Aga Khan Agency for Microfinance expands in Syria
The First MicroFinance Institution, part of the Aga Khan Agency for Microfinance, has opened its Syria’s (FMFI-S) newest branch in Maysat, in the northern part of Damascus, on Thursday.
The new branch will expand services offered to marginalised segments of the population with the aim of providing more poor people with financial services. According to studies undertaken by the International Finance Corporation (IFC) and KfW Bankengruppe (KfW), an estimated 260,000 to 420,000 households in Syria require access to microcredit for business purposes. One million households require credit for non-business purposes such as housing, education and medical care. FMFI-S is the largest provider with over 14,500 loans.
“This is another forward step in our plan to focus on making financial services accessible to everyone, helping to include the poor and marginalised segments in the economic cycle,” said Jacques Toureille, General Manager of the Aga Khan Agency for Microfinance (AKAM) who also attended the opening ceremony.
FMFI-S is the leading private-sector microfinance provider in Syria. Originally established in 2003 as a microfinance programme, FMFI-S completed its transition to a deposit-taking institution in October 2008. Over the next five years, FMFI-S’s network will grow to 23 branches throughout the 14 Syrian Governorates. Its network-wide portfolio is also expected to grow to over 86,000 loans.
In order to enable the bank’s expansion, the government has recently approved the entry of capital from foreign entities into FMFI-S. In the coming months, KfW, the International Finance Corporation, and the European Investment Bank will become shareholders of the institution so that FMFI-S can expand its financial services to the poor in Syria.
FMFI-S is a part of AKAM, which currently operates microfinance institutions in 14 countries throughout Asia and Africa. AKAM is a private, international, non-denominational and non-profit development agency that strives to assist vulnerable populations by providing them with a range of financial services. AKAM’s ultimate aim is to help enhance the quality of life and improve economic security.
Syrian Deputy Prime Minister Dr. Abdullah Dardari opened the branch in the presence of the Governor of the Central Bank of Syria, Dr. Adeeb Mayaleh, and the Aga Khan Development Network (AKDN) Resident Representative in Syria, Mr. Mohamed Seifo, said a press release.