Afghanistan
Overview of the Microfinance and BDS
Sectors
and
Challenges faced by women entrepreneurs
FAO 8th of March 2005
Ruxandra Boros
Afghanistan
ethnic profile
Complex and fluid:
Pashtuns; Tadjiks
Hazara
Uzbek, etc.
80% Sunny Muslims; 20% Shia Muslims
Official languages: Dari (Persian) and Pashto
Some elements of
History
1746 1st Afghan kingdom created by Pashtuns (also
known as Afghans)
1881-1901 Abdur Rahman creates a centralized state
1921 Independence from the British and 1st constitution
1973 Coup: Kingdom is replaced by a Republic
1979 Soviets invade Afghanistan
1989 Soviets pull out from Afghanistan
Factional fights by the mujahideen parties
1996 the Taliban enter Kabul and establish the Islamic
Emirate of Afghanistan
2001 Fall of the Taliban regime
Labor market indicators
Population: 24.5MM
10.7MM workforce; 70% < 30yrs
70% of men and 10% of women access employment:
total est. 4.2MM, of which 2.3MM involved in opium
cultivation thus 1.9MM available workforce
80% urban; 20% rural
Literacy rates: 29% male; 14% female
11% of women are widows
Women said to contribute 43% to family income
55% of all enterprises are ‘family owned’
Living conditions
13% have access to safe water and 12%
to adequate sanitation
Life expectancy at birth: 42.8 years
Highest infant mortality rate in Asia
N-E region the highest maternal
mortality in the world
Chronic malnutrition 50%
40% of medical facilities have no female
staff
Economic
indicators
GDP: $7.3BN ($2.5BN
opium)
GDP/capita: $199 (excl.
opium)
90% informal economy
52% agriculture; 24%
industry; 24% services
MICROFINANCE
MISFA
(Microfinance Investment and Support
Facility for Afghanistan)
A vehicle to channel funds to
MFIs that comply with MF
best practices
MICROFINANCE
14 MFIs active in 18/32 provinces
(including a microbank)
$15-$100/loan up to $3000 (60% loans o/s <
$100; 30$ loans $100-$200)
75,000 savers and 51,139 borrowers
100% repayment rates
$15.7MM disbursed by end 2003
Business Development
Services (BDS)
A nascent sector: transition from humanitarian aid
to economic development
Scarce supply; Weak demand
Embryo BDS Prviders Forum
Need for a Certification mechanism
Need to support entrepreneurship and enterprise
development by men and women including in rural areas
need for an innovative approach to disseminate
information: radio!
Women
entrepreneurs
Observe ‘purdah’
Lack of information
Sense of isolation
Need for training, exposure, opportunities
Need advice on product development &
linkages to market
Networking
Entrepreneurship
development model
Comp.
Resources Advantage
•Human Complex
•Social combination Strategic assets
•Physical
•Financial Competencies
•Technological
•Organizational Capabilities
Resources
R. Boros, Babson SOE