BACKGROUND: The purpose of FAIDA is to build a sustainable, diverse and inclusive financial sector that can meet the needs of micro, small and medium enterprises (MSMEs) throughout the country. The five-year, $108 million program’s objective is to (1) assist the Government of the Islamic Republic of Afghanistan and the private sector in developing the financial sector; (2) help Afghan finance sector partners to build capacity in delivering finance effectively; (3) help the government to develop a legal framework and market infrastructure that allow financial sector institutions to create value that provides growth and employment opportunities for all Afghans; (4) provide technical assistance to Afghanistan’s mobile network operators for innovative mobile money products and services;(5) directly assist Afghan women entrepreneurs by providing specially targeted business development training to enable them to gain access to financing and opportunities for economic and professional growth.
- Enterprises: Works with partner institutions to provide tailored financial solutions where access to capital will complete value chains and increase competitiveness. Links lenders to businesses in need of financing, with a special focus on the agricultural sector and remote areas. Provides Islamic and conventional financial products to lenders and the private sector.
- Banking Capacity: Enhances the capacity of financial professionals, and infrastructure organizations with assistance to build human and organizational capacity to strengthen Afghanistan’s financial sector.
- Regulatory: Creates an enabling lending environment that reduces risk and increases certainty. Develops new or updated regulations across all financial sectors and key institutions.
- Better than Cash: Provides technical assistance to Afghanistan’s mobile network operators to introduce innovative new products and services and expand the use of mobile money.
- Gender Mainstreaming Unit: Ensures that women are integrated in financial sector activities and are provided access to financing and opportunities for economic and professional growth.