On July 13, 2019, FINCA Afghanistan and Agriculture Development Fund (ADF) signed a loan agreement for disbursements to agriculture and livestock clients with long duration in local currency.
The ADF is a standalone government-owned financial institution (Working under the Ministry of Agriculture) with the fundamental purpose of making credit available to the agriculture sector. The target clientele of ADF includes small commercial farmers as well as agribusinesses engaged in the distribution of agricultural inputs, producers of high-value crops, processors and exporters of agricultural products. ADF functions as a wholesale lender, channeling credit through financial and non-financial institutions.
In Afghanistan, 85% of the population is dependent directly or indirectly in the agriculture sector, FINCA Afghanistan’s agriculture and livestock product is the backbone of its outstanding portfolio. Almost 21% of the total portfolio of FA is agriculture and livestock product loans and with the relationship started with ADF, will further enhance the growth of these products. In the coming years, FA is optimistic to get further loans from ADF in local currency and thus diversifying its borrowings.