Aga Khan Agency for Microfinance

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About the Aga Khan Agency for Microfinance (AKAM)

The Aga Khan Agency for Microfinance (AKAM) is part of the Aga Khan Development Network (AKDN). For more than 60 years, various agencies of the AKDN offered microfinance products and services through integrated development programmes and self-standing microfinance institutions. Today, these programmes have been brought together under AKAM administration, but AKAM still works closely with the other AKDN agencies as part of coordinated area development programmes.

Overview
AKAM’s primary objectives are to reduce poverty, diminish the vulnerability of poor populations and alleviate economic and social exclusion. It aims to help people become self-reliant and eventually gain the skills needed to graduate into the mainstream financial markets. This endeavour is governed by principles of long-term sustainability, efficiency and financial discipline. Operating in both rural and urban settings, AKAM’s programmes have helped poor people from a variety of cultures and backgrounds to expand their incomes and improve their quality of life.

AKAM operates today in 13 countries and its institutions offer a full range of products, such as simple individual or group loans, housing microfinance, microinsurance products and loans for Small and Medium Enterprise activity.

2008 in Focus
In 2008, the Aga Khan Agency for Microfinance (AKAM) continued its accelerated pace of growth. It maintained a strong poverty-centred approach to the design and delivery of services, which is particularly important given the impact of the global crisis. AKAM has responded to the economic difficulties by extending its outreach further downwards to some of the poorest and most vulnerable.

As of year-end 2008, AKAM oversaw 15 field entities (including two microinsurance agencies in Pakistan and Tanzania) that operated 283 branches and outlets with more than 3,400 employees. Disbursements exceeded US$ 200 million in 357,000 loans. Year-to-year, the net loan portfolio grew 23 percent in value to US$ 140 million and there were 318,141 loans outstanding at the end of 2008. The combined assets of all AKAM field units amounted to nearly US$ 250 million.

New initiatives that will support the long-term success of AKAM and its affiliates included a number of innovative product development programmes and a recently established travelling training academy for staff. In addition, the microinsurance programme in Pakistan continued to grow. By year-end just under 400,000 lives were covered by a mixture of credit life, health and savings protection policies. Research programmes were also started on the development of schemes to support rural electrification programmes and increasing energy efficiency through better insulation.