Everything about The Aga Khan Fund For Economic Development totally explained
The
Aga Khan Fund for Economic Development (AKFED) (AKFED)
is the sole for-profit agency of the
Aga Khan Development Network (AKDN) (AKDN) and works in partnership with international organizations and governments to stimulate the private sectors of developing economies, with the aim of generating capital for investment into long-lasting and
sustainable development initiatives. The agency’s operations include, but are not limited to, industry and tourism. Critical to the
development process are goods and services including financial institutions, and infrastructure, such as power generation and communications, which together comprise some of AKFED’s initiatives.
Introduction
The Aga Khan Fund for Economic Development (AKFED) is one of eight agencies operating under the direction of the umbrella organization,
Aga Khan Development Network (AKDN), founded and Chaired by His Highness the Aga Khan. Of these eight, AKFED is the sole for-profit agency, the purpose of which is to build high-performing institutions and to sustain long-lasting
development projects in
developing regions. The agency works to build
infrastructures that support
economic development. Its major investments include the Financial Services,
Industrial Promotion Services (IPS) (IPS), and
Tourism Promotion Services (TPS) (TPS), . These initiatives span improvements in banking, electricity,
agriculture, hotels, aviation, and communications linkages.
In conjunction with the governments of certain developing countries, AKFED operates to promote the
private sector. Through the support of
industries, the agency aims to bolster the
participation of developing regions in
market economies. In addition, essential to
sustaining development initiatives is a stable
human resource bank from which to draw support. To this end, 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
microloans.
As a for profit organisation AKFED however conducts its businesses as a standard employer with ups and downs associated with financial results.
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. The agency is a major supporter of corporate activity and is a prime lender for local business both in
Bangladesh and the
Kyrgyz Republic where it founded the
Kyrgyz Investment and Credit Bank (KICB).
One of the agency’s earliest holdings was the
Diamond Trust Bank of
Kenya, founded in 1930, the aim of which 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). By stimulating the corporate sector in the regions where it operates, the agency generates capital for the purpose of reinvestment into services essential for development.
Industry
AKFED operates in conjunction with private donors, international economic organizations and individual governments to address constraints and hindrances to development. Working primarily in
Africa and
Asia, the agency encourages the growth of industry and infrastructure in order for developing regions to generate the capital necessary for investment into AKFED’s many projects and more generally, for a country’s growth.
Since the 1960’s, the agency has supported a group of enterprises under the Industrial Promotion Services (IPS), each of which was conceptualized to spur investment and increase activity in the corporate sectors of developing countries. However with the international climate largely favouring countries with
export-oriented economies in place of popular
import substitution industrialization (ISI), IPS adjusted its approach. The changes would include an emphasis upon
privatization and the agency embarked on its goal with a new approach in the 1980’s. Private enterprises and
entrepreneurs became generators for capital investment into
agribusiness and
infrastructure, both crucial to the development process.
Food and Agriculture
In the domain of food and agriculture, IPS facilitates
agricultural extension to farmers, in order to make possible their participation in global markets. Using a
participatory programme of education and technical skills training for farmers, IPS supports the rural economies of developing countries by facilitating
exports to developed regions. For the initial costs of such production until
harvest revenues are generated, microloans are provided to farmers by
non-profit agencies of the AKDN. In addition to microfinance and education, the agency works to improve the health and sanitation conditions of its beneficiaries, and considers
employee welfare to be of paramount concern, providing
equitable opportunity between genders and making
child-care provisions for its employees.
Infrastructure
Within the IPS, AKFED operates in conjunction with international economic organizations, private donors and individual governments to resolve issues of electricity and water supply, as well as communications infrastructure.
Private enterprises in the form of power plants have been a major project of the agency, through which it invested in the largest plant within
sub-Saharan Africa,
Azito Energy. The project’s counterpart in Kenya, is
Mombasa’s
Tsavo Power plant. In neighbouring
Uganda, the agency is working to establish the critical
Bujagali Hydro Power Project. Currently, the agency is working to establish the
Pamir power plant in
Tajikistan, the aim of which is to reinvigorate the country’s economy and resolve electricity inadequacies.
AKFED’s first telecommunications initiative is known as Indigo, a
GSM mobile phone project based in
Tajikistan. An important aspect of the reconstruction and development process, the agency embarked on its second mobile phone initiative in
Afghanistan. Today the country’s company,
Roshan has expanded to create over 500 jobs for the country.
Tourism Development
The Tourism Promotion Services, known as TPS, aims at creating sustainable
tourist attractions in
underdeveloped communities. Paying attention to cultural values as well as environmental issues, TPS creates a wide variety of tourist facilities that generate sustainable community capital, stimulate local economic growth and promote positive investment opportunities.
Under the brand name
Serena, TPS constructs and maintains a multitude of resorts, hotels and other tourist attractions that serve to stimulate local economic growth through increased employment, development of a skilled workforce, increased productivity of local businesses (particularly in the design and craft spheres) and the general development of given areas. In all of these aspects, emphasis is placed on the active employment and input of the local community.
In regions that are neglected by commercial tourism corporations, TPS aims to develop facilities that meet the international standards for
hospitality, accommodation and service. Attention to such factors further promotes economic growth as well as the potential for local business development within less-frequented regions.
While seeking to stimulate economic growth and generate sustainable capital, TSP aims at protecting and maintaining the local environment.
Media Services
Aga Khan founded the Kenya’s major
media service, the
Nation Media Group in 1960. In the year’s leading up to Kenya’s independence, Nation Media’s predecessors,
Taifa and
Nation newspapers, served as vehicles of independent opinion. Today, the group operates nation-wide newspapers in
English and
Kiswahili languages, as well as
radio and
television stations. At present, the group has expanded to serve
Uganda and
Tanzania also.
Aviation Services
The
Aviation division of the foundation is dedicated to providing support to the existing aviation infrastructure, which serves to support various projects of economic development. By providing worker training, investment knowledge and general management guidance, the division seeks to strengthen existing
airline companies and provide them with efficient equipment and resources.
In areas such as
Mali and Uganda, the division supports previously existing airlines by increasing fleet size and reviving currently non-functional companies in order to provide much-needed air support for the development projects within the region. In addition, the multiple airline companies of AKFED are connected through a network known as “
Group Celestair”, which serves to collectively increase the efficiency and scope of support for the various airlines throughout the region.
Presently, AFKED is currently considering possible airport management opportunities at a multitude of locations.
References
Further Information
Get more info on 'Aga Khan Fund For Economic Development'.
|
External Link Exchanges
Do you know how hard it is to get a link from a large encyclopaedia? Well we're different and will prove it. To get a link from us just add the following HTML to your site on a relevant page:
<a href="http://aga_khan_fund_for_economic_development.totallyexplained.com">Aga Khan Fund for Economic Development Totally Explained</a>
Then simply click through this link from your web page. Our crawlers will verify your link, extract the title of your web page and instantly add a link back to it. If you like you can remove the words Totally Explained and embed the link in article text.
As long as your link remains in place, we'll keep our link to you right here. Please play fair - our crawlers are watching. Your site must be closely related to this one's topic. Any kind of spamming, dubious practises or removing the link will result in your link from us being dropped and, potentially, your whole site being banned. |
