The Foundation intends to make a specific contribution to the development of around the world by focusing its financial support and its technical assistance on MFIs satisfying the following criteria:
Size/Maturity of MFIs
The Foundation serves in priority the MFIs belonging to tiers 2 and 3 of the MFI classification.
The Foundation caters in priority to agricultural and rural MFIs. Rural refers to a MFI, which has over 50% of its distribution points in a rural area. Agricultural refers to a MFI, of which over 50% of the borrowers rely on farming for their livelihood.
The Foundation concentrates its financial and technical support on MFIs that have:
- a core mission of combating poverty and promoting the financial inclusion of the poorest, and mostly women, through a range of suitable and accessible financial micro-services,
- comply with a number of ethical principles, to which the Foundation adheres, notably concerning information for and protection of borrowers, level of interest rates offered, loan collection methods and the prevention of corruption.
- contribute to the protection and improvement of the environment, notably in relation to agriculture, through effective management of water and energy and sensible input management.
The Foundation will also found its financing decisions on an in-depth analysis of the quality of the lending portfolio, management of risks of all types, operational efficiency, governance and financial solidity of the MFIs.
2. SOCIAL BUSINESS
In addition, the Foundation encourages and facilitates “social business” projects, i.e. businesses whose objective is to provide to the poorest access to essential goods and services, such as food, drinking water, energy, health, education, communication and whose shareholders seek to maximise the economic and social impact of the project on the local communities, while protecting the environment, on the partnership model developed between Danone and Grameen in Bogra (Bangladesh).
It may devote up to 20% of its resources to the financing of “social business” projects.
The Foundation will be active as a matter of priority in areas where the development of microfinance is practically the sole channel of access for the poor to basic financial services and in countries in which the Foundation will have the greatest value-added, notably for the development of agriculture and the agrifood sectors.