Colleague Diosa Takes You to Kyrgyzstan

Kyrgyzstan is still a relatively unfamiliar country to many people. For Lendahand, it is more known: several of our partners are based there, including Bailyk, Amanat, and our new borrower Oxus KG. In July, my colleagues Manan, Daniel, and I travelled to Kyrgyzstan to conduct due diligence and get to know Oxus KG better.

In the Netherlands, I work behind the scenes as a software developer on the Lendahand platform. Now, I stepped off the plane in Bishkek to discover the other side of Lendahand, the one where the impact is tangible.

The friendly taxi driver who picked us up from the airport seemed to know everyone there and switched effortlessly between languages: an Arabic greeting here, a conversation in Russian there, and a few sentences in Kyrgyz in between. “Ninety percent mountains, ten percent plains,” he told us proudly. He drove us to the city center of capital Bishkek, where many of our borrowers have their headquarters.

The following days were spent visiting financial institutions, their local branches, and, most importantly, the entrepreneurs who receive loans. That last part is what makes these trips so valuable. Beyond files, figures, and reports, you meet the people behind the numbers and gain insight into their businesses, their daily reality, and the importance of financing to their companies.

Visiting Bailyk

We began our first day at Bailyk’s office. The microfinance institution mainly serves customers outside the city and reaches entrepreneurs in regions where few other financing providers are active.

Entrepreneurs in rural areas do not always have formal proof of income. So how does Bailyk determine whether it can provide them with a loan? In such cases, its employees literally visit them at home. They examine stock and inventory and speak with the entrepreneur and people in the surrounding community to develop a realistic picture of their income. Based on this information, they assess the entrepreneur’s repayment capacity and can provide an appropriate loan.

Loans are disbursed in cash. Repayments can be made in cash, through a banking app, at an office, or at a payment terminal. Due to strong competition, the application process is fast: sometimes it takes only a few hours, although it usually takes one or two working days. Repayments are made monthly.

It was interesting to see how professionally yet practically the process was organised. A business is assessed not only on the basis of documents and figures, but also through local expertise, experience, and an understanding of the entrepreneur’s circumstances.

From shipping container to fully fledged shop

After visiting Bailyk’s office, we spoke with several entrepreneurs who had received financing through them. One of them was Urkuya, who owns a household-appliance shop. She originally started her business in a shipping container, but thanks to a loan from Bailyk, she was able to move into permanent retail premises in a better location. She now employs five people.

The shop was filled with televisions, air fryers, washing machines, tableware, and all kinds of other household products. She spoke proudly about her business. When we said goodbye, she even pressed a hair straightener into my hands as a gift.

Next, we met Ainagul, who owns a women’s clothing shop. Many of her customers are friends and acquaintances. The loan allowed her to expand her stock and broaden the range of products she offers.

We ended the day with a visit to Narkul, a farmer who raises livestock and also grows raspberries and maize. During the peak season, she hires additional workers. Financing helps make her business more resilient to seasonal fluctuations and unexpected setbacks.

Heading into the Countryside with Oxus KG

The following day was devoted to visiting our new borrower Oxus Kyrgyzstan, or Oxus KG. Does this name sound familiar to you? That’s possible, as sister-company Oxus Tadjikistan has been active on Lendahand since 2023. In Kyrgyzstan too, most of Oxus’s customers work in agriculture, so we headed out into the countryside.

The first entrepreneur we visited, Nina, raised cattle. She started 25 years ago with five cows and gradually expanded her business. She used her loan to purchase additional livestock and a tuk-tuk.

Farmer Imanbek, who we paid a visit right after, grew raspberries, onions, and other crops. During our visit, he immediately invited us to taste raspberries freshly picked from the field.

 

 

At the home of the third farmer, Mayramkul, and her family, we were once again given a very warm welcome. We were allowed to ride their favourite horse and were offered bread with homemade honey and jam.

That evening, we ended the day with a cable-car ride into the mountains in a national park. I immediately thought back to the words of our taxi driver on the first day: ninety percent mountains, ten percent plains.

Tourism in Kyrgyzstan still felt relatively young. The cable car, for example, had opened only two months earlier, and there was certainly no sign of mass tourism.

From farmer to neurologist: on the road with Amanat

On the third day, we travelled with borrower Amanat. We visited a farmer, a wholesaler, and a neurologist who had recently opened her own practice.

One particularly memorable story was that of Dr Muratova. She is a neurologist who used her loan from Amanat to establish her own medical centre. She purchased a new ultrasound machine and new furniture, allowing her to provide patients with better care and receive them in a more comfortable setting.

Meeting Dr Muratova gave us an insight into the diverse range of entrepreneurs receiving financing. The impact of the loans is far-reaching, both at micro-level in terms of the direct income of farming families and shopkeepers and at societal level. In Dr Muratova’s case, she is not merely setting up a business that will bring her family greater financial stability. Through her medical centre, she is reaching a large community.

Financing for microfinance institutions does not support just one type of entrepreneur, but people with a wide variety of plans, stories and needs.

Choosing Kyrgyzstan?

For me, one of the most striking things about Kyrgyzstan was the widespread use of technology, payment terminals, and apps. The due diligence process, in which our colleagues from the Investments Team assess whether a borrower is suitable for Lendahand and under what conditions, also struck me as structured and professional.

The country has a strong identity of its own, shaped by a combination of traditional, Russian, Chinese, and Islamic influences. Its hospitality also left a lasting impression. We received a warm welcome everywhere we went, often accompanied by plenty of food and drink or a small gift.

The entrepreneurs’ stories showed me what financing can make possible in practice: purchasing more stock, expanding a herd, or opening an independent medical practice. The entrepreneurs openly express their gratitude for the loan, which gives them the opportunity to grow their businesses. They are therefore motivated to perform well so that they can repay their loan as agreed.

Kyrgyzstan is a country that many people still know very little about. After this trip, it has become much more familiar to me. Hopefully, after reading this blog, the same is true for you, or perhaps it has at least made you curious.

Will your next investment be in a project in Kyrgyzstan? Have a look at our current projects!