A GRICULTURAL DEVELOPMENT FUND (ADF) O VERVIEW Ministry of Agriculture, Irrigation and Livestock Kabul, Afghanistan

A BRIEF DESCRIPTION The Agricultural Development Fund, ADF is a wholesale lending institution “owned” by MAIL US$100 Million from USAID US $37 Million from DANIDA Clientele: Small commercial farmers and agribusinesses, through financial intermediaries Ministry of Agriculture, Irrigation and Livestock Kabul, Afghanistan

S TRATEGIC F OCUS Emphasis on non-financial institutions Farmer or Trade associations Cooperatives Credit Management Unit (CMU) Tool to manage risk Build capacity in partner organizations Islamic Finance Products An innovation of the ADF

H OW DOES THE ADF O PERATE ? ADF Intermediaries Established enterprises that can effectively on- lend e.g. banks, farmer associations, and cooperatives Direct Loans Agribusinesses & Small Commercial Farmers

Public Outreach 54 of Ag Credit Shuras in 30 provinces Customer Service Center at MAIL Collaboration and referral with other Ag-Projects ADF Regional Teams Radio and TV Interviews and PSAs ADF website Participation at Exhibitions

WHO WE LEND TO Farmer associations Farm stores Agricultural depots Food processors Commercial farmers Cooperatives Agricultural input suppliers Agricultural equipment dealers Storage facilities Agricultural exporters

WHAT WE PROVIDE LOANS FOR Working capital Inventory financing Inputs and supplies Purchase of equipment Packaging and storage facilities Warehousing and transportation Construction for agricultural purposes

ELIGIBILITY Citizen of Afghanistan with a tax or national identification card Business registered with AISA or any other GIRoA Institutions Proof of management skills and experience to operate the business or activity the loan is being requested for No engagement in illegal activities Must have been in business or activity for more than a year Minimum loan amount of AFN 5,600,000 or $100,000

LOAN TERMS We provide loans up to five years Interest rates range from 5% to 15% Rates for Associations/Cooperatives lending to members range from 5% to 10% A grace period on the principal amount allows for the purchase necessary materials/equipment needed to generate sales Repayment generally mirrors the crop cycle

LOAN PROCESS Complete loan application having all necessary information. Financial Statements review. If not available, assistance will be provided) Due diligence and business site visit 120% collateral of total loan amount (land, building, equipment) Professional/business reference checks Credit Decision - MAIL, ADF, USAID Credit Committee; unanimous vote. Collateral registration. Disbursement and Collection.

ADF P ORTFOLIO 11 Sharia Compliant Conventional Approved Numbers Disbursed Numbers

ADF’s Islamic Finance 12 Transactions based on Sharia Principles Sharia Advisory Board No riba, gharar No unfair advantage Transparency No haram assets

A CHIEVEMENTS Lent over ($100 Million) in loans Over 24,000 farmers In 33 Provinces Over millions in pipeline Production Processing Marketing

A FEW EXAMPLES Cooperatives (3 rd loan) 1st loan provided seed and fertilizer on credit to 438 farmers potato (paid on-time) 2 nd loan provided seed and fertilizer on credit to over 700 farmers 3 rd loan Ag Input credit to over 1,200 famers Afghanistan National Seed Organization (ANSOR) – processing 2 nd loan 93 seed enterprises Flour Mill To increase processing capacity and contract production from approximately 300 farmers

Ministry of Agriculture, Irrigation and Livestock Kabul, Afghanistan THANK YOU

Ministry of Agriculture, Irrigation and Livestock Kabul, Afghanistan How to Contact US? Phone: Website:

G ROWING BUSINESS IDEAS