The Securities and Exchange Commission of Pakistan (SECP) recently issued a license to Sustainable Actions to Access Financial Capital Opportunities (SAFCO) Microfinance Company, a unit of the SAFCO Support Foundation, allowing it to offer microfinance services. The announcement comes as SECP is encouraging NGO microfinance organizations to transform into for-profit entities to raise equity funding to grow more quickly to serve more customers. In particular, SAFCO Foundation reportedly is seeking to double its client base over the next five years.
Founded in 2009, SAFCO Foundation aims to provide low-income communities in Pakistan with microloan and microinsurance services in a “socially, economically and environmentally sustainable” manner. The organization offers loans for farming, raising livestock, other businesses, vehicles, solar panels, education and other purposes. It also offers programming for “ultra poor” citizens. As of April 2022, SAFCO Foundation had PKR 5.0 billion (USD 22 million) in total assets and a gross loan portfolio of PKR 3.6 billion (USD 16 million). Its 586 staff people serve 119,000 clients, of whom 62 percent are women.
Founded in 1999, SECP is tasked with regulating the country’s capital markets, insurance firms and non-banking financial corporations. As of 2021, 146,000 companies were registered with SECP.
By Ben Greissman, Research Associate
Sources and Additional Resources
Business Recorder article
https://www.brecorder.com/news/40186339/secp-issues-licence-to-safco-microfinance-company
SAFCO Foundation homepage
https://www.safcosupport.org
SAFCO portfolio page
https://www.safcosupport.org/home/portfolio.php
SECP homepage
https://www.secp.gov.pk
SECP annual report
https://www.secp.gov.pk/media-center/annual-reports/
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