Swiss Investment Fund
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KMF Microfinance organization, LLC

KazMicroFinance (KMF) is the largest microfinance institution in Kazakhstan, with over 245,000 clients. It has a network of nearly 120 branches and outlets situated in urban and rural areas. The Institution offers loans for agriculture and business purposes to micro and small entrepreneurs, with a focus on rural areas; it fosters financial inclusion through its reach to the lower income segment of the population, and offers both individual and group loans. Micro loans represent 79 per cent of the portfolio, 59 per cent of the total portfolio are loans provided to women and 35 per cent of the total portfolio are loans for agriculture purposes (February 2019). KMF is supporting its clients by providing not only financial services but also by providing financial literacy education and business management training.

KMF Microfinance organization, LLC

KazMicroFinance (KMF) is the largest microfinance institution in Kazakhstan, with over 245,000 clients. It has a network of nearly 120 branches and outlets situated in urban and rural areas. The Institution offers loans for agriculture and business purposes to micro and small entrepreneurs, with a focus on rural areas; it fosters financial inclusion through its reach to the lower income segment of the population, and offers both individual and group loans. Micro loans represent 79 per cent of the portfolio, 59 per cent of the total portfolio are loans provided to women and 35 per cent of the total portfolio are loans for agriculture purposes (February 2019). KMF is supporting its clients by providing not only financial services but also by providing financial literacy education and business management training.

About the fund

SMEs in Kazakhstan are faced with obstacles to access bank credit, such as high interest rates, strict collateral requirements and a lack of credit history. The lack of access to finance among MSMEs is a key obstacle for economic diversification and private sector development. SIFEM’s long-term loan of USD 10 million in local currency will support KMF to provide financing to MSME clients that have largely been ignored by commercial banks, enabling them to operate and further grow their businesses. It will contribute to the long-term sustainability of the Kazakh economy through financial sector deepening and job creation.

Reference code
2019-05
Status
Active
Date of commmitment
October 2019
Date of exit
-
SIFEM commitment
USD
Asset class
Private Debt
Investment strategy
Direct Investment