Networks

The Aga Khan Agency for Microfinance operates microfinance programmes and institutions in 13 countries throughout the developing world. These entities grew from programmes created by the Aga Khan Fund for Economic Development, the Aga Khan Foundation and the Aga Khan Trust for Culture. The underlying objectives of AKAM are to alleviate economic and social exclusion, diminish the vulnerability of poor populations and reduce poverty. AKAM aims to help people become self-reliant and eventually gain the skills needed to graduate into mainstream financial markets. The underlying principles of this approach are the following: • Broad Range of Products: AKAM offers a range of microfinance products, including savings and deposit, housing and education loans, as a way of reducing vulnerability. • Assesment of Impact: Through careful targeting, monitoring and evaluation AKAM works to maximise the impact on poor communities. • Sustainability: The aim is to cover inflation-adjusted costs through revenues and to generate a modest surplus that can contribute to expanding the range of services and geographical coverage. • Concerted Development: AKAM works in concert withother Aga Khan Development Network (AKDN) agencies and external organisations to integrate microfinance and maximise synergies with complementary development activities. • Easy Access and Flexible Solutions: AKAM has devised a variety of institutional approaches and instruments that facilitate access and address different contexts, cultures and local requirements. • Efficiency and Transparency: A major focus for AKAM staff is to enhance the quality of credit through clear, detailed lending procedures, well documented procedures, properly trained staff and the use of best practices that ensure financial discipline and cost control. • Evolution: As a microfinance programme grows it can evolve from a small initiative to a microfinance bank. • Business Development Services: Loans are accompanied by training in basic business concepts so borrowers can become financially disciplined, self-reliant entrepreneurs. • Partnerships: AKAM works closely with governments,international agencies and professional organisations to ensure that its clients receive the best services. Cacher