Microfinance in Syria


	AKAM's activities include credits for creating of expanding small-scale businesses or industries

AKDN launched its microfinance facilities in Syria in 2003 as the Syria Microcredit Programme (SMP). The programme, currently working in five provinces of the country, is aimed at stimulating income-generation in low-income areas and promoting small-scale agricultural and industrial enterprises. AKAM’s activities encompass housing rehabilitation as well as seasonal and commercial loans associated with rural development, including guarantees for acquiring machinery, land and agricultural inputs. They include credits for creating or expanding small-scale businesses or industries and financing cottage industries, handicraft production and tourism initiatives. They also encompass technical assistance, training and other forms of support to encourage private enterprise.

With a view to enhancing the tourism and leisure industry in the Aleppo and Hama provinces, SMP is working in concert with AKTC to help finance housing improvement in areas where the rehabilitation of historic spaces is underway. In Lattakia province, microfinance activities began with a focus on eight villages in Hafeh District which are part of the Syrian Government’s Healthy Village Programme. Through this partnership, the institution is contributing to the development of civil society at the village level. Activities have also begun in five districts of the Tartous province as well as in the Old City of Aleppo, where SMP has initiated a special credit service extending loans to borrowers for the rehabilitation of homes.

Over the last twelve months, AKAM has been active at transforming the ongoing programme into a full-fledged microfinance bank. This entails enhanced governance, strengthened procedures and products, and the introduction of a best practice MIS capable of handling a broad range of products. AKAM has been working closely with the Syrian authorities and with international experts towards the development of a specific framework that would foster the establishment of sound and efficient microfinance institutions.

AKAM worldwide

AKAM’s microfinance initiatives range from village lending cooperatives to self-standing microfinance institutions to full-fledged microfinance banks. These activities currently operate in Afghanistan, Burkina Faso, Egypt, India, Kazakhstan, Kenya, Kyrgyz Republic, Madagascar, Mali, Mozambique, Pakistan, Syria, Tajikistan, Tanzania, and Zanzibar. Often they are part of wider integrated development strategy being implemented by the AKDN within each country. In addition to providing financial services to the poor, they may include business or technical advisory/training extension services and business development programmes that work directly with local entrepreneurs.