World Council of Credit Unions (WOCCU), a US-based trade association and support agency for credit unions, reports that between September and December 2010, 30 Islamic investment and financial cooperatives (IIFCs) in Afghanistan distributed loans worth USD 7.4 million to approximately 8,000 farmers and other small and medium-scale business owners, increasing cooperative membership by 10 percent.
WOCCU began developing IIFCs, Afghan-owned credit unions, in 2004 with funding from the Microfinance Investment and Support Facility for Afghanistan (MISFA), an instrument of the Afghan government. WOCCU Senior Vice President Barry Lennon states, “The IIFC structure is quite different from other microfinance institutions and banks in Afghanistan… The member ownership and the participation of local elders have permitted the IIFCs to penetrate remote rural communities where others haven’t been able to reach” [1].
In November 2009, WOCCU facilitated the development of the IIFC Group, an apex association of IIFCs. IIFC Group CEO Mahir Momand stated, “No one dares to visit provinces like Helmand and Uruzgan, but the IIFCs are out there in those rural and highly volatile areas serving the needs of the unbanked…IIFCs have not only helped in the economic development of rural communities at large, but they have also created jobs for those who might otherwise be recruited by the insurgency” [1].
By: Alexandra Pattee, Research Associate
About World Council of Credit Unions (WOCCU): Headquartered in the United States, WOCCU is a trade association and support agency for credit unions. WOCCU advocates before international organizations on behalf of 40 credit unions operating in 51 countries, and it coordinates with national governments regarding legislation and regulation. Its technical assistance programs introduce tools and technologies intended to strengthen the financial performance of credit unions and increase their outreach. WOCCU consists of three entities: (1) WOCCU proper, (2) WOCCU Services Group, which functions as a for-profit corporation and (3) Worldwide Foundation for Credit Unions, which serves as a charitable organization. WOCCU reported total assets of USD 14 million in its 2009 annual report.
Sources and Resources:
[1] World Council of Credit Unions Press Release, “Afghan-owned Credit Unions Stimulate Market Growth in Conflict Areas”, http://www.woccu.org/newsroom/releases?id=1816
MicroCapital.org Brief, May 10, 2011, “Microfinance Investment Support Facility for Afghanistan (MISFA) Announces Afghan Microfinance Sector Reaches $1b in Loan Disbursements”, https://www.microcapital.org/microcapital-brief-microfinance-investment-support-facility-for-afghanistan-misfa-announces-afghan-microfinance-sector-reaches-1b-in-loan-disbursements/
MicroCapital.org Brief, October 30, 2009, “Government of Italy Provides $9.1m to MicroFinance Investment Support Facility for Afghanistan (MISFA)”, https://www.microcapital.org/microcapitalorg-story-government-of-italy-provides-91m-to-microfinance-investment-support-facility-for-afghanistan-misfa/
MicroCapital.org Brief, January 2, 2007, “World Council of Credit Unions (WOCCU) Receives USD 27.7m Funding from Microfinance Investment Support Facility of Afghanistan (MIFSA) and United States Agency for International Development (USAID)”, https://www.microcapital.org/world-council-of-credit-unions-woccu-receives-usd-277-mn-funding-from-microfinance-investment-support-facility-of-afghanistan-misfa-and-united-states-agency-for-international-development-usaid/
MicroCapital.org Brief, October 5, 2006, “Microfinance Investment Support Facility for Afghanistan Receives $12 Million Loan From Canadian International Development Agency”, https://www.microcapital.org/microfinance-investment-support-facility-for-afghanistan-receives-12-million-loan-from-canadian-international-development-agency/
MicroCapital Universe Profile: World Council of Credit Unions (WOCCU), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=World+Council+of+Credit+Unions+%28WOCCU%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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