Masrour Food Production Company doubled its production capacity, bought a new delivery truck, and created 25 new jobs out of the Mushraka Islamic loan facilitated by USAID with Ghazanfar Bank.
The Jalalabad-based Food Production Company is a successful business with steady growth since 2009, when it was established. In 2011, the company began receiving more orders for its fruit jams, juices, ketchup and chili sauce than they could produce. Owner Mohammad Ashraf knew it was time to expand and add more retailers in Jalalabad, Kabul and other key cities on Afghanistan, but he didn’t have enough capital to finance the expansion.
So, Ashraf went to FIADA (Financial Access Investing in Development), a USAID-funded project, looking for a business loan. FAIDA works with businesses and the financial sector to provide wider access to financing, including culturally-appropriate Islamic financial products that meet the needs of Afghan business.
FAIDA assisted Ashraf with the preparation of concept notes and financial documents for his application to Ghazanfar Bank. Using the Sharia-compliant Musharaka Contract, he was granted a one-year loan of $100,000 on March 25, 2012.
With this financing, Ashraf installed new machinery for juice processing, which doubled his production from 2,500 cartons to an average of 5,000 cartons per month. He filled 17 of his 25 new jobs already, and purchased a delivery truck. “I feel so proud every time I see the new truck with our name on it. It is like we are seriously in business now!,” says Ashraf.
Two of Ashraf’s new hires are Wazeer Mohammad and Shamsul Rahman, a driver and salesman. Wazeer was previously unable to support his family of seven because his farm was unproductive. “I make a reasonable income now as a driver and I get extra with overtime,” he says. Shamsul was a seasonal laborer before he became a salesman. “This is a good job. My family is grateful,” he said.
Business Loans Boost Production and Create New Jobs