Our History
In Gilgit, Pakistan, a jewellery maker trained by the Aga Khan Rural Support Programme (AKRSP).
AKDN / Christopher Wilton-Steer
In Gilgit, Pakistan, a jewellery maker trained by the Aga Khan Rural Support Programme (AKRSP).
AKDN / Christopher Wilton-Steer
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Since the 1950s, AKDN has promoted microfinance and financial inclusion through integrated development programmes and various rural and economic development initiatives. In the 1980s and 1990s, AKDN established rural support programmes and mountain societies development programmes in South and Central Asia that promoted community-based financial services and savings and credit groups.
Building from these initiatives, we formalised our activities in microfinance, establishing formal microfinance institutions out of some of our most mature programmes and ultimately forming AKAM in 2005.
- AKFED and AKRSP establish the First MicroFinance Bank Pakistan (FMFB-P), along with the International Finance Corporation (IFC) as a founding shareholder. FMFB-P is a fully licensed, nation-wide, deposit-taking microfinance bank. It is created through a structured transformation of the credit and savings section of the Aga Khan Rural Support Programme (AKRSP), an integrated development programme, to pioneer the microfinance sector in the country since 1982 in Gilgit-Baltistan and Chitral.
- AKDN establishes two microfinance programmes in Afghanistan: the Emergency Microcredit Programme in urban areas and the Rural Microcredit Programme.
- AKFED and AKF Tajikistan establish the First MicroFinance Bank Tajikistan (FMFB-T) together with IFC and KfW as founding shareholders. FMFB-T is a fully licensed commercial bank and is the first commercial bank in Tajikistan to focus primarily on microfinance. FMFB-T takes over the activities of the Enterprise Support Facility (ESF), a programme established by AKFED in 1996 which lends primarily to small entrepreneurs.
- AKDN launches the Kyrgyz Microfinance Programme.
- AKDN establishes the Microcredit Facility in Syria. This enables poor people to access credit to help start or expand small enterprises.
- AKFED establishes the First MicroFinance Bank Afghanistan (FMFB-A), with IFC and KfW as founding shareholders.
- FMFB-A is the first of its kind under the country’s new regulatory structure and is granted license #001 under the new banking law in the autumn of 2003.
- FMFB-A takes over the Emergency Microcredit Programme in 2004, and the Rural Microcredit Programme in 2009.
- His Highness the Aga Khan establishes AKAM as a non-profit Swiss foundation to formalise and develop AKDN’s microfinance activities.
- FMFB-A launches SME lending in Afghanistan to support small businesses across the country.
- AKAM launches a highly experimental microinsurance pilot programme, with support from the Bill and Melinda Gates Foundation, to introduce microinsurance products in Pakistan and Tanzania.
- AKAM establishes the Premiere Agence de Microfinance Burkina Faso (FMFB-BF) as a deposit-taking non-profit microfinance association. It has two branches in the east of the country, where sister company Faso Coton works with cotton farmers, and another branch in the south where sister company SOSUCO is an important player in the sugar industry. A regional head office for all of AKAM’s activities in West Africa is established in Ouagadougou, Burkina Faso.
- AKAM establishes the Premiere Agence de Microfinance Mali (FMFB-Mali) as a deposit-taking non-profit microfinance association. It has two branches in the Mopti area, where the Aga Khan Trust for Culture (AKTC) has rehabilitated the Great Mosque and the Aga Khan Foundation has established an integrated rural development programme.
- AKAM founds the First Microfinance Foundation Egypt (FMF-E) as a non-profit microcredit institution and registers it as an independent national NGO as per law #84 under the Ministry of Social Solidarity (MSS) in the Arab Republic of Egypt. FMF-E builds on microcredit activities started in 2001 under the Darb al-Ahmar (DAA) renovation project led by the Aga Khan Cultural Services – Egypt (AKCS-E), an AKTC subsidiary. This project was aimed at revitalising Darb al-Ahmar, one of Cairo's poorest areas, and provided housing rehabilitation loans. FMF-E expands to microcredit activities more broadly across Cairo and in the Aswan Governorate.
- AKAM incorporates the First Microcredit Company Kyrgyzstan (FMCC-KR) as a for-profit microcredit company, taking over and formalising the activities of the Kyrgyz Microfinance Programme.
- FMFB-P is awarded the top “Financial Transparency Award” by CGAP.
- FMFB-T begins working with seven international and Russian money transfer services to offer remittance services to its clients.
- FMFB-A launches a mobile money pilot service using Roshan’s mPaisa platform.
- FMFB-P launches an innovative partnership with the Pakistan Post to use their Post Offices as outlets.
- AKAM establishes the Premiere Agence de Microfinance Cote d’Ivoire (PAMF-CI), as a for-profit, deposit-taking microfinance company, under the new law introduced for the WAEMU region for decentralised financial systems. PAMF-CI starts operations with one branch in northern Côte d’Ivoire, an area that has been affected by recent civil war and where sister company Ivoire Coton is working in the cotton industry.
- AKAM establishes First MicroFinance – West Africa (FMF-WA) as a holding company for its three West African MFIs.
- AKAM establishes the Premiere Agence de Microfinance Madagascar (PAMF-Madagascar), a for-profit, deposit-taking, non-mutualist microfinance institution with a Level III MFI licence.
- AKAM establishes the First MicroFinance Institution Syria (FMFI-Syria) as a deposit-taking microfinance institution. FMFI-Syria is the first microfinance institution registered under the new microfinance decree issued in 2007. FMFI-Syria takes over and expands the microfinance activities of AKDN’s Micro Credit Facility in Syria.
- FMFB-A develops and pilots a housing microfinance loan product with support from the IFC.
- FMFB-A launches Khana loans for housing finance, coupled with construction advisory services, with the support of USAID. FMFB-A develops the Housing MicroFinance Toolkit with IFC.
- EIB, IFC, and KfW invest as shareholders in FMFI-Syria.
- An FMFB-P client is awarded the National Award for Micro Entrepreneurship organised by Citi Foundation and PPAF.
- FMF-Egypt launches Head Start! with the support of USAID – a programme to provide loans and business development services to young start-up entrepreneurs in Cairo.
- JICA invests as a shareholder in FMFB-P.
- FEFISOL invests as a shareholder in PAMF-Madagascar.
- PAMF-Mali transforms into a for-profit, deposit-taking microfinance company.
- FMFB-P’s clients are awarded National & Regional Awards for Micro Entrepreneurship, organised by Citi Foundation and PPAF.
- An FMFB-P client wins a National Award for Micro Entrepreneurship organised by Citi Foundation and PPAF.
- Coulibaly Seydou, a loan officer from PAMF in Cote d’Ivoire, wins an Honorable Mention for the Whole Planet Foundation’s Africa/MENA Field Officer Appreciation Award.
- PAMF Burkina Faso receives the Ordre du Mérite (Merit Award) on March 8 to recognise PAMF’s support for women’s empowerment through financial services.
- Mamy Odile, a loan officer from PAMF-Madagascar, wins an Honourable Mention for the Whole Planet Foundation’s Africa/MENA Field Officer Appreciation Award.
- Four FMFB-P clients are awarded National and Regional Awards at the ninth Micro-entrepreneurship Awards, organised by Citi Foundation and PPAF.
- FMFI-Syria is selected as one of three finalists for the sixth European Microfinance Award, focusing on microfinance in post-disaster, post-conflict areas and fragile states.
- Through an increase in capital, AKFED becomes the majority shareholder of FMFB-Tajikistan.
- Habib Bank Ltd (HBL), the leading commercial bank in Pakistan, acquires a majority shareholding of FMFB-P.
- FMFB-A becomes a member of the Global Alliance for Banking on Values (GABV). This is an independent network of banks and banking cooperatives with a shared mission to use finance to deliver sustainable economic, social and environmental development.
- FMFB-T becomes a member of the Global Alliance for Banking on Values.
- FMFB-A opens the country's first women-only branch. It is served and supervised by 21 female staff and caters to only women customers. This allows Afghan women to manage their finances in a safe and facilitating environment, thereby overcoming social and cultural hurdles to their economic empowerment.
- FMFB-T and FMCC-K introduce targeted loans for energy-efficient housing upgrades, with support from KfW and EBRD respectively. The loans will be paired with guidance on best practices and context-appropriate solutions to promote energy efficiency.
- First MicroFinance Company Kyrgyz Republic (FMFC-K) is formed to take over the business from FMCC-K.
- The AKAM network reaches nearly half a million borrowers and over one million depositors. Since inception, AKAM institutions have disbursed over four million loans worth nearly US$ 2.8 billion into local communities.
- PAMF-Madagascar launches a new digital services programme offering savings and loan products in partnership with Orange.
- FMFB-A partners with Xpress Money to offer customers in Afghanistan the convenience of receiving money sent from abroad.
- FMFB-P is awarded smart certification for client protection.
- FMFB-P wins gold price disclosure award.
- First Microfinance Company - Egypt (FMFC-E) is formed to take over the business from FMF-E.
- FMFC-K launches a suite of digital financial services.
- FMFB-A launches online banking service for its retail customers.
- FMFB-A sets up a new core banking system, bringing the bank up to date with technological innovations and allowing it to expand its product offering.
- PAMF-Burkina Faso SA is established. Assets from PAMF-BF Foundation transferred to the newly created commercial entity.
- FMFB-A launches a suite of Quality of Life loans to extend student, vehicle, healthcare, marriage and home appliance loans, facilitating financial inclusion.
- The transfer of assets from FMF-E is completed.
- FMFC-K and FMFC-E implement new core banking systems, allowing the companies to broaden their product offering and customer outreach.
- AKAM completes the sale of FMFC-K to Kyrgyz Investment & Credit Bank.
- As part of its programme to further its digital financial services, FMFC-E launches digital disbursement of loans on Meeza cards, and repayments of loans through the Fawry network of agents.
- FMFB-A’s first ATM is inaugurated in Kabul.
- FMFB-P is awarded Top PayPak Issuer in the Microfinance Bank Category.
- FMFB-P is rebranded to HBL Microfinance Bank (HBL MfB).
- AKAM completes the sale of FMFC-Egypt to LOLC Group in Sri Lanka, enabling LOLC Group to commence its expansion into Africa.
- With the help of an FMO-funded project, leading international consultant AVRIO Impact works with FMFB-Afghanistan to develop a Sharia-compliant governance framework, obtain regulatory approvals, establish a Sharia Board and launch Sharia compliant asset and liability products.
- AKAM completes the sale of PAMF-Ivory Coast to Finafrica Microfinance, which is a part of France-based Duvall Group. Finafrica is a rapidly growing financial holding company, with an established presence in microfinance and microinsurance sectors in several countries of West Africa.
- AKAM also completes the sale of PAMF-Mali to Mali-based Sama Holding, a leading fintech active in the online distribution of scholarships to students and the development of products and services facilitating financial inclusion throughout Mali.
- FMFB-Tajikistan rebrands itself as Investment & Credit Bank – Tajikistan, in continuation of its strategy to expand beyond the microfinance sector and increase its products and services to the SME, corporate and retail sectors.
- AKAM and other international institutional shareholders complete the donation of their shares in FMFB-Syria to Inclusion, a local public benefit foundation established by local philanthropists.