Impact Investing

Impact Investing

The Aga Khan Foundation's approach to Impact Investing

The Aga Khan Foundation's approach to Impact Investing

The Aga Khan Development Network (AKDN) has decades of experience in mobilizing investment capital with long-term social impact − what is known as Impact Investing.  For more than 50 years the Aga Khan Development Network has financed critical economic infrastructure across the developing world including banks, airlines, agro-processing plants, and media enterprises. The profits from these social enterprises are reinvested in other economic development initiatives.

Launched in 2011, Aga Khan Foundation U.S.A.’s (AKF USA) Impact Investing program grew directly from AKDN’s history of using innovative financing mechanisms to achieve social and economic development. AKDN has long embraced the discipline of investing for impact to increase the amount of capital available for social infrastructure projects. Impact Investing at AKF USA has three primary objectives:

  • Mobilize investment capital for high-impact social enterprises within the AKDN
  • Make mission-related investments in support of AKDN enterprises and/or beneficiaries
  • Remove barriers that prevent the impact investing sector from scaling

Investment Spotlight

AKF USA provides catalytic capital to AKDN social enterprises across Central and South Asia, East and West Africa, and the Middle East. Our portfolio includes:

First MicroFinance Bank of Afghanistan

First MicroFinance Bank of Afghanistan (FMFB-A) is the largest microfinance institution in Afghanistan, having made over 59,000 loans totaling over $116 million in 2012. The bank provides needed capital to the country’s vulnerable urban and rural populations through financial products such as Small and Medium Enterprise (SME) and housing loans. In December 2012, AKF USA became an 11 percent owner of FMFB-A alongside the German development bank – KfW, the International Finance Corporation, and the Aga Khan Agency for Microfinance. Learn more about this investment here.

Multi-Input Area Development

One of the largest global development alliances ever made by the U.S. Agency for International Development (USAID), the Multi-Input Area Development (MIAD) program combines two components: a set of grant-funded, community-based, socio-economic initiatives, and a financial vehicle that will invest in regional social enterprises to create jobs and drive economic growth. Over time, investments will provide returns to be partially channeled into a special social development fund for Badakhshan Province in northern Afghanistan, where poverty poses an extraordinary challenge. USAID and the AKDN committed over $30 million each to this project in an innovative combination of grants and investments, including a $10 million Mission Related Investment through AKF USA. Learn more about this program here.

Aga Khan University Hospital

The Aga Khan University Hospital (AKUH) owns and operates a hospital in Karachi whose proceeds fund world-class health treatment in 82 cities across Pakistan. In 2013 the U.S. Overseas Private Investment Corporation (OPIC) provided a $30 million loan facility, alongside $7.5 million in debt from AKF USA, for an expansion at AKUH to improve access to health care in Pakistan. The investment includes the construction of a new private wing; neonatal, medical, and pediatric intensive care units; and a center for innovation in medical education. Proceeds from this new construction will increase AKUH’s ability to provide health services and medical education, making high-quality health care more available for thousands of Pakistan’s poorest citizens. Learn more about this investment here.

Partnering With Us on Impact Investing

AKF USA is continually identifying co-investment and partnership opportunities with other like-minded impact investors. We specialize in AKDN projects that accelerate financially sustainable and high-impact social investments in healthcare, higher and secondary education, rural development, microfinance and urban rejuvenation. If you would like more information on our investments or how to partner with us, please contact: impactinvesting.akfusa@akdn.org. You can read more about our work by downloading our flyer and through our blog posts:


AKF USA is a member of the Aspen Network of Development Entrepreneurs and founding Global Impact Investing Network member.