AMERMS Workshop 21: Microfinance in Post-Crisis Situations (PPT by Najibullah Samim)
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AMERMS Workshop 21: Microfinance in Post-Crisis Situations (PPT by Najibullah Samim)

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Microfinance in Post Conflict and Post Disaster Situations
ROOM: Tsavo A
Translated session: English & French
SPONSORED BY: Microfinance Investment Support Facility for Afghanistan (MISFA)
PANEL:
Chair: Prof. Ndioro Ndiaye, President, Alliance for Migration, Leadership and Development (AMLD),
Senegal
Panelist: Ms. Emily Guegbeh Peal, CEO, Foundation for Women, Liberia
Panelist: Mr. Tambwe wa Tambwe Musangelu, Executive Director, Diku Dilenga, DR Congo
Panelist: Mr. Najibullah Samim, CEO, Microfinance Agency for Development and Rehabilitation of
Afghan Communities (MADRAC), Afghanistan
Panelist: Mr. Alex Pollock, Director of Microfinance Department, United Nations Relief and Works
Agency (UNRWA), occupied Palestinian territory

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  • 1. The Microfinance Sector of Afghanistan By: Najibullah Samim CEO of MADRAC & Chairman of the Afghanistan Microfinance Association (AMA) Microfinance in post-conflict, post-disaster situation A session at the Africa-Middle East Regional Microcredit Summit 2010 Nairobi, Kenya – April 2010
  • 2. AFGHAN HISTORY 1979-1988: The Russia’s invasion 1988-1992: Internal war between different parties 1992-1996: Internal war between different Mujahideen parties 1996-2001: Internal war between Mujahideen and the Taliban 2001-Present: Ongoing war between Taliban and Afghan Government 3 decades of war and conflict
  • 3. AFGHAN HISTORY
    • About 1.5 million Afghans died and about 1 million were disabled.
    • About 5 million migrated--mostly to Iran and Pakistan.
    • Infrastructures seriously damaged/destroyed.
    • Development works were almost stopped
    • Women did not have access to education and work mainly during the Taliban regime.
    3 decades of war and conflict
  • 4. MICROFINANCE IN AFGHANISTAN
    • 2002:
    • NGOs introduce microfinance, serving a combined total of only 12,000 poor Afghans.
    • 2003-2006:
    • GoA-MRRD and WB-CGAP create MISFA
    • MISFA transforms into non-profit LLC
    • 2008-2009:
    • No. of MFI partners grow from 4 to 16
    • All MFIs register with GoA as not-for-profit organizations
    • MFIs cover 70% of all provinces, serving more than 400,000 poor Afghans; 60% of whom are women.
  • 5. MICROFINANCE IN AFGHANISTAN Key Indicators Nov. ‘09 No. of MFIs 15 Provinces covered 27 No. of branches 309 Active clients 438,508 Gross loans outstanding, US$ million 108 Women clients 60% No. of staff employed 4,109
  • 6. MICROFINANCE IMPACT Non-clients Clients Percentage of MF clients vs. non-clients 31% 46% Client households with savings Findings of a study on Gender Mainstreaming in Microfinance 51% 72% Clients reporting improvement in economic situation (from past year) Findings of the 2007 Baseline Impact Study, IDS, Sussex Uni., UK 46.5% 87.4% Making purchases independently 61.1% 77% Participating in household economic decisions (e.g. expenses on food, health, education, etc.) 52.5% 74.5% Participating in household business decisions Non-clients Clients Percentage of women clients vs. non-clients
  • 7. MICROFINANCE IMPACT
    • Afghans used loans mainly for starting or expanding business
        • Business start-up/expansion
        • Operating capital
        • Health, education, food, housing
    • For every borrower , 1.5 job opportunities sustained or created
    • 64% female clients and 74% male clients generated employment for themselves.
    • Nearly 45% of all clients generated employment for others.
    Source: Baseline and Impact Study, a research commissioned by MISFA in 2007. 16% 4% 80 %
  • 8. MICROFINANCE IMPACT
    • 44% of women clients gained absolute control over their money vs. 18% of non-client counterparts.
    • 80% of women clients reported “improved attitude” of husbands + other relatives, after the loan.
    • 91% of women clients reported enjoying good relationship with other group members.
    More IDS study findings:
  • 9. AFG – MF OPERATION IN POST CONFLICT Assuring repayment
      • Government involvement
      • Involving local/community leaders in the operation
      • Practicing group guarantee
      • Demand-driven products ( Shari’a -compliant products)
      • Respecting cultural values (female staff for female clients)
      • Flexible services and products
      • Special operational security measures
      • Localized human resources
  • 10. ENVIRONMENT – ENABLING FACTORS
      • International community support (financial and technical)
      • Government involvement
      • Growing economy and relatively stable currency
      • Demand for microfinance services (refugees returning home and starting new businesses)
      • Private sector development (government intention for privatization).
  • 11. ENVIRONMENT – DISABLING FACTORS
      • Security (affects MF operations in some areas of the country)
      • Occasional resistance from local religious leaders
      • Natural disasters (flood, draught, extreme cold weather, etc.)
      • Staff turnover
      • High cost of service delivery
  • 12. Thank you!