Bridging the Gap

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Financial Access for Investing in the Development of Afghanistan

USAID’s $108 million Financial Access for Investing in the Development of Afghanistan (FAIDA) project has been extended to February 2016, and Connexus is pleased to continue on the project as the Banking Capacity Component Lead. Led by Chemonics International, FAIDA aims to build a sustainable, diverse, and inclusive financial sector that can generate and sustain quality employment and meet the needs of micro, small, and medium enterprises (MSMEs) throughout the country. To this end, FAIDA works to strengthen a private-sector led financial sector and increase access to both loan and investment capital in Afghanistan.

The first three years of the project implemented significant strengthening of the Afghanistan financial sector, and under the leadership of Connexus’s Banking Capacity Component Team Leader, LB Prakash, the following project results were achieved:

  • The Afghanistan Banks Association (ABA) was strengthened through the provision of financial, technical, and infrastructure development assistance in order for ABA to become an effective representative of the Afghan banking sector.
  • The Afghanistan Microfinance Association (AMA) was transformed through the provision of financial, technical and infrastructure assistance for AMA to evolve as a representative voice for Afghan microfinance and play a key role in advocacy efforts.
  • The Deposit-taking Microfinance Institutions (DMFI) Regulation was approved in principle by Afghanistan’s Central Bank in March 2014.
  • Through support to the Islamic Investment and Finance Cooperatives (IIFC) Group and its IIFCs, the number of profitable IIFC outlets doubled from 11 to 22.
  • Continued development and education of the banking and finance profession in Afghanistan through capacity building initiatives, such as a distance learning program, women internship program, and certificate courses, in addition to structured training.

For more information on FAIDA, please click here.