Afghan Credit Guarantee Foundation
The
About Afghan Credit Guarantee Foundation
editThe Afghan Credit Guarantee Foundation (ACGF) has been a key player in the development of Afghanistan's private and financial sectors since 2004. As a non-profit foundation, ACGF is dedicated to strengthening the private sector by improving access to financing for Afghan micro, small, and medium enterprises (MSMEs). By providing credit guarantees and comprehensive technical assistance (TA), ACGF helps mitigate risks and enhance the capacities of financial institutions to lend to MSMEs.
Mission and Values
editThe main mission of ACGF is to strengthen the private sector by improving access to financing for MSMEs in Afghanistan. ACGF adopts an inclusive approach aimed at addressing the specific development challenges and needs of the country. Strategic areas include Islamic finance, access to financing for women, and agricultural financing.
Sustainability Goals and Initiatives
editACGF contributes to achieving the United Nations Sustainable Development Goals in Afghanistan. The foundation promotes transformative changes by strengthening the financial sector, which in turn enables the creation of new jobs and the securing of existing jobs. ACGF supports projects that improve access to financing for women entrepreneurs and enhance agricultural productivity through appropriate financing. Additionally, access to financing for MSMEs in the health sector is improved, optimizing healthcare in the country.
Another focus is on promoting solar energy financing to increase clean energy production. ACGF is committed to managing environmental and social risks to avoid, mitigate, or minimize negative impacts. The foundation works closely with national, regional, and international stakeholders to promote access to financing and support equality.
Adapting to Challenges
editSince August 2021, ACGF has responded to the changing landscape in Afghanistan by transitioning to Sharia-compliant guarantees. Despite numerous challenges, ACGF remains committed to its mission and effectively manages existing guarantees to ensure continued support for its partner institutions (PIs). In 2024, ACGF signed the EMERGe project with the World Bank to enhance the capacities of financial institutions and facilitate access to financing for MSMEs.
Direct Support for MSMEs
editACGF provides direct support services for MSMEs, including matching grants and market development through workshops on Islamic finance. These support services target Afghan MSMEs, with a particular focus on strategic target groups such as women-led, youth-led, and rural MSMEs.
Through its comprehensive programs and initiatives, the Afghan Credit Guarantee Foundation remains an indispensable partner for the economic stability and growth of Afghanistan.