Success Stories

Sustaining and Securing Rural Income in Afghanistan

Despite growing political stability, Afghanistan continues to be among the poorest countries of the world. Sixty to 80 percent of the population live in poverty and depend on rural income. Afghanistan also faces the challenges of integrating refugees returning from Iran and Pakistan and curbing the increase in poppy production, an important wage source for many people.

Creating economic opportunities, providing alternative means of productive enterprise, and building the local capacity to serve the rural poor with financial products are all essential to transition the country toward sustainable development. Under the Microfinance Technical Partnership, Banyan Global collaborates with MADERA, a French NGO, to transform its grant-supported credit project in Afghanistan into Sunduq, a rural financial institution. Sunduq will expand access to rural finance in the eastern and remote provinces of Nangahar, Laghman, and Kunar, one of the country's poorest and most unstable regions.

Together, Banyan Global and MADERA have

• secured more than $1 million in financing for Sunduq;
• opened three branches and trained staff serving farm and off-farm productive activities; and
• disbursed more than 1,000 loans in six months, helping to sustain and secure rural income in eastern Afghanistan.