The purpose of FAIDA is to build a sustainable, diverse and inclusive financial sector that can meet the needs of micro, small and medium enterprises (MSMEs) throughout the country. The five-year, $108 million program’s objective is to (1) assist the Government of the Islamic Republic of Afghanistan and the private sector in developing the financial sector; (2) help Afghan finance sector partners to build capacity in delivering finance effectively; (3) help the government to develop a legal framework and market infrastructure that allow financial sector institutions to create value that provides growth and employment opportunities for all Afghans; (4) provide technical assistance to Afghanistan’s mobile network operators for innovative mobile money products and services;(5) directly assist Afghan women entrepreneurs by providing specially targeted business development training to enable them to gain access to financing and opportunities for economic and professional growth.
Enterprises Component: Works with partner institutions to provide tailored financial solutions where access to capital will complete value chains and increase competitiveness. Links lenders to businesses in need of financing, with a special focus on the agricultural sector and remote areas.
Banking Capacity Component: Enhances the capacity of financial professionals and infrastructure organizations with assistance to build human and organizational capacity to strengthen Afghanistan’s financial sector. Provides Islamic and conventional financial products to lenders and the private sector.
Regulatory Component: Works with Afghan counterparts to create an enabling lending environment that reduces risk and increases predictability. Develops new or updated regulations across all financial sectors and key institutions.
Better Than Cash Component: Provides technical assistance to Afghanistan’s mobile network operators to introduce innovative new products and services and expand the use of mobile money.
Gender Mainstreaming Unit: Works to ensure that women are integrated in financial sector activities and are provided access to finance and opportunities for economic and professional growth.