MICROCAPITAL BRIEF: Oxus MFIs in Tajikistan, Kyrgyzstan Borrow $2.1m from Grameen Crédit Agricole Foundation for On-Lending, Mostly in Rural Areas

The Grameen Crédit Agricole (GCA) Foundation, whose head office is in Luxembourg, recently announced it is disbursing loans in local currency to two members of the US-based Oxus Group, both for on-lending to low-income clients. The wholesale loans, which have three-year terms, are in amounts approximately equivalent to USD 1.2 million for Oxus Tajikistan and USD 945,000 for Oxus Kyrgyzstan.

Oxus Tajikistan primarily serves microentrepreneurs and farmers with the goal of improving the socio-economic standards of the country’s low-income and unbanked population. As of 2021, the microlender holds a loan portfolio of EUR 10 million (USD 12 million) serving approximately 14,000 customers, including 5,000 women and 11,000 people who live in rural areas.

Founded in 2006, Oxus Kyrgyzstan caters to the “working poor and the under-banked” in Kyrgyzstan. As of 2021, it serves approximately 8,000 clients, of whom almost half are women and almost three quarters reside in rural areas. Oxus Kyrgyzstan holds a loan portfolio of EUR 6.3 million (USD 7.4 million) and operates 11 branches in five of Kyrgyzstan’s seven regions.

Headquartered in the city of Washington, Oxus Group serves 43,000 clients in Afghanistan, Kyrgyzstan and Tajikistan. Its members offer group loans and individual business loans. None offer deposits. Oxus Group is majority-held by ACTED, a French NGO formerly known as the Agency for Technical Cooperation and Development. Founded in 1993, ACTED is active in areas such as disaster resilience and “cultural promotion” in 38 countries.

Credit Agricole, a French retail bank, in partnership with Muhammad Yunus, the founder of Grameen Bank, established GCA Foundation in 2008. The organization seeks to reduce poverty by providing funding and technical assistance to microfinance institutions and other social businesses. As of May 2021, GCA Foundation has a portfolio of EUR 86 million (USD 103 million) outstanding to 89 partners in 37 countries in Africa and Eurasia. Approximately 85 percent of its investees’ clients live in rural areas, and 73 percent are women.

By Sophie Fiala, Research Associate

Sources and Additional Resources

Direct contact with GCA Foundation

GCA profile on Oxus Tajikistan
https://www.gca-foundation.org/en/organisation/oxus-tadjikistan/

GCA profile on Oxus Kyrgyzstan
https://www.gca-foundation.org/en/organisation/oxus-kirghizistan/

Oxus Group homepage
https://www.oxusnetwork.org/

ACTED homepage
https://www.acted.org/

Previous MicroCapital brief on GCA Foundation
https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-foundation-disburses-10m-to-microfinance-institutions-for-on-lending-in-indonesia-myanmar/

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