IFC Providing $5 Million to Timor-Leste's Kaebauk Investimentu no Finansas, S.A. to Improve Access to Finance for Farmers, With a Focus on Women
IFC, a member of the World Bank Group, is providing a loan facility of up to $5 million to Timor-Leste's largest microfinance institution, Kaebauk Investimentu no Finansas, S.A. (KIF), which is expected to lead to over 10,000 more people gaining access to finance by 2024, of which over 75 percent will be women.
The move is aimed at helping to develop Timor-Leste's agricultural sector and expand the country's scarce agri-financing market. Subsistence farming is the main source of employment for 70 percent of the country's rural population. Access to finance is an issue, with only nine percent of adults having access to formal credit. Only 32 percent of women are in the workforce and are often unable to borrow from financial institutions because of a lack of credit history and proof of income.