Aga khan group assists poor countries

 

His Royal Highness the Aga Khan, the chairman of AKDN

By Kikonyogo Ngatya   The Aga Khan Fund for Economic Development (AKFED), which owns Air Uganda, is the sole profit-making agency of the Aga Khan Development Network (AKDN).   AKDN works in partnership with international organisations and governments to stimulate the private sectors of developing economies.   The aim, according to the network’s official website is to generate capital for investment into long-lasting and sustainable development initiatives.

The agency’s operations include industry and tourism, which are critical to the development process. The fund is one of eight agencies operating under the direction of the umbrella organisation, AKDN, founded and Chaired by His Highness the Aga Khan.

Of these eight, AKFED is the sole for-profit agency, whose purpose is to build high-performing institutions in developing regions.

Its major investments include the Financial Services, Industrial Promotion Services and Tourism Promotion Services. These initiatives span improvements in banking, electricity, agriculture, hotels, aviation, and communications linkages.

AKFED provides training in administrative, managerial and marketing skills with the aim of fostering locally owned enterprises. Where capital is unavailable, the agency provides the initial investment for companies through the use of micro loans.

 

Financial Services
Operating in East Africa, Central Asia and South Asia, AKFED supports the creation of financial institutions including banks and insurance groups within these regions. One of the agency’s earliest holdings was the Diamond Trust Bank of Kenya, founded in 1930, whose aim was to use locally generated funds to create loans for small business and the construction of homes.

Soon after, Jubilee Insurance Group joined the agency’s banks in East Africa. In India, the agency became an important shareholder for the Development Credit Bank Ltd. In 2004, AKFED acquired holdings in Pakistan’s largest private-sector financial institution, Habib Bank Limited (HBL).

 

Industry
Working primarily in Africa and Asia, AKFED encourages the growth of industry and infrastructure in order for developing regions to generate the capital necessary for investment into the agency’s many projects and more generally, for a country’s growth.