Our Partner:
(FE)CECAV-Avenir

FECECAV (Faitiére des Entités des
Caisses d’Epargne et de Crédit des
Associations Villageoises - Savings and Loan Center of Village Associations)

FECECAV is a Microfinance co-op based in Kpalimé, Togo, one of the country’s largest cities, and located in the south-western corner. Serving over 14,000 clients in the Maritime and Plateaux regions, FECECAV operates out of 11 branches to provide essential banking services to members of the population excluded from the formal financial sector.

Frequent electricity cuts in Kpalime and surrounding areas, lasting anywhere from 15 minutes to 24 hours, cripple FECECAV’s ability to reduce poverty through microcredit and provide obstacles to the achievement of their development goals.

SunPower Afrique’s plans to install a Photovoltaic system on the roof of FECECAV’s headquarters in Kpalime, CECAV Avenir (CECAV of The Future) as its pilot project for solar installations in Togo.

Throughout SunPower Afrique’s pilot phase, we plan to install solar electric systems on all of FECECAV’s branches and satellite offices. The offices vary in size, some are tied to the electric grid and many are rural and require battery back-up systems.

The lack of consistent electricity at the headquarters and widespread local branches of FECECAV poses serious challenges to daily operations carried out with the use of computers and essential financial and accounting software. Evidently, the inability to communicate within and outside of the microfinance sector as well as to efficiently use information technology to manage, record and calculate data are serious obstacles to productivity.

In collaboration with the CNM (National Microfinance Committee) and the members of APIM Togo (Professional Association of Microfinance Institutions of Togo) SunPower Afrique will install an 8.8kW Solar Photovoltaic System on the roof of FECECAV’s headquarters, CECAV-Avenir (Savings and Loans Center – The Future) in order to set up an operational framework for its continued progress.

Working Through the National Strategy for the Development of Microfinance (SNMF)

SunPower Afrique will contribute to the principle goals of the CNM to realize certain elements of the National Strategy for Microfinance (SNMF)that can be better accomplished with reliable access to electricity.

The CNM describes the National strategy for Microfinance in Togo as a “better understanding of the needs and goals [of MFIs] relative to the new context of finance and, in this way, to help mobilize the resources and means required to effectively achieve them.

These resources and means are, and can be better realized through the use of solar energy, which will help MFIs to fully participate in the modern context of a globalized and technologically proficient world of finance.

For example, SunPower Afrique will be connecting the CNM to the resources to accomplish the following National Development Goals:

- Generally, for the CNM to “push for the creation and development of reliable and permanent microfinance institutions with access to sustainable services.”

- With electricity to run computers and programs, MFI can “Develop quality Information Management Systems (MIS) that provide timely statistical information and reliable financial data”

- Through a general increase capacity, MFI can “respond to and engage with clients to provide the best, adaptable services”

- With improved and modern information technology, MFI can “ensure transparency in the dissemination and reporting of financial information/data; as well as efficiently mobilize savings”

- With access to electricity, the CNM, individual MFI and external investors can “take advantage of investment in technical assistance in order to strengthen institutions and their capitalization.”

In the interest of alleviating poverty, MFIs attempt to reach a widespread and often remote network of villages in order to provide credit to the working poor. Solar energy will generate a higher capacity for communication and organization, allowing MFI to elaborate “precise strategies for the best coverage of territory and the development of products adapted to the private sector in rural areas.” In the coming years, through the introduction of constant, affordable energy, MFIs will experience sustainable growth, acquiring the means to reach an even larger number of clients in formerly inaccessible areas. Encouraged by the increased access to credit, entrepreneurship will also increase in rural areas.

Working with The Professional Association of Togolese MFIs – Training & Workforce Development

The “Fixed Objectives” of APIM (from Article 5 of its Statutes) to increase capacity and development in MFI can also be seen as compatible with SunPower Afrique’s program. Specifically, APIM aims to:

To reinforce institutional capacities and structures through member sharing of optimal practices/policies and the development of common standards of performance; to centralize information and tools for use in MFI; to promote a progressive transfer of knowledge to benefit member structures through exchange, trainings and intra-MFI communication.

Solar power will enable MFI to use phone, fax and the internet to be in regular contact with each other to share information, policies, materials and other tools; this will also dramatically increase APIM’s capacity to centralize information coming in from a widespread network of MFI.

Additionally, reliable electricity will provide an opportunity experiment with new technology (software, databases, and other management information systems) in order to improve performance and develop best practices.

Importantly, APIM’s efforts to provide training programs to MFI will be enhanced. An increased access to technology can improve the capacity and effectiveness of such programs, as well as encourage more APIM members to contribute and attend.

Working with FECECAV – Achieving Development Goals

FECECAV has a detailed organizational structure built on the mentality of mutual responsibility and respect, as manifested in the General Assembly and Board, where clients are given the opportunity to serve as patrons of the organization. Each of the eleven CECAV are autonomous units, as required by law, but centralize information for concise reporting and all operate within standard policy guidelines. FECECAV prides itself on being able to provide credit for those most in need while maintaining stringent policies on repayment.

The organization offers a variety of loan and savings products to meet its members’ diverse needs in a secure environment; from agricultural and small business loans to loans specifically intended for use in covering school and medical fees. In order to receive a loan, a client must be a member of the bank (having paid the 5000CFA membership/social fee) and have had a savings account with FECECAV for at least three months. In 2007, its portfolio had an average 2.19% risk rating.

Kpalimé experiences frequent energy cuts, lasting from 15 minutes to up to 12 hours. The lack of reliable current at the FECECAV headquarters, CECAV-Avenir, poses serious challenges to daily operations carried out with the use of computers and essential financial and accounting software (specifically, PERFECT, GESCA and Quickbooks.) Evidently, the inability to use technology information systems to record client repayments, maintain general accounting, manage financial calculations and reporting, communicate with investors and partners, and centralize data are serious obstacles to productivity and transparency.

FECECAV & PERFECT

In 2006-2007 FECECAV installed PERFECT, a microfinance software created by CAGEC-FI, taking a giant step forward in its development and credibility as a financial institution. PERFECT allows FECECAV to authenticate and organize all client and financial data, modify existing records, record funding sources and other specific account activity and, importantly, systematize and run concise reports. The services provided by PERFECT represent an imperative stage in FECECAV’s growth as a microfinance organization as well as in its ability to extend its borders, within Togo and throughout the world.

Without reliable power, FECECAV struggles daily to input monetary data from the cash desk itself, figures from accountants and directors of finance and auditing, as well as client data from loan officers. There are also specific problems that can occur in the event of a power cut in regard to PERFECT, for example:

- The program cannot be properly reopened the following day if it is not shut down the night before as a result of a loss of electricity.

- Relations with investors and partners can be damaged as a result of an inability to run reports in a timely fashion.

Additionally, SunPower Afrique sees an opportunity to provide the means to realize one of the most important goals specified in FECECAV’s development plan: Improvement of Information Management Systems.

FECECAV’s strategy is defined as: “Acquire a software program [PERFECT] adapted to microfinance; acquire the equipment to perform its functions; and for all actors to master the utilization of this software program.” In September 2007, FECECAV acquired the software PERFECT Super Tontine. Since that time, FECECAV has continued to achieve their goals in regard to PERFECT, including the acquisition of technological equipment, new computers and their distribution between the eleven CECAV branches.FECECAV has also begun extensive training on the new system and to create an internal auditing system connected to PERFECT. Most importantly, they are on the way to realizing their long-term goal which is the creation of “11 centers for the treatment of data.” All of these activities will help FECECAV to better centralize and manage their products, their clients and their relationships within the CECAV branches and with investors and partners.

In all of these processes, the most serious problem is the lack of electricity. Even in offices in Lomé, Adéta and Kpalimé, where electric lines exist, the services provided are not reliable enough to support FECECAV’s aggressive information technology strategy that is so essential to their development as a financial institution.

Lastly, FECECAV has established important partnerships in recent years with the financial institutions BRS Togo, EcoBank and Western Union as well as an American NGO, Kiva. The security that these organizations offer for money transfers and the financial support provided by Kiva is invaluable to FECECAV and its clients. Solar energy will strengthen these partnerships through the ability to communicate more frequently and transfer funds and reports accurately and transparently.

With solar energy, FECECAV can use its MIS, technological programming and partnerships to their true aptitudes, accomplishing ambitious development goals in the coming years.

click on the links below to download a detailed description of the organizational goals of FECECAV, APIM and the CNM and how SunPower Afrique plans to work through them: English, French .

CNM DOSSIER, English