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USAID initiative to boost farmers’ access to agro credit

USAID initiative to boost farmers’ access to agro credit

Mar 08, 2016 - 14:39

KABULinfo-icon (Pajhwok): The United States Agency for International Development (USAIDinfo-icon) said on Tuesday it was trying in collaboration with the Ministry of Agricultureinfo-icon, Irrigation and Livestock (MAIL) to expand the availability of agricultural credit for Afghan farmers.

Via the Innovation Grant Fund, the USAID is seeking to address the existing constraints in agricultural credit system in Afghanistaninfo-icon. Under the program, the ministry will introduce effective loan channels for disbursements and collections.

As part of the initiative, the USAID said in a statement, MAIL would introduce new financial institutions with better technical capacity to facilitate entry into agricultural credit, trainings on credit for financial institutions and technology-based solutions to reduce the costs inherent in agricultural credit.

At a ceremony to announce the opportunity, Deputy Minister of Agriculture Mir Amanuddin Haidary stressed the importance of access to agricultural credit as a key factor in inclusive economic growth of Afghanistan.

“The national unity government is looking to the agriculture sector as a priority development goal to provide a sustainable agricultural system for Afghan farmers in the future,” Haidary added.

The Agricultural Credit Enhancement program is seeking concept papers from a wide variety of entities, including financial and educational institutions, technology and consulting companies and other NGOs on innovative solutions to increase farmers’ access to agricultural credit.

The three-year ACE-II program aims to expand access to credit for the agriculture sector in Afghanistan by encouraging the entry of other financial intermediaries into agricultural financial services provision.


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