Almaty, Kazakhstan, February 10, 2023—A new investment by IFC in KMF, one of Kazakhstan's leading microfinance organizations, will boost access to finance for the country's underserved micro and small enterprises (MSEs) and increase the availability of local currency funding, to help drive economic growth.
IFC is providing KMF, a long-term partner, with a $20 million loan denominated in Kazakhstani tenge, which the company will use to extend its reach to micro and smaller businesses across a range of sectors. At least half of the funds will be earmarked for women-owned MSEs, while those in rural areas will also be targeted.
Smaller businesses are the backbone of Kazakhstan's economy and supporting them is vital to drive sustainable economic growth. But access to finance remains an ongoing challenge in the country, especially for women and rural communities.
"More than half of our offices are located in villages and remote areas. IFC's financing will enable us to offer affordable microfinance to even more entrepreneurs in these areas, which is especially timely in the current economic environment. Entrepreneurs will be able to direct funds to expand existing businesses, modernize and create jobs, having a positive impact on the economies of these areas," said Shalkar Zhussupov, Chairman of the Management Board of KMF.
Over the past several years, IFC has supported KMF with a range of financial products totaling $237 million, as well as risk management solutions and advisory services to enhance its corporate governance.
"In these challenging economic times, supporting smaller businesses is crucial to underpin sustainable economic growth. Despite their contributions to the economy, many still struggle to access funding. This new partnership will help address that, while also advancing gender inclusion, which is a key part of IFC's strategy in the region," said Alain Nounke, IFC's Regional Portfolio Manager for Financial Institutions Group, covering the Middle East, Afghanistan, Pakistan, Central Asia and Türkiye.
The loan to KMF is part of IFC's Base of the Pyramid Program (BOP), an extension to IFC's Fast-Track COVID Facility launched in 2021. BOP enables financial services providers to help MSMEs, informal enterprises, and low-income households recover from the operational and financial impacts of the pandemic. It is providing up to $600 million to microfinance institutions, non-bank financial institutions, and MSME-focused banks.
For more information about KMF, please visit http://www.kmf.kz
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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