Loan to KMF: Supporting microfinance for rural populations in Kazakhstan

KMF is the largest microfinance institution in the country, with over 200,000 borrowers. The institution is majority owned by the NGO which set it up in 1997 and has managed to maintain its ambitious social mission: contribute to improving living conditions for microentrepreneurs, small entrepreneurs and agribusiness by providing high-quality microfinance services.

KMF mainly operates in the poorest regions in the country and targets rural populations, particularly small herders.

In addition to a very good management of its social performance, KMF has demonstrated a strong capacity for resilience to the monetary and economic crisis experienced by the country since 2014.

This 4-year loan in local currency (covered via TCX) is earmarked to support growth in KMF’s activity in a context where KMF is unable to collect savings.

PROPARCO’s financing should allow some 25,000 additional clients to access microcredits by the end of 2019, mainly women (64% of clients) living in rural areas and micro-herders, which are either poorly or not served by local banks.

The project will support private sector development in the country, particularly microenterprises and small businesses in the trade, livestock raising and service sectors.

The project will thereby contribute to Sustainable Development Goals 8 (Decent employment and economic growth), 5 (Gender equality) and 10 (Reduced inequalities).