Netri Foundation

Social investments to combat extreme poverty

Financial services for informal sector entrepreneurs

Kazakhstan, 2011

Collaborating Entity Asian Credit Fund (ACF)
Amount $150,000
Term 1 year
Beneficiaries 1,820

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Social Issue

In the Central Asia region, the collapse of the publicly owned company had a dramatic effect on the region’s economy, leading to an eonormous increase in small businesses and self-employment. Very few commercial banks showed interest in providing financial services to these micro and small companies.

Our Response

Microfinance products have shown great potential in offering a full range of services to low-income people for their economic development, and they also represent an aid to social cohesion and poverty reduction. They offer mechanisms to support sectors of the economy that the traditional financial system does not generally consider to be eligible for funding due to high transaction costs, perceived risks, and low margins, and also because their concession lacks formal guarantees.

Asian Credit Fund (ACF) is a former NGO founded in 1997 and converted to a microfinance entity in 2006. It has its main headquarters in the capital, Almaty, and offices in Semei, Karaganda, and Taraz with branches in the rural areas around these cities. ACF hopes to expand to agricultural areas in the north of the country.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that ACF will be able to provide 364 microloans to empower rural communities in Kazakhstan.