Access to finance, access to success

دسترسی به منابع مالی، دسترسی به مؤفقیت

لاس رسی تر مالي سرچینو، لاس رسی تر بریا

What we offer

We are an ally that helps your business to access the funding it needs to grow – while minimizing effort, time, and costs spent.

You receive in person, step by step support, that helps you through the financial process.

If eligible, you receive additional money on top of our partner’s financing that does not need to be repaid.

About the AMAD Grant Program

In 2023, AMAD started its implementation of a 3-year Grant program of USD 4.9m, funded by the European Union.

The program aims at supporting micro, small and medium-sized enterprises (MSMEs) in overcoming access to finance challenges in times of crisis. AMAD only supports MSMEs that are operating in Afghanistan.

Eligible applicants obtain a financing from one of AMAD’s Partner Institutions and are additionally awarded with a non-repayable Grant to implement their investment project.

Depending on the business size and need as well as the intended investment project, eligible businesses may receive a Grant between AFN 55,000 and AFN 2,000,000. Generally, the Grant can contribute up to 40 % of the financing needed for your investment project, while at least 60% must be financed by one of AMAD’s partner institutions.

Neither the financings provided by AMAD’s partner institutions nor the Grant from AMAD are disbursed in cash. Instead, both sources of financing are used by the partner financial institution to acquire the goods, which the investment plan foresees. In contrast to the Grant, MSMEs need to repay the (Murabaha) financing provided by the partner financial institution.

AMAD’s Partners

AMAD implements the Grant program in close cooperation with three partner financial institutions, which are the First MicroFinance Bank of Afghanistan (FMFB), Ghazanfar Bank and OXUS Afghanistan.

Target MSMEs and Eligibility

Grants are targeted towards existing and new MSMEs borrowers of AMAD’s Partner Financial Institutions with sufficient repayment capacity for a Matching Financing. Target MSMEs have typically suffered from the economic crisis of 2021 and are those with positive business prospects. They have been affected to an extent that their repayment capacity does not sustain the full financing need, or they cannot come up with their own equity-based share in the investment, creating the necessity for a grant as a complement to the Matching Financing.

While all MSMEs are targeted in general, particular focus shall be given to those supplying basic goods and services, including (amongst others) food, agriculture, health, education, WASH (water, sanitation and hygiene), and its connected value chains, employment-retaining and -creating MSMEs, as well as marginalized groups, in particular female-headed businesses, youth, geographically underserved regions. Moreover, AMAD prioritizes businesses that were affected by the economic disruptions after August 2021 and investment projects that are expected to create a positive development impact by, for example, creating additional job opportunities for women.

Am I eligible?

If you receive a financing from one of our partner financial institutions
If you have not received any donor support (e.g. grants, interest subsidies or other)
in the past 24 months
If you have no outstanding financing
If you have a financially viable business and good business prospects
If you need a Grant to finance your investment project
If your investment project is reasonable and aligned to your business needs
If you are not operating in the trade sector
If you are a business that obtains financing above AFN 500,000,
– you have a minimum of five employees, and
– you plan to invest a minimum of 40% (of the total investment plan) into fixed assets.
If you are a business that obtains financing below AFN 500,000 and has received financing from our Partner Institution before, you plan to invest a minimum of 40% (of the total investment plan) into fixed assets.

Application process

Grants are distributed via AMAD’s partner financial institutions, namely FMFB, Ghazanfar Bank, and OXUS Afghanistan.

To apply for a Grant, you must visit any participating branch of AMAD’s partner financial institutions and apply for a financing matched with a Grant. AMAD is not simultaneously offering Grants at all branches of its partner financial institutions, therefore you will need to ask the financing officer of your respective branch whether the branch is currently participating in the AMAD program.

The financing officers will further assist you in formulating feasible Grant Projects and help you to submit the Grant Application to AMAD.

AMAD verifies the eligibility of your project and supports your project in case of compliance.

Distribution mechanism

Please note that AMAD does not disburse the Grant as cash. Instead, the Grant is “matched” with a Murabaha financing of one of AMAD’s partner financial institutions. In practice, this means that AMAD’s partner financial institutions use the Grant and its own approved financing for you to acquire goods on your behalf. Thereafter, you will receive the goods from the identified supplier for your investment project. Upon successful completion of your investment project, you will only have to repay the financing provided by AMAD’s partner financial institution, which includes a mark-up.

Obligations of the Grantee

As a Grantee, you are undertaking certain obligations by signing a so-called unilateral promise. The unilateral promise is a legally binding commitment made by the Grantee towards AMAD and its partner financial institution. While your financing officer will explain the unilateral promise to you in detail, please find a non-exhaustive list of your obligations as a Grantee below:

You are warranting that all information that has been provided on your business is true and accurate in every material aspect.
You are obtaining a Murabaha financing from one of AMAD’s partner financial institutions that makes up at least 60% of the total investment project.
You are using the Grant exclusively for the objectives of the investment project.
You are not handing over any goods and services financed by the Grant to third parties without receiving any money, product or service in return (sub-granting).
You are keeping all financial records and documentation related to the Grant project for three years after receipt of the Grant.
You are providing access to authorized employees or appointed third party auditors and the European Union to conduct a full audit of the Grant project by examining documents related the investment project or by means of on-the-spot-checks.
You are immediately notifying AMAD’s partner financial institution of any significant problems associated with administrative or financial aspects of the Grant project as they arise.
You are informing AMAD’s partner financial institution promptly of any changes of your businesses’ customer due diligence information such as its name, legal status, ownership structure, address or substantial changes in business operations.
You are authorizing AMAD and its partners to process and disclose information about your Grant Project.
You are complying with all applicable laws and you are committed to implement your Grant project by adhering to the Environmental and Social standards published by the World Bank.
You are giving an obligatory charity (Sadqah-al-Wajiba) to AMAD in the event of failure to comply with any of the stipulations set out above. In such cases, the value of the Sadqah-al-Wajiba will be equal to the approved Grant amount. You are further promising to donate to AMAD any amounts received in excess of the approved Grant amount.
You are informing AMAD about any issue in dispute by written submission. Any such communication shall be delivered by email to the following email address: grants@amad.af

Contact

Please be informed that AMAD cannot provide details on the status of your Grant application. For inquiries related to your application, please contact your financing officer at one of AMAD’s partner financial institutions.

Other inquiries such as complaints, reporting of incidents or any other type of feedback can be sent directly to AMAD by writing to the following email address: grants@amad.af

AMAD is committed to responding to your inquiry in a timely manner.