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RESEAU DES CAISSES POPULAIRES DU
BURKINA  
THE EXPERIENCE OF RCPB IN RISKS MANAGEMENT

• Presented by
• Ms Marie Pascaline DIASSO
• Operations director

April 2009
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PLAN

• Presentation of RCPB
• RCPB in agriculture financing
• RCPB in risk management
• 1. The identification and the evaluation of risks
• 2. The main agriculture risks
• 3. Risks mitigation
• IV. Perspectives
• V. Conclusion

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PRESENTATION OF RCPB

• WHAT IS THE RCPB?
• Mutualist movement governed by the law 59 ADP of
  15/12/94
• The 1st branch created in 1972
• Its structured at 3 levels
• - branch place of services (saving and credit )
• - regional Union center of services for
  affiliated branches (follow-up, training,
  management of liquidity, support advice )
• - Federation orientations, development
  coordination, financial survey, representation,
  etc.
• Setting-up in 42/45 provinces of Burkina Faso
• 160 places of services delivery among which 2/3
  in rural areas

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PRESENTATION OF RCPB

• THE RCPBs main statistics
• 555 000 members owners among whom 30 of women
• 1 000 000 clients
• 87 million US dollars of local deposits
• 79,5 million US dollars of outstanding loan among
  which 40 in agriculture
• Permanent staff 827 with 70 of women

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RCPB IN AGRICULTURE FINANCING

• THE COVERED SECTORS
• Cereal storage, securing, pre-payment
• Fruits and vegetables truck farming,
  transformation
• Cattle aviculture, geting fat, ox
• Rice production, selling
• Cotton production

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RCPB IN AGRICULTURE FINANCING

• PRODUCTS AND AGRICULTURAL SERVICES
• LOANS PRODUCTS
• Truck farming input and equipment
• Getting fat trading, equipment
• food production input and equipment
• Transformation of farm produces Working capital,
  equipment
• Pre-payment of cereal Working capital, input,
  equipment
• Cotton equipment and input
• Storage trading
• Securing pledging cereals attics

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RCPB IN AGRICULTURE FINANCING

• PRODUCTS AND AGRICULTURAL SERVICES (contd)
• SAVINGS PRODUCTS
• Sight deposit
• Term deposit
• Savings with objective

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LE RCPB DANS LE FINANCEMENT DE LAGRICULTURE

• PRODUCTS AND AGRICULTURAL SERVICES (contd)
• THE NON FINANCIAL SERVICES
• Support advice organizing producers associations
  in partnership with the suppliers of the non
  financial services
• Increasing producers awareness on the services
  offered by the branches
• Training with the contribution of technical
• partners
• Lead up producers to open accounts

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RCPB IN RISKS MANAGEMENT

• The used method is
• Risks identification and evaluation
• The implementation of a mechanism to manage and
  to mitigate the risks
• - The evaluation of the efficiency of the set up
  device  

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RCPB IN RISKS MANAGEMENT

• 1. THE IDENTIFICATION AND THE ESTIMATE OF THE
  RISKS
• - The identification of the risks is made
  through the analysis of the external and internal
  environment by taking into account forecasts of
  medium and long-term transformation.
• - The evaluation to measure the importance of
  the risks following the frequency, the impact,
  the efficiency of the procedures and the existing
  control.
• - The major risks are in the strategic planning

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RCPB IN RISKS MANAGEMENT

• Map of the agricultural risks
• Credit risks
• Liquidity risks
• External risks

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RCPB IN RISKS MANAGEMENT

• CREDIT RISK
• Risk of Arrears payments which can recover from
  the diversion of the purpose of the credit, the
  over evaluation of the quantities of input wich
  are necessary, etc.
• Risk of concentration (8,5 billion financing of
  cotton input is 27,6 of the total of the
  outstanding loan in 2005)

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RCPB IN RISKS MANAGEMENT

• LIQUIDITY RISKS
• Difficulty of matching of the terms of
  applications and resources
• Inadequacy between the volume of Loan
  disbursement and the volume of raised savings
  with the producers ( very tiny savings)

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RCPB IN RISKS MANAGEMENT

• EXTERNAL RISKS
• Climatic chances (uncertainty of rains)
• Risks of instability of the world courses
• Lack of outlets at the level of most of the
  agricultural sectors
• Risk of dysfunction of the Producers
  organizations
• Quality of inputs.

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RCPB IN RISKS MANAGEMENT

• CREDIT RISK MITIGATION
• Creation of a fund to ease the cotton sectors
  risk, wich represent 20 of the interest income
  from the financing of the cotton sector
• - Participation in the process of identification
  and validation of the needs of the producers

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RCPB IN RISKS MANAGEMENT

• CREDIT RISK MITIGATION (contd)
• To ease concentration risk
• Cofinancing with a bank to mutualize the risks
• reduction of the amount of financing of the
  cotton inputs credits
• implementation of a strategy of diversification
  of the credit portfolio in particular on the
  other agricultural sectors.

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RCPB IN RISKS MANAGEMENT

• LIQUIDITY RISK MITIGATION
• The increasing of the producers awareness to the
  culture of savings
• The promotion of the savings middle term and
  capitalization

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RCPB IN RISKS MANAGEMENT

• To encourage the financing of the agriculture to
  the national level, Burkina state proceeded in
• The research for markets for the drainage of
  certain farm produces.
• The increasing of the producers capacities
  building (agricultural training, equipment in
  advantageous payment terms , control of the
  water, the organization of the agricultural
  sectors)
• Implementation of a fund of smoothing for landing
  in the decline of the costs of purchase of the
  cotton to the producers

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PERSPECTIVES

• Improve the access of the agricultural rural
  populations to financial services in spite of the
  risks connected to the sector
• Contribute to the organization and to the
  professionalization of the farmers of the various
  sectors in their activities management
• Create a partnership with the non financial
  service providers to support the farmers
• Create and agriculture financial center in order
  to manage better the risks connected

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CONCLUSION

• Microfinance tool of financing of the farming
  sector In spite of the risks (operational,
  financial and climatic)
• better structured and organized Farming sector
  condition of success of the financing
• tripartite Partnership Farmers - non financial
  Service providers microfinance Institutions
  Win-win solution
• Professionalization of the actors security for
  the sector and for risks decrease

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THANK YOU !