Presentation given by Zar Wardak (FINCA) on Monday 7 May at the 2012 RI Convention in Bangkok. Session: Peace and Prosperity through Microcredit. Session Organizer: Rotarian Action Group for Microcredit

1. FINCA Afghanistan
Peace, prosperity and microcredit
Zar Wardak, CEO FINCA Afghanistan
Rotary International Convention, May 2012

2. Content
• FINCA International and FINCA Afghanistan
• Poverty – the root cause of many problems
• Afghanistan – background and current situation
• Microentrepreneurs – our hope for a better future

3. “The poor stay poor, not because they’re lazy, but
because they have no access to capital.”
Milton Friedman, Economist and Nobel Laureate
FINCA provides small loans and other financial services to the
world’s lowest-income entrepreneurs so that they can create jobs,
build assets, and improve their standard of living.

4. Founded in 1985, FINCA serves over 925,000
microentrepreneurs in 21 countries
+ 1 billion in loans extended Latin America Africa GME Eurasia
in 2011 - 98% repayment rate Ecuador DR Congo Afghanistan Armenia
El Salvador Malawi Jordan Azerbaijan
+ $125M in savings mobilized Guatemala Tanzania Georgia
Haiti Uganda Kosovo
Honduras Zambia Kyrgyzstan
Mexico Russia
Nicaragua Tajikistan

5. Poverty is the root cause of many of the
world’s problems
 Poor health and epidemics
 Low education levels
 Children and women trafficking
 Environmental degradation
 Violence, conflicts and war
When individuals have the tools to lift themselves out of poverty, they
have hope for the future – a prosperous and peaceful future.

6. FINCA Afghanistan: founded in 2003
• Branches: Kabul, Herat, Nangarhar, Parwan, Balkh,
Pul-e-Khumri Kunar , Kunduz and Badakhshan.
• Products and services: Village bank and small
group lending. Pioneered the Islamic Murabaha credit.
Financial literacy training. Small Enterprise Loans.
FINCA Afghanistan Key Stats
Number of Clients 13,257
% Women 81%
Average Loan Size $373
Loans Outstanding $4,934,598
On-time Repayment 99.78%

7. Afghanistan: the Taliban years
• The Taliban rose to power after decades of war and tribal conflict,
offering the promise of security and prosperity
• This came at a hefty price: absence of democracy, strict application
of their interpretation of sharia law, prohibition and the
marginalization of women

8. Afghanistan: post 9/11/2001
• Since October 2001, conflict has returned to Afghanistan
• Some progress has been made in some regions, but pockets of
insecurity remain
• In provinces where it is secure, we have seen businesses flourish
and women and men embracing their freedom

9. Finding a better life through microfinance
• ≈ 430,000 Afghans are participating in microfinance today
• IDS surveyed Afghans participating in microfinance:
* 72% reported improvements in the economic situation
* 45% generated employment for others
* Increased access to health services – particularly for women
• UNHCR-BRAC looked at the impact on Afghan refugees returning to their country
* 94% used the loan to start a business, purchase land or equipment
* 82% have increased their incomes since taking the loan
* 60% expect it to continue to increase in the next year
Soures: MISFA, IDS, UNHCR-BRAC joint study, 2010

10. Estorai, President of the Spojmai Village Bank
in Kabul
• In 1996, when the Taliban came to power, Estorai had to stop
attending school, after only four years of formal-schooling
• To support her family, she started a secret home-based beauty
parlor
• After 2001, she was finally able to conduct her business openly
• She joined a FINCA Village Bank and her business has been thriving
since
• She has been the President of her bank for
several years, and through her leadership, is
helping other women gain access to
opportunities, training and work experience.

11. FINCA Afghanistan is pioneering the SMART
campaign
2. Appropriate product design and delivery
3. Prevention of over-indebtedness
4. Transparency
5. Responsible pricing
6. Fair and respectful treatment of clients
7. Privacy of client data
8. Mechanisms for complaint resolution

12. Afghanistan: the future?
The wave of protests sweeping through the
Middle East began with a microentrepreneur in
Tunisia
 Mohamed Bouazizi worked as a fruit & vegetable
vendor. After being fined and humiliated by a local
official, he set himself on fire and died.
 He inspired his nation and sparked a revolution
that has transformed his region.
 As Afghans are empowered and equipped to
create productive livelihoods for themselves, their
families and their communities – they will define the
face of Afghanistan in the years to come.
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13. ‫‪Thank you‬‬
‫مننه‬
‫ممنونم‬