The CDC Group, a development finance institution owned by the UK government, recently disbursed USD 25 million to Kashf Foundation, a Pakistani microfinance institution, in the form of a senior, unsecured term loan. The loan is 40-percent funded by FinnFund, a development finance institution controlled by the government of Finland.
Kashf Managing Director Roshaneh Zafar stated, “We are proud to have been a trendsetter in 1996 as the first specialized microfinance organization in the country with a clear focus on women micro entrepreneurs. For the next five years, our focus is to further enhance women’s productivity across our network of branches and develop more customized solutions for our clients, while gearing to expand outreach to over 1 million female clients.”
Kashf was established in 1996 to alleviate poverty by providing a range of services to people with low incomes, especially women. The organization provides training on topics such as developing marketable skills, managing finances and safeguarding children against abuse. Its financial products include microinsurance as well as enterprise, farming, student and Shariah-compliant loans. The organization’s Kashf School Sarmaya supports low-cost private schools with loans and training on capacity building. As of 2020, Kashf has total assets of PKR 24 billion (USD 152 million), with a microcredit loan portfolio of PKR 12 billion (USD 76 million), 325 branches and 513,000 clients. The organization does not accept deposits.
The CDC Group invests via debt, direct equity and “fund-of-funds” strategies with the goal of fostering growth in “sustainable” businesses to raise living standards in Africa and South Asia. As of 2020, it reported an investment portfolio of GBP 4.7 billion (USD 6.5 billion) and total net assets of GBP 6.5 billion (USD 9.0 billion). The institution was established in 1948 as the Colonial Development Corporation and was later renamed the Commonwealth Development Corporation before taking on its current name.
Established in Finland in 1980, Finnfund is 94-percent owned by the Finnish state. It invests in low- and middle-income countries, with a particular focus on “renewable energy, sustainable forestry, sustainable agriculture and financial institutions.” As of 2019, Finnfund reported a portfolio of EUR 617 million (USD 693 million).
By Steffi Ong, Research Associate
Sources and Additional Resources
CDC press release
https://www.cdcgroup.com/en/news-insight/news/cdc-and-finnfund-invest-in-microfinance-pioneer-to-drive-women-entrepreneurship-in-pakistan/
Kashf homepage
https://kashf.org/
About CDC
https://www.cdcgroup.com/
About Finfund
https://www.finnfund.fi/
More News on CDC from MicroCapital
https://www.microcapital.org/?s=CDC
More News on Kashf from MicroCapital
https://www.microcapital.org/?s=Kashf
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