Technical Assistance to Partner Institutions
ACGF provides TA to strengthen the capacity of its PIs with regards to MSME lending.
ACGF offers customized TA services to its PIs. These are dedicated to strengthening the capacity of its PIs for more efficient and more accessible MSME lending. Considering the institutional strengths and weaknesses, TA services have addressed a wide range of gaps and sustainably improved institutional and operational structures of PIs.
Programs Implemented by ACGF:
PIs staff
trained
Number of Financial institutions supported by TA
TA projects
completed
Historically, TA services offered by ACGF included:
Setting up of MSME lending units
Lending procedures, portfolio management (including scorecard development, risk management tools, appraisal process streamlining, set-up recovery unit, staff incentive scheme)
Staff training (credit risk assessment, financial analysis, relationship management, management capacity)
Automation and digitization
Introduction of appropriate environmental and social management systems
Product development (Islamic finance, trade finance, agriculture lending, solar, and standing credit line)
Increasing access to finance for women-owned MSME
Since 2023 and in the long run, ACGF TA services aim to:
Provide additional stability to the financial sector
Optimize the lending procedures and methodologies of PIs to reduce transaction costs
Facilitate a more accessible lending environment, allowing PIs to expand their outreach and to increase lending volumes to the MSME sector with the aim to generate long-term employment in Afghanistan
Support PIs in adjusting their business models and developing market responsive Shariah-compliant lending products
Improve environmental and social risk standards with regard to MSME lending
In the context of the agreements with the European Union and the World Bank, the TA services mainly focus on:
Facilitating the development of Islamic financial services and products at PIs such as Learning Management System and Shariah-compliant Pool Management Framework
Strengthening MSME lending methodology particularly with regards to delinquency and risk management, as well as supporting PIs at improving their product offerings and outreach approaches to female-headed MSME
Enhancing PIs' understanding of the needs in the agricultural sector, setting up an agricultural financing strategy and developing suitable financing mechanisms
Hiring Resident Advisor for selected PIs to further enhance the effectiveness and efficiency of PIs’ lending operations
Providing MSME with tailored business development services, to help them improve their capacity to plan and apply for financing
Islamic Finance awareness campaign and workshops for MSME to improve knowledge on Shariah-compliant financing modes and principles and benefits of Shariah-compliant financing
Development of financial educational booklet providing MSME in Afghanistan with guidance for financial business management and access to formal finance
“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.”
Dr. Mattias Grammling
Head of Technical Assistance Department