History of ACGF

ACGF has proven itself as a reliable local and international partner promoting best pactice MSME lending.

Photographer: Antje Heyn

The CGF-A, the predecessor of ACGF, was founded by BMZ and USAID and implemented by DEG in 2004 to address key development concerns pertaining the private sector in Afghanistan. Based on successful performance for a decade, BMZ and DEG decided to pursue an incorporation strategy to ensure the facility’s financial viability, thus establishing ACGF in 2014 to take over CGF-A’s operations from DEG. 

Over the years, ACGF and CGF-A received funding from the BMZ (EUR 7.4m), DEG (EUR 5.7m) partly funded by USAID, the World Bank/Ministry of Finance of Afghanistan (USD 28.4m), and the KfW Development Bank (KfW) (EUR 7.4m).


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2004

Establishment
of CGF-A

CGF-A, the predecessor of ACGF, is founded through financing from BMZ and USAID.

2004
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2013

USD 100m in loans guaranteed

2013
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2014

Establishment of ACGF

Based on the success of CGF-A, donors decide to pursue an incorporation strategy in order to promote the facility’s institutional sustainability. 

2014
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2015

Establishment of SCSA

SCSA, the Afghan-based subsidiary of ACGF, is founded as a financial consulting company working across all regions of Afghanistan.

2015
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2017

Funding under Access to Finance

ACGF receives funding of USD 9.1m from the World Bank through MoF to expand its credit guarantee activities and TA activities. Over the project timeframe (2017-2021), ACGF onboards three new PIs and succesively scales up its guarantee operations both in numbers and in volumes. 

2017
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2018

USD 200m in loans guaranteed

2018
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2020

COVID-19 Emergency Relief Guarantee Scheme for MSME in Afghanistan (CERG)

Based on strong support from BMZ/KfW, ACGF rapidly initiates an effective COVID-19 response programme for Afghanistan. Under CERG, ACGF facilitates USD 14.7m in lending to 5,211 crisis-affected businesses since September 2020. CERG contributed by the responsive adjustments to its gurantee conditions, as well as selected TA to PIs. 

2020
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2020

Strengthening Afghanistan Financial Intermediation (SAFI)

Under the project ACGF receives new funding from the World Bank through the MoF, strengthening its capital to support credit guarantee activities and bolstering technical assistance to PIs. In addition, a new matching grants program is developed to support up to Afghan MSMEs.

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2020
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August 15, 2021

Adverse political events in Afghanistan

The events of August 15, 2021, heavily affect ACGF operations in Afghanistan and lead to a suspension of new business generation. Currently, ACGF is operating with limited presence on the ground. While administering its existing guarantee portfolio and providing selected TA, ACGF is adjusting its processes and procedures to ensure the proper functioning of its operations.

August 15, 2021
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Future

The future of ACGF

ACGF is strongly committed to continue its operations in Afghanistan, supporting its PIs so they can lend with confidence — promoting stability and growth of the MSME sector in Afghanistan. To this end, ACGF actively engages its funders, its PIs, as well as other international organizations, to support the development of adjusted or new initiatives, potentially receiving additional donor support to fully resume its operations, whenever possible.

Future
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