Palestine – SIDI pursues its commitment to the economic rights of the Palestinian people

[chapeau] In the face of a major new crisis affecting Palestine, SIDI rejects all violence and recalls that the Palestinians are first and foremost a people, of all secular and religious persuasions, deprived of their rights. SIDI intends to pursue its commitment in this area in order to provide the population with access to the essential financial services they need to develop their economic activities. [/chapeau]

SIDI has been involved in Palestine since the 90s, defending the economic rights of the population through its work with local microfinance institutions ACAD and ASALA. It was the first solidarity investor.

Given the recurrence of crises and the violent effects of occupation, it became clear to SIDI that microfinance could not develop without a guarantee fund to cover these contextual risks. Current events once again confirm the relevance of the DAMAN guarantee fund, set up in 2008 by SIDI with its two partners ACAD Finance and ASALA Credit & Development.

This risk is in fact multiplied, and concerns in particular the foreseeable destruction of economic projects financed by microfinance institutions. In practical terms, DAMAN enables local microfinance institutions to continue covering the risk of lending to vulnerable populations in the West Bank and Gaza: when the beneficiary of a microcredit is unable to repay due to acts of war or the consequences of the Israeli occupation, the MFI can then call on DAMAN for compensation.

DAMAN was perpetuated in 2015 by the creation of a non-profit company recognized by the Palestinian Monetary Authority. The DAMAN fund is therefore open to financial support from other players, and today enjoys the support of the NGO Paix Juste au Proche Orient.

SIDI is pursuing its mission as a solidarity investor in Palestine and is standing by its partners as they face up to the dramatic challenges of today. It will continue to call for sincere dialogue and a just peace.

News from SIDI’s partners in the context of the health crisis

In this very special autumn, the latest issue of the SIDI Notebook takes stock of the situation of two partner organizations coping with the effects of the Covid-19 crisis.

In Central America, the restrictions imposed by the epidemic have had a major impact on the microfinance sector. The refinancing institution SICSA, which provides financial support to 37 MFIs in 6 Central American countries, found itself facing a liquidity risk. Faced with this situation, SIDI has relaxed its loan rescheduling arrangements to enable SICSA to continue to carry out its financial inclusion mission in the region.

You can also read an interview with the General Manager of the CAURIE Microfinance MFI in Senegal, who explains the measures taken from the very start of the Covid-19 epidemic, both for employees and customers.

In this issue, you’ll also discover the support projects carried out thanks to the ACTES Foundation, under the aegis of the Terre Solidaire Foundation, to help our partner organizations in the greatest difficulty to adapt their activities to new sanitary requirements.

Enjoy your reading!

 

Carnets SIDI n°12-sept 2020(HD)_Page_1

Click on the image to consult the Carnet

SIDI commits to protecting MFIs in the face of the Covid-19 crisis

[chapeau]Since the beginning of the crisis linked to the Covid-19 pandemic, SIDI has maintained an ongoing dialogue with international microfinance players. As part of this commitment, we have recently committed to a set of key principles developed collectively to help MFIs and their customers cope with the effects of the crisis.[/chapeau]

SIDI is a member of a think tank, made up of microfinance players, which met in April 2020, at the initiative of the Grameen Crédit Agricole Foundation, to discuss the situation and define a joint commitment to guide the response to the health and economic crisis. This could spell trouble for many MFIs and their customers, leaving vulnerable populations in desperate straits. The challenge was therefore to jointly find solutions to limit the effects of the crisis as much as possible, while continuing to strengthen financial inclusion for vulnerable populations. A list of key principles to be respected between investors has been drawn up to protect both MFIs and their customers, and guarantee continued access to financing under the best possible conditions.

By signing this agreement, SIDI undertakes to respect this non-exhaustive list of principles(full document here):

  • Information transparency and sharing
  • Adapting and aligning intervention principles to overcome the effects of the crisis
  • The implementation of shared and equitable solutions between lenders
  • Coordinated provision of technical assistance and resources to help MFIs deal effectively with the crisis

In the current context, it is essential to forge operational alliances between microfinance players in order to best support those MFIs that will be hardest hit by the crisis. SIDI is thus preparing to adapt and soften the profile of its relationships with its partner organizations, according to its capacities and in a coordinated manner.

Discover the press release

 

To consult the complete list of key principles for dealing with the Covid-19 crisis, click here.