Afghanistan: Rural Finance Expansion

Sovereign Project | 44457-012 Status: Closed

Summary

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Project Name Rural Finance Expansion
Project Number 44457-012
Country Afghanistan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7983-AFG: Rural Finance Expansion
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Finance - Banking systems and nonbank financial institutions - Inclusive finance

Public sector management - Economic affairs management

Gender Equity and Mainstreaming Gender equity
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome Due to the uncertain security environment, the recently completed elections and the withdrawal of international troops, procurement of consultants to undertake various activities has proven very difficult. However, two consultants have been recruited and are working on regulatory and product development activities.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues) Due to the uncertain security environment, the recently completed elections and the withdrawal of international troops, procurement of consultants to undertake various activities has proven very difficult. However, two consultants have been recruited and are working on regulatory and product development activities.
Geographical Location Kabul, Afghanistan

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

A consultation mission conducted broad discussions on the TA's premises, diagnosis and proposals.

Key stakeholders consulted included (i) DAB (the Central Bank of Afghanistan); (ii) MISFA (an Apex-type of institution under the Ministry of Finance in charge of promoting MFIs), (iii) a number of commercial banks and MFIs; (iii) the newly-created AIBF (a financial sector-wide capacity development "joint-venture" owned by the DAB), and (iv)development partners.

An informal roundtable meeting was also held during the consultation mission, at which a number of proposals were presented and discussed. Stakeholders' views and expectations were incorporated, and broad support was an important outcome of the event. Preliminary versions of the TA concept note were shared with specific stakeholders of the rural finance agenda. Continuous feedback was and will continue to be sought.

During Project Implementation

A mission was fielded to Afghanistan in December 2013 to discuss the obstacles in implementing the TA. An agreement was reached with DAB, the EA on an appropriate way forward. Consultants have now been selected, or are in the midst of selection and discussions with commercial banks, MFIs, AIBF and development partners will continue in earnest once the government is in place following the Presidential election.

Implementation was initiated in March 2014, with the hiring of islamic finance experts. Activities are now ongoing, and the first session of consultations and capacity development took place in Kuala Lumpur, Malaysia, in August 2014.

Business Opportunities

Consulting Services Three individual consultants are required for this TA, namely: an Islamic finance products specialist (international), Islamic finance regulation specialist (international), and Islamic finance regulation specialist (national). The consultants will be engaged by ADB in accordance with the Guidelines on the Use of Consultants (2014, as amended from time to time). Only individuals will be engaged, as per the agreement reached with DAB.
Procurement No procurement is required for this TA.

Responsible Staff

Responsible ADB Officer Matthew Hodge
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Da Afghanistan Bank
Mohammad Taib Siddiqi, Head of Islamic Banking, FSD
taib.siddiqi@centralbank.gov.af / mohammadtaib@gmail.com
Charahi Pashtonistan, Foroshgah, Kabul Afghanistan

Timetable

Concept Clearance 18 Oct 2010
Fact Finding -
MRM -
Approval -
Last Review Mission -
PDS Creation Date 15 Dec 2010
Last PDS Update 20 Mar 2015

TA 7983-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2011 09 Jan 2012 09 Jan 2012 30 Jun 2013 30 Jun 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 14 Dec 2011 466,395.06
Title Document Type Document Date
Rural Finance Expansion: Technical Assistance Completion Report TA Completion Reports Jul 2016
Rural Finance Expansion Technical Assistance Reports Dec 2011

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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