1. August 27, 2014 1 FINCA Afghanistan

3. Brief History Of FINCA Afghanistan 3 FINCA is one of the global MFI which established in 1985 by launching its Village Banking programs in Latin America.Village Banking With headquarters in Washington, DC, FINCA reaches over 1.7 million clients through its 22 subsidiaries in Africa, Eurasia, the Middle East and South Asia, and Latin America.22 subsidiaries FINCA Afghanistan operates in Afghanistan as a joint stock company registered with AISA in 2007, although started operations as NGO in July 2003. FINCA Afghanistan operates by 15 branches primarily in the North, West and Central regions.

4. FINCA Afghanistan Working Map 4 8 Provinces Central 1. Kota-e- Sangi 2. Dasht-e- Barchi 3. Khair Khana 4. Mandavi 5. Kart-e-Now 6. Arzan Qemat 7. Charikar North 8. Mazar 9. Nar-e- Shahee 10. Shibirghan 11. Pul-e-Khumri 12. Kunduz 13. Faizabad West 14. Herat main branch 15. Haji Abas market office

5. FINCA Afghanistan’s Mission FINCA Afghanistan’s mission is to provide financial services to the Afghan's lowest- income entrepreneurs so they can create jobs build assets and improve their standard of living. 5

6. FINCA Afghanistan Products Profile 6 ProductAmountLoan termPurpose WMG 5,000 AFN– 50,000 AFN6 Months To 18 Months used to finance in income generating activities by women BMA 10,000 AFN - 350,000 AFN 6 Months To 18 Months used to finance in income generating activities by men/women SEL 20,000 AFN - 250,000 AFN6 Months To 24Months used to finance in income generating activities by men/women SME 250,000 AFN – 1000,000 AFN 6 Months To 24Months used to finance in income generating activities by men/women ECL 25,000 AFN – 100,000 AFN 6 Months To 12 Months Emergency Credit Line (ECL) is designed to meet the emergency needs of borrowers

7. Jobs Created 7 -Currently FINCA Afghanistan is employer of 341 employees and created directly jobs for 225 Males and 116 females. -Currently FINCA Afghanistan has 27,688 active clients with 77.5% females and served them directly. Also different residents of the country are using our loans benefits indirectly such us whole sellers, transportations, owners, loaders and etc. -FINCA empowers women entrepreneurs by; - providing them with access to credit. - giving them economic independence in the household and community. - Giving them the ability to improve the living standards of their families.

8. Livelihood Promotion Through FINCA Loans 8 FINCA Afghanistan’s institutional strategy is focused on the development of Afghanistan’s lowest-income entrepreneurs, in order to alleviate the excesses of poverty that has come with years of war and instability. In contributing towards the greater prosperity of Afghanistan, FINCA Afghanistan is dedicated to: a)create jobs. b)contribute profits to the economy. c) build a strong entrepreneurial base. d)provide an alternative to poppy cultivation and militia service e)promote civil society. f)empower women. g)assist with stabilizing the country by giving the poor a stake in improving their living conditions and overall livelihood.

9. 9 Saleema 48 years old, Saleema applied for 1900 $ loan with FINCA Afghanistan and invested for her daughters business at home. and provided the opportunity for her daughters to go to school in the morning. Her daughters’ were working in a carpet firm all day for wages and there was no chance for them to go to school. Her daughters learned making carpet there and faced many difficulties to help their old father and mother in daily expenses. Now her three daughters making four meter long carpet to sale in the market and can save 120 US dollar/month. Saleema is very happy for the saving and her daughters’ education is a greatest achievement in her life.

10. 10 Hussain Ali 38 years old, Hussain Ali is FINCA Afghanistan client. He is working as ironsmith since eight years. Last year he needed money to purchase metal sheets to make stove and oven for sale but there was no one to help him. When he heard about FINCA, he excited and applied for the loan amount 800 US dollars in September 2013. He purchased the metal sheets and now he makes iron stove and oven for the winter season. He developed his business with the help of FINCA. He has a son and a daughter. His son is eleven years old and he is busy with him in the shop afterschool, and his daughter is five years old. Hussain Ali is very thankful to FINCA for the loan.

11. Challenges Micro financing is a risky and challenging business and currently we are facing to the bellow challenges; -Afghan society is a traditional and religious society and most Afghans believe MFI program is against their religious values. Thus they don’t apply for any loan even they need immediate investments. -Less support and cooperation of government particularly on legal. -Lack of education and business knowledge of entrepreneurs. -Lack of CBI (Credit Bureau Information) -Lack of qualified local talents -Failed MFI left negative impact and bad impression on the market. 11

12. Future Plan -FINCA Afghanistan aims to become a viable MFI. -Maintain an aggressive client-growth strategy while maintaining operational control. -Upon completion of extensive surveys, expand its programs to the bigger cities with potential for FINCA product and services. -Build the capacity of staff and clients though in-house training for staff and financial education seminars for clients. -FINCA Afghanistan is developing agriculture livelihood in coming future. -FINCA is developing SME product. 12

13. 13 For more information please contact: 0752075019