Micro, small and medium-sized enterprises (MSMEs) are important means for employment and make a decisive contribution to the sustainable economic development of a country. Job creation through MSME financing often directly benefits marginalized social groups, reducing poverty, increasing income, and having a positive impact on investment in education and health. Access to needs-based financial services is the basis for their success. Sparkassenstiftung draws on the Sparkassen-Finanzgruppe's wealth of experience to support banks and microfinance institutions in the introduction and further development of their lending business, from product design to staff training.
Project Example: German-Azerbaijani Fund GAF
The MSME sector in Azerbaijan is sustainably strengthened by the German-Azerbaijani Fund (GAF). The German government (represented by the KfW Banking Group) granted Azerbaijan a loan for this purpose back in 1999. Sparkassenstiftung works together with local banks to distribute the funds, which are exclusively assigned for micro, small and medium-sized enterprises. Over the years, the GAF has developed into a genuine revolving fund. However, its sustainable impact continues as the loan extension procedures are also used by other banks to grant MSME loans. The GAF has thus become a synonym for MSME loans in Azerbaijan. These needs-based structures are used to promote MSME enterprises.