Client: U.S. Agency for International Development
Region: Eastern Europe and Central Asia
Solutions: Economic Growth
For more than 25 years, Afghan farmers did not have access to agricultural credit, seriously constraining the growth of farming. DAI managed a $100 million U.S. Agency for International Development (USAID) grant to the Ministry of Agriculture, Irrigation and Livestock to provide credit to farmers, who repay their loans after their harvests. We also provided technical assistance so that farmers and others who borrow from the Agricultural Development Fund are well prepared to sustain and succeed.
Islamic Finance and Conventional Loans are available to many Afghans who participate in farming, such as small commercial farmers, agriculture-related businesses, producers of high-value crops, and processors and exporters of agricultural products. The success and future sustainability of the fund rests on three fundamental pillars: solid governance; airtight policies and procedures; and human capital. Investing in people will undoubtedly contribute to the permanence and integrity of the fund, which is why capacity development is at the core of its business strategy.
Formal commercial actors are needed to sustain and expand agricultural value chains. Poor farmers, either individually or within groups, cannot effectively penetrate international and formal markets without the formal intermediaries involved in quality management, bulking, and export.Read More