AKAM: Timeline | Aga Khan Development Network

AKAM: Timeline

Since the 1950s, different AKDN entities and programmes have 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 AKDN formalised its activities in microfinance establishing formal microfinance institutions out of some of its most mature programmes and ultimately forming the Aga Khan Agency for Microfinance (AKAM) in 2005.

2002	AKFED and AKRSP establish the First MicroFinance Bank Pakistan along with IFC as a founding shareholder. FMFB-P is a fully licensed, nation-wide, deposit-taking microfinance bank. FMFB-P was 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. After the fall of the Taliban regime, AKDN established two microfinance programmes in Afghanistan, the Emergency Microcredit Programme in urban areas and the Rural Microcredit Programme.
2003	AKFED and AKF Tajikistan establish the First MicroFinance Bank Tajikistan together with IFC and KfW as founding shareholders. FMFB-T is a fully licensed commercial bank and was the first commercial bank in Tajikistan to focus primarily on microfinance. FMFB-T took over the activities of the Enterprise Support Facility (ESF), a programme established by AKFED in 1996 which lent primarily to small entrepreneurs. AKDN launches the Kyrgyz Microfinance Programme. AKDN establishes the Microcredit Facility in Syria to enable poor people to access credit to help start or expand small enterprises.
2004	AKFED establishes the First MicroFinance Bank Afghanistan with IFC and KfW as founding shareholders. FMFB-A was the first of its kind under the country’s new regulatory structure and was granted license #001 under the new banking law in the autumn of 2003. FMFB-A took over the Emergency Microcredit Programme in 2004, and the Rural Microcredit Programme in 2009.
2005	His Highness the Aga Khan establishes AKAM as a non-profit Swiss foundation to formalise and develop microfinance activities of the AKDN. 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.
2006	AKAM establishes the Premiere Agence de Microfinance Burkina Faso as a deposit-taking non-profit microfinance association with two branches in 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 African is established in Ouagadougou, Burkina Faso AKAM establishes the Premiere Agence de Microfinance Mali as a deposit-taking non-profit microfinance association with two branches in the Mopti area where the Aga Khan Trust for Culture has rehabilitated the Great Mosque and the Aga Khan Foundation has established an integrated rural development programme. AKAM founds the First Microfinance Foundation Egypt as a non-profit microcredit institution and registered as an independent national NGO as per law #84 under the Ministry of Social Solidarity (MSS) in the Arab Republic of Egypt. FMF-E built on microcredit activities started in 2001 under the Darb al-Ahmar (DAA) renovation project led by the Aga Khan Cultural Services – Egypt (AKCS-E), a subsidiary of the Aga Khan Trust for Culture (AKTC). This project was aimed at revitalising Darb al-Ahmar, one of Cairo's poorest areas and provided housing rehabilitation loans. FMF-E expand to microcredit activities more broadly across Cairo and in the Aswan Governorate. AKAM incorporates the First Microcredit Company Kyrgyzstan as a for-profit microcredit company, taking over and formalising the activities of the Kyrgyz Microfinance Programme. The First Microfinance Bank Pakistan is awarded the top “Financial Transparency Award” by CGAP. The First Microfinance Bank Tajikistan begins working with seven international and Russian money transfer services to offer remittance services to its clients.
2007	The First Microfinance Bank Afghanistan launches a mobile money pilot service using Roshan’s mPaisa platform. The First Microfinance Bank Pakistan launches an innovative partnership with the Pakistan Post to use their Post Offices as outlets.
2008	AKAM establishes the Premiere Agence de Microfinance Cote d’Ivoire, 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) is established as a holding company for its three West African MFIs. AKAM establishes the Premiere Agence de Microfinance Madagascar, a for-profit, deposit-taking, non-mutualist microfinance institutions with a Level III MFI license. AKAM established the First MicroFinance Institution Syria as a deposit-taking microfinance institution. FMFI-Syria was the first microfinance institution registered under the new microfinance decree issued in 2007. FMFI Syria takes over and expands the microfinance activities of the AKDN’s Micro Credit Facility in Syria. FMFB-A develops and pilots a housing microfinance loan product with support from the IFC.
2009	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.
2010	An FMFB-P is client awarded National Award for Micro Entrepreneurship organised by Citi Foundation and PPAF.
2011	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.
2012	JICA invests as a shareholder in FMFB Pakistan. FEFISOL invests as a shareholder in PAMF Madagascar. PAMF Mali transforms into a for-profit, deposit-taking microfinance company. FMFB-P’s clients awarded National & Regional Awards for Micro Entrepreneurship organised by Citi Foundation and PPAF in 2012.
2013	An FMFB-P client is awarded National Award for Micro Entrepreneurship organised by Citi Foundation and PPAF in 2013.
2014	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 received the Ordre du Mérite (Merit Award) on March 8, 2014, to recognise PAMF’s support to women empowerment through financial services.
2015	Mamy Odile, a loan officer from PAMF in Madagascar wins an Honourable Mention for the Whole Planet Foundation’s Africa/MENA Field Officer Appreciation Award. Four FMFB-Pakistan’s clients awarded National and Regional Awards at the 9th Micro-entrepreneurship Awards organised by Citi Foundation and PPAF. FMFI Syria is selected as one of three finalists for the 6th European Microfinance Award, focusing on microfinance in post-disaster, post-conflict areas and fragile states.
2016	Habib Bank Ltd (HBL), the leading commercial bank in Pakistan, acquired a majority shareholding of FMFB-P. FMFB Afghanistan becomes a member of the Global Alliance for Banking on Values (GABV), an independent network of banks and banking cooperatives with a shared mission to use finance to deliver sustainable economic, social and environmental development.
2017	FMFB Tajikistan becomes a member of the Global Alliance for Banking on Values. FMFB Afghanistan opens the country's first women-only branch served and supervised by 21 all-women staff and caters to only women customers to allow Afghan women to manage their finances in a safe and facilitating environment thus overcoming social and cultural hurdles to their economic empowerment. FMFB Tajikistan and FMCC Kyrgyzstan introduce targeted loans for energy-efficient housing upgrades, with support from KfW and EBRD respectively. The loans will be paired wiht guidance on best practices and context-appropriate solutions to promote energy efficiency. The AKAM network reaches nearly half a million borrowers and over one million depositors. Since inception, AKAM institutions have disbursed over 4 million loans worth nearly US$2.8 billion into local communities. PAMF Mali is preparing to launch a nation-wide mobile bank service in partnership with a leading telecommunications operator.