The Microfinance Investment Support Facility for Afghanistan (MISFA) was set up in 2003 at the invitation of the Afghan government — to get donor coordination right from the start and avoid the counter-productive efforts that have emerged from conflicting donor objectives in other post-conflict situations. It was established as a vehicle through which the Afghan Government and international donors could channel technical assistance and funding to build Afghanistan’s microfinance sector. MISFA was the first facility of its kind, pooling diverse donor funding mechanisms and converting them into streamlined, flexible support to microfinance institutions in Afghanistan, tailored to local priorities and accompanied by technical assistance and strong performance monitoring. MISFA’s mission is to contribute to Afghanistan’s economic growth by developing a viable, inclusive financial sector for the poor, and the underserved small and medium enterprises.
The development objective of the World Bank’s Access to Finance Project for Afghanistan is to build institutional capacity to improve access to credit of micro, small, and medium enterprises. The project has two components. Objective of the first component which is implemented by MISFA is to improve access to financial services for micro and small enterprises. This component ...