http://news.ft.com/cms/s/04207c90-8541-11d9-a172-00000e2511c8.html
Financial Times
Published: February 23 2005 02:00
By Frances Williams in Geneva
The creation of an agency aimed at expanding microfinance services in some of the world's poorest communities was announced yesterday by the Aga Khan development network with the support of the World Bank and donor governments.
The Aga Khan agency for microfinance will bring together the network's existing microfinance activities, now operating in 10 countries, and develop products relating to micro-insurance, small housing loans, savings accounts, education and health costs and small businesses.
Prince Karim, the present Aga Khan, who is spiritual leader to the world's 15m Shia Ismaili Muslims, said yesterday in Geneva that microfinance was a "formidable tool" for poverty alleviation. "I am convinced we have only just begun to tap into its potential."
James Wolfensohn, World Bank president, said microfinance had "a demonstrated, powerful impact in improving the livelihood of the poor, and a crucial role in reducing poverty".
Microcredit was reaching some 80m people around the world and indirectly benefiting up to 500m people in their families and communities. The target should be to reach all the world's 3bn poor people with financial services tailored to their needs, Mr Wolfensohn said.
The Aga Khan microfinance agency, focused on central and south Asia, Egypt, Syria and parts of Africa, is a small lender - the development network made 25,000 micro loans last year totalling $35m (b,27m, B#18m).
But the agency has attracted World Bank and other interest with its plan to develop microfinance products, and the integration of microfinance into the network's broader development programmes.
For instance, the agency will extend current programmes that lend to small businesses seeking to benefit from the economic stimulus to their neighbourhoods following the restoration of cultural assets under the network's aegis. www.akdn.org