Social Issue

With a population of 1.3 million people, Timor-Leste is one of the smallest and least developed countries in South East Asia. The twin shocks of COVID-19 and Tropical Cyclone Seroja, have left Timor-Leste’s Gross Domestic Product (GDP) lower than it was in 2016, putting vulnerable rural communities under increasing financial strain.

Promoting domestic business opportunity is a key driver to reduce poverty in the country where financial access remains very limited, particularly for lower income families.

Our Response

Netri Foundation has supported KIF since 2018, given its focus on providing financial services with the objectives of improving the quality of life of families and empowering women.

Kaebauk Investimentu No Finansas (KIF) was founded in 2002 by the NGO Tuba Rai Metin, with the support of Catholic Relief Services and Save the Children. KIF was the first company in East Timor to become a non-bank that can raise deposits. In addition, it has the widest branch network among all the country’s financial institutions.

KIF offers microloans to clients who mainly live in rural areas with the majority of its portfolio is dedicated to micro-loans to finance small commercial activities, but they also offer loans to small businesses, for home improvements, education, and increasingly to farmers.. Over the past two years, they have been running training programs for farmers, especially in coffee and bamboo cultivation, and their exposure in the agricultural sector has increased to 13% of the portfolio.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that KIF will be able to provide more than 770 microloans to its clients, with the expected result of empowering the rural communities of East Timor.