Financial Access for Investing in the Development of Afghanistan (FAIDA)

OVERVIEW

Financial Access for Investing in the Development of Afghanistan (FAIDA) seeks to build a sustainable, diverse, and inclusive Afghan financial sector that can generate and sustain quality employment, and meet the needs of businesses of all sizes. The $108 million program began in February 2011 and ends in February 2016.

FAIDA activities are helping Afghan state and financial institutions develop a legal framework to foster economic growth and generate employment opportunities. The project also is providing business development training to female entrepreneurs to access financing to grow their businesses.

CURRENT ACTIVITIES

  • Banking Capacity: Train Afghanistan financial sector staff in risk management, credit application streamlining, financial manual review, and international financial reporting standards.
  • Local Engagement: Provide Islamic and conventional financial products to lenders and the private sector.
  • Regulatory: Create an enabling lending environment that reduces risk and increases certainty. Develop updated regulations across all financial sectors and key institutions.
  • Enterprises: Support enterprises to increase competitiveness and help deliver a valuable product or service for the market. Link lenders to businesses in need of financing.
  • Branchless Banking and Mobile Money: Work with mobile network operators to introduce and expand the use of financial products and services through mobile phones, for example by linking Afghan government employee bank accounts to these services.
  • Gender Mainstreaming Unit: Integrate women into Afghanistan’s financial sector by training them, and by linking them with commercial lending institutions.
  • Agriculture Services and Inputs: Develop privately owned and operated businesses catering to farmers and herders such as rural farm stores and veterinary clinics.

ACCOMPLISHMENTS

  • Created 3,331 Full Time Equivalent jobs.
  • Provided financial assistance to 23,627 families.
  • Helped micro, small and medium enterprises to receive $32.7 million in commercial loans; $18 million in loan applications also in process.
  • Conducted microfinance and commercial banking trainings for 2,410 financial sector employees.
  • Held 22 business and gender workshops for 1,200 businesswomen from all 34 provinces.
  • Helped 575 businesswomen to obtain $1.86 million in loans for start-ups or business expansion.
  • Worked with banks to develop 33 culturally appropriate and Islamic finance products.
  • Provided assistance to OXUS microfinance institutions to simplify the loan application process for small and medium enterprises, resulting in loans to 1,840 clients (544 women), the creation of 1,849 jobs and the profitability of OXUS.
  • Supported World Food Programme’s implementation of mobile money e-vouchers through mobile service provider Afghan Wireless Communications Company (AWCC), enabling the provision of vouchers to buy goods from authorized AWCC merchants to Afghan beneficiaries.
  • Helped to implement registration of 135 Independent Directorate of Local Governance employees with AWCC mobile money service to receive a portion of their salaries linked to their bank accounts.

Last updated: December 31, 2014

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