History of the company
The microfinancial industry in Kyrgyzstan began to arise in the mid-nineties. Before the acceptance of the Law “On microfinancial organizations in the Kyrgyz Republic” in 2003 programs for microfinance were carried out generally by international organizations on the basis of intergovernmental agreements. In response to a fast development of the microfinancial sector in the Central Asian region and a great demand for financial resources from the population and business, there came up an idea about establishment of a company which would become a full-function wholesale lender for the local microfinancial organizations.
So, in 2003 Microlending Company “Frontiers” has become the pioneer of wholesale lending in the microfinancial market of the Central Asian region has been established. The main objective of the company was stated as providing access to financing for the microfinancial organizations for their growth and development for the purpose of overcoming poverty and support of enterprise activity of the population.
From the beginning of Frontiers activity many microfinancial organizations and credit unions of Kyrgyzstan, Kazakhstan and Tajikistan which earlier experienced difficulties with the replenishment of current assets because of lack of a credit history and insignificance of the scales of activity finally have got an access to a reliable source of financing, and it has allowed them to increase substantially the credit resources which is essential to expand the coverage of the served population.
A grant of 3 million US dollars had been allocated for the implementation of lending activity and 400 thousand US dollars on the organizational development of the company by the US Agency on international development (USAID) within the “Central Asian Microfinancial Alliance” project (CAMFA).
Founder of the company
The founder of Frontiers is an american private, nonprofit organization ACDI/VOCA that promotes broad-based economic growth and the development of civil society in emerging democracies and developing countries. The organization was registered in the USA on July 21, 1963 by the Secretary of State of Illinois.
In 50 years of work ACDI/VOCA has proved as an organization which successfully functions in the field of development. This experience in combination with operational reliability, practical knowledge and ability to carry out large-scale projects became a pledge of the fact that various partners and clients of the organization can always count on positive results of interaction with ACDI/VOCA.
ACDI/VOCA is also distinguished by its:
- identity as a nonprofit that means business
- proficiency at grassroots, self-help organizing
- private sector and market orientation
- dedication to beneficiary gains in income, jobs and savings
- leadership in value chain approaches to enterprise development
- legacy of lasting institutions and organizations
- vast talent bank
- experience working on a regional/global scale
- network of U.S. and international partners
- systems approach to technical solutions and operations
- grants-management capacity
- cutting-edge approaches to fragile/failing states, trade capacity building, public-private partnership, information and communications technology and integrated HIV/AIDS programming
- experience with large indefinite quantity contracts (IQCs)
ACDI/VOCA carries out the activities for four main directions:
- Agribusiness Systems
- Enterprise Development
- Financial Services
- Community Development