Cordaid (Catholic Organization for Relief and Development Aid) is a Dutch development aid organization that endeavors to turn the tide in the battle against poverty and injustice. Cordaid is active in Africa, Asia and Latin America and focuses on the several aspects of development cooperation: conflict transformation, emergency aid and disaster risk reduction, health and well-being and entrepreneurship. The organization has an annual budget of approximately 120 million Euros (2011).
Cordaid’s activities in micro and inclusive finance are part of Cordaid Financial Services (CFS), a Cordaid investment vehicle. CFS combines the unique ability to finance its clients/partners with grants, equity and debt instruments in selected countries across three continents. Currently the CFS Fund has around € 60 million of assets under management and serves over 100 partners. In addition about € 1,5 million is spend on grants for technical assistance and capacity building.
In terms of investments, the CFS Fund balances direct and indirect or fund investments, each representing ±50% of the portfolio. The CFS Fund balances between taking a deep risk bearing role by providing equity and/or subordinated debt (47%) and a more modest risk profile by providing senior debt and guarantees (56%).
The CFS Fund predominantly invests in microfinance with a ‘social mission’. The CFS Fund focuses on (i) rural and agricultural microfinance and (ii) supporting MFIs in fragile regions. The CFS Fund also invests in financial intermediaries serving small and medium enterprises (SMEs) with the aim to increase income and create jobs, especially for smallholder producers in the value chain.
The CFS Fund’s MFI Partners are serving over 4 million clients directly. The CFS Fund’s share in this direct outreach is estimated at nearly 300.000 clients (indirectly 1.5 mln people). The CFS Fund also invests in SME Funds which reaches out to over 50.000 small producers (indirectly to 250.000 people). Collectively the CSF portfolio impacts the lives of nearly 2 million people.
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To get insight in the general funding activities of Cordaid related to inclusive finance, consult the NpM Funding Figures page.