Technical Assistance to Partner Institutions

ACGF provides technical assistance to strengthen the capacity of its PIs in regard 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. Taking into account the institutional strengths and weaknesses, TA services have addressed a wide range of gaps and sustainably improved institutional and operational structures of PIs.

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 capacility)

Automation and digitization

Introduction of appropriate environmental and social management systems

Product development (trade finance, Islamic finance, agriculture lending, women, solar, standing credit line)

Women branding

Photographer: Reshad Rasooly

Due to recent events in Afghanistan, most of the previously running TA services are currently suspended. For the year 2022, ACGF is foreseeing to support its PIs in the following core areas.

Transitioning existing loan portfolios to Sharia-compliant lending portfolios

Developing innovative new MSME lending products tailored to the Afghan market, especially in the context of Islamic finance and gender-inclusive financing

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

In the long run, ACGF TA services aim to:

Stabilize the financial sector

Optimize the lending procedures of PIs to lower 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

Improve environmental and social standards with regard to MSME lending

“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

Programs Implemented by ACGF:

PFI staff
trained

Number of Financial institutions supported by TA

ta projects
completed

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