KASHF FOUNDATION
Status: Approved investmentWhy disclosure?
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Disclaimer
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
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.
What is our funding objective?
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 do we fund this investment?
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.
What is the Environmental and Social categorization 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.
More investments
| Date | Total FMO financing |
|---|---|
| 10/27/2021 | EUR 0.05 MLN |
| 6/16/2022 | USD 5.00 MLN |
- Website customer/investment
- http://kashf.org/
- Region
- Asia
- Country
- Pakistan
- Sector
- Financial Institutions
- Publication date
- 1/14/2019
- Effective date
- 8/12/2019
- Total FMO financing
- USD 5.00 MLN
- Funding
- FMO NV
-
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) - C