Who is our client
Kashf Foundation is an MFI based in Lahore, Pakistan. They are one of the largest MFIs reaching over 400,000 clients and focus on lending to women micro entrepreneurs in Pakistan. Their objective is to alleviate poverty and empower women by providing quality and cost-effective microfinance services to low income households. They cater to these needs by providing women micro-entrepreneurs with (1) individual lending, (2) insurance, (3) capacity building trainings, and (4) social advocacy interventions aimed at creating awareness about gender discrimination and social issues.
To allow Kashf Foundation to grow their business by expanding their existing operations, entering new regions as well as increasing their share of rural loans.
Why we fund this project
Pakistan is a country where more than one-third of the population live below the poverty line and more than 50% of the population is unbanked (>100m people). Gender inequality is a major issue and <5% of women are included in the formal financial sector. Pakistan ranks 143 out of 144 countries in the World Gender Inequality survey. Kashf Foundation is a highly mission orientated institution with strong development goals to empower women. They are an important partner to reach the underserved micro segment in Pakistan and to help contribute towards reducing the gender inequality gap.
Environmental and social rationale
Kashf Foundation has a Category C E&S score due to its microfinance portfolio. KF’s core product, the general loan is typically used to support micro enterprises involved in batch work projects such as embroidery, tailoring, small-scale manufacturing such as shoes, and small retail outlets. Loan amounts range between Rs.10,000 -50,000 (($165 - 500). As such KF’s portfolio is comprised of micro or very small businesses and therefore has positive social impact and a limited environmental footprint. Management is highly committed to developing an enabling environment for women entrepreneurs (business incubation, capacity building, promoting women’s rights and gender justice etc.). Leading by example, KF has been maintaining a gender balance of 50% within its human resources of 2,800 at the organizational level and has a gender inclusive HR policy (women comprise 47% of all management positions while 48% of employees report to a female manager). In terms of E&S risk management their focus is clearly geared towards the social impact which is their core objective.
|Date||Total FMO financing|
|7/30/2020||EUR 0.05 MLN|
|11/27/2017||USD 5.00 MLN|
- Website client
- Financial Institutions
- Signing date
- Total FMO financing
- USD 5.00 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)