Published: 25 January 2006
The International Federation of Red Cross and Red Crescent Societies and the Fundación Latino Grameen, which is a partner of the Grameen Institution of Bangladesh, have signed a letter of intent to bring microcredit to the poorest of the poor in every African country.
The agreement was signed today in Madrid, in the presence of International Federation President Juan Manuel Suárez del Toro and Professor Muhammad Yunus, founder of the Grameen Bank and Honorary Chairman of the Fundación Latino Grameen (FLAG).
The new partnership marries the 30-year expertise of Grameen in microcredit schemes with the grassroots reach of the International Federation in Africa, ensuring greater impact by both organisations on poverty in Africa.
Since 1976, Grameen has lent small sums of money that have helped lift millions of very poor families out of poverty in Bangladesh, where it currently serves 5.36 million borrowers, and in many other countries where the model was replicated.
The International Federation is the world’s largest humanitarian network, with Red Cross or Red Crescent Societies in 183 countries, including in 48 African countries. The International Federation seeks to improve the lives of vulnerable people through health, disaster preparedness and response, and development initiatives, without discrimination as to nationality, race, religion, class or political opinion.
Mr Suárez del Toro said: “Many of the issues the International Federation works on in Africa– including food security, health, disaster preparedness and response, and HIV/AIDS – have strong links to poverty. This partnership will help poor people become the architects of their own destiny.”
Professor Yunus said: “Poverty is the denial of all basic human rights. Poverty is not the creation of the poor, but of a system that allows it. This new partnership will bring wealth and dignity to the very poor families of Africa.”