ENTREPRENEURS CREDIT PROGRAM

This project is an initiative of SCIAC SARL; targeting poor people, especially young people and women who intend to undertake a profitable activity but lack the start-up capital or the funds necessary to strengthen their activities.

Indeed, small and medium-sized enterprises are a driving force for development. Unfortunately, the majority of young entrepreneurs lack consistent means to start or strengthen their economic activities. This project is an answer to the question that the majority of young entrepreneurs often ask themselves when they want to go into the business world.

This innovation is in line with institutions which consider small and medium-sized enterprises to be a pillar of socio-economic development. If small and medium-sized businesses cannot find the funding they need for their projects, brilliant ideas can be abandoned along the way; which represents a loss of potential economic growth.

This program promotes the creation of new businesses and stable jobs.

Problem: In the Democratic Republic of Congo, in particular and in all African countries in general, more than 60% of the population does not have access to bank credit, especially young people and women are more often marginalized.

If all adults will have access to credit to launch or develop their economically profitable activities, the number of jobs will also have to increase and this would influence the fight against poverty. For unfortunately to note that the majority of the populations do not participate in the Gross Domestic Product of the country by the fact that, for lack of capital to finance their activities, they remain consumers instead of being producers.

Solution: SCIAC Sarl, through this program, helps young entrepreneurs by granting them loans to finance the start-up or development of their economic activities. The strategic objective of the project consists of promoting investment projects and providing financial services to entrepreneurs through loans for the creation of businesses, and by providing them with advisory support, more particularly in the fields of management, marketing, business economics, IT, construction, personnel management and law.

With this program, these once marginalized people will be able to create their own jobs.

This innovation aims to bring together all categories of people (women, young people) carrying out an economically profitable project, but who lack the funds necessary to start their activities.  The CCA will work hand in hand with small and medium-sized enterprises, cooperatives, and other forms of enterprise to take advantage of the resources that are accessible to enterprises in the start-up or developing phase. Its objectives will be: a. to maximize the amount of funds available to support  the creation of businesses through loans and subordinated claims, and b. to offer an adequate rate of return to cooperatives, mutuals and other investing companies. The CCA will operate as a multi-partner company which has adopted the model of good governance to ensure transparency while applying a financial pedagogy, a practice which will give strength to the CCA Group.  Among the small and medium-sized enterprises to be supported, we recall that cooperatives are also best placed to contribute to the fundamental objectives of sustainable development in economic, social and environmental matters as well as to the governance agenda, even if only 'They are companies concerned with the economic advancement of their members while satisfying their socio-cultural interests and protecting the environment. 

The implementing institution for this program is the “Crédit Coopératif Africain (CCA)” whose mission is to support people who are marginalized,in particular women and young entrepreneurs and supporting their economic activities with loans and management training,  initially through multiple local programs in the rural and urban strategic areas of the Republic of the Congo; and which will gradually spread to other African countries.

Thus, we need financial support from other partners for the optimal effectiveness of this program and for strengthening the capacity of the CCA, whose action is based on four pillars, namely: a) Microfinance: this includes urban and rural loans, community banks and asset development strategies. b) Community investment: this includes consumer-owned businesses, social enterprises and social investments. c) Promotion of entrepreneurship: this involves the development of small and medium-sized enterprises, practical learning, technical know-how leading to self-employment and development of life skills. d) Dynamic social network: this implies the sharing of resources, local and international interdependence and the mobilization of social networks.

Since the 1970s, it has been shown that small and medium-sized enterprises are the main vectors of the development of nations. Whether they are industrialized countries or emerging and developing economies, they constitute the essential sources of economic growth, dynamism and flexibility of the economy of these countries.

This project is an answer to the question that the majority of young entrepreneurs often ask themselves when they want to go into the business world. This innovation is in line with institutions which consider small and medium-sized enterprises to be a pillar of socio-economic development.

Our method of working makes our solution innovative because our principle is to put the human being at the center of our action.

CCA Ltd. being a credit institution, it operates as a multi-partner company which has adopted the model of good governance to ensure transparency while applying a financial pedagogy, a practice which will give strength to the CCA Group. This practice will allow CCA Group members and beneficiaries of its services to better understand the role of their institution, to judge and to usefully influence its decisions.

The basic technology that powers our solution is the Rihaplus application which is a new concept of electronic wallet based on a mix between the famous mobile money system offered by mobile operators and the bank card system offered by contemporary banks.

Rihaplus therefore allows users to feed (recharge) their electronic wallet from their mobile money in order to be able to carry out a whole range of transactions beyond the current limits of Mobile Money systems and bank cards.
Its name is a combination of two words (Riha from Kirundi "Kuriha" meaning to pay and more which symbolizes the infinite possibilities that this platform offers to its users).

Our main market is generally made up of hundreds of thousands of account holders in the different Mobile Money systems existing in different African countries. More particularly the following proportions:
- Mobile Money customers in need of direct transactions between different Mobile Money accounts locally and / or internationally;
- Mobile Money customers in need of making online payments for products and services;
- Hundreds of holders of online business ideas in Africa who find themselves blocked by lack of an affordable online payment system accessible to all;

Thanks to Rihaplus, any user with an account in any mobile money system can:
- Easily and independently transfer money to the beneficiary of their choice, either locally or internationally;
- Receive money in all mobile money systems in the countries where Rihaplus is operational;
- Make online payments for products and services;
- Make local payments.

CCA Ltd. uses the Rihaplus application as a new concept of electronic wallet based on a mix between the famous mobile money system offered by mobile operators and the bank card system offered by contemporary banks.

This application therefore allows users to feed (recharge) their electronic wallet from their mobile money in order to be able to carry out a whole range of transactions beyond the current limits of Mobile Money systems and bank cards.

Our technology generally targets hundreds of thousands of account holders in the various Mobile Money systems existing in different African countries. More particularly the following proportions:
- Mobile Money customers in need of direct transactions between different Mobile Money accounts locally and / or internationally;
- Mobile Money customers in need of making online payments for products and services;
- Hundreds of holders of online business ideas in Africa who find themselves blocked by lack of an affordable online payment system accessible to all;

With this application, any user with an account in any mobile money system can:
- Easily and independently transfer money to the beneficiary of their choice, either locally or internationally;
- Receive money in all mobile money systems in the countries where Rihaplus is operational;
- Make online payments for products and services;
- Make local payments to merchants affiliated with this application.

Main objective: Contribute to poverty reduction by

rural and urban areas through the creation and / or
consolidation of small and medium-sized enterprises generating long-term jobs and leading to an increase and diversification of household income with a view to equity between men and women

Key performance indicators:  Evolution of socio-economic indicators of basic impact (level of wealth, increases in economic activities):
- The percentage of households very
poor to poor goes from 65% at the end of 2020
in 2008 to 15% in 2021 and that of
very wealthy households goes from 15% in 2020 to 25% in 2021
 Number of young entrepreneurs who will benefit from
project services towards the end of 2021: 3000 to 4000

Means of verification: Investigations and external evaluation; Annual reports.

Project / Program development objective: Effect 1: Consolidation or creation of small and medium-sized enterprises that generate income and create sustainable jobs in the areas of focus of the project.

Key performance indicators:
   Number of small and medium-sized businesses that will be created / strengthened (by type, by sector and by gender of
the entrepreneur) by 2021: 1500 distributed as follows:
- Support for new SMEs: 950
- Support for old MPERs: 550
 Number of SMEs already operational in
project term: 4
. Number of jobs to be created
or consolidated with project support by 2021: 4000

Means of verification:
• Socio-economic impact assessment reports
• Project activity report
• National statistical data of
Ministries of Agriculture and
Rural Entrepreneurship
• Financial statements of SMEs supported by this project

Assumptions (H) / Risks (R):

Hypotheses
• The macro-economic climate is not unfavorable for the development of SMEs.
• Public and private institutions interested in SME development are ready to get involved in the development of specific approaches for entrepreneurs supported by this project.
• Local authorities are interested in taking on a role in promoting economic activities and SMEs

Risks
• Competition from imported products prevents SMEs from accessing profitable markets.

Currently, CCA Ltd. has 150 members. The CCA predicts that it will have 2,000 active customers at the end of 2020, After five years of existence, the CCA Ltd. will have more than 8000 members.

At the start of its activities, the CCA launched a pilot program to offer a unique loan product, the small business solidarity loan, and a voluntary savings product. The institution requires all borrowers to maintain mandatory monthly savings, which is treated as part of the loan proceeds. According to the vision of the pilot project, the CCA intends to monitor this type of loan, and plans to introduce new loan products, such as "Construction credit and Habitat for All".

Beginning in 2021, the CCA will offer a unique loan product in Burundi, the Democratic Republic of Congo, Rwanda and Tanzania. Customers are required to form groups of at least 3 people, and each customer will receive a loan amount according to their needs. The CCA will require the group guarantee called "Joint guarantee". The conditions for granting credits and the maturities of the loans will vary according to the terms and conditions to be determined by the management of the CCA.

The CCA requires clients to save 10% of their requested loan amount before disbursement. The main objective of compulsory savings is to cover any risk of default. Due to the fact that the CCA has not yet met the minimum capital requirements required by law, the company is not legally authorized to hold savings deposits. When the CCA fulfills all the conditions required for MFIs, it can launch the compulsory savings system as well as the voluntary savings product and their fixed deposits.

The main obstacle which slows down the evolution of our innovation remains the COVID-19 pendulum. In accordance with the Law which governs Microfinance Institutions, we must constitute a share capital of three hundred and sixty thousand US dollars (US $ 360,000). By the fact that since March 2020 everyone is confined, and all activities are blocked, there will be a delay in constituting the amount required by law for the minimum share capital. Nevertheless, we hope to raise the minimum share capital during the second year.

The CCA predicts that it will have 2,000 active customers at the end of 2020, all with loans to small and solidarity businesses. Referring to the forecast operations of the CCA, it is established that the CCA will constitute a gross outstanding balance of US $ 36,000 for its one-off loan product at the start of the five-yer projection.
CCA market research has shown that the institution has the potential to grow from 150 members to 3,000 clients at the end of its first year of existence. In addition, the CCA intends to open branches in all provinces across the country of each country targeted by the project.

The CCA plans to attract at least 12,000 customers over the next five years to reach its expansion goals, and only 2,500 of those customers will drop out in the next five years. Therefore, high customer retention should be a primary goal in the years to come.

By the end of 2020, CCA borrowers would have mandatory savings of US $ 40,000 on deposit with the partner bank, which is expected to reach US $ 1,250,000 by the end of the second year. When the CCA begins offering voluntary savings in the first half of this year, management estimates that 60% of borrowers will transfer a significant portion of their mandatory savings to new voluntary savings accounts, management estimates an average initial balance of $ 400,000 US which will increase to around US $ 5,000,000 at the end of the fifth year. The same applies to the term deposit. The initial average balance is estimated to be significantly higher and represents US $ 2,500,000 to US $ 6,000,000 at the end of the fifth year. The number of savers should be significantly lower. This is due to the fact that customers take time to save enough capital.

As customer confidence and awareness increases, the percentage of borrowers with voluntary savings is expected to increase to 80% in the fifth year. In addition, the CCA expects non-borrowers to open deposit savings and term deposit accounts beginning in the second year as well. For voluntary savings, the CCA estimates 100 new accounts per month from the third year. For term deposits, the initial number of savers is estimated at 10% of borrowers in the second year, slightly increasing with 1% in the third year and 2% in the fourth year, and 3% in the fifth year.

CCA Ltd. was initiated by SCIAC Sarl. (Société Civile Immobilière en Afrique Centrale) in order to facilitate the poor to have access to decent housing at an affordable price.

The purpose of the creation of CCA Ltd. as well as the sectoral objective of the Entrepreneurship Credit project is the promotion of rapid economic growth and poverty reduction. The
project objectives are: (i) creation of sustainable jobs; (ii) increasing opportunities for generating activities
income for the working poor, so as to reduce poverty levels and
improved long-term socio-economic indicators.

At the start, we set up a flexible structure of 9 people constituting the steering committee composed of 3 members per country. It is:

For the Democratic Republic of Congo:: 192A, Avenue KWILU, Commune de Ngiringiri
1. BISIMWA RUZUBA AIME
2. BUHENDWA SAFI IMMACULEE
3. KITUMAINI SUNGURA ESPOIR

For Rwanda:: 03, Avenue RUGERERO, District de RUBAVU
1. GAKWAVU MUHIZI PASCAL
2. EMIMI UWUMPUHWE
3. MUGISHA BARHELEMY

For BURUNDI: Boulevard du 1er Novembre, Peace Corner Building, Ground Floor, Office N ° C8
1. BUHENDWA CIBOGO DEOGRATIAS
2. MUKAPA BENJAMIN
3. BAHATI YVES PASCAL

At the next general meeting, the number of agents may be increased as necessary and the means.

Me and my entire team have the skills required to manage and develop our innovation. Thus we detail the skills of all members of the management team:

1. BISIMWA RUZUBA AIME, Managing Director of SCIAC Ltd. and Chairman of the Board of Directors of CCA Ltd. Spatial planning engineer
2. BUHENDWA SAFI IMMACULEE: Director of Finance of SCIAC Ltd. and Advisor to CCA Ltd. Graduated in accounting
3. KITUMAINI SUNGURA ESPOIR: Administrative Director of SCIAC Ltd. and Advisor to CCA Ltd. ; Degree in administrative sciences and finance
4. EMIMA UWIMPUHWE: Managing Director of CCA Ltd. : Graduated in economics
5. MUHIZI GAKWAVU PASCAL: Director of SCIAC Ltd in Rwanda and Advisor to CCA Ltd. : Degree in law
6. MUGISHA BARTHELEMY: Communication officer; : Degree in environmental geography and technology
7. BUHENDWA CIBOGO DEOGRATIAS:. System analyst and designer. Degree in engineering and telecommunications management

8. MUKAPA BENJAMIN; Web developer; Computer science graduate

9. BAHATI YVES PASCAL: Mobile Developer: Degree in engineering and telecommunications management

Up to now, we have been working with certain primary and secondary schools in the context of raising the awareness of parents of pupils and agents of these schools to be involved in innovation. It is first of all the Kindergarten and Primary School of Kavumu (EMPK), the School Complex COLLEGE LA JOIE, and the Sclaire Complex of KATANA (C.S. K). We were already considering associating other schools and local development initiatives, unfortunately with the arrival of COVID 19, the process was blocked.

As our rihaplus application works with the mobile phone system, we use the services of the following companies:
1. In the Democratic Republic of Congo: AIRTEL Congo, ORANGE Congo and VODACOM Congo.
2. In Rwanda: MTN Rwanda and AIRTEL Rwanda
3. In Burundi: LUMI, ECO, SMART.

Our technology mainly targets hundreds of thousands of account holders in the different Mobile Money systems existing in different African countries. More particularly the following proportions:
- Mobile Money customers in need of direct transactions between different Mobile Money accounts locally and / or internationally;
- Mobile Money customers in need of making online payments for products and services;
- Hundreds of holders of online business ideas in Africa who find themselves blocked by lack of an affordable online payment system accessible to all;

Le CCA Ltd.a pour mission d'autonomiser économiquement les personnes vulnérables, en particulier les femmes et les jeunes, en développant l'activité de microfinance qui inclut une gamme de services de soutien pour ses membres à travers de multiples programmes locaux dans les zones rurales et urbaines stratégiques de la République démocratique du Congo, du Rwanda, du Burundi, et à partir de l'année prochaine du Tanzanie aussi, tout en espèrant permettre à une grande majorité des populations de sortir de l'extrême pauvreté grâce à des objectifs stratégiques.

Le CCA Ltd. est créé pour offrir une large gamme de produits et services financiers et non financiers. Ces services et produits sont, entre autres, l’épargne, les crédits, le fonds pour l’habitat, le système de paiement, le transfert d’argent, les produits de microcrédit bail et microproduits d’assurance;

Les différents services que le CCA ltée offre à sa clientèle doit contribuer à l'autonomisation de cette dernière, surtout aux femmes et aux jeunes entrepreneurs, et à toutes les divans de la communauté, plus particulièrement les personnes les plus démunies et les plus vulnérables de la société.

The minimum share capital of three hundred and sixty thousand American dollars (US $ 360,000) is made up of 60,000 shares with a nominal value of six dollars (US $ 6) each.

We plan to use at least five million American dollars (US $ 5,000,000) in working capital for our Entrepreneurship Credit project over the next five years.
With a base of $ 5 million (US $ 5,000,000), it is estimated that the CCA Ltd. will be able to help 2,500 small and medium-sized businesses and provide the movement with twenty five million billion American dollars ($ 25,000,000 US) in capital over five years. To the extent that the CCA could collect investments of thirty five million US dollars (US $ 35,000,000), it will be able to help 3,500 small and medium-sized businesses and inject more than one hundred million US dollars (US $ 100,000,000) in capital in the sector. credit to entrepreneurs during the same five-year period.

CCA Ltd. will reinvest its gains, beyond those paid in dividends and those that must be kept to ensure the liquidity of the capital. Capital will invariably return to the movement to support the development of small and medium enterprises in the Democratic Republic of the Congo, Rwanda, Burundi and Tanzania.

Having a solution that can provide an answer to the fight against poverty, the Civil Society Real Estate in Central Africa, SCIAC Sarl. which is the parent company of Crédit Coopératif Africain, CCA Ltd., had considered it opportune to apply for the global challenges of Solve, which are open to solutions until June 18, 2020 at 12 noon ET.

This opportunity will help our company to demonstrate its ability to contribute to the major concern of several organizations that have projects to fight poverty.

Join the Solve community; we expect a solid strengthening of capacity and visibility with the various partners and benefactors who would willingly support our works for a better future of marginalized populations and abandoned to their sad fate.

The main objective of the partnership we are looking for is to establish sustainable development, and to intensify cooperation between the various players (technical and financial partners).

The partnerships that we wish to conclude, whether it be intersectoral, multisectoral, trisectoral between the private economy that we are and non-governmental organizations (NGOs) or other form of institutions will allow us to improve the financial resources as well as the working conditions to achieve sustainable development goals.

Le CCA Ltd. voudrait s'appuier sur un vaste réseau de partenaires à travers le monde qui sont engagés dans un mais commun et qui seront prêts à soutenir le programme développé par CCA Ltd, partenariat utile pour assurer le succès du programme.

Partenariat avec les Gouvernements

Localement et à l'échelle de tous les pays concernés par ce projet, le CCA Ltd. conjoint les efforts des gouvernements locaaux et centraux des pays concernés par ce projet, notamment, la République Démocratique du Congo, le Rwanda, le Burundi et la Tanzanie , en particulier avec leurs départements de l'éradication de la pauvreté et de la croissance économique, pour servir les populations locales en aidant à mettre en œuvre les politiques de renforcement des activités économiques des groupes les moins favorisés et les zones mal desservies.

We would like to be considered for the Innovation Prize for Women by proposing solutions that place women and girls at the heart of development.

Gender equality and the empowerment of women are key goals in their own right and play a vital role in all other development goals. In particular, gender inequalities and the marginalization of the needs, roles and potential of women and girls are major factors that hinder progress in development for all, whether women, men, young boys, girls and their communities and societies around the world.

In addition, the existence of solid links demonstrated between combating inequalities and strengthening the empowerment and empowerment of women and girls on the one hand, and improving development results. in all kinds of sectors ranging from health and nutrition for mothers, newborns and children, to agriculture, water, sanitation and hygiene on the other hand.

According to Melinda Gates' statement in a recent article published in Science Magazine, smart development intentionally takes into account gender inequalities and measures the impact of health and development programs, not only in terms of results by sector, such as contraceptive prevalence rates, agricultural productivity or access to digital financial services, but also in terms of gender outcomes, such as equitable power in decision-making
decision, shared control of goods and income, personal security, mobility and fairness of interpersonal relationships. These gender equality goals
are also key elements that empower women and girls and enable them to be agents of change in their homes, communities, institutions and societies.

We would like to be considered for the GM Prize for Good Jobs and Inclusive Entrepreneurship through our innovation “Partner Credit Program”.

In this perspective, we consider that the strengthening of small and medium-sized enterprises is the most effective means promoting job creation. Entrepreneurship for productivity and inclusive growth is part of our strategy to fight poverty by promoting the creation of stable jobs.
The objective of this approach is to advance the global response to a triple question: how can public authorities help to consolidate the contributions of small and medium-sized enterprises to productivity and inclusive growth? How can small and medium-sized businesses help take into account the main trends and the main challenges of the economy and society? And how can the OECD assist governments in formulating and implementing effective policies for small and medium-sized enterprises.

Certain social groups are under-represented or disadvantaged in the world of entrepreneurship (for example women, young people, the elderly, migrants and the unemployed). Developing an entrepreneurial spirit within these groups and improving the quality of their entrepreneurial initiatives means opening up the possibility of increasing participation in the labor market and stimulating economic growth.

Despite their heterogeneity, these social groups have in common that their individuals usually face greater difficulties than the rest of the population when it comes to starting a business. The most frequent pitfalls are a lack of entrepreneurial culture, problems with access to start-up financing, difficulties in understanding the regulatory framework, fear of failure and lack of self-confidence.

We would like to be considered for the Gulbenkian Prize for Adult Literacy in our capacity building program which provides training recipients in the management and organization of businesses to effectively manage their economic activities.
The importance of adult literacy for development cannot be stressed enough. It is one of the pillars of sustainable development, which is due to the fact that education should be a lifelong process.

Adult literacy is gaining momentum, particularly due to awareness of gender issues. Emphasizing the importance of educating women to achieve sustainable development draws particular attention. However, literacy statistics in several African countries show that women lag behind men:almost half of them, compared to more than 70% of men, can read and write. The considerable percentage of illiterate people, however, exceeds 50% in some African countries, women being predominantly represented.

In a participatory poverty assessment carried out in 1999 in rural areas, poor farmers considered lack of education and skills as the second main cause of their poverty (after lack of access to markets).

In all of this, SCIAC Ltd. through CCA Ltd. who manages the entrepreneurship credit program, aims to educate, empower and promote the economic independence of the marginalized, disadvantaged, disadvantaged and poor strata of the African population wherever CCA Ltd; will be operational. This target group generally resides in rural areas of these countries.

SCIAC Ltd. relies on literacy and basic education courses to offer them opportunities for social advancement to promote the economic integration of participants.

In case our solution wins AI for Humanity Prize, our team will use this fund to increase its capacity to serve the most vulnerable sections of the African population in the program to fight poverty.