From Recovery to Economic Growth

Kaebauk Investimentu No Finansas (KIF)

October 2024

In the small but growing Southeast Asian nation of Timor-Leste, located on the eastern half of the island of Timor between Indonesia and Australia, Kaebauk Investimentu No Finansas (KIF) has emerged as a vital force in empowering micro-entrepreneurs and fostering sustainable economic growth. Established in 2001, KIF has played a pivotal role in Timor-Leste's post-conflict recovery, fully aligned with the Sustainable Development Goals (SDGs) 1 (No Poverty), 8 (Decent Work and Economic Growth, and 5 (Gender Equality).

Originally created to address the financial needs of underserved communities, particularly in the aftermath of political conflict, KIF has continually expanded its capacity and reach.

Supported by responsAbility, KIF has evolved into Timor-Leste’s largest microfinance institution, offering financial services across all 13 districts, with a strong focus on economic resilience and inclusive growth. 1

Empowering women and rural communities

A key focus for KIF is the empowerment of women, who make up more than half of its client base. One such client, Mrs. Teresinha de Araujo, began her journey with a small kiosk in 2002, selling rice and household goods. Her aim was not just to make money, but to afford sending her five children to school.

In 2006, political unrest threatened her livelihood and shut down her business. Her dream of providing a better life for her children suddenly seemed impossible. But Mrs. Teresinha did not give up. Determined to keep her kiosk going, she looked around for ways to restock her supplies and restart her business. Learning about KIF (then known as known as Tuba-Rai Metin) from her local community, she applied for a loan of USD 500 to rebuild her business.

With access to this finance, she was able to take advantage of the opportunities after the crisis. She was the first to reopen her kiosk in Dili, setting a standard for resilience and determination in her community.

Thanks to the loans she received over the years, Mrs. Teresinha was able to expand her business and establish new ventures, including public transportation, truck rental and hospitality.

“Running a business is challenging, but I have managed to send my children to school, and now they have a future. I am proud of my accomplishments and grateful for KIF’s support,” says Mrs. Teresinha.

Expanding financial inclusion

KIF manages a loan portfolio of over USD 28 million, reaching approximately 18,464 clients, 58 % of whom are women. Its commitment to serving rural and underserved populations remains strong, with 80% of its clients residing in remote areas. By focusing on these groups, KIF helps reduce poverty, drive economic development and creates sustainable growth opportunities across the country.

SDG 1 - No Poverty

Impact-Strategy 1: Provide access to financial services

KIF aims to ensure that all men and women, particularly the poor and vulnerable, have equal rights to economic resources, including access to financial services such as microfinance.

Additionally, about 80% of KIF's borrowers live in rural areas.