The 2005 Aga Khan Agency for Microfinance Annual Report

Afghanistan, they have supported returning refugees to start andexpand businesses. Residents of one of the poorest districts ofCairo have improved and rehabilitated their homes with loansfrom AKAM. The microfinance programme in Syria is contributingto the development of civil society through unique partnershipsbetween the Ministry of Health, the World Health Organisationand various village health organisations.In South Asia, AKAM’s programmes have helped indenturedworkers break the grip of multigenerational debts and liberatethemselves from perpetual servitude. Loans have helped Tajikfarmers expand yields of critical foodstuffs and enabled entrepreneursto open vegetable processing plants, hardware stores,pharmacies and bakeries.At the end of 2005, AKAM was operating in over 100 branchesand loan offices in South and Central Asia, the Middle East andsub-Saharan Africa. Its then 900-strong work force had collectivelydistributed over 116,000 loans totalling over US$ 92 million tobeneficiaries.In all the contexts in which they operate, AKAM’s microfinanceprogrammes, institutions and banks aim to achieve a level oflong-term sustainability that covers both operational costs andcontributes to expansion in the future. In this process, emphasisis placed on enhancing the quality of financial services throughtransparent and detailed lending procedures, as well as the use ofbest practices that ensure financial discipline and efficiency.To maximise the impact for beneficiaries, AKAM has devised avariety of institutional approaches and instruments that facilitateaccess while addressing different contexts, cultures and local requirements.These efforts are intended to ensure that resourcesflow to the poor and excluded. This process is greatly strengthenedby working in concert with other agencies of the AKDNas well as governments, international agencies and professionalorganisations. Such collaborations allow AKAM not only to reachgreater numbers of vulnerable populations, but also to developnew services and products that are appropriate and relevant.ABOVE: IN DAROOTKORGON, IN THEKYRGYZ REPUBLIC, A FOUNDRY RECEIVEDA SMALL LOAN FOR PURCHASING MATERI-ALS NEEDED TO FABRICATE VALVES USEDIN DIKES.BELOW: AKAM HAS PROVIDED CREDITFOR TRAINING PROGRAMMES AS PARTOF A BROAD INTEGRATED DEVELOPMENTPROGRAMME TO IMPROVE HEALTHCAREIN SALAMIEH, SYRIA.9