S.A (MEA) Clean Energy SME Cameroon

Date of 1st investment: 2016 / Purpose of investment: Finance the expansion of the last mile agent network and growth of the SME


Outreach Dec. 2017

No. solar kits distributed (cum.) 6,169

No. Energy Entrepreneurs 39


Annual turnover (EUR) 85,600

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Profile Status: Private Limited Company

Mission: To make solar energy affordable, available and hassle-free to customers looking for a better energy alternative.

History: Orb Energy is a company registered in Singapore, which initially developed its activities of design, manufacture, installation and servicing of solar energy systems for electricity and hot water in India, through an extended network of 170 branches. In 2014, Orb launched its subsidiary in Kenya. Since then, Orb Energy Kenya has been able to forge promising partnerships with 7 local financial institutions and has started developing its network of branches.

Target clients: Both residential and commercial customers

Location: Nairobi, Eldoret, Nakuru, Kisumu, Thika, Nanyuki, Kitengela, Bungoma, Malindi, Utawala, Machakos, Rongai, Naivasha, Ngara Parklands

TA support received Partnership with MFIs – PAMIGA assisted Orb Kenya in defining MoUs, procedures and marketing strategy with Sidian Bank, and assisted the latter in designing adapted financial products for solar.

Last mile distribution channels – PAMIGA conducted a brief study on last mile distribution channels in Kenya and provided some recommendations on adapted strategies to Orb.

Orb Energy Kenya Clean Energy SME Kenya

Date of 1st investment: 2017 / Purpose of investment: Finance the expansion of the branch network and the growth of the SME


Outreach Dec. 2017

No. solar solutions distributed (cum.) 9,920

No. employees 48

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Profile Status: P.E.B.Co-BETHESDA (Promotion de l’Epargne/Crédit à Base

Communautaire) is a savings and credit association.

Mission: To improve the living conditions of poor people by offering quality financial and non-financial solidarity services.

History: PEBCo-BETHESDA was a project started in 1996 by DCAM-BETHESDA NGO to finance the first credit granted to women groups in Sainte Rita. In 2013, PEBCo-BETHESDA was separated from the NGO and became a regulated savings and credits association.

Target clients: Poor populations with income-generating activities: young, women, groups and associations, and some SMEs

Location: All regions of Benin


TA support received Access to clean energy – PAMIGA assisted the FI in designing a dedicated loan product, setting a partnership with a selected solar solution provider, and building internal capacities on renewable energy issues. PEBCo-BETHESDA is planning to launch the new solar loan product in early 2018.

Access to irrigation – PAMIGA assisted the institution in organizing an initial training on irrigation and vegetable production for key managers and designing a dedicated loan product. PEBCo-BETHESDA plans to launch the irrigation loan product in early 2018.

PEBCo-BETHESDA Financial institution Benin

Date of 1st investment: 2017 / Purpose of investment: Finance the portfolio of rural clients, in particular for access to clean energy and water


Outreach Dec. 2017





No. employees 226




PAR 90 3.76%




% rural borrowers 32%

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Profile Status: The RENACA (Réseau National des Caisses Villageoises d’Epargne et de

Crédit Autogérées du Bénin) is a network of savings and credit cooperatives.

Mission: To significantly strengthen the economic base of rural, suburban and urban vulnerable populations engaged in an economic activity of self-employment by providing them with sustainable savings and credit services.

History: RENACA started as a project in 1994 by CBDIBA NGO, and received its legal authorization to work as a network in 2007.

Target clients: Rural small entrepreneurs

Location: Atlantique, Borgou, Collines, Couffo, Mono and Zou regions


TA support received Digital finance – PAMIGA is assisting RENACA in deploying mobile banking and tablets for data collection.

Access to clean energy and irrigation – With support from PAMIGA, RENACA launched its solar Loan product in 26 branches and successfully implemented a pilot for irrigation loans during the first semester of 2017.

Institutional strengthening – Support was provided to the recently appointed Risk Manager. RENACA was trained by PAMIGA on governance, individual lending methodology, loan recovery systems, and risks related to digital finance.

Social performance management – RENACA was trained by PAMIGA on client satisfaction survey methodology, client complaint mechanisms, Probability of Poverty Index (PPI), and financial education for clients.

RENACA Financial institution Benin

Date of 1st investment: 2015 / Purpose of investment: Finance the portfolio of rural clients, in particular for access to clean energy and water







No. employees 146 180




PAR 90 3.57% 3.34%





SPI4 score 69% _


No. Solar Loans disbursed (cum) 0 169

No Irrigation Loans disbursed (cum) 0 97

Green Index score 6% _

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Profile Status: Sidian Bank is a regulated commercial bank in Kenya.

Mission: To empower entrepreneurs to create wealth through provision of transformational financial solutions.

History: The bank was incorporated from the NGO K-Rep Group, founded in 1984, which started to make loans to micro-enterprises. In 1999, K-Rep Group re-organized itself and created K-Rep Bank. The bank changed its name from K-Rep Bank to Sidian Bank in April 2016.

Target clients: Urban and rural poor and small-to-medium businesses

Location: 40 branches over Kenya


TA support received Access to clean energy – PAMIGA is assisting Sidian Bank in developing adapted financial products for access to clean energy for the following segments: (a) pico solutions and solar home systems for microfinance clients (households), in partnership with Orb Energy; (b) solar water pumping solutions for smallholder farmers, in partnership with SunCulture; (c) renewable energy solutions for SMEs, in partnership with Orb Energy.

SIDIAN BANK Financial institution Kenya

Date of 1st investment: 2017 / Purpose of investment: Finance the portfolio of microfinance and SME clients, in particular for access to clean energy


Outreach Dec. 2017





No. employees 437




PAR 90 20.60%


Average loan size (USD) 9,135



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Profile Status: Vola Mahasoa SA is a microfinance limited company.

Mission: To contribute to poverty reduction and reduction of social inequality through sustainable and accessible solidarity microfinance.

History: Vola Mahasoa was a project developed by CIDR in the 1990s, transformed into a limited company in 2007. Pamiga now holds the historical shares held by CIDR (40%), along with the second shareholder, APEM, the Union of Private Enterprises in Madagascar (60%).

Target clients: Peri-urban and rural poor populations

Location: Tulear, Fianarantsoa, Maevatanana, Tamatave


TA support received Digital finance – PAMIGA is assisting the institution in deploying the use of tablets for data collection and mobile banking solutions.

Social Performance Management – PAMIGA assisted the FI to conduct a customer satisfaction survey and staff satisfaction survey, as well as to organize a refresher training on financial education.

Institutional strengthening – PAMIGA assisted the FI in risk management, change management, and streamlining the operational and financial reports used for decision making.

VOLA MAHASOA Financial institution Madagascar

Date of 1st investment: 2016 / Purpose of investment: Finance the development of the portfolio of rural clients


Outreach Dec. 2017





No. employees 109




PAR 90 3.98%





SPI4 score (2014) 63%

Environmental performance 2014

Green Index score (2014) 8%

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OUR PARTICIPATION IN INDUSTRY INITIATIVES

Participation to conferences Participation to networks and working groups

European Microfinance Week, Luxembourg, Nov. 2017

SuperReturn Africa, South Africa, Nov. 2017

African Microfinance Week, Ethiopia, Oct. 2017

Annual AVCA Conference, Côte d’Ivoire, April 2017

CERISE – “Social Business” Working Group

European Microfinance Platform – “Investors” Action Group

Social Performance Task Force (SPTF) – “Investors” Working Group

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WHAT’S NEXT

Expanding PFSA Compartment B

Compartment B of PFSA aims to provide financing to impactful financial institutions and SMEs for innovation and rural development. As of the December 31st, 2017, over 75% of PFSA B resources have already been invested. The remaining will be called and invested by Q2 2018. There has been no default so far. Considering the success of this first tranche of investment, PFSA intends to expand its current portfolio for Compartment B up to Euros 15 million by 2020. PFSA has already engaged active discussions with potential investors, with a first closing aimed in FY 2018.

15 M€

Investors potentially interested to engage with us in this exciting journey are welcome to

contact us for more details

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OUR INVESTORS

CONTACTS PFSA Paris office: 7, rue Taylor, 75010 Paris, France

Tel: +33 (0)1 1 42 01 91 38

Email: [email protected]

Website: www.pamiga.org

mailto:[email protected]

http://www.pamiga.org/

pamiga finance s.a. annual impact report 2017 · mrs renée chao-béroff, director, managing...

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