Promoting Inclusive Markets and Financial Systems
The Aga Khan Agency for Microfinance’s (AKAM) mission is centered around creating lasting improvement in the quality of life of its clients by delivering client-centric financial products and services. While microfinance institutions cannot prevent crises from occurring, they can work effectively with communities to help them prepare for, mitigate, recover from and adapt to crises.
In 2007, AKAM transitioned its initial Syrian Microcredit Facility to First Micro- Finance Syria (FMFI-S). Since conflict began in 2011, many FMFI-S clients have lost family members, homes and businesses as a direct result of the protracted conflict in Syria. While FMFI-S has developed a range of tools to help clients withstand the crisis, over the past five years the institution has faced substantial challenges in its day-to-day operations, including inflation, local currency devaluation, staff security and safety, and funding. The policies and interventions outlined in this case study have allowed FMFI-S to strike a difficult balance between ensuring continuous delivery of client-centric financial products and services and promoting long-term institutional resilience.