Donors & Partners
ACGF donors have contributed capital and provided impetus to the establishment and growth of ACGF.
The German Federal Ministry for Economic Cooperation and Development (BMZ) is committed to implementing Germany’s development policy abroad. Among its various development principles BMZ relies on fostering the developing countries’ sense of ownership. This principle, along with others, has been a focal point in economic cooperation between Afghanistan and Germany. Since 2001 Germany pledged around EUR 2.9 billion in development cooperation with Afghanistan. Currently, Germany is the third largest bilateral donor to Afghanistan and emphasizes, among other objectives, on the promotion of small and medium enterprises (SMEs).
Since 2005, BMZ contributed financial resources and laid the grounds for the establishment of Credit Guarantee Fund for Afghanistan (CGF-A), predecessor of ACGF - Afghan Credit Guarantee Foundation (ACGF). BMZ has intensively facilitated the process of transition from CGF-A to ACGF and ensured the governmental support for the transformation of the organization’s status from facility to foundation.
Ms. Katharina Weber serves as a representative of BMZ and the Vice Chairwoman of ACGF’s Board of Trustees. On behalf of BMZ, Ms. Katharina Weber participates in the foundation’s strategic decision-making and in providing auxiliary support.
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH – is a member of KfW-group, the German government-owned development bank. KfW is one of the leading development banks in the world and is inter alia responsible for carrying out government-level cooperation between Germany and other countries. Within this institutional framework DEG is focused on the financing of private businesses in developing and transition countries. The mission of DEG is to promote business initiative in developing and emerging markets as a contribution to sustainable growth and improved living conditions of the local population.
Since 2005 until the end of 2014, DEG was the trustee of Credit Guarantee Fund for Afghanistan (CGF-A), the predecessor or Afghan Credit Guarantee Foundation (ACGF). Being responsible for the head office function of CGF-A, DEG played a crucial role in developing the company’s operational framework and local partnerships. Along with its managerial responsibilities DEG also consolidated the financial resources of CGF-A’s donors – Federal Ministry for Economic Cooperation and Development (BMZ) and the United States Agency for International Development (USAID). In 2015, DEG facilitated the transition process from CGF-A to ACGF and DEG further provided a repayable grant to ACGF enabling its further upscaling.
Mr. Bernt Hagenlocher is the Chairman of the Board of Trustees of ACGF and is involved in strategic decision-making and providing further support to ACGF.
The World Bank is a vital source of financial and technical assistance to developing countries around the world. The World Bank is a unique partnership with a goal to reduce poverty and support development. It is made up of 189 member countries. These member countries, or shareholders, are represented by a Board of Governors, who are the ultimate policymakers at the World Bank. Generally, the governors are member countries' ministers of finance or ministers of development.
The World Bank in Afghanistan helps meet the immediate needs of the poorest people while assisting the government in developing the administrative systems required for longer-term nationwide development. To date, the World Bank has provided a total of over $3.34 billion for development and emergency reconstruction projects, and five budget support operations in Afghanistan.
In March 2017, following the approval by the Ministry of Finance of Afghanistan, ACGF can receive additional funding of up to USD 8.1 m in the context of the Access to Finance Project for Afghanistan initiated by the World Bank. The funding will be used towards expansion of the credit guarantee portfolio of ACGF and carrying further Technical Assistance activities for the ACGF Partner Financial Institutions.
ACGF business model strongly relies on close cooperation with its Partners, which are carefully selected. ACGF continuously considers new Partners focused on lending to the Small and Medium Enterprise (SME) sector.
Afghanistan International Bank (AIB) was founded in 2004 and has since established itself as a pioneering leader in Afghanistan’s banking sector. Over the past twelve years AIB has built an enduring institution that combines international expertise with local knowledge, giving a deep-rooted understanding of customer needs that is grounded in the highest international standards and best practice. AIB was founded by three major financial groups active in the region:
- Asian Development Bank (ADB), a multilateral development finance institution
- Horizon Associates LLC, an investment company of the Mohib Group, a major commodities trader in the region
- Wilton Holdings Ltd, part of the Rahmat Group, active in Afghanistan and Pakistan, focusing on the production of textiles, dry fruit processing, and trading operations.
Cooperation between AIB and CGF-A started in 2006. It has successfully evolved into cooperation with ACGF and continues to develop on a systematic basis.
The First MicroFinanceBank (FMFB) is part of the Aga Khan Agency for Microfinance (AKAM), which has programmes in over 15 countries throughout the developing world. FMFB has a commercial banking license and started operations in 2004. Its prime objective in Afghanistan is to contribute to poverty alleviation and economic development though the provision of sustainable financial services to the poor and underserved.
In 2004, the urban portion of the Emergency Microfinance Programme in Kabul was converted into The First Microfinance Bank with an initial capital of USD 5 m invested by the Aga Khan Fund for Economic Development (AKFED) and the International Finance Corporation (IFC) later joined by Kreditanstalt für Wiederaufbau (KFW). FMFB was the first of its kind under the country’s new regulatory structure and was granted license #001 under the new banking law in the autumn of 2003. In 2005, the urban portions of the emergency microfinance programme in Pul-i-kumri and Mazar-e-Sharif were also absorbed into FMFB. Cooperation between FMFB and Credit Guarantee Facility for Afghanistan (CGF-A), the predecessor of ACGF, has started in 2006 and has been developing and has successfully transitioned to collaboration with ACGF in 2015. FMFB systematically submits guarantee applications to ACGF for loans from different regions of Afghanistan and covering a wide range of business sectors.
FINCA-A is a Kabul-based Micro Finance Institution (MFI), which offers five financial products to its target market, primarily financing working capital and short-term assets. Cooperation with FINCA-A is focused on technical assistance to strengthen its institutional capacity for Small and Medium Enterprises (SME) lending, process improvement and promote innovation.
OXUS Afghanistan is a registered as a Corporation, providing four different product types: collateral-free group loan product, small personal loan product, individual loan product and small and medium enterprise loan product. OXUS Afghanistan and was founded in 2007 by OXUS, a Paris-based network of microfinance institutions. The technical assistance project of OXUS Afghanistan is focused on reviewing and improving its SME lending policy.