The Microfinance Investment Support Facility for Afghanistan (MISFA) was set up in 2003 at the invitation of the Afghan government — to get donor coordination right from the start and avoid the counter-productive efforts that have emerged from conflicting donor objectives in other post-conflict situations. It was established as a vehicle through which the Afghan Government and international donors could channel technical assistance and funding to build Afghanistan’s microfinance sector.
MISFA Ltd is an independent apex organization with a number of implementing partners on the ground. In most cases, MISFA functions as either the exclusive or primary provider of funds to its partners. MISFA’s mission is to facilitate the development and growth of a long-term, strong and healthy microfinance sector in Afghanistan that provides high quality and efficient financial services to low income people. This is achieved through a grant and loan process that identifies strong partner organizations and encourages “best practice” delivery of appropriate microfinance products and services by these partners.
MISFA was the first facility of its kind, pooling diverse donor funding mechanisms and converting them into streamlined, flexible support to microfinance institutions in Afghanistan, tailored to local priorities and accompanied by technical assistance and strong performance monitoring.
MISFA’s Small and Medium Enterprise (SME) Program
MISFA’s Small and Medium Enterprise (SME) Program was initiated in October 2006. Under this Program, MISFA is developing SME lending by partnering with local financial institutions, including banks and microfinance institutions (MFIs). SME loans typically range fromUS$2,000 to $300,000.
The MISFA SME Program engages implementing partners by offering:
