Afghan Credit Guarantee Foundation

We performed an independent evaluation of ACGF and enhanced the facility’s monitoring system

The Afghan Credit Guarantee Foundation (ACGF) is a permanent vehicle providing credit guarantees for loans to Afghan small and medium sized enterprises (SMEs) in Afghanistan. The guarantees are provided through partnerships with local Afghan partner financial institutions, thus improving access to finance and creating employment in a challenging environment. ACGF operates out of Berlin and Cologne in Germany as well as Kabul and Mazar-i-Sharif in Afghanistan.

ACGF’s Board of Trustees asked Steward Redqueen to perform an independent review of the performance of ACGF’s credit guarantee scheme and technical assistance activities and the existing monitoring and evaluation (M&E) system. The research involved a quantitative performance analysis of the almost 3,700 issued guarantees, three tailored surveys (including among 380 Afghan SMEs), and stakeholder interviews.

The report and presentation to the Board of Trustees provided lessons and concrete recommendations for further enhancing the facility’s performance. Given its pioneering characteristics, the report on the experience gained by ACGF also holds many valuable lessons for ACGF’s guarantee takers, for other stakeholders in the financial sector in Afghanistan, as well as for stakeholders interested in credit guarantees more broadly. Recommendations for a restructured monitoring system were discussed during a workshop at the Foundation’s headquarters in Berlin.