KABUL, AFGHANISTAN- The United States Agency for International Development (USAID) recently awarded the Agriculture Rural Investment and Enterprise Strengthening (ARIES) project in Afghanistan.

 

The United States Agency for International Development (USAID) recently awarded the Agriculture Rural Investment and Enterprise Strengthening (ARIES) project in Afghanistan. Access to financial services is an essential component for establishing sustainable rural livelihoods. ARIES will be the largest rural finance program this agency has supported to date in this country. The goal is to provide legal economic opportunities for the people who live in rural communities throughout the country. 

 

“USAID is extremely pleased to embark on this new initiative to bring financial services to rural Afghans,” said Leon S. Waskin, USAID Director. “We recognize the difficulties facing rural communities and we feel our strong partnership with the Government of Afghanistan will help us overcome the challenges, spark economic activities, and improve the livelihoods of the people of Afghanistan.”

 

ARIES will provide access to financial services to complement USAID’s existing Alternative Livelihoods Program. It will establish a market-based wholesale Rural Investment Fund to provide financing to cooperatives, farmers’ associations, and small and medium enterprises throughout the country. It will also create incentives for the private banking industry to increase lending in the provinces.

 

An estimated investment of $80 million will be distributed over a three-year period. At the end of three years, the goal is to have delivered financing to 60,000 new micro-finance clients, established a minimum of 50 new rural credit unions and farmer cooperatives, and created a financing window for small and medium-scale enterprises in rural communities around the country. 

 

The prime implementing partner is the Academy for Educational Development (AED).  AED will partner with the World Council of Credit Unions, ACDI/VOCA, the Foundation for International Community Assistance (FINCA), Shorebank International, and the Microfinance Investment Support Facility (MISFA) to develop the program.

 

This is another project supported by the American people to assist the Government of the Islamic Republic of Afghanistan in developing the agriculture sector and a rural economy that meets the needs of the Afghan people.