Technical Assistance to PFIs

ACGF offers customized TA services based on the needs of each of its PFIs. These services are aimed at strengthening overall capacity for MSME lending.

TA services offered by ACGF and SCSA include:

Introducing, optimizing and consolidating PFIs' structures, procedures and processes

Implementing training programs to mitigate credit default risks related to MSME loans

Supporting and training PFIs in the introduction of appropriate environmental and social management systems

Developing innovative new MSME lending products tailored to the market in Afghanistan

Photographer: Reshad Rasooly

In the long run, ACGF and SCSA's TA services aim to:

Optimize the lending procedures of PFIs

Facilitate a more accessible lending environment, allowing PFIs to reach more potential borrowers

Improve environmental and social standards with regard to MSME lending, in line with the Millennium Development Goals

Stabilize the financial sector and generate long-term employment in Afghanistan

“At ACGF we contribute to economic and social development through the transfer of best practice credit technology, capacity building initiatives and product development in the financial sector.”
Carmen Michaelis
Head of Technical Assistance Department
ACGF provides TA services of two types:

Specific TA:

Tailor-made advisory services designed according to the wishes of each PFI and structured around the institution’s strengths and weaknesses.

  • Enhancing risk management 
  • Optimization of governance
  • Product innovation
  • Measurement for improving profitability

These measures are carried out, under the supervision of ACGF management, by service providers, consultants and training providers (individuals and corporations).

Ongoing TA:

Establishment and development of requirements for successful SME lending and operations.
  • On-the-job training for credit officers
  • In-house trainers of the PFIs
  • Improvement of risk evaluation and delinquency management
  • Hands-on support to PFIs on the improvement of credit processes

Programs Implemented by ACGF:

loan officers trained

PFI staff
trained

ta projects
completed

ta projects
in progress

Access to Finance by the World Bank via Ministry of Finance of Afghanistan

Since 2017, following approval by MoF, ACGF received USD 9.1m (USD 6.5m as guarantee capital and USD 2.6m as TA funding), which were used to expand its credit guarantee operations and broaden its TA services. 

This  funding has enabled SCSA to carry out more than 35 TA projects for ACGF and its PFIs, including training over 200 staff members of PFIs.

Access to Finance by the World Bank via Ministry of Finance of Afghanistan

Since 2017, following approval by MoF, ACGF received USD 9.1m (USD 6.5m as guarantee capital and USD 2.6m as TA funding), which were used to expand its credit guarantee operations and broaden its TA services. 

This  funding has enabled ACGF to carry out more than 40 TA  for PFIs and Afghan stakeholders, such as the Ministry of Finance and the Da Afghanistan Bank (DAB). 

Project Examples

OXUS Afghanistan: TA to Improve SME Lending Project

The project for OXUS Afghanistan focused on the existing SME policies and improvement of front- and back-end capacity to deliver and manage its SME product. After assessing SME policies and procedures, training capacity, portfolio management and monitoring techniques, OXUS Afghanistan will be provided with a set of recommendations for making its SME lending practices more effective and efficient, enabling further portfolio growth.

Project is funded by the IDA and implemented by the MISFA.

FINCA-Afghanistan: SME TA Package

The project focused on improving FINCA-A’s capacity to deliver and manage its SME product to the market. The TA package, provided to FINCA-A, has objectives to deliver a number of changes such as a new organizational structure, modified training approach and adjusted policies and procedures. These changes will be supported by new documents and tools, which will be integrated into FINCA-A’s day-to-day SME operations.

Project is funded by the IDA and implemented by the MISFA.

COVID-19 Emergency Relief Guarantee Scheme for MSME in Afghanistan

Backed by financing from BMZ and KfW, ACGF is positioned to serve PFIs in times of crisis and improving the affordability of finance through emergency loans and support for COVID-19 related matching grants (complementary to SAFI) as well as accompanying TA activities. 

Afghanistan Financial Intermediation (SAFI)

An agreement on funding from the World Bank through MoF is being finalized for strengthening credit guarantee activities and bolstering technical assistance to PFIs. In addition, a new matching grants program will be established to support up to 1000 Afghan MSMEs over time with special emphasis on supporting women-owned enterprises and the agricultural sector.

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