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FONDEP hasbeen awarded a “merit award” by the Consultative Group to Assist the Poorest (CGAP), a World Bank organization, in the framework of the 2005 Financial Transparency Award . FONDEP is the first Moroccan microfinance institution to obtain such international distinction.

The award, which was set up by CGAP in 2004, promotes good practices in financial reporting by highlighting the primary sources of guidance for good disclosure practices, and, by recognizing the MFIs that reach good disclosure standards and by so doing, stimulates improvements in annual financial reporting. All MFIs that embrace good disclosure practices and all participants in this contest collectively promote the visibility of microfinance and the understanding of financial performance.

The review panel for 2005 was comprised of a team of eight independent, high-qualified professional auditors/accountants who live and work in different continents and who, in addition, are individually familiar with microfinance. In this, its second year, the Award attracted 175 applications representing 57 countries in every region of the world, but only five Prizes have been awarded and 63 “merit award”.

This award encourages FONDEP’s personnel, which has spared no effort towards the good performance of our institution all these years, but specially in 2005, the International Year of Microcredit, and which has finally achieved excellence in terms of accuracy and transparency.

Within the framework of advanced training and continuing education, three executives of FONDEP Micro-Crédit took part, from May 29 to June 10, 2004, in Bangladesh, in the ' 48th Grameen “International Dialogue Program'” organized jointly by the Grameen Bank, Grameen Trust and the Grameen Foundation USA

2 - Assessment of results and review of the possibility of application of the Grameen model in other countries.

During the work sessions that took place in the head office of the Grameen, in Dhaka, some Grameen managers presented various statements explaining the historic, the experiences and the products of this bank for poors.

In the setting of the strong strengthening of its activity, Fondep initiated a new approach of the development through the creation of a centre for local development in Taounate. The creation of this centre enrols in the cooperation between Fondep and the Spanish Foundation CEAR. The official inauguration of this centre took place on May,13th 2004. An important Spanish delegation was present, under the direction of Mr. Jose MANUEL ROMERO MORENO, President of F. CEAR. The spirit of this initiative is to settle a training cell in each Fondep’s regional agency, in order to help recipients simultaneously in financial and technical terms. Financially, by financing income-generating activities and technically, by supporting and advising them in their project’s implementation and by providing them with a functional training.

On the initiative of the French Development Agency, a seminary on the topic "institutional Challenges and strategic stakes" was organized in Marseille on the 22 to March 30 2004, for Arabian and African MFIs. Fondep, represented by two of its executives, took part in, jointly to 15 other Arabian and African countries.
During this seminary, the different sessions had put the accent on several thematic notably, the measure of the impact of microfinance , the health micro-insurance, the relation between the financial backers and the operators, microfinance and legal framework, AFD and microfinance: new developments….
Otherwise, the sessions gave also the opportunity to exchange the experiences about some aspects of the current management, notably the management of the human resources and the incentive systems, the management of asset and the liability and the credit bureaus.
This seminary, by the diversity of its workshops, contributes to reinforce the action of microfinance actors and to support MicroFinance Institutions in their activities. .

On the invitation of the Ministry of Agriculture and Rural Development, Fondep participated in the first meeting of the steering committee in charge to follow up the forwarding of the rural development project in hilly areas in Al Haouz province. This meeting took place in Marrakech on May 19th and 20th.

Otherwise, the steering committee visited the main office of Fondep’s regional agency in Asni to inform about the evolution of a micro-credit program initiated in the framework of the cooperation between Fondep and FIDA. Besides, the committee visited a recipient and noticed with satisfaction the efficiency of the micro-credit programme in the area of Asni.

All the IMF’s members of the FNAM participated, in febrary 2004, in marrakech, at the initiative of the USAID and ASMA, who consists on a training on the theme "Micro Finance for the housing "

This shop, animated by M.Phillip D.Jones consultant of the USAID, contributed to the formation of the IMF staff on the techniques and subtleties of the introduction of the micro credit like new tool for the financing of the habitat. The shop of formation put the accent on the authorization gotten by the Moroccan Government to IMF in order to widen their fields of action to finance the projects of habitat, but also on their limits notably on the risks as for the specificities of this new product, considering its features that defer from the classic micro credit.

The formation allowed the participants to acquire the programs principles conception for the financing of the habitat by the micro credit

Following the terrifying earthquake that shook the city of Al Hoceima on last February 24, a delegation of the FONDEP did a visit in the damaged region to inquire of the state of our recipients and to bring them the support they need in such circumstances. That visit, to which the Spanish Foundation CEAR took also part in, allowed both of the delegations to measure the size of the damages generated by the earthquake .
The FONDEP elaborates currently a specific project to support the damaged populations and to contribute to the national effort for the region reconstruction that drained a large movement of solidarity around the world .
We note that, since 1998, FONDEP contributed to the financing of 8916 micro projects generator of incomes benefiting poor population in the region of Al Hoceima.

Retour

SIGNATURE OF A PARTNERSHIP CONVENTION
BETWEEN FONDEP AND THE SOCIAL DEVELOPMENT AGENCY (ADS)

The convention concerns the ADS’ financing for a project of support to income-generating activities in the rural area of the region of Boulemane.
This project, that will profit primarily with the woman in rural area, will concern 1600 people working in the sectors of handicraft, agriculture, trade and small raising.

In parallel to its initial support program for the micro enterprises in Taounate, the FONDEP has just set up a training cell in order to support the recipients by providing technical assistance. It is a functional training, escorted with support and advices.

This program is launched in cooperation with the Spanish CEAR Foundation and aims to support the micro projects by allowing them to acquire basic skills in financial and organizational management. A methodology of support has been perfected in the scope of the operations already started in the province since the beginning of cooperation with the CEAR Foundation in 1999.

Achievable within a one-year period, the current program is articulate around several key issues among which are : holding literacy sessions, providing training for people desirous to create enterprises, basic notions in management, studying the market and environment of the enterprise, and the main commercial and administrative procedures involved.

The 6th National Meeting was held in Rabat in Fondep’s headquarters, under the direction of Mr. Preident, in presence of all the executives and officers, and of some members of the Board of Directors (BD). This meeting held on September 20, 2003 lasted a whole day. It was the opportunity to recapitulate the main achievements since the 5th Meeting held a year ago in August 2002, and then to present the main axis of the action plan for the next twelve months.

Concerning the achievements, the presentation focused on the new reorganization of the agencies following the appointment of the regional and local supervisors and the generalization of cashiers at the level of all the regional agencies. In this context, the loan officers have been congratulated for their commitment and quality of work and encouraged to continue their progress in the respect of the new organizational structure.

In a symbiotic atmosphere, all the executives and officers expressed their commitment to fully adhere to the new structure while respecting the new action plan whose main guidelines are : consolidation of acquirements, safeguard of FONDEP’s specificities and management of relations with the other Microfinance institutions (MFI) within the respect of the professional ethics.

The 2002 General Meeting of FONDEP was held in its headquarters on September 23, 2003. It was chaired by Mr. Mouatassim BELGHAZI, President of the Board of Directors (BD), and all the members were present. At the beginning of the works, and after the adoption of the agenda, the BD's President inaugurated the General Meeting's session by a speech in which he stresses on three main topics
1. national and international conjuncture,
2. main achievements since the last General meeting,
3. Strategic choices of the FONDEP.
The BD's President emphasized that our strategic choices allowed us important achievements during the year 2002 and the realization of cooperation agreement with several State and financial institutions, national and foreigner organisms, national or foreigner. During this meeting, the responsible executives of the Administrative and Financial Issues Department, of the Department of the New Information Technology and of Micro credit, in charge of the Network, intervened to point out the main achievements of their respective Departments during the year 2002.

After these statements, the members of the General Meeting proceeded to the review and adoption of the other topics of the agenda, namely : · review of the Financial Report (Independent Auditing Report), · review of the Activities Report; allocation of the financial year's amount carried forward, · review of the draft budget for the Financial Year 2004. · main guidelines of the FONDEP's action plan for the Financial Year 2004.

A preparatory meeting for the setting up of the Committee of Governance and Piloting was held on Tuesday September 30, under the presidency of Mr. President and in presence of the set of the members of the Committee ace well ace the settings of the FONDEP Micro credit.
The setting up of this Committee appears in the setting of the new strategy of decision making and organization of work within the institution.

The Governance and Steering Committee is a permanent platform of coordination between the BD, the Chairman and the operational structures. It is thus a body that assists and guides the BD, as well as the whole structures of the FONDEP, while at the same time contributing at the implementation of programs. It has also the duty of the preliminary study of the issues to be debated by the BD
Within the framework of the management of its activity agenda, The Governance and Steering Committee holds tow meetings, the first being preparatory while the second is for deliberation.

FNAM :

The Board of Director of the National Federation of Microcredit Associations (FNAM) held its meeting on Wednesday September 17 2003, at the headquarters of the FONDEP in Rabat. The topics of the agenda were : * Discussion about the project in which are involved the Ministry of Finance, PlaNet Finance and the FNAM, related to the celebration of the Microfinance National Day planned for April 2004 ; *Checkout about the reform of the Law related to microcredit ; *Recruitment of a General Delegate ; *Rent and equipping a local for the FNAM ; * The Financial situation of the FNAM and the activation of the complementary contributions payment ; * The General Meeting : the meeting suggested to hold it before the end of October 2003.
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The FONDEP pursues its action of involvement within the FNAM and the last working session took place in its head office in Rabat. This institution made very considerable progress towards the amendment of the object of the microcredit activity in Morocco. Thus, following the agreement of the Ministry of Finance to enlarge the field of action to the support to schools in acquiring photovoltaic equipment, the debate is well engaged in, so as this extension concerns also other sectors such housing, education and health. Meanwhile, the FNAM is now finalizing the Code of Ethics. Now that the different institutions have submitted their suggestions, the Code, once passed, will surely contribute to a better organization of this sector in Morocco.

FONDEP has signed a convention with USAID according to which the American agency give a donation to FONDEP for the financing of microcredit activity in rural areas. The target zone of this operation is Ifrane and the duration is fixed at 18 months at the end of which an audit will be conducted by Price Waterhouse Cooper.

PARTNERSHIP WITH THE BANQUE POPULAIRE (POPULAR BANK):

After several years of fruitful cooperation between FONDEP and the BP, the two institutions have decided to study the possibilities of reinforcing this partnership within the same path of serenity and commitment of the previous years. So, a meeting was held in this context at Fondep’s headquarters during which all the possibilities and perspectives have been studied. It was decided to set a partnership susceptible of sustaining and developing this cooperation

FONDEP’s president was received in Seville, on April 03, 2003, by Manuel de Chavez, Chairman of the Autonomous Government of Andalusia. Further to the initiative of cooperation between FONDEP and the Spanish Foundation Board of Support for Refugees (FCEAR), this meeting was marked by the launching of a common action plan aiming to create the best conditions for sustainable development in some locations in northern Morocco.

The particularity of this action plan is to be supported by the Andalusian government which, through its President, Mr. de Chavez, who expressed his full support for the Fondep's action within the framework of the global program of cooperation between the Moroccan and Andalusian governments.

APDN:

On the third of last June, FONDEP’s President, Mr Beghazi,, was received by Mr. Driss BENHIMA, Managing Director of the Agence pour le Développement Economique et Social de Provinces et Prefectures du Nord du Maroc (Agency for the Economic and Social development of the Northern Morocco). They discussed about the cooperation between both institutions, for instance the efforts deployed by FONDEP within the framework of the partnership for support to micro enterprises. The two officials expressed their satisfaction with the obtained results and their ambition to renew and strengthen this cooperation. Within this perspective a second meeting was held in Fondep’s headquarters between the executives who decided the implementation of various projects which can match the new requirements of the development of the Northern regions.

CENTRE DE DEVELOPMENT LOCAL (CENTRE FOR LOCAL DEVELOPMENT) :

An annex of the Centre de Development Local of Taounate was inaugurated on July 26th in Ain Aicha, in presence of the Minister of Energy and Mining, the Secretary of State in charge of Water Resources and the Governor of the Province of Taounate, as well as local deputies and notables. This annex will include a reading centre, literacy classroom, a computer room and micro credit radio. The Centre is initiated within the framework of cooperation between the FONDEP and the Spanish foundation FCEAR, the Madrid and Très Cantos township.

At the request of the Flemish government, Alterfin realized a study on the Moroccan microfinance sector. It was an opportunity to know some microfinance institutions operating in Morocco and study the possibility of an eventual partnership with them. Four organizations were visited : AMOS, AMSSF-MC, FONDEP and INMAA.

What is Alterfin ?

Alterfin is a limited liability cooperative company which was founded in 1994 by the NCOS, 7 development NGOs and two banks (the Mercator Bank and the Triodos Bank). Since then, the founders have been joined by nearly 650 cooperators as the Fortis Bank, some enterprises (such as the Body Shop), social organizations, and more than 20 NGOs (such as SOS Faim, Entraide et Fraternité, the Magasins du Monde Oxfam and the Réseau Financement Alternatif) and 600 professionals.

Given the fact that a large population from the Southern hemisphere desirous of creating an activity doesn’t have access to credit, Alterfin aim to contribute in the setting up of financial networks accessible to disadvantaged populations, in the developing countries .

Alterfin does not grant donations but it invests. According to circumstances, it grants loans and securities to local financial institutions and temporarily owns shares in their capital. It works essentially with local alternative financial institutions whose main target customers are small entrepreneurs and farmers.
Alterfin also finances directly producers and associations of producers connected to the Fair Trade Network in Europe. Alterfin's financial resources consist mainly of its share capital supplied by cooperators or shareholders.

The AECI (the Spanish Agency for International Cooperation) has recently conducted a study on the Moroccan micro credit sector. It was realized by some micro-finance consultants and was about the feasibility study of an eventual collaboration between the micro credit professionals in Morocco and the Spanish cooperation. Among the institutions visited was the FONDEP on April 2, 2003. This meeting was an opportunity to discuss many topics related to :
- the Moroccan micro credit sector, its growth and its composition
- the FONDEP, its organization and operating methods.

Among the meetings organized by Fondep’s officials, the meeting with the French Development Agency (AFD) was an important working session dedicated to cooperation opportunities concerning institutional support and micro-credit funds reinforcement. This meeting was the opportunity to closely know each other and to exchange point of view about micro-credit.

The FONDEP officials held a work meeting with the Project Director of the CESVI (Italian NGO). This meeting was devoted to the study related to the implementation by the two institutions of a program aiming at the micro-enterprise development in handicraft, art and production sector in the province of Chefchaouen.This micro credit program falls within the framework of "support to handicraft in the province of Chafchaouen, through training, micro-credit and marketing-oriented aid".

On March, 29th, the board of directors’ of Fondep micro-crédit held its half-yearly meeting for the 2005 accounting period. The agenda of the board of directors concerned : the review of the external audit report about 2004 accounting period, the review of the 2004 activity report, the follow-up of the Governance and Steering committee’s activities and other competences of the board of directors. The members of the board of directors were satisfied by the conclusions of the external audit report. They noticed the comments about the rigor and the efficiency in business leading, the transparency and the professionalism of the institution. Besides they greeted the efforts made for the extension of Fondep’s network towards the South of the Kingdom and the reinforcement of other already operational agencies.

According to its statutes, FONDEP microcredit held its General assembly at the head office in Rabat, on October 19th, 2004, under the presidency of the Chairman of the board of directors and in the presence of all the members. The agenda of the General assembly concerned the following elements: review of the financial report (report of the external auditor); review of the activity report; allocation of the amount carried forward of the accounting period; review of the project of budget for the accounting period 2005; main lines of the action plan of FONDEP microcredit , election of the members of the board of directors; various. The works of the General assembly were marked by a stronger involvement of the members. This involvement expressed in a set of interventions and suggestions of the various members aiming to enrich the debates and to share their respective experiences for Fondep’s action. It is in this spirit that was followed the short speech of opening of the works and in which it was beforehand evoked the national and international environment of the microcredit in Morocco, before explaining priorities which presides main choices in the action of FONDEP microcredit. The Board of directors underlined three priorities: at first, the heavy investment granted by the FONDEP microcredit for the implementation of a MIS, then, the diversification of the sources of financing and finally, the extension of the perimeter of intervention in the horizon of the year 2005.

The members of the General assembly discussed about the external audit report for the accounting period 2003 and then passed it. The activity report, which was previously subject to statements presented by the various directors of departments and cells was discussed and passed too. Before the passing of the activity report, the Board of directors had presented the project of budget for the year 2005. This last one was also passed unanimously by the General assembly.

According to its statutes, FONDEP microcredit held it General assembly within the head office in Rabat, on October 19th, 2004, under the presidency of the Chairman of the board and in the presence of all the members. The agenda of the General assembly concerned the following elements: examination of the financial report (report of the external auditor); examination of the activity report; affectation of the balance brought forward of the exercise; examination of the project of budget in conformance with the fiscal year 2005; main lines of the action plan of FONDEP microcredit in conformance with the fiscal year 2005; election of the members of the board; miscellaneous. The works of the General assembly were marked by a stronger involvement of the members with the aim of a participation more and more moved closer to the actionof FONDEP microcredit. This involvement was translated by a set of interventions and suggestions of the various members aiming to enrich the debates and to share with the action of the FONDEP their respective experiences. It is in this spirit that was followed the short speech of opening of the works and in which he evoked beforehand the national and international environment of the microcredit in Morocco, before explaining the priorities which preside over the main choices in the action of FONDEP microcredit. The Board of directors arrested these priorities for three: at first, the heavy investment granted by the FONDEP microcredit for the implementation of an MIS, then, the diversification of the sources of financing and finally, the extensio) of the circle of the zones of intervention in the horizon of the year 2005.

The members of the General assembly proceeded to the discussion then to the adoption of the report of the external audit in conformance with year 2003, and of the activity report which was the object, beforehand, of statements presented by the various people in charge of departments and cells within the head office. Before the adoption of the activity report, the Board of directors had presented the project of budget in conformance with year 2005. This last one was also adopted unanimously by the General assembly.

The network of FONDEP microcredit strengthened by the launching of eleven new agencies in the following cities: Marrakesh ( 2 ), Al Hoceima ( 1 ), Rabat ( 2 ), Sale (2), Tahla / Fes ( 1 ), Tétouan/Martil ( 1 ), Taounate/Ain Aicha ( 1 ) and Tangier ( 1 ). The simultaneous launching of these agencies required a big material and human mobilization Thanks to the efforts spread by the operational executives, this bet was won. About fifty new agents of credits enriched the workforce of the staff of the FONDEP Microcredit which amounts this day to 143 persons. The training given to this wide promotion, the eighth, based itself on a new programme elaborated by the new Department of the special Projects and Accompaniment of the Programs.

Within the framework of its action for the strengthening of the micropcredit activity in the Arabic world, FONDEP assisted to the Second annual Conference of the Arabic network SANABEL, held in Cairo / Egypt, from 6 to 8 December 2004. The FONDEP was represented by Mr. Mouatassim Belghazi, and Miss Nezha Hmamouche. The works of the Conference were inaugurated by the ceremony of prize-giving in micro-entrepreneurs, of various Arab countries, whose original initiatives knew a big success. The second meeting of the Arabic network SANABEL was the occasion to investigate ways and means allowing to improve the services for the beneficiaries, notably the offered products. During this second meeting, the experience of FONDEP was presented during workshops, showing the used instruments and drawing the attention on the necessity of developing more the action in the rural environment all over the Arabic world. Outside the works, M. Belghazi studied with some of our partners, the possibilities of intensification the cooperation, quite as he tied up numerous new contacts with the other international representatives to widen the range of the international cooperation of FONDEP.

FONDEP was invited to participate in works of the " Conference of the Mediterranean Dialogue on the Adults Education ", which was held in Larnaka / Cyprus, from 4 to 6 December 2004. The conference had for main objective the reflection for the elaboration of a Mediterranean strategy for the eradication of illiteracy in the Mediterranean circumference, through a decentralized program respecting the procedures adopted by the various countries and including new data linked essentially to the social and cultural integration of illiterate people in the perspective to ease the marginalities and the exclusions. In this way, the various experts participating in the Conference, after estimated the stages crossed since the last meeting of 2003 in Malta and noticed with satisfaction the realized evolutions, joined, through three workshops, to put the first ranging-poles of the Mediterranean strategy. A program of follow-up was established and the coordination will be assured by the Institute of the international Cooperation of the German Confederacy for Adults Education.

FONDEP microcredit took part in the summit of Microcredit for the Region of Africa and the Middle East, held from 9 till 14 October in Amman / Jordan. FONDEP was represented by Mr Belghazi. The Summit of Amman was the occasion to discuss numerous essential questions of actuality for the development of microfinance in the region. One of the fundamental questions handled by the Summit was the study of the means to implement for a best involvement of the main national leaders (Members of parliament, Government, Authorities, Civil society) and their commitment in the development of the sector in their respective countries.

Since the authorization was granted to the sector of microfinance in Morocco to spread microcredits for housing, FONDEP try to establish the necessary bases for a good management of this new product. Aware of all its importance for the improvement of living conditions of resourceless populations, the Governance and Steering Committee wanted to establish a new department concerned with those projects and to give it the responsibility of the management of this new product.

It is in this frame that the FONDEP participated in the works of the Arabic Meeting on the microcredit for the environment which was held in Beirut in Lebanon, from 9 till 11 December 2004. During this meeting in which had part several representatives of associations of microcredit, the participants got informed of experiences of advanced countries and successful experiences in this type of activity.

FONDEP microcredit participated in the Conference on the " Better Practices in Management and recovering of outstanding debts ", co-organized by the International Finance Company and the Bank of Morocco, on October 1st, 2004.

This conference was articulated around two sample groups containing each several sub-subjects. The first sample group was dedicated to the study of the strategies of management and recovering of outstanding Debts, whereas the second was dedicated to the statement of the experiences of French institutions in management of the debts and in outsourcing of outstanding debts.

On November 4 th 2004, FONDEP microcredit participated in the meeting organized by PlaNet Finance Maroc, around a “F’ tour” and was dedicated to the evaluation of the global activity of the Moroccan IMFs and to the presentation of the actions led by PlaNet Finance in Morocco. This meeting was chaired by Mrs BRAHIM BENJELLOUN TOUIMI and SEBASTIEN DUQUET, respectively President and Director of PlaNet Finance Maroc. One of the major points of this meeting was the debate around the question of the challenges.

FONDEP Micro-crédit took part in the training course organized by ASMA around the topic of the use of the qualitative technique of the market studies. The participants in this training course, supervised by Mr. Richard Schumann, expert of the MICROSAVE AFRICA, acquainted with recent developments of the accelerated methods of the participative research.

The training program was articulated around two major topics: on one hand the presentation and the discussion of the thematic of group and, on the other hand, the presentation of the tools of the accelerated methods of the participative research. The major objective of this training course was to introduce the qualitative studies of the environment of the beneficiaries, a necessary preliminary and useful for the follow-up of the evolution of their micro projects for the perpetuation of the activity .

Within the framework of the fruitful cooperation between FONDEP and the Spanish CEAR Foundation, three members of Fondep’s board of directors, including the President Mr. Mouatassim Belghazi made a working visit in Madrid from the 8 th to 12th February 2005. During this visit, several aspects of the cooperation between the two institutions were reviewed on one hand and, on the other hand, meetings were held with the partners to introduce the new project of co-development.

Besides, from his part, the President of the FONDEP held working meetings with the other Fondep’s partners, such as the township of Madrid and the Spanish Agency of International Cooperation as well as with managers of Spanish financial institutions.

The FONDEP Microcrédit organized, April 02, 2005, in Rabat with the seat of the Complex of Vocational training, the 7 2nd national meeting of the executives and agents of the foundation. They were more than 150 to meet thus concretizing a tradition to which the institution has stuck for several years and confirming this innovative approach in the control of the activity. Work of the 7 2nd national meeting was stamped by an atmosphere of engagement and adhesion of the whole of the operational executives as well at the regional level as with that of the central Seat. All were unanimous to make this day one moment privileged for the evaluation of the activity during the year past through the talks of the experiments of ground of the regional persons in charge and the various departments within the central Seat. The 7 2nd national meeting, to which to share several members of the Board of directors and the General meeting took, was also marked by the evaluation of the activity during the first quarter of the current year and the presentation of the terms of the strategy of action for the nine months to come.

In the framework of their academic researches, four American students from the University of Michigan were introduced at Fondep by the United States embassy in Rabat. The meeting with Fondep aimed to understand the working methodology in the field of the support to the creation of micro enterprises, the follow-up of the implementation of micro projects, the criteria of eligibility for obtaining of a credit and the evaluation of customers.

The FONDEP Microcrédit has been equipped for two years with a new information processing system of management dimensioned by the CGAP and considered as one with the powerful tools in management with the microfinance. In the co-operation within the sector in Morocco, the FONDEP organized several meetings of presentation of this new system with some IMFs, with their request, in order to share with them its experience accumulated in this field. With the scale maghrébine, a representative of ENDA Tunisia paid a visit with the head office of the FONDEP to visualize the information system and to attend the data processing, in particular the operations of granting and covering of micro the appropriations in real time. In addition, the FONDEP received the visit of Mr. Jean Puit, expert in information system, which carried out a round in the Maghreb within the framework of the realization of a study, on behalf of the CGAP, on the information systems of IMFs in the under-area.

The FONDEP Microcrédit took share with the seminar relating to the strategic stakes and the methodological steps in the installation of the individual appropriations to the small companies. The seminar which was held in Casablanca on March 31 and 1 er April 2005, saw the participation of several IMFs Morrocan women as well as representatives of the banking environment and Ministries for the Trade and Industry as well as Habitat. The seminar related to two shutters of the micro individual credit: the credit for the support with the generating activity of income and the credit for the habitat. The seminar was organized by the Center of Studies Financial and Banking of the French Agency of Development in collaboration with the FNAM.

The CGAP organized, in Casablanca from the 10 to March 12, 2005, a course on the risk management in IMFs in Morocco, under the supervision of Mr. Djibril Mbengue, Consulting Formateur in microfinance. The FONDEP, represented by two of its frameworks, took there share at the sides of other frameworks of associations Alamana and Zakoura. The principal goal of this course is to produce a capable reflexion to contribute to the improvement of the quality of the risk management in IMFs Morrocan women. Also, several aspects of the organization were approached, in particular the identification of the fields of risk, the integration of the internal audit to the internal system of audit for a better monitoring, the control of the information system in the process of risk management.

On invitation of the representatives of the Regional Center of Investment of Laâyoune, two managers of Fondep visited the area of Laâyoune from the 21th to June 24th, 2005 in order to assess the possibility to settle new agencies in the area. A second visit in the town of Dakhla is programmed in the following weeks to realize a market survey and a feasibility study.

VISIT ON APRIL 29 th :MSS ELISSA MC CARTER,DIRECTOR OF DEVELOPMENT OF CHF INTERNATIONAL AND MR.RICHARD SHUMANN,CONSULTANT.

In the setting of the technical assistant provided to Moroccan micro-credit associations for the product “habitat”, Mss Elissa Mc Carter, Director of Development of CHF International and Mr. Richard Shumann, consultant, visited the Fondep on April 29 th. Thus, they too part in the presentation of Fondep’s “habitat” product and they shared their wide experiences in the field of loans for housing.

On Saturday June 11 th, in Casablanca, Fondep participated in a workshop organized by FNAM in partnership with CDER. The aim of this workshop was to show the possibility of collaboration between microcredit association and public institutions (ministry, offices) involving in the field of renewable and non-polluting energies such as the Ministry for Energies and the Mines, the National office of Drinking water, and the National office of Electricity.

Fondep participated in the FNAM board of directors which was hold on May 26 th in the head office of PNUD in Rabat. The board of directors’ agenda was build around three topics: validation of works of the Forum’s Scientific Committee, institution of an Organisation Committee and strategic issues to be examined by the Organisation Committee.

CONFERENCE /OPEN-DOOR "MICROCREDIT FOR A SUSTAINABLE AND FAIR DEVELOPMENT",FES MAY 20 & 21

Fondep participated in a conference organized by the Moroccan Association of Solidarity without Border- microcredit (AMSSF/MC), which was held in Fes on May 20&21, about the topic: “Microcredit for a sustainable and fair development”. This conference fits the International Year of microcredit on the initiative of the United Nations. This year gives the opportunity to the national and international actors, and microfinance institutions of growing public awareness of microcredit existence and stakes and its role in poverty alleviation and employment creation.

On May 9th, in Rabat, Fondep participated in a seminary organized to present the main results of a market study about microfinance for housing in Morocco. These results were presented by M. Elissa Mc Carter et Mr Richard Schuman who realized the study. It had been underlined the important potential that offers the sector to eradicate unsanitary housing. The participants attended a presentation of the methodology of conception of credit for, through the technical assistance, the loan assessment and the needed human resources.

SEMINARY "FINANCING THE NEEDS DUE TO THE EVOLUTION OF MICROFINANCE SECTOR",RABAT,MAY 23 & 24

Fondep participated in the works of the seminary « Financing the needs due to the evolution of microfinance sector » organized by the French Agency of Development and its training center, CEFEB, in partnership with the FNAM. This seminary suits the year of microcredit and contributes to the progress of the yards led in the sector in Morocco. During this seminary, AFD, USAID and the EIB presented their strategy for capacity building of microfinance sector in Morocco.

SEMINARY "THE ROLE OF GOVERNANCE FOR BETTER HELPING THE MOROCCAN MICROFINANCE SECTOR TO FACE ITS CHALLENGES",TANGIER,MAY 27 & 28

Project ASMA organized a workshop on May the 27, 28 in Tangier about "the role of governance for better helping the Moroccan Microfinance sector to face its challenges" The workshop was an opportunity to develop a participative and interactive experience for better identifying the role of governance in the Moroccan Microfinance Institution. Practical tools were provided to the representatives of MFIs to allow them to improve the governance in their daily operations.

Fondep took part in 2nd set of hearings organized by USAID Morocco, the Social Development Agency (ADS), the ASMA project and the association Al Amana. This set, which matches with the year of Micro-credit, was organized at the head office of ADS in Rabat on June 20th. The goal of these sets is to promote knowledge and experiences exchange, just as innovations and technique, and to encourage the thought about the development of procedures. This meeting was animated by Mr. Patrick Kerr et Damian Van Stauffenberg from Micro Rate Association. The same day, in the morning, they were invited by Al Amana and the ASMA project to make a presentation of Micro Rate’s methodology of rating.

Paris and Frankfurt organized international conference on microfinance in June. Fondep attend these meetings and was represented by its administrator, Mr Mouatassim BELGHAZI.
In Paris, on June 20th
The French Government, in partnership with United Nations, organized on June 20th , in Paris, an international conference on microfinance which was inaugurated by the President of French Republic, Jacques Chirac. Famous personalities of the political and financial sphere, specialists in economics, representatives of development NGO and of microfinance institutions and international bakers from all over the world were present at this conference.
This international meeting revealed the conscience, acquired on worldwide scale, of the importance of microfinance as one of major mean of poverty alleviation, fight against needy population exclusion and a relevant factor of development.
One of fundamental objectives of this meeting was to study the means to implement in order to widen and guarantee an easy and permanent access to financial services for poor populations.
In Frankfurt, on June 23 & 24th
Frankfurt welcomed a seminar under the topic "New Partnerships for innovation in microfinance". This seminar was organized by the KFW in partnership with the Consultative Group and Assistance to the Poor, the French Agency of Development and the German Federal Ministry in charge of the Economy and the Development.
This meeting was an occasion for Mr. BELGHAZI to discuss with managers of the German bank KFW about an effective participation of this international financial institution in the expansion of the sector in Morocco through a broad program of development.

SIGNATURE OF A CONVENTION OF PARTNERSHIP BETWEEN THE SOCIAL DEVELOPMENT AGENCY (ADS) AND THE FOUNDATION FOR THE LOCAL DEVELOPMENT AND PARTNERSHIP (FONDEP)

On Thursday June 30, 2005, in Fondep’s headquarters, ADS and Fondep signed a convention of partnership bearing on financing and encouragement of income-generating projects in the sectors of the craft industry, agriculture, trade and services in favor of the inhabitants of Al Hoceima area. This initiative lead by ADS and Fondep fits with the mobilization of the actors of economic and social development in favour of needy populations, in particular in Al Hoceima area struck by the earth-quake of February 23, 2004. The global envelope for this projects amounts to 2 700 000 dirhams, and will benefit more than 1000 people including 70% of women and will allow the launching of generating-income activities, the promotion of the Very Small Enterprise. The financial contribution of ADS in this project is about 2 000 000 dirhams. Fondep will be in charge of identifying the best projects which can be financed by the programme and will ensure the training and the follow up of recipients. Were present at the ceremony of signature, M. BELGHAZI President of Fondep, M. GUEDIRA President of ADS, partners and various people in charge of the project.

Within the framework of the reinforcement of Fondep’s information system the Director of the company which realized the system exploited in the network made two working visit at the head office during April. The program can be summarized in four major points: _To draw up the assessment of Fondep’s exploitation of the GIS in its current version; _To present the innovations operated on the SIG by the company owner; _To study the mechanisms of integration of new functionalities requested by Fondep; _To establish a calendar for the launching of the phase of implementation of the new version of the SIG.

The Moroccan Medical Association of Solidarity, Fondep Development, the Case of Deposit and Management, the Ministry for Health and the Province of Taounate, organized a important medico-surgical campaign in benefit to the needy population of the province on May, 27,28, and 29. During these three days, more than fifty professors in medicine, surgeons and specialist doctors (cardiology, gynecology, urology, pediatrics and endocrinology) made 57 surgical operations, 455 circumcisions and 1210 specialized medical consultations. The recipients of the surgical operations and of the medical consultations also received the necessary medicines for their cares. Cases of thyroid, gall bladder, hernia inguinale, umbilical hernia and prostate were operated. The area of Taounate, Tissa, Rhafsaï, Karia and Tahar Souk was concerned by this medical campaign which benefited more than 1722 people.

FONDEP launched its new product on the market, habitat micro-credit which aims at curing the problems of precarious living conditions of a population not having access to the banking system. This product is intended to people wishing to arrange their housing, or to reach the electrification or the supply drinking water. The improvement of living conditions of these people encourage their integration in the productive system. Initially, the damaged area of Al Hoceima was the first to profit this product which was then generalized and offered in the whole area of intervention of FONDEP. Fondep’s habitat micro-credit is composed of three by-products: Akar, Binaa and Islah.

Each product was developed in order to satisfy a specific need of customers. Indeed, "Akar" was developed to allow underprivileged populations to acquire a small-sized housing, "Binaa" aims a population which wishes to build a house, or realise an extension by building a new floor, additional rooms or any other installation. Finally "Islah" is addressed to a population which seeks to improve her framework of life in taking some refreshment to her housing (installation of a bathroom, of a kitchen, painting, repair of doors and windows…).

The international agency of rating in microfinance, "Microfinanza", published its evaluation report of FONDEP Micro-credit for the accounting period 2004. In its rating, this institution, accredited by the CGAP (World Bank) and working on several continents, considers FONDEP as one of the four more important MFI of Morocco. The report notes that the process of growth of FONDEP Micro-credit is sustained and constant. It is linked to the reinforcement of the operational system, in particular of the managing authorities, the significant growth of its active portfolio and the diversification of its cooperation with national and international financial institutions, which expresses its credibility based on transparency and professionalism. The report of Microfinanza assigns the notation BBB to FONDEP , which corresponds to the first optimal section of the notations of Microfinanza. In this system of notation, the BBB means adequate capacity to face the financial obligations, a good operational control and the insurance of an institutional stability.

In this way, Microfinanza underlines the good quality of FODEP’s portfolio, its capacity to obtain national and international subsidies and financings, its reliable image for the customers and its good positioning in terms of products’ offer. The report of rating specifies that FONDEP is well equipped, as well at the operational level as the strategic one.

FONDEP’s network was reinforced by the layout of seven new agencies in the following cities: Agadir (4), Oued Zem (1), Meknes (2). The launching of these new agencies fit with FONDEP’s strategy aiming to widen its sphere of activities and to serve more needy people carrying a generating-income project. It lead to the recruitment of the 9th promotion of loan officers who are assigned for launching the new agencies. For this purpose, they were granted a training during a whole month. Just a month after the setting-up of these seven new agencies, Fondep continues its effort of development by opening eleven new agencies in the following cities: Rabat (3), Salé (2), Témara (1), Kénitra (1), Tangier (2) Fès (2). The Foundation organized a competitive entry examination where more than 300 candidates were convened. 55 among them were selected and will represent the 10th promotion. The development of FONDEP is really important and requires a deployment and an efficient material and human mobilization for the setting-up and the success of these new agencies.

On Tuesday February 28 th, the International Finance Corporation, represented by Mrs Nina Shapiro, Vice President Finances, and Mrs. Cobein, chief of the IFC office in Morocco, signed a partnership convention with FONDEP. This is the first agreement of global partnership with a Moroccan MFI that IFC signs. The aim of this agreement is to support FONDEP development by facilitating its access to durable sources of financing so that it can purchase its mission of promoting private initiatives of destitute populations.

The International Finance Corporation is one of the five institutions forming the group of the World Bank (www.ifc.org). Its mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC grants loans and take participations in viable projects, mobilizes capital from other sources and provides services of technical assistance and advice. First multilateral source of financing of the private sector in emergent countries, IFC engaged, since its creation in 1956, nearly 50 billion $ under financings for its own account and mobilized nearly 24 billion $ in syndicated loans. At the end of June 2005, the total wallet of engagements of SFI, reached 19,3 billion $.

The global partnership between FONDEP and IFC consists in a structured financing and a innovating program of accompaniment. It is the first time that IFC signs this kind of agreement in the area North Africa and Middle East. The first shutter of this agreement with the fourth Moroccan MFI is a partial guarantee that will enable FONDEP to raise 60 million MAD of financing from Moroccan banks. The second shutter consists in providing to FONDEP a complete technical assistance aiming at accompanying its future development strategy. This innovating partnership will facilitate FONDEP access to longer-term loans with lower cost.

Meeting of the euro-Mediterranean platform for microfinance in Amman, April 5-6 th

On the invitation of SIFRA and TAMWEELCOM, representatives of Mediterranean IMFs (Lebanon, Palestine, Morocco, Egypt...), and of Belgian and Italian institutions had an appointment in Amman to give life to the project of euro-mediterranean platform for microfinance. This platform tends to constitute a euro-mediterranean force to make progress and develop the microfinance in favour of the poor populations and to contribute to the development of cooperation policies. During the period 2002-2005, various actions of lobbying near the European Union were carried out by SIFRA, meetings and conferences were organized. The meeting of Amman marks the officialization of the platform’s creation. During these two working days, the present members shared their project’s vision and expectations, worked on an action plan and on the platform’s organization. Works were enclosed by the visit of Mrs. the Minister of Plan and International Cooperation, Suhair Al-Ali, accompanied by the representing of the European Union Delegation in Jordan and the signature by the members of the declaration of Brussels, charter founder of the platform. Tool for sensitizing European and local authorities, the platform aims first to be a whole space of exchanges, sharing of experiments and partnerships between ONG of the North and the South of the Mediterranean to promote freedom to undertake and to support the human development.

Third workshop about codevelopment between Al Hoceima- Taounate-Madrid, April 21th & 22th in Al Hoceima

The three committees which were constituted during the meeting of January – Al Hoceima/Madrid Codevelopment committee, Action and codevelopment committee of Madrid, Taounate Development Unit’s network- and program initiators - CEAR, FCEAR, SABABIA, FONDEP, Madrid’s autonomous university UAM and Madrid’s township – met in Al Hoceima to jump over a new stage of the project “Creation of associative and productive basis for the realization of co-development projects”. Animated by professors Charo Rubio (psychologist and advisor for the Uam’s program “Migration and Multiculturality”), Carlos Giménez, Almudena Cortés from UAM and Jamal Al Karkouri from Ibn Tofait University of Kenitra, this third meeting took the form of training workshop and participative workshop. First, each committee introduced the progress of its works. Then, the work session animated by Mrs Rubio enabled to emit a global vision of the situation in the North and the committees possibilities of work by sharing individualized vision of present people. It highlighted new yards to consider. The presentation of codevelopment experiences between Italia and Senegal, between Mauritania and France, between Mexico and USA and the success of the initiative between Souss and France fed the thought about possible cooperation fields in favour of Al Hoceima-Taounate area’s development. Committees keep in touch to define future strategy and create an union and work’s operational network between Madrid and Al Hoceima/Taounate

Launched in the beginning of June, these openings have for principal objectives the optimisation and the homogenisation of FONDEP’s network territory covering. 110 loan officers were recruited and formed within the framework of the 11 th promotion to animate these new agencies and to reinforce some already existing. After several weeks of formal training and internship in agency, the new loan officers were received at the head office in Rabat on Monday May 22nd for a welcome reception and the official launching of the 11 th promotion.

Launched within the framework of projects with Fundacion CEAR in the areas of Ouezzane and Al Hoceima, the three housing products –Salaf Akar, Promo Binaa, Promo Islah- respectively dedicated to purchase, construction and refurbishment are proposed today in 18 agencies of the network. Housing portfolio currently represents 16% of FONDEP’s portfolio. The evolution of the housing portfolio illustrates the important demand that exists in Morocco for this for this type of products in Morocco. Moreover 47,9% of the recipients of the habitat are new borrowers at the FONDEP.

Promo Islah, dedicated to refurbishment projects, is in great demand what can explain why, although FONDEP grants loans of 5 000 to 30 000 dirhams, average housing loan size nears MAD 13 000 and 70% of the granted loans are lower than 15 000 MAD. Whereas FONDEP proposes repayment period from 9 to 30 months, 78% of the granted loans have a maturity between 12 and 24 months, and 40% are refunded in 24 months.

52,5% of housing program borrowers are women whose household is composed, in average, of five people. 35% of the recipients are younger than 40 years old and 70% less than 50 years old. The forty-year-old thus represent the most important proportion of the recipients. Recipients’ education level is weak since 45,8% of them are illiterate, 29,8% have the primary education level, 16,5% the secondary level and 8% higher education level.

Housing micro-credit offer is a complementary tool to national and local housing policies (shantytowns inhabitants rehousing, access to ownership for poor people, improvement housing conditions, basic services and infrastructures access, eradication of clandestine housing...).

Three initiatives have been just launched by the Government in favour of handicraft and small trade including two in which are implied directly the Moroccan MicroFinance Institutions (MFIs): "Tamwil" for the access to financing and "Inaya" for the medical insurance. The Prime Minister, Mr Driss JETTOU, announced these important measures - which concern nearly 3 million of self-employed workers- in front of nearly 3 000 people joined in Foreign Exchange Office in Casablanca on November 13th.

"Tamwil" convention consists in an offer of micro-credits adapted to craftsmen and small tradesmen. MFIs committed in offering individual micro-credits with amounts higher than those offered currently, up to MAD 20 000 in 2006 then MAD 30 000 in 2007 and MAD 50 000 following years. The banks also committed in simplifying their procedures for this population. As we evoked it in our previous publications, MFIs worked with public health authorities, the insurers and to contribute to the generalization of the medical insurance for the self-employed workers. In order to be in adequacy with the diversity of incomes profile of independent workers - from the lawyer to the craftsman- three products will be proposed in post offices all over Morocco and Al Amana, Zakoura and FONDEP branches: Chifaa Assassi, Chifaa Moutakamil and Chifa Chamil. The three types of contribution (45MAD/mois, 80 and 100) give access to variable services and repayments.

In his report, this agency of notation, specialized in the evaluation of MFIs and approved by the CGAP, underlines the remarkable growth which knew FONDEP and its capacity to well manage such an evolution. Indeed in a year and half, FONDEP quadrupled its active portfolio and almost triplet the number of its borrowers, its agencies and its employees "while preserving a good quality of the portfolio, by improving the effectiveness, by increasing the profitability and by consolidating its own financial self-sufficiency". Microfinanza underlines in his report the progress made by the institution in particular its organization. Those progress enabled the institution to evolve in the scale of notation, from BBB in 2004 to A. This note which belongs to the first optimal section of the notations of Microfinanza means “strong capacity to meet its financial obligations. Stable even if it could be affected by major internal or external events.”