Afghanistan

Economy:
Security remains a significant issue since the fall of the Taliban regime in 2001. Afghanistan is extremely poor. Most people suffer from shortages of housing, clean water, medical care, electricity, and jobs. Two-thirds live on less than $2 a day. Agriculture accounts for 62% of GDP and employs 80% of the labor force (note: figures exclude opium production). The infant mortality rate of 160.23 deaths/1,000 live births is 25 times that in the U.S.

Estimates of the informal sector vary from three to eight million microentrepreneurs but there is clear consensus that it is the dominant force in the economy. MFIs play a dual role in rebuilding Afghanistan: from a grassroots level, offering microentrepreneurs a wide range of products and services, and from a macroeconomic perspective, helping the government rebuild its ruined financial infrastructure.

Climate for microfinance:
• FINCA Afghanistan has developed Islamic compliant microfinance products to address prohibitions on collecting and paying interest.
• The FINCA Microfinance Institute offers certificate-level programs in lending, management, finance, accounting, IT, personnel development, and general business skills.
• Security is incorporated into every aspect of FINCA's operations.

In August, 2007 FINCA Afghanistan surpassed the 50,000-client milestone (making it one of FINCA's fastest growing programs) and it plans to reach 90,000 clients by 2009. (Please note that the 50,000-client figure will not be reflected in the statistics below until October, 2007).

The program recently won a prestigious Pro-Poor Innovation Challenge award for its microfinance project that "targets vulnerable Afghans, including unemployed/underemployed men and women, orphans, young former combatants, disabled persons, and ethnic minorities." 

FINCA Afghanistan began operations in Herat in 2004, in Kabul and Nangarhar in 2005, and in Parwan and Laghman in early 2006, Balkh and Kunar in late 2006, and Kunduz in 2007. The program focuses outreach on women, ethnic minorities, and returning refugees.