The International Finance Corporation (IFC), a member of the World Bank Group, says it is deepening its support for micro and small enterprises (MSEs) in Kazakhstan, with a particular focus on women entrepreneurs and rural agribusinesses, by investing up to $50 million in KazMicroFinance (KMF), one of the country’s leading microfinance institutions.
KMF operates 18 branches and 117 sales points across Kazakhstan. Over 55 percent of its borrowers are women and 67 percent live in rural areas. IFC’s investment will boost access to much needed financing for MSEs across the country, and specifically for women entrepreneurs and rural agribusinesses.
“IFC has been committed to our mission to support micro and small businesses across Kazakhstan,” said Shalkar Zhussupov, Chairman of the Management Board of KMF. “This new investment strengthens our ability to navigate current challenges and continue our work, especially as we move towards becoming a universal bank. We’re committed to enhancing financial inclusion and expanding access to vital services for entrepreneurs throughout the country.”
Small and medium-sized enterprises are a crucial contributor to Kazakhstan’s economy, accounting for 36.5 percent of its GDP according to Kazakhstan’s Bureau of National Statistics. But access to finance remains an ongoing challenge in the country, especially for women and rural communities.
“Increasing access to finance helps MSEs grow their business, create more jobs and build resilient communities in Kazakhstan,” said Alain Nounke, IFC’s Regional Industry Manager for Financial Institutions Group in Central Asia and Türkiye. “Supporting and investing in micro and small women-owned enterprises and agribusiness not only empowers individuals but it also fuels the engine of economic growth. IFC’s investment in KMF underscores our commitment to advancing inclusive, sustainable growth in Kazakhstan.”
IFC will also continue to support KMF’s ambitious transformation into a bank with a strong MSE focus. This transformation will enable KMF to introduce new transactional and savings products including cards, deposits and transfers; to adopt new sales model; to introduce a full-fledged e-banking service, and implement global environmental, social, and governance best practices.
Over the past several years, IFC has supported KMF with a range of financial products totaling $287 million, as well as risk management solutions and advisory services to enhance its corporate governance.
