20 Oct 2020
The Swiss Investment Fund for Emerging Markets (SIFEM) is providing USD 10 million for microentrepreneurs in Kazakhstan through KMF, the country’s largest microfinance institution.
SIFEM funds will help MFI KMF to successfully diversify its investment portfolio and attract affordable financing for SMEs to aid in overcoming the economic woes caused by the COVID-19 pandemic.
Almaty, XX October 2020. SIFEM, the Development Finance Iinstitution (DFI) of the Swiss Confederation, has allocated funds to Microfinance Institution KMF to provide financing to small and medium-sized enterprises (SMEs) in Kazakhstan.
The funds will be extended to KMF in local currency (Kazakhstani tenge) to support its onlending activities focused on small and medium-sized enterprises: self-employed micro-enterprises in urban and rural areas of Kazakhstan in this time of economic hardships caused by Covid-19 pandemic.
“Given the positive financial impact that microlending has on emerging economies, we support the active expansion of microfinancing in Kazakhstan. Our long-term loan will allow the country’s largest microfinance institution KMF to continue to provide financing to rural residents, in particular women, who struggle with the current economic downturn and loss of income as a consequence”, said Jörg Frieden, SIFEM Chairman.
"The financing provided by our European partners will be used exclusively for business purposes - lending to microentrepreneurs to expand turnover or restore business activity within the framework of our current customer support program, which has already covered about 17 thousand borrowers,” - said Shalkar Zhussupov, Chairman of KMF Management Board.
SIFEMThe Swiss Investment Fund for Emerging Markets (SIFEM) is the Swiss Development Finance Institution (DFI). It is owned by the Swiss Government and is an integral part of Switzerland’s instruments of economic development cooperation. SIFEM is specialised in providing long-term financing through local funds and financial institutions to small and medium-sized enterprises and other fast-growing companies in developing and emerging countries. This helps to create and secure more and better jobs and reduce poverty while also contributing towards the integration of these countries into the global economic system. The fund management and portfolio management functions were outsourced to the specialised investment adviser Obviam in 2011