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Strategic Financial Analysis & Design

Akhuwat Case Study Assignment

1. What is a microfinance institution? Describe the origins and business model of


a conventional microfinance institution.
2. What is Akhuwat? What are the similarities and differences between Akhuwat
and a conventional microfinance institution?
3. Differentiate the concept of social collateralization from the practice of keeping
collaterals by conventional financial institutions.
4. What strategies did Akhuwat use to minimize its operational expenses as
compared to other microfinance institutions? How feasible/sustainable are
these strategies for expansion?
5. Why was Akhuwat criticized for its financial model? How was Akhuwat able to
perform and grow exceptionally well despite these criticisms?

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