Zev Stub Jan. 19, 2004
The International Finance Corporation has signed an agreement with the Aga Khan Fund for Economic Development SA to invest in The First MicroFinanceBank of Afghanistan (FMFB-A), which was recently incorporated as the first full-service financial institution in Afghanistan.
FMFB-A will provide credit and savings products to small businesses. The agreement marks IFC's first investment in Afghanistan since 1973.
Currently, entrepreneurs still depend on scarce resources from family and friends, limited supplier financing or loans from money-lenders at prohibitive costs, the IFC noted. The private sector arm of the World Bank Group, the IFC invests in developing countries to reduce poverty and improve quality of life.