The project

Please note: 1st principal repayment after 12 months instead of 6 months. However, the interest payments start after 6 months.

Kaebauk Investmentu No Finansas (KIF) in Timor-Leste addresses a crucial gap in a country where access to regular financial services is limited to only 13% of the population. By offering financial products, KIF improves the lives of the rural and urban poor.

Serving primarily farmers and SMEs, KIF's loans are vital for stable income and successful harvests, making a significant difference to families. Besides, KIF mainly focuses on empowering women, who are 70% of its borrowers, by providing loans for business growth and financial independence.

KIF also contributes to sustainable development through business management and financial literacy education. As the largest private employer in Timor-Leste, investing in KIF supports its mission and aids in advancing economic growth and gender inclusivity in the country.

What social return could your investment make?

KIF is set to finance around 90 rural entrepreneurs, farmers, women business owners, and various SMEs in Timor-Leste. This financing is crucial in an area where financial services are scarce, particularly benefiting the significant number of women among KIF's clientele. The funds will enhance agricultural and aquacultural ventures, improve living standards through better housing, and provide children with greater educational opportunities. This effort highlights KIF's commitment to driving both sustainable economic growth and social development in Timor-Leste.

 

What financial return could your investment generate? 

• Annual interest rate of 5,25%
• The maturity of the loan is 36 months
• Grace period of 12 months: meaning the first principal repayment is made after 12 months instead of 6 months. The interest payments start after 6 months.
• With an investment of 1,000 euros, your expected total repayment would be 1,118 euros
• Please consider that although you invest in EUR, the loan is in USD, so there is a risk of exchange rate fluctuations between dollars and euros. For more information on potential exchange rate risks, please visit our currency page.

About local partner KIF 

Local partner KIF began its operations in 2001 with support from Save the Children, but later on, registered as a distinguished MFI under Catholic Relief Services. From the start, the objective was to improve the livelihood of women and poor families through financial services. It has been proven that such microcredit activity is critical for the economic development of Timor-Leste, especially with the understanding that there were and still are very few financial services available. The economy of Timor Leste is weak. There is hardly any industry in the country. The fact that Kaebauk Inbestimentu No Finansas (KIF) is the largest private employer in Timor-Leste with over 300 employees, says quite something about the size of the economy but also underlines the important role KIF plays in Timor Leste.

Timor-Leste is home to 1.3 million people. The capital Dili is a relatively small city where the days of Portuguese colonialism blend with Indonesian influences and the culture of the indigenous habitants. The country is heavily reliant on its border with Indonesia and the income generated from oil and gas exploration. The economy in Timor Leste is primarily focused on agriculture and trade.

KIF in numbers

• Founded in 2001
• 324 employees 
• 15.956 loans issued (end of 2022)
• 70% are female borrowers