In Pakistan, Karandaaz strengthen the financing for women led and climate focuses MSME’s, with the support of Proparco
published on 28 August 2024
Proparco grants a €1 million ARIZ TPE portfolio guarantee to Karandaaz, a non-profit organization based in Pakistan. This guarantee will enhance access to financing for micro, small, and medium enterprises (MSMEs) in Pakistan, with a special focus on women-led businesses and climate-related ventures. The agreement was formalized during a signing ceremony held in Islamabad.
Karandaaz Pakistan is a non-profit organization established in 2014. Karandaaz has been a leading force in driving innovative financial solutions through its Women Ventures (WV) and Green Challenge Funds (GCF) programs. These initiatives specifically target women entrepreneurs and early-stage MSMEs involved in climate action, such as efficient water management and plastic waste reduction.
This collaboration will introduce an ARIZ TPE portfolio guarantee with Karandaaz Pakistan, covering a part of the final loss on loans extended to MSMEs and enabling Karandaaz to implement its business expansion strategy in rural areas, with women entrepreneurs and climate projects. This guarantee mechanism, backed by the French State, will play a pivotal role in addressing the significant financing gaps faced by MSMEs in Pakistan
By focusing on these key areas, Proparco and Karandaaz are not only promoting economic growth but also contributing to the broader goals of gender equality and environmental sustainability. These are crucial components of a resilient and prosperous Pakistan.
Through its internal commitment (with more than 30 % women on its board) and its support for women entrepreneurs, the project is eligible for the 2X Challenge, an initiative to strengthen women's economic empowerment.
Mr. Guillaume Dabouis, French Deputy Head of Mission, commented on this partnership "The French Embassy in Pakistan is proud to support this partnership between Proparco and Karandaaz, which aligns with our commitment to fostering sustainable economic development and gender equality in Pakistan."
Mrs. Diane Jegam, Regional Director of Proparco South Asia, added, “This partnership is a powerful step towards unlocking the potential of Pakistan's MSMEs, particularly those led by women and focused on climate action. By bridging the financing gap, we are empowering entrepreneurs to drive sustainable growth and create a more inclusive and resilient future for all."
Mr. Waqas ul Hasan, CEO Karandaaz, said, "It's one of the priority result areas for KRN to grow financing of women led businesses and help scaling of innovative green technologies. We are thrilled that Proparco will be a partner in our journey. We will keep looking for more opportunities of such partnerships which further our mission".
