Project detail - SAFCO Microfinance Company (Private) Limited

SAFCO Microfinance Company (Private) Limited

Status: Approved investment
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The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Safco Microfinance Company Pvt Ltd ("SMCL”) is a For-Profit, Non-Deposit Taking Microfinance institution, licensed and supervised by the Securities and Exchange Commission of Pakistan ("SECP”). It provides affordable microfinance services to unbanked and low-income entrepreneurs in the Sindh province where the SAFCO franchise has presence since 1986. SMCL is a wholly owned subsidiary of SAFCO Support Foundation.

What is our funding objective?

The facility supports portfolio growth in women and rural financing thereby promoting financial inclusion and gender equality.

Why do we fund this investment?

Pakistan remains a developing country with majority of the population having no access to commercial funding. Therefore, microfinance providers like SMCL play a key role in assisting the economic progression of the less privileged. Moreover, after the 2022 floods, credit assistance is vital for those affected to rebuild their livelihoods means and resettle.

What is the Environmental and Social categorization rationale?

FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among other, over-indebtedness, transparency of interest rates, responsible pricing, are covered by FMO in other assessments such as Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.

Financial Institutions
Publication date
Effective 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)