Afghanistan Microfinance Association Status of the Microfinance Sector in Afghanistan

 About AMA: history, background, functions and activities.  Status of the Microfinance Sector in Afghanistan. Presentation Outline

About AMA

 Created in 2005 by microfinance practitioners (MFIs), MISFA and other stakeholders.  Rejuvenated in April 2011 by USAID’s FAIDA project and MISFA with new Vision, Leadership and Governance.  AMA Donors: USAID’s FAIDA project, and MISFA.  AMA is a member of SEEP and SAMN and is a member of BoD of SAMN. History and Background

AMA Members: 14 History and Background

AMA is dedicated to improve A2F and to promote sustainable microfinance sector in Afghanistan through: 1.Coordination and Networking 2.Knowledge Management 3.Lobby and Advocacy 4.Capacity Building Functions and Activities

1.CEOs Coordination Meeting  AMA organizes CEO coordination meetings on bi-monthly basis. Coordination and Networking

2.MFIs Regional Coordination Meetings  AMA organizes monthly coordination meetings in the regions. Coordination and Networking

AMA serves as information hub for the industry through its website, regular sector update reports, newsletters, and research & studies. Knowledge Management

1.Website  It provides updated information on AMA and the microfinance sector in Afghanistan. Knowledge Management

2.Sector Update Reports through:  MicroView Online Application.  MicroView Quarterly Report. Knowledge Management

3.Newsletters  Printed Newsletter – two publications in a year.  E Newsletter – bi monthly publication. Knowledge Management

4.Studies and Researches  AMA conducts studies and researches on specific topics as needed. Knowledge Management

1.Awareness Raising Workshops  To raise awareness about Microfinance and to get better support from Government, Community elders and stakeholders. Lobbying and Advocacy

2.Meetings with Local Govt. Officials  To raise awareness about microfinance program and attract their support Lobbying and Advocacy

 AMA provides capacity building services to the sector through workshops, scholarships, exposure visits and need-based trainings.  AMA also acts as a catalyst between training providers and MFIs. Capacity Building

Trainings and Workshops  AMA conducts trainings and workshop to its members as per their needs. Capacity Building

Women A2B Opportunities and Islamic finance Workshop  AMA and FAIDA conduct these workshops for Women Entrepreneurs in the region. Capacity Building

 Scholarships for International Trainings and Conferencess  Exposure Visits - National and International. Capacity Building

Status of the Microfinance Sector in Afghanistan

Updates (as of Jun 2014) Microfinance Outreach

Updates (as of Jun 2014) SNIndicatorValue 1 No. 0f Active Clients350,755 2 No. of Active Borrowers170,493 3 Gross Loan Portfolio (AFN)7,8 billion 4 Number of Active Savers226,074 5 Amount of Savings (AFN)1,2 billion 6 Number of Microfinance Staff2,400 7 Number of Branches148 8 Number of Provinces Covered19

Updates (as of Jun 2014)

1.Security 2.Financial Inclusion – expansion to unreached areas, youth and women 3.Financial Literacy – Clients education on how to use loans. MF is considered as grants 4.Overlapping and Over-Indebtedness 5.Awareness about Microfinance 6.Govt. Support 7.Linkages between BDS Providers and MFIs 8.Religious Resistance Microfinance Sector Challenges

1.Financial Literacy and Clients Education 2.Financial Inclusion – work with MFIs to reach out to unreached areas and populations (Youth, Women etc.) 3.Facilitate MFIs participation in DAB Credit Registry to reduce overlapping risk 4.Awareness Raising Campaign through different means 5.Link between BDS Providers and MFIs 6.Encourage MFIs to develop Islamic Financial Products AMA Future Plan

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