OVERVIEW
The Afghanistan Rural Investment & Enterprise Strengthening (ARIES) program helps to expand access to financial services in underserved regions, particularly in the Alternative Development Program (ADP) areas.  The program’s objective is to create a strong private sector foundation for a sustainable, market-driven finance system consisting of different types of financial institutions capable of providing a range of financial services and products, including Shariah-compliant loans.  ARIES-supported institutions serve a variety of businesses, from microenterprises (households and smallholder farmers) requiring loans of $1,000 or less to small and medium-sized enterprises (SMEs) with a capacity to create a significant number of jobs.

COMPONENTS AND ACTIVITIES  
ARIES works with and through a full spectrum of micro and SME lenders across Afghanistan, some previously existing and some established under ARIES.  Specific activities, involving both microfinance and SME finance, are carried out by different implementing partners experienced in credit methodologies suitable for the goals of the program under the overall leadership of the Academy for Educational Development (AED). 

• On the microfinance side, ARIES aids in developing a sustainable network of credit cooperatives, credit unions, microfinance village banks and other microfinance institutions.  It also works with the Microfinance Investment Support Facility for Afghanistan (MISFA), an apex institution established by the World Bank, to help improve its wholesale on-lending operations to the microfinance sector.  MISFA has multi-donor support, including a substantial capital contribution from USAID.  
• With respect to SME finance, ARIES works with MISFA to develop its wholesale SME lending capacity and also with the stronger financial institutions to develop their capacity to do SME lending. 

RESULTS 
As of May 2009, ARIES has achieved the following by the coordinated efforts of its specialized implementing partners:

• Provided $9 million in loan capital to six microfinance partners in the ADP regions through the Microfinance Investment Support Facility for Afghanistan (MISFA).
• Provided technical assistance (TA) and over $15 million in wholesale capital to five commercial banks interested in the SME market through Shorebank International (SBI).
• Established 28 Islamic Investment Finance Cooperatives (IIFCs) and points-of service in the ADP regions, serving nearly 37,836 members with disbursements totaling $17.6 million in loans through the World Council of Credit Unions (WOCCU). The IIFCs operate in major commercial centers and are making inroads with hard-to-reach populations in the South.
• Working through 6 microfinance branches and disbursed over $27.5 million to 18,433 borrowers through FINCA (The Foundation for International Community Assistance).
• Provided over $15.4 million in loans of up to (and over) $1 million to rural SMEs and agribusinesses through ACDI/VOCA (Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance).
• Created 174,000 jobs.

PROJECT DETAILS 
Managed by the Academy for Educational Development (AED), ARIES is a three year, $100 million project that runs from September 16, 2006, through the end of December 2009. The project is implemented through a Leader with Associates (LWA) award and includes the five implementing partners listed above.  The original ADP regions in which ARIES works include 24 provinces in Central Afghanistan (Kabul and Parwan); the North (Balkh, Jawzjan, Faryab, Samangan, Baghlan, Kunduz, Takhar, and Badakhshan); the East (Nangarhar, Laghman, Kunar, Ghazni, Logar, Kapisa, Paktya, Paktika, and Khost); South (Kandahar, Hilmand, and Uruzgan); and the West (Hirat and Badghis).

Announcements

USAID provides $130 Million in Loans to Support Enterprises in Afghanistan

15 January 2010 | Kabul, Afghanistan

Since its launch in September 2006 until its closing in December 2009, USAID’s Agriculture, Rural Investment, and Enterprise Strengthening (ARIES) program disbursed more than $130...

Samangan IIFC Sponsors Three Volleyball Teams

15 August 2009 | Samangan Province, Afghanistan

The Government of Afghanistan and local communities have limited resources to support sportsmen and sportswomen in remote areas of the country, such as the northern...

Loan Helps Support the Licit Agriculture Sector in Hilmand

31 July 2009 | Lashkar Gah, Afghanistan

On July 22, the Afghanistan Rural Finance Company (ARFC) approved a $200,000 loan to an Afghan company in Hilmand Province.  The company assists Hilmand farmers...

Southern-based IIFCs Offer Medical Services to Members

31 July 2009 | Lashkar Gah, Afghanistan

In late July, the Nangarhar and Helmand Islamic Investment and Finance Cooperatives (IIFCs) began providing medical services to their members. Hundreds of IIFC members in...

Islamic Investment and Finance Cooperative Attracts Women Members

15 May 2009 | Jalalabad, Afghanistan

Throughout Afghanistan, women are frequently absent from the world of business and finance.  However, there are many motivated women entrepreneurs who strive to gain access...

Credit Unions Support Legal Crops

15 February 2009 | Kandahar, Afghanistan

Plans are in place to establish a second Islamic Investment and Finance Cooperative (IIFC) in Kandahar, providing essential access to credit for citizens.  IIFCs are...

Salt Production Company Helps Create Jobs with a New Loan

15 November 2008 | Kabul, Afghanistan

With the promise of a $50,000 loan from the USAID-supported Afghanistan Rural Finance Company, the Omid Kabul Company plans to do much more than just sell...

Islamic Investment and Finance Cooperative Opens in Kunar

15 October 2008 | Kunar Province, Afghanistan

On October 8th, officials held the Grand Opening Ceremony for an Islamic Investment and Finance Cooperative (IIFC) in the eastern province of Kunar.  The event...

Uruzgan’s Community Leaders Develop Financial Services

15 September 2008 | Uruzgan, Afghanistan

On September 3rd, USAID supported an advisory session with the community leaders in Uruzgan’s Islamic Investment and Finance Cooperative (IFC). Fourteen community leaders representing eleven...

Saleh Marble Factory Expands

20 January 2008 | Jalalabad, Afghanistan

On December 26, the Afghanistan Rural Finance Center (ARFC) signed a loan contract for US$228,000 with Saleh Marble Factory in Nangarhar Province.  The loan funds...

In The News

USAID’s Largest Rural Finance Project Awarded in Afghanistan

9 October 2006 | KABUL, AFGHANISTAN

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