The Microfinance Investment Support Facility for Afghanistan (MISFA) has released a Baseline/Impact Study which it commissioned in order to 1) establish a baseline database of clients, 2) measure the impact of the microfinance program in Afghanistan since its inception and 3) set up a few key socio-economic indicators that microfinance institutions (MFIs) could monitor to track the well-being of their clients. Following its initial release in September, the survey was presented to key stakeholders, including the Afghan Government, the World Bank, MISFA management and key donors and MFI partners.

MISFA was established in 2003 as the vehicle through which the Afghan Government and various donors would channel technical assistance and funding to MFIs and, thus, help to build the financial sector. It operates under the Ministry for Rural Rehabilitation and Development. Key donors to MISFA include the Consultative Group to Assist the Poor (CGAP), the Canadian International Development Agency (CIDA), the UK Department for International Development (DFID), the US Agency for International Development (USAID) and the World Bank.

The study surveyed 1,019 households across five regions of Afghanistan. It concluded that the microfinance program has “empowered beneficiaries both socially and economically and has created substantial employment opportunities.” The study highlights the following findings:

•        70 percent of program beneficiaries are women

•       40 percent of clients live in rural areas

•       Over 80 percent of loans were used to establish or expand businesses

•        64 percent of women clients and 74 percent of men clients generated employment for themselves

•       47 percent of urban clients and 39 percent of rural clients generated employment for others

•        Based on the survey, MISFA estimates that clients have created 659,000 new jobs

•        44 percent of women clients reported having absolute control over their money

•       72 percent of borrowers reported an increase in their economic situation

 Additional Resources:

The Microfinance Gateway: “MISFA Afghanistan Releases Findings of Baseline / Impact Study.”

MISFA Newsletter: “Microfinance Times.” November 2007, pg. 4.

Microfinance Investment Support Facility for Afghanistan (MISFA)

MISFA: “The Vision for Microfinance in Afghanistan.”

Consultative Group to Assist the Poor (CGAP)

Canadian International Development Agency (CIDA)

Department for International Development (DFID)

US Agency for International Development (USAID)

World Bank