Responsible Investment Management and Advisory Services

The MicroCred Network in West Africa

The MicroCred network, which focuses on financial inclusion in emerging markets, is known for its entrepreneurial approach. Innovation and technology are at the core of the network’s client-centric approach. In Africa, the MicroCred network relies on the development of mobile telephony, which is a great opportunity to get closer to customers located in remote areas.

MicroCred Senegal (MCS) and MicroCred Cote d’ Ivoire (MC CI) are the two biggest MicroCred affiliates in Africa, with a respective GLP of (just) over EUR 100M. Both MCS and MC CI are the second largest MFI’s in their respective countries although they are actually perceived as the leaders, compelled by their innovative approach. Initially focusing on micro, both institutions offer SME loans (up to EUR 300K), while still providing microloans as low as EUR 200. Agency banking plays an important part in their strategy with regards to client outreach (also reaching clients in remote areas).

In recent years, Senegal and Cote d’ Ivoire have recorded high GDP growth numbers. In 2016, Cote d’ Ivoire was the fastest growing economy in Africa and Senegal was the 3rd. It is expected that both countries will continue growing in the high single digits, albeit Senegal at a slightly slower pace than Cote d’ Ivoire.

Driven by high growth potential in coming years for both MFI’s and the fact that both institutions were looking to increase their Tier 2 capital, Triple Jump provided a subordinated debt (in XOF) of EUR 3M to MCS and EUR 4M to MC CI. In both cases, the respective investment was a blend of Oxfam Novib Fund (ONF) and ASN-Novib Microcredit Fund (ANMF).

We believe these five year investments fit well with the mandate of the ONF and ANMF, and are driven by both the social approach to reaching people in remote areas and the innovative attitudes of these MicroCred affiliates.