On July 4, Almaty hosted the forum “Microfinance Sector of Kazakhstan: 20 Years of Sustainable Development,” which was timed to celebrate the 20th anniversary of the Association of Microfinance Organizations.
The main topic of the forum was the place and role of microfinance organizations in the development of entrepreneurship and financial inclusion. The content of the discussion sessions was focused on revealing the true purpose of microcredit based on its traditional concept—reducing the gap between rich and poor, promoting inclusive economic growth, increasing citizen business activity, and supporting entrepreneurship.
Chairperson of the ACF Board Zhakupova Zhanna took part in two-panel sessions.
In the session’ Microcrediting as a tool to support entrepreneurship and development of financial inclusion,’ Zhakupova Zhanna shared how ACF manages to maintain its social mission in the highly competitive microcrediting market. She emphasized that following such a noble mission is not only cost-effective but also a key to success in the current environment. She noted that preserving the social mission requires thoughtful strategy development, a plan for its implementation, and discipline in adherence to the company’s core principles and mission. ACF’s success over more than 27 years is based on several key aspects, which serve as an inspiration for the future of microfinance in Kazakhstan:
The focus is on the social mission of supporting households, micro and small businesses, and improving financial literacy in rural areas of Kazakhstan.
The development of access to financial services is aimed at the social and economic development of ACF clients, especially women in rural areas.
Cooperation with international and local organizations allows the organization to expand its programs and resources.
As of July 1, 2024, the ACF loan portfolio amounted to 30 billion tenge, the number of active borrowers was 43,281, and the average amount of microcredit per 1 borrower was 700 thousand tenge. If we compare the data with other classical MFIs in the market of Kazakhstan, the average amount of ACF is the smallest. ACF has 63 offices, 57 of which are located in rural areas. 91% of ACF borrowers are from rural areas. 58% are in livestock farming, while the rest are in crop production, trade, and services. ACF’s mission is to improve the quality of life of the rural population by providing quick and convenient financial services. Therefore, ACF must have a balanced approach that ensures financial sustainability and social responsibility. This balanced approach reassures the audience about ACF’s commitment to both financial sustainability and social responsibility, instilling confidence in ACF’s operations. Like our majority international member, BOPA Ltd, ACF annually assesses the fulfillment of the mission and the fulfillment of social indicators and issues a social report posted on the company’s website.
Adherence to the mission and vision, as well as the strategy for long-term mutually beneficial relationships with clients, is the basis for the sustainable business of ACF. Since its foundation in 1997, ACF has always paid and continues to pay special attention to the development and maintenance of a high level of corporate culture. This focus on client relationships ensures an acceptable level of profitability and underscores ACF’s commitment to its clients.
The second session moderated by Zhakupova Zhanna was dedicated to the ESG theme “Sustainable Microfinance in Kazakhstan: Integrating ESG Principles for Future Growth”. 2 years ago, at the Central Asian Microfinance Summit held under the auspices of AMFOC, one of the sessions discussed the topic of ESG implementation in the activities of MFIs. Representatives of MFIs of Kazakhstan, KASE and representatives of international companies Enabling Capital and Frankfurt School of Finance and Management were invited to this session. At the session, the participants shared their achievements in the field of ESG, as well as their vision for the development of this area in the future. The topic of the session aroused great interest and gathered a lot of comments. After the discussion, the speakers answered the questions of the forum participants.