The Foundation's Social Business partners presentation

Social Business: the Foundation’s

portfolio

… accompanying Social Businesses …

The Foundation’s Social Business

portfolio

“ When I see a social problem, I come up with a business solution to it. I’ve

created over 50 Social Business companies without getting a dollar out of

them. In Social Businesses, making money is a means not an end, money is

recycled within the system.”

Professor Yunus

Nobel Peace Prize Laureate

Founder of the Grameen Bank

Initiator of the Idea of social business


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The food and social challenge

In Senegal, more than half of the population has no access to quality

food. Whereas more than one third of the population –almost 4

million people – live from livestock breeding, 90% of dairy products

are imported and reconstituted out of dried milk which has a low

nutritional value. In rural areas, the lack of industrial plants for

transformation does not allow any development or local dairy

production.

The social innovation of the Laiterie du Berger

The Laiterie du Berger was founded in 2005 by Bagoré Bathily, a young Senegalese entrepreneur with a veterinary

education. In the Sahelian region of Richard Toll, the Fulani herders previously had no market outlets for their dairy

products. With the Laiterie located in the heart of the collecting zone, they receive a regular income and are stimulated

to improve the quality and quantity of milk produced by the cattle herds, to organize themselves in groups and then to

enhance their economic development.

The Laiterie du Berger has bet on the development of a modern production plant with a capacity of 10,000 litres/day,

located eight hours’ drive from Dakar, which is its main market.

Thanks to a dynamic marketing approach under the DOLIMA brand, it currently accounts for 12% of the fresh dairy

products market and is the number three Senegalese company in the sector. By improving the quality of its fresh

products made out of collected milk, it has developed an innovative dairy network in western Africa and has become

a reference in the region.

The impact

2010 2011 2014 Growth

N° of herders 786 946 1426 50%

N° of people concerned 1850 2451 3693 50%

Volume collected (tons) 512 929 1908 110%

Annual income/herder (€) n.a. 314 408 30%

In addition to providing them with a regular income, the Laiterie du

Berger was involved originally in supporting farmers through animal

nutrition activities, improvements in genetics, veterinary care and

training. The Laiterie du Berger has also created one hundred of

salaried jobs, half in Richard Toll.

Goals 2014

The Laiterie prepares innovative products to meet the needs and eating habits of more customers. It aims to show a

positive net income from 2014. It will also further strengthen the services to cattle farmers to improve the productivity

of their herds and secure the supply chain.

The Laiterie du Berger (Shepherd’s Dairy) offers a business solution to bad nutrition and poverty in the Sahelian

region of north Senegal. It collects milk from nearly 1000 Fulani herders to process it into fresh dairy products.

Unique market outlet for these herders, the Laiterie du Berger promotes the local dairy and livestock production

and strengthens the economic fabric in rural areas. It also contributes to better food security in Senegal where

over 90% of dairy consumption depends on powdered milk imports.

Yero Mariem Sow, Herder

"It is milk sales that allow me to support myself.

We are nomadic herders. We have many

animals but until now they were useless

because we spent the year in transhumance in

the bush. With the Laiterie du Berger I was able

to modernize our farming operation. Before, I

had to sell my cows to support myself. Today, it

is the sale of milk that allows me to do so. I sell

15 litres per day for 3,000 CFA francs. This has

allowed me to build an enclosure and to keep

20 cows out of 70 that I have for producing

milk. They are better fed, my herd is growing."

La Laiterie du Berger … good for me, good for my country …


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The support of the Grameen Crédit Agricole Microfinance Foundation

The Foundation owns 10% of the Laiterie du Berger shares.

Besides the Bathily family and Investisseur et Partenaire pour le Développement (I&P), the

company’s other shareholders are the SICAV danone.community (fund) and Phitrust. All its

partners share the same corporate vision and social mission.

With the help of the Foundation a long-term plan for the development of dairy farming has been designed by GRET, a

French NGO. This plan forecasts structuring actions to improve the dairy potential in the collection zone. These actions

will focus on improving access to cattle food by using the regional vegetable resources, to water through hydraulic

constructions, and on training for the creation of a pilot farm, and on better access to technical, veterinary and

financial services for the farmers. It also forecasts the setting up of a “service centre”, which itself will be a social

business, to implement these actions within a framework of consultation with farmers and all local stakeholders.

The Foundation has decided to support the Laiterie du Berger for its commitment in the setting up of an inclusive and

value added dairy value chain, likely to become a reference in Western Africa, its contribution to the improvement of

everyday life for the herders, the creation of local jobs and its contribution to the food security of the Senegalese

population.

The Laiterie du Berger’s shareholders

• Bagoré Bathily is the founder and CEO of the Laiterie du Berger. Graduate of the veterinarian university of Liege

(Belgium), he worked with French, Mauritanian and Senegalese dairy producers before he founded the Laiterie du

Berger, a limited liability company.

• Danone Communities: launched in December 2007, this

fund, managed and marketed by the Crédit Agricole Group,

aims to support the development of social business

(www.danonecommunities.com/sicav)

• Investisseur et Partenaire pour le Développement (I&P)

accompanies microfinance institutions and midsize

businesses in Africa in their financial and managerial

activities (www.ip-dev.com)

• The Grameen Crédit Agricole Microfinance Foundation

(www.grameen-credit-agricole.org)

• Phitrust has been supporting businesses and associations

that have a positive impact on communities since 2005

(www.phitrustpartenaires.com)

Partners of the project • Gret : www.gret.org

• Agence Française de Développement : www.afd.fr

• Association Sud-Ouest pour le Développement

International Agricole: www.asodia.org

• Direction de la Coopération Internationale de Monaco :

www.cooperation-monaco.gouv.mc

Senegal

Surface area: 196,712 km²

Population: 12.9 million inhabitants

GDP per capita: $1,900 (2011)

GNI per capita: $1,708 (2011)

Population below poverty line: 33.5% (2009)

Population in extreme poverty: 44.4%

HDI: 0.459 (155 out of 187 countries classified in 2011)

Senegal's economy is dominated by a few strategic

sectors (peanuts, chemical industry, tourism, fishing and

services). Agriculture accounts for 13.8% of GDP, industry

20.5% and services 65.7%. Nearly two thirds of

households live in rural areas. Senegalese agriculture is

based both on cash crops (peanuts, cotton) and food

crops (millet, sorghum, maize, rice).

Livestock farming concerns over a third of the

population, mostly Fulani. The exploitation of livestock

remains heavily dominated by traditional models of

extensive herding, pastoral and agro-pastoral. The

breeding of cattle and small ruminants is an answer to

savings and to social prestige as well as to economic

exploitation.

Affected by constraints of access to water, feed,

veterinary care, and by insufficient peasant organisation,

milk production is highly seasonal and does not meet

domestic needs.

La Laiterie du Berger … good for me, good for my country …


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The Social challenge

Traditionally, solidarity efforts towards the poorest are undertaken

through NGOs and public services. These traditional means being

insufficient, some people now wish to find other innovative ways for

solidarity to be more efficient and direct.

The Social innovation of Babyloan

Babyloan offers web-users different ways to show solidarity.

The social enterprise ABC Microfinance SAS, founder of the Babyloan

website, was created in 2008 thanks to the initiative of its two

founders, Arnaud Poissonnier and Aurélie Dutoit, and a unique alliance of NGOs, banks and European retail investors

involved in the solidarity microcredit field.

A well-documented file allows the "Babyloanian" to have all the necessary information to make an informed choice.

"The average amount of funding for projects is €288 for an average period of eight months", says founder Arnaud

Poissonnier. The minimum loan by the “babyloanians” is €20 but the average is around €55.

The Babyloanian charges no interest, but gets his/her money back at maturity of the loan. He/She may then decide to

get his/her money back or to finance other projects.

Babyloan is a community platform for solidarity micro-bankers: the "Babyloanians". It also helps build a bridge

between the solidarity web-users and southern microentrepreneurs and establish a form of direct and personalised

financial solidarity.

Babyloan relies on local microfinance institutions (MFIs) to select the projects proposed to users. These MFIs are

responsible for the support to entrepreneurs in the field and are guarantors of the proper use of money lent. They are

the ones receiving the funds lent by the Babyloanians and financing the projects presented on the platform, with an

interest rate that depends on all of their refinancing and operational costs. In case beneficiaries do not repay their loan -

1,5% to 5% according to Arnaud Poissonnier – the microfinance institutions reimburse lenders. Babyloan also supports

microentrepreneurs in France through ADIE.

In 2009, at the initiative of Babyloan, the Babyfund Fixed Rate2013

was created: a solidarity fund supporting microcredit by offering direct

credit lines to microfinance institutions.

To ensure its economic sustainability, Babyloan is funded by several

revenue sources:

• Revenues from the collection of loans: a commission paid by web-

user lenders, depending on the amount lent; registration fees paid

by MFIs to Babyloan plus an annual flat fee paid by MFIs on the

basis of their total assets, and financial returns on cash flows.

• Event income-related sponsorship and consulting activity

The platform defines itself as a Social Business which will reinvest most of its income in its mission: solidarity loans,

support to MFIs and promotion of public awareness about microfinance.

Entrepreneurs: the fruits of Manh

Manh is 51. She is a farmer and cultivates fruit

trees near her house in Trung Oai, a small rural

community 25 km from Hanoi in Vietnam. She

divorced a few years ago and must work hard to

provide for her son. Manh sells fruit such as

grapefruit and green bark oranges, by the unit.

She needs this microcredit to plant more fruit

trees. Manh is supported by the MFI Seda. She

needs a loan of €320 over 12 months. Babyloan

gathered Klaudia, Aurora and the SOS group

(comprising 41 lenders) to supply the loan.

At the crossroads of the world of finance and solidarity, Babyloan provides consumers with a new way to

commit themselves by supporting microentrepreneurs in the south to help them escape poverty and

dependency. Babyloan is the first European platform of solidarity loans and it allows each web-user to become

a solidarity banker by joining the Babyloanian community.

Babyloan … microcredits, great stories …

www.babyloan.org


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The impact

Goals

Babyloan aims to expand the number of Babyloanians, to strengthen its

network of MFI partners and increase awareness. The platform intends

to break even in 2015.

The support of the Grameen Crédit Agricole Foundation

The Foundation is a shareholder of ABC

Microfinance up to 5% and has concluded

a cooperation agreement. Through the

Foundation, three Regional Banks of Crédit Agricole (Centre-Est,

Pyrénées-Gascogne and Franche Comté) have also decided to

accompany Babyloan, by becoming shareholders of ABC Microfinance.

The Foundation has chosen to support the Babyloan social enterprise

because it creates a chain of financial solidarity for the benefit of

southern microentrepreneurs to help them out of poverty. It also

mobilises northern web-users through communication and education

actions to support responsible and solidarity microfinance.

The shareholders

• ACTED (Agence d’aide à la coopération technique et au

développement) : www.acted.org

• Etimos : www.etimos.it

• Crédit Coopératif : www.credit-coopératif.coop

• Neuflize OBC : www.neuflizeobc.net

• Bred : www.bred.fr • Grameen Crédit Agricole Microfinance Foundation : www.grameen-

credit-agricole.org

• Caisses Régionales de Crédit Agricole

• Over 30 individuals

2009 2010 2011

N° of microentrepreneurs

- female

n.a. 4,388 83%

8,500 83%

N° babyloanians +5,000 8,072 14,500

Cumulative amount invested (€) 491,583 840,000 1,300,000

Average loan amount online (€) 55.95 63 70

Website n° of visits 140,000 350,000 560,000 The MFI Partners

Chamroeun (Cambodia) supports families in

poor urban areas and helps them in

managing their business through training

and professional monitoring.

Finadev S.A. (Benin) meets the needs of

microentrepreneurs in difficulty by making

financial products available.

Oxus (Tajikistan) provides financial products

to microentrepreneurs.

Seda (Vietnam) is committed to improving

the living conditions of its

microentrepreneurs and contributes to the

development of small businesses.

Cepesiu (Ecuador) contributes to the

sustainable development of local economies

by providing a comprehensive range of

services and tools to small entrepreneurs.

ICDC (Philippines) combines microfinance,

consulting, training and personal

development for the empowerment of small

entrepreneurs.

Afodenic (Nicaragua) encourages economic,

social and cultural development and

strengthens the associative process of

people without access to banks.

Wages (Togo) provides products and

financial services to microentrepreneurs,

mostly women.

Edaprospo (Peru) aims to meet the needs of

microentrepreneurs who lack access to

conventional banks.

Adie (France) funds and supports French

entrepreneurs, especially the unemployed

and social welfare recipients.

Asala (Gaza/West Bank) accompanies

Palestinian women in difficult

circumstances.

KOMIDA (Indonesia) is a savings and loan

cooperative that finances exclusively

women living in rural areas.

Babyloan … microcredits, great stories …

www.babyloan.org


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The dietary and social challenge

In Bangladesh, the malnutrition rates are among the highest in the

world: 54% of young children show stunting, 56% are underweight

and 17% are extremely skinny. These symptoms of malnutrition are

linked to deficiencies in micro nutriments such as vitamin A, iron,

iodine, and zinc. Furthermore, more than 59% of women suffer from

chronic energy deficiency and the studies show that there has been

little improvement in the last 20 years (source: FAO 2010, nutritional

profile).

The Grameen Danone Foods Ltd social innovation

GDFL was created to meet infant nutritional problems by developing an innovative industrial solution: the shokti doi

yogurt, “a yogurt that makes you strong”. Made out of local cows’ milk and date molasses, the shokti doi is naturally

rich in calcium and necessary proteins for growth and strength and is also enriched with micro nutriments that lack in

the traditional local food (vitamin A, zinc, iodine). The prices and products have been adapted to the different

consumers. The Shokti + doï is sold in the towns and villages of Bangladesh for a price of seven taka that is €0.07 for

60g. The Shokti + doï extra-protein and the Shokti + mango with mango flavour are distributed in the larger cities of the

country for a higher price.

Moreover, the entire production and distribution chain of GDFL was built around a clear aim: create as many jobs as

possible in the local community.

GDFL uses a proximity operating model (short channels):

- GDFL buys from micro farms that produce raw material (milk, sugar and date molasses) within a 50 km radius. The

local farmers use microcredits proposed by the Grameen Bank to start their businesses or increase their livestock, as

well as the expertise of Danone to improve the quality of their production.

- In the Bogra plant that has been operational since February 2007, they employ local staff rather than using

machines.

- GDFL has developed an original distribution system: the “Grameen Ladies” who are supplied by small

intermediaries, do the door-to-door selling in order to reach the rural consumers in the most remote areas and earn

a small additional income.

The impact

Children five to 12 years old are the primary beneficiaries of

the product. Early studies conducted by Johns Hopkins

University, at the request of the NGO GAIN, demonstrate that

this initiative has a very positive impact on the physical and

cognitive development of children.

2009 2010 2011

N° of employees n.a. n.a. 200

N° Grameen Ladies 650 821 980

N° farms supported n.a. 370 n.a.

Production (tons) 700 2,500 n.a.

Turnover (€) 773,745 17,196,890 n.a.

N° yogurts sold/day 35,319 86,860 n.a.

Points of sale 3,863 n.a. +10,000

Grameen Danone Foods Limited (GDFL) is a joint venture founded in Bangladesh in March 2006 by the Grameen

and Danone groups. Pioneer of social business, GDFL wants to improve children’s health with a yogurt specially

made to satisfy dietary deficiencies essentially found in children, and affordable to the lowest budgets. To

implement this project, GDFL was set up in the socio-economic fabric of the Bogra region, 250 km to the north

of Dhaka, to promote income-generating activities: GDFL buys milk from small farms and develops a rural door-

to-door sales network (the Grameen ladies).

Danone Foods Ltd. … the yogurt that makes you strong …

www.danonecommunities.com


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Goals 2012

• In order to strengthen the new distribution system, rickshaw sellers are being trained to sell together with the

Grameen Ladies;

• The cold chain is strengthened and the storage capacity of the plant doubled;

• Launching of the Shokti + pocket (40g plastic bags for five takas (same price as four years ago)). A mixture of milk and

cereals tasting like traditional local yogurt, it can last for 20 days out of the cold chain and will eventually multiply the

sales possibilities by 10;

• Construction of a new plant of a capacity of 7,000 tons, near Dhaka.

The support of the Grameen Crédit Agricole Microfinance Foundation

The Foundation is a shareholder in GDFL and is represented on its Board of Directors.

The Foundation decided to support GDFL due to its innovative action against children’s malnutrition

and its action related to the development of rural communities. GDFL accompanies and helps small

local farmers improve their production and offers them steady marketing opportunities. GDFL also

creates local jobs and promotes the development of income generating activities, especially for

women. Above all, GDFL has a fundamental positive influence on children’s health.

Shareholders

Grameen Danone Food Limited is a « limited liability company ». Its shareholders are:

• GRAMEEN (www.grameen-info.org): co-founder and shareholder for 43% through several companies;

• DANONE Asie (www.danone.com): leading world group in the food industry, Danone considers it is its mission to

give access to quality food to the greatest number.

• Danone.Communities (www.danonecommunities.com): launched in 2007, this fund (French SICAV), managed and

marketed by the Crédit Agricole Group, aims to develop social business projects proposed by Danone. It holds 29% of

the shares in Grameen Danone Foods.

• The Grameen Crédit Agricole Microfinance Foundation:

shareholder for 7% (www.grameen-credit-agricole.org)

Partners of the project

• GAIN (www.gainhealth.org): finances a study to measure

the impact on children’s health

• CARE (www.carebd.org): develops a distribution model of

multi-brand door-to-door sellers who more particularly

distribute GDFL’s products.

Danone Foods Ltd. … the yogurt that makes you strong …

www.danonecommunities.com

Bangladesh







HDI: 0.496 (146 out of 187 countries classified in 2011)

The economy of Bangladesh is dominated by a few

strategic sectors: textiles, shipbuilding, export of jute, tea

and shrimp. The main sectors contributing to GDP are

agriculture (19%), industry (29%) and services (52%).

Nearly 80% of the population depends on agriculture, rice

being the main crop. The majority lives in very precarious

conditions and suffers from food insecurity and

permanent illnesses. Most people do not have the means

of production (land, tools, etc.).

The problems of water management, soil exhaustion,

fragmentation of land ownership and the high proportion

of landless farmers are coupled with a poor road

infrastructure that impedes the marketing of agricultural

products.


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The Socio-economic challenge

In Cambodia, there are more and more microfinance operators and

competition is fierce. This competition can have not only positive

consequences on the borrowers, as for example a steady decrease in

interest rates, but also disastrous effects when some operators lend

without checking out the real needs or even worse, the repayment

abilities of the borrowers. Moreover, the low-income entrepreneurs

and the poorest are excluded from the main microfinance

institutions’ targets, being considered too risky and not profitable

enough.

The social mission of Chamroeun

In such a competitive environment, Chamroeun places its social commitment at the heart of its mission.

In 2006, the French NGO Entrepreneurs du Monde created Chamroeun. The purpose was to allow the poorest families

of Phnom Penh wishing to develop a small business, to have access to loans, savings, and health services, and to

education and social welfare. Being successful, the programme became an independent Cambodian microfinance

institution in 2009. In 2011, it was certified as an official microfinance institution by the Central Bank of Cambodia. It has

been financially independent since the end of 2010.

Chamroeun works with families who live in poor urban areas and helps them to meet unexpected expenses and to

implement a long term dynamic entrepreneurial processes. It helps them run their small business or petty trade and

develop their management skills as well as their self-confidence through education and professional follow up. Lastly, it

provides them with social support by addressing them to specialised organisations.

The financial products are adapted to the poorest: the

credit amount lent is particularly small and the wide

range of products matches the needs of a very low

income population and helps them finance their

entrepreneurial activities. Social emergency loans (to deal

with the unexpected) as well as savings or microinsurance

products are also proposed.

The non-financial services support both entrepreneurial

and social or personal development: strategy and

business management training, new skills acquisition,

referring to specialised social organisms, help for job

seeking.

Chamroeun … partner for success …

www.chamroeun.com

Sopheap, a customer

Since February 2009 Chamroeun has helped Sopheap and her

husband run their religious statues workshop:

• two loans of 1,500,000 then 2,000,000 riels (€270 and

€358) at rates that free them from moneylenders (around

180% on average)

• a savings account that they use to deposit or withdraw

sums as small as required to buy raw materials as

frequently as they need.

• adapted trainings.

The family’s production increased. It has variety, is of good

quality and is sold for competitive prices. Their net income rose

from 250,000 to 950,000 riels (€45 to €170). Their everyday life

has considerably improved and they now know that they can

calmly think of paying university fees for their 3 daughters.

Chamroeun is a Cambodian microfinance institution whose core business relies on its social commitment. It

provides financial services to the poorest; those excluded from the range of classical microfinance institutions.

In order to maximize the credit impact and efficiently support the poorest families, it also provides a whole

range of economic, social and personal coaching and education services. Chamroeun re-invests its profits in its

activities to strengthen its social mission.


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The impact

* PAR 30, (portfolio at risk at 30

days): Measurement of the total

outstanding balance of loans past

due divided by the active portfolio

Goals

Run according to the social business principles, Chamroeun will develop three main actions to use the profits created by

its activities:

• downscaling of its interest rates for all of its loans;

• promotion of products and microbusinesses with a strong social added value (environment, health, etc.) through

microfinance;

• strengthening of support mechanisms for the poor.


The Grameen Crédit Agricole Microfinance

Foundation supports Chamroeun in three

different ways: first, it granted two medium

term loans in local currency, of amounts

equivalent to €100,000 and €346,000;

second, through technical assistance; third,

the Foundation has taken a 15% participation in its

shareholding and is a member of its Board of Directors,

together with Entrepreneurs du Monde and Microfinance

Solidaire.

Technical partners

• Since 1998, Entrepreneurs du Monde has supported a social

and responsible approach to microfinance so as to ensure

the beneficiaries’ empowerment : www.entrepreneurs du

monde.org

Financial partners

The important growth of the credit fund was financed by donations from the French Development Agency (Agence

Française de Dévelopment), the Don Boule de Neige Association and the Louis D Foundation. Added to this are loans

from Babyloan, Grameen Crédit Agricole, Microfinance Solidarity, Planis, Pro Victimis, etc.

2007 2008 2009 2010 2011

N° of branches 7 9 10 10 12

N° of active borrowers

- female

1,942 82%

4,213 82%

7,151 82%

14,893 81%

27,900 81%

Portfolio (€) 87,555 302,193 559,372 1,351,000 1,810,000

Reimbursement rate 99% 98% 97% 99% 99%

PAR 30* 0.53% 0.64% 0.71% 0.20% 0.05%

Average loan (€) na na na 86 95

N° of training participants 3,182 27,211 36,474 56,221 99,909

N° of employees 32 47 63 94 162

N° of loan officers 18 25 29 46 84

Chamroeun … partner for success …

www.chamroeun.com

Cambodia






Population in extreme poverty: 22%

IDH: 0.523 (139 out of 187 countries classified in 2011)

Cambodia's economy relies mainly on agriculture,

textiles, tourism and construction. Agriculture accounts

for 31.2% of GDP, industry 21.7%, services 40.0%.

Agriculture, mainly focused on rice, rubber and cassava,

is the basis of economic activity. It employs 80% of the

workforce. However, the country is currently

experiencing, following the global crisis, a deteriorating

economic situation. Traditional sectors of the economy

are beginning to falter and new growth areas have not

yet taken over. The engines of the economy appear

insufficiently diversified and too fragile.


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The socio-economic challenge

The Androy region is located in the south of Madagascar. This is the driest

and the poorest region of the island. Over 95% of the population lives on

less than $1 per day. Economic activity is based primarily on subsistence

agriculture and is therefore very vulnerable to climatic hazards.

Agricultural production and limited economic opportunities of households

do not allow them to meet their food needs, and often a barter economy

comes into operation. This vulnerability is exacerbated by standards and

traditions of the region, leaving a limited role for women and

strengthening the impoverishment process.

The social mission

PhileoL was founded in 2008 by Stéphane Philizot, a French chemical engineer, and two Malagasy agronomists: Nary

Razakasolo and Njaka Ravelmantsoa. PhileoL breaks the vicious circle of poverty in Androy: it structures an oilseed

operation incorporating all actors in the value chain.

While preserving the place of food crops, PhileoL helps farmers produce castor and jatropha seeds particularly adapted

to arid regions. Farmers are thus assured of a steady income. They are accompanied by PhileoL and its partners to

improve the quality and quantity produced, to organise themselves into groups and thus have better control over their

economic development.

PhileoL has also taken up the challenge of developing a modern mining and oil production plant in this desolate region.

In doing so it contributes to economically strengthening the region, creating added value from local production and

revitalising the local infrastructure, including port Ehoala (Fort Dauphin).

PhileoL plays a significant role in the Malagasy oilseed area and seized the opportunity of a growing market, that of

“green” oils, used by industry to minimise its environmental impact.

The impact

Besides securing and diversifying farmers'

incomes in the region, PhileoL develops

partnerships with other development actors to

strengthen their technical and organisational

capabilities.

PhileoL will also strengthen the economic and

social development of communities by devoting a portion of its future profits to a fund for rural development (health,

female education, technical training, etc.). Finally, PhileoL has a positive impact on the environment by the cultivation of

oilseeds, whose root systems contribute to the soil’s refertilization and the fight against erosion.

2011 2012 Growth

Number of suppliers 3,000 5,000 66%

Number of farmers accompanied - 500 -

Volume of seeds collected (tons) 180 254 41%

Volume of oil sold (tons) 60 76 26%

Number of jobs created 21 36 71%

PhileoL Madagascar

PhileoL Madagascar has been established since 2008 in Androy, the driest and poorest region of Madagascar. It

has developed an inclusive oilseed operation, collecting jatropha and castor oil seeds among local farmers,

transforming these oils locally and exporting them to the region and to Europe, where they are prized by the

green industry. Thus, PhileoL secures farmers' income and promotes local agricultural production. It also

contributes to strengthening the capacities and structuring of farmers.


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Goals

By 2016, PhileoL aims to become the main actor in the Malagasy oilseed field while allowing nearly 6,000 farmers to

increase their income by five times and strengthen their role in the industry.


The Foundation owns a 15% stake in PhileoL Madagascar, alongside the three founders,

the investment company Investisseur & Partenaire pour le développement, and Sofisud.

The Grameen Crédit Agricole Foundation supports PhileoL especially in its mission of social

business by developing tools to assess its social performance, as described in the Social

Business charter of the enterprise, which is its road map. The Foundation also supports the company in the

management of its technical partnerships with other development actors.

Stakeholders

• Investisseur et Partenaire pour le Développement (I&P) accompanies microfinance institutions and midsize

businesses in Africa in their financial and managerial activities (www.ip-dev.com)

• Sofisud was founded in 2009 by Sofiproteol, the French oilseed leader. Sofisud supports projects in Africa that

promote the sustainable cultivation of oilseeds and the emergence of new local industries.

• Stéphane Philizot is the founder of the company. He is a chemical engineer and worked for 12 years with ForboSolino

(leading French manufacturer of resilient flooring). In

parallel, he started a business selling champagne, intended

especially for export.

• Nary Razakasolo is associate manager of PhileoL. He is an

agronomist and has been working in the field of agricultural

SME development and management for 15 years. He is also

associate manager of Madagascar essential oils.

• Njaka Ravelomantsoa is associate manager of PhileoL. He is

an agronomist and has been working in agribusiness and

agro-management for 15 years. He is also associate manager

of Madagascar essential oils.

Partners

Today, PhileoL is a recognized player in the economic and social

development of Androy. The Malagasy NGO EFA, which

implements the programme of technical and organisational

support to farmers (with financial support from the United

Nations Development Programme), is one of its partners.

PhileoL has also developed a partnership with the World Bank,

which financially supports the action of PhileoL in the revival of

the trading port (economic activities in the area of Ehoala and

support for farmers).

Madagascar


Population: 22.5 millions d’habitants

GDP per capita: $900 (2011)

GNI per capita: $824 (2011)



IDH: 0.480 (151 out of 187 countries classified in 2011)

The Malagasy economy is based primarily on

agriculture. This sector supports four-fifths of the

inhabitants. Rice is the main cereal and the staple.

Madagascar also has a large herd of zebu that provides

the main meat consumed in the country.

Madagascar is still in a state of great poverty. The

reasons for poverty are many. The original socialist

path chosen in 1972 is a cause of backwardness in the

economy, due to the continued deterioration of

infrastructure, administrative restraints on business

and investment development, land and legal

insecurity, etc. The sense of solidarity of the Malagasy

people is another factor. The members of the same

family faithfully support each other, sometimes at the

expense of personal initiative and entrepreneurial

spirit.

Moreover, according to the French economic mission

in Antananarivo, the labour market went through one

of its worst crises in 2010, with strong growth in

unemployment and underemployment, declining

purchasing power of households, the development of

the informal sector, inequality and insecurity.

PhileoL Madagascar


portfolio


Grameen Crédit Agricole Microfinance Foundation

5 Allée Scheffer

L-2520 Luxembourg

www.grameen-credit-agricole.org

[email protected]

Credit photos : Philippe Lissac –Danone Communities – PhileoL Madagascar

Documents

The Foundation's Social Business partners presentation