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 microfinance institution (MFI) based in Almaty, Kazakhstan, originally founded as an NGO in 1997. It is 100% owned by Mercy Corps, a US organisation for humanitarian action and development cooperation. In June 2006, ACF became a limited liability company and an MFI.

Expected Social Impact

With the investment of the Netri Foundation, it is estimated that ACF will be able to provide 750 microloans to empower rural communities in Kazakhstan.