The Agricultural Development Fund (ADF) is a standalone government owned financial institution with the fundamental purpose of making credit available to the agriculture sector. The target clientele of the ADF includes small commercial farmers. as well as agribusinesses engaged in distribution of agricultural inputs, producers of high-value crops, processors and exporters of agricultural products. ADF functions as a wholesale lender, channeling credit through financial and non-financial institutions.
Agricultural credit provided by the ADF is enabling farmers and other players in the agriculture sector to put in practice modern production, processing and market development practices acquired in the last decade.
To stimulate growth of Afghanistan’s agricultural sector by providing farmers and agribusinesses with access to financial services to increase productivity, improve the quality of their crops and harness market opportunities. This will support the MAIL’s broader goals of restoring Afghanistan’s licit agricultural economy and contributing to the growth of the rural ثconomies.
WHAT CAN WE DO FOR YOU?
ADF provides loans to farmer through financial intermediaries. These include:
- Microfinance institutions
- Credit Unions
- Leasing companies
Non- financial institutions
- Farm stores
- Farmer associations and cooperatives
- Large Agribusinesses
How does the ADF work?
Groups of small commercial farmers and business entrepreneurs engaged in agriculture, and who have a viable business idea can approach the ADF offices in Jalalabad, Herat, Mazar-e-Sharif, Kandahar, Bamyan and Kabul. Depending on the scale of their operation, experienced lending advisors will initiate a loan application, or will refer them to some of ADF’s lending partners.
WHAT OTHER SERVICES ARE AVAILABLE?
Financial intermediaries and agribusiness entrepreneurs borrowing funds from the ADF can access a variety of services to improve productivity and produce quality, to reduce post-harvest loses and to access new markets. The ADF provides these services to ensure the success of agribusiness endeavors and thereby enable its clients to honor their obligation to repay the loans. These services include:
Technical assistance in:
- Credit management
- Crop production technologies
- Market development
- Trading events
- Technical training activities
WHAT MAKES THE ADF THE IDEAL OPTION FOR AFGHAN AGRICULTURAL ENTREPRENEURS?
A BROAD OFFERING OF SHARIA COMPLIANT ISLAMIC FINANCIAL PRODUCTS
The ADF takes Islamic lending seriously; as such it has a series of financial products based on Fiqh al-Muamalat to fit the specific needs of its clients. All Islamic financial products are approved by a Sharia Advisory Board to ensure compliance with religious norms.
TERMS AND CONDITIONS OF LOANS
Being a financial institution devoted to support Afghan agriculture, all financial products are adaptable to the needs of farmers and the agricultural calendar, which provides agribusiness entrepreneurs with custom made solutions.
LOWER COST OF CAPITAL
Whether using Sharia financial products or traditional lending, the cost of capital at the ADF is lower than that of traditional lending channels.