Duration: 2010 – 2014
Objective: The Agricultural Development Fund (ADF) will act as a second-tier wholesale lending institution that will lend to intermediaries in the agricultural value chain, who will then on-lend to small commercial farmers, defined as farmers with 1-30 hectares. ADF is capitalized by a $100 million grant provided by the United States Government to the Government of the Islamic Republic of Afghanistan with the objective of increasing lending to the agriculture sector in order to create a more competitive agriculture sector through expanded agricultural production and increased incomes for agricultural households.
ADF will lend directly and indirectly to banks, non-bank financial institutions, credit unions, microfinance
institutions and non-financial intermediaries such as private farmer associations, farm stores, agricultural
depots, food processors, agribusinesses and other market participants and informal providers of finance that
support the development of agricultural value chains in Afghanistan and are able to enhance the supply of
agricultural credit to the end-borrowers at the farm level.
Until its transition to the Government of Afghanistan in 2014, the ADF is managed by the Agriculture Credit
Enhancement (ACE) program a USAID contract.
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