Aga Khan Fund for Economic Development
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AKFED Brochure Txt Final 31/10/06 17:03 Page 1 Aga Khan Fund for Economic Development AN AGENCY OF THE AGA KHAN DEVELOPMENT NETWORK AKFED Brochure Txt Final 31/10/06 17:03 Page 2 THE IMAMAT AGA KHAN DEVELOPMENT NETWORK ECONOMIC DEVELOPMENT SOCIAL DEVELOPMENT CULTURE AGA KHAN FUND FOR AGA KHAN AGENCY AGA KHAN AGA KHAN UNIVERSITY OF AGA KHAN TRUST ECONOMIC DEVELOPMENT FOR MICROFINANCE FOUNDATION UNIVERSITY CENTRAL ASIA FOR CULTURE TOURISM PROMOTION INDUSTRIAL PROMOTION AGA KHAN EDUCATION SERVICES AGA KHAN AWARD HISTORIC CITIES SERVICES SERVICES FOR ARCHITECTURE SUPPORT PROGRAMME AGA KHAN HEALTH SERVICES FINANCIAL AVIATION MEDIA AGA KHAN PLANNING AND EDUCATION AND SERVICES SERVICES SERVICES BUILDING SERVICES CULTURE PROGRAMME The Aga Khan Development Network (AKDN) is a group of private, international, non-denominational agencies working to improve living conditions and opportunities for people of all origins and faiths in specific regions of the developing world.The Network’s agencies have individual mandates that range from health and education to architecture, rural development, culture and the promotion of private-sector enterprise. They collaborate in working toward a common goal - to build institutions and programmes that improve the quality of life for populations in need while helping people respond to social, economic and cultural change. For more information and for the most recent developments, visit the Network’s website at: www.akdn.org. AKFED Brochure Txt Final 31/10/06 17:03 Page 1 Aga Khan Fund for Economic Development AKFED Brochure Txt Final 31/10/06 17:03 Page 2 A US$ 27-million investment by AKFED and other agencies will boost the supply of affordable hydroelectric energy in eastern Tajikistan, especially during the critical winter months. It provides an alternative to the burning of wood, which has led to wide-scale deforestation. AKFED Brochure Txt Final 31/10/06 17:03 Page 3 Contents 04 AKFED’s Approach to Development 08 Working in Concert with the Aga Khan Development Network 10 Financial Services – Origins – Banking – Insurance – Property Development 14 Tourism Development – Origins – Culture – Environment – Human Resources 18 Industry and Infrastructure – Origins – Food and Agro-Processing – Printing and Packaging and other Manufacturing – Infrastructure – Energy – Telecommunications 22 Media Services – Origins – Newspapers and Publishing – Radio and Television 23 Aviation Services 24 Activities by Country 28 Partners 3 AKFED Brochure Txt Final 31/10/06 17:03 Page 4 AKFED’s Approach to Development The Aga Khan Fund for Economic allows AKFED to take a “hands-on” approach Development (AKFED) is an international through the provision of managerial and development agency dedicated to promoting technical expertise.AKFED also works with private initiative and building economically governments to help promote the creation of sound enterprises in the developing world. For enabling legal and fiscal structures that more than 50 years, it has made investments encourage the growth of the private sector. and operated companies in the developing AKFED makes bold but calculated investments nations of Africa, South Asia and Central Asia. in situations that are fragile and complex, often AKFED often works in collaboration with assisting in rehabilitation and confidence local and international development partners building in economies that have suffered from to create and operate companies that provide civil conflict or war. goods and services essential to economic At the invitation of several governments, development.These range from banking to AKFED has helped critical industries to make electric power, agricultural processing, hotels, the transition to market economies through airlines and telecommunications. the privatisation process. These include AKFED is focused on building enterprises industries such as banking, power generation, in parts of the world that lack sufficient tourism, manufacturing and the agricultural foreign direct investment. Profits generated sector, in countries as varied as Uganda, by the Fund are reinvested in other Tajikistan, Pakistan and Afghanistan. economic development initiatives under In Kabul,AKFED’s Tourism Promotion the AKFED umbrella. Services Ltd. rebuilt a hotel severely damaged AKFED’s economic development activities are by war. It now is the five-star Kabul Serena intended to be complementary to the social Hotel, part of the AKFED-controlled Serena and cultural objectives and programmes of the chain, a vitally-needed facility for hosting Aga Khan Development Network (AKDN). business, government and other visitors from This ethical framework guides AKFED’s around the world. In Burkina Faso, investment decisions and its operations. AKFED holds a majority position in the AKFED seeks to create profitable, sustainable former government-owned Air Burkina and enterprises through long-term investments that is modernising its fleet and expanding result in strong equity positions.This in turn its services. Banking: Habib Bank, the second largest Agricultural Services: The Frigoken Ltd. plant bank in Pakistan. in Nairobi processes green beans grown by 25,000 Kenya bean farmers for export to European markets. 4 AKFED Brochure Txt Final 31/10/06 17:03 Page 5 AKFED is an international development agency that makes long-term investments in developing countries with the aim of promoting entrepreneurial activity and building profitable enterprises. Although many of AKFED’s financial services AKFED invests in companies were created more than 50 years ago and manages companies in five to serve the needs of the Shia Ismaili Muslim broad sectors: industry and infrastructure, tourism community, the scope of these institutions has development, financial services, expanded considerably to serve the general aviation and media. population of the communities where Investments in industry and they operate. infrastructure are managed Since that time, new sectors of activity have through locally incorporated Industrial Promotion Services been launched in the developing world in the companies that provide venture areas of industry, tourism development, capital, management services infrastructure, media and aviation.These and technical support. activities were grouped under a single umbrella Companies in this sector include food and in 1984 when AKFED was formed, allowing all agro-processing, printing and entities to be guided by a common development packaging, specialised textiles, ethic and to benefit from the synergies of a telecommunications and strategic management infrastructure. power generation. Tourism Promotion Services AKFED operates as a network of affiliates companies build and manage with more than 90 separate project companies hotels and lodges that employing more than 30,000 people, with contribute to economic growth annual revenues in excess of US$ 1.5 billion. in an environmentally and AKFED is active in 16 countries in the culturally sensitive manner. developing world:Afghanistan, Bangladesh, Financial services include banks, Burkina Faso, the Democratic Republic of the insurance companies and property management Congo, India, Ivory Coast, Kenya, Kyrgyz companies. Republic, Mali, Mozambique, Pakistan, Senegal, Media investments include the Syria,Tajikistan,Tanzania and Uganda.There are publishing of newspapers as also affiliates in Canada that provide resources well and technical support to AKFED’s activities in as the operation of radio and the developing world. television stations. Tourism: Serena Hotel in Quetta, Pakistan, Aviation: Celestair, the regional airline, Media: A newscast from Kenya’s provides tourism and business facilities in connects a growing number of underserved NTV, part of the regional Nation an underserved regional centre. destinations in West Africa. Media Group. 5 AKFED Brochure Txt Final 31/10/06 17:03 Page 6 AKFED’s activities include 90 separate project companies employing more than 30,000 people with annual revenues in excess of US$ 1.5 billion. The Fund is active in 16 countries in the developing world: Afghanistan, Bangladesh, Burkina Faso, Democratic Republic of the Congo, India, Ivory Coast, Kenya, Kyrgyz Republic, Mali, Mozambique, Pakistan, Senegal, Syria,Tajikistan, AKFED’s approach emphasises the development of local human resources over time, including managerial, technical, marketing and financial skills. Other characteristics of this approach include: ½ providing essential seed capital to launch projects in those sectors and countries where attracting investment is difficult, ½ taking a long-term view in order to build viable, self-sustaining and profitable companies, ½ participating in the management of companies in which it invests with the aim of preparing companies for broader ownership, thus bringing the benefits of economic development to a wider local population, ½ encouraging the development of local capital markets by floating its companies on India national stock exchanges in Africa and Asia, Development Credit Bank (DCB) of India is one of a range of banks, insurance companies, property owning and management ½ developing local human resources with the companies developed by AKFED in Africa and Asia. objective of building local management ability at all levels and creating more ½ helping to foster a sound and socially employment opportunities in higher-skilled responsible private sector in the segments of the economy, developing world through the impact of ½ helping make the programmes of its investments on individuals and on the international