Afghanistan Banks Association (ABA) Signed MOU with ACE II
date: February 05, 2016
The Memorandum of Understanding (MOU) sets the terms and understanding between the Agricultural Credit Enhancement (ACE)-II Program and the ABA to work closely on the National Survey of Demand and Supply (ABA involvement will be in supply side) of Agricultural Financial Services in Afghanistan which will be conducted by ACE-II Program in collaboration with ABA.
There are numerous reasons why agricultural credit and financial services are important to Afghanistan
- To improve household incomes/welfare of the majority of Afghans who are working in agricultural/rural areas (70% of Afghans are employed in agriculture and livestock activities)
- To increase agricultural productivity and thereby to improve livelihoods
- To enhance food security
- To improve economic opportunities for agribusinesses working in the sector
- To improve levels of formal and informal financial intermediation to fund growth in the sector.
The aim of the Survey is to provide data needed for decision makers by key stakeholders in the agricultural financial services (especially credit) community. The National Survey intends to provide data with sufficient detail to facilitate improved financial intermediation in the sector.