Microbuild Europe and Central Asia

Europe and Central Asia

Number of partners: 12 | Amount: US$22.3 million | Number of countries: 8

Case study: Bosnia and Herzegovina

Bosnia and Herzegovina, faces two key housing challenges. These include the after-effects of the Bosnian War and illegal settlements. The 1991 war destroyed almost half of the country’s publicly and privately held homes. And, Bosnia currently has many illegal settlements because the low-income population cannot afford the cost of legalization.

Sunrise

Sunrise serves economically active clients, including individuals, families, microenterprises and small businesses. For these borrowing groups, the main source of income is generated from their own businesses. As of December 2016, it had an overall value of US$15.4 million invested across 42 branches.

Suvada's story

Suvada lives with her family in a tiny overcrowded home. Suvada inherited land on the outskirts of Sarajevo, where she has been constructing a house bit by bit over the past 10 years with her family savings and back-to-back Sunrise housing loans. The family will soon move in, pending a few final construction pieces made possible by a third Sunrise loan.

Suvada is thrilled by the prospect of owning her first home (at age 47). She looks forward to tending a big yard with an orchard and waking up in her own, less-cramped space.

Case study: Kazakhstan

Among Kazakhstan’s population of 16.9 million, the number of people who use financial services is very low. Only 54 %…

Among Kazakhstan’s population of 16.9 million, the number of people who use financial services is very low. Only 54 % of the adult population have a bank account, only 8 % have a formal savings account, and only 16 % participate in formal borrowing.

One of the microfinance institutions working to improve the country’s access to capital is KazMicroFinance. Over time, KMF has modified its housing product based on its clients’ needs and preferences. It increased the maximum loan amount to respond to increases in the price of construction materials, allowing clients to purchase better-quality materials for repairs and renovations.

Makhmud’s story

Makhmud has benefited from a KMF loan. He lives in Kentau, a small town in a rural area of Kazakhstan, with his wife and three children. Now on his second loan from KMF (and his first housing loan), he has finally been able to replace his doors and windows and reconstruct the house.