“Together Towards A Competitive Afghanistan”

AREDP NewsletterMinistry of Rural Rehabilitation

and Development (MRRD)

Issue No 4, Nov - Dec 2014Afghanistan Rural Enterprise Development Program (AREDP)

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Toolkits were handed over by AREDP in Bamyan province

In November 2014, AREDP handed over toolkits to 71 Enterprise Groups (EGs) in Bamyan province. The ceremony was attended by AREDP senior management, deputy governor of Bamyan, government representatives and enterprise group members from different districts of the province.

The toolkits were given to 369 EG members including 285 female and 84 male of bakery, poultry, beekeeping, carpet weaving, carpentry and tailoring sectors.

During the ceremony Mr. Asif Mubalegh, Deputy Governor of Bamyan addressed the audience and state that AREDP has unique approach to development; this program creates opportunities where people themselves come together to find solution for

development.

Mr. Mohamad Salim Mastoor, Deputy Director of AREDP made a speech on behalf of AREDP and thanked the provincial government for their support.

He also appreciated the community members for their enthusiasm in the project and encouraged them to make the best use of the tools they received and enhance their enterprise and create more employment opportunities for people at the rural areas.

AREDP has been working in Bamyan province since 2010 and established 260 Enterprise Groups that are creating income generating opportunities for thousands of man and women from rural areas.

Islamic Micro-Finance Training conducted in Nangarhar province

A two-day training on Islamic Micro-Finance (IMF) was organized for 32 members of the seven VSLAs in Nangarhar province on December 23, 2014. The purpose of this training was to build the capacity of VSLA members in Islamic Micro Finance in Nangarhar province. This training covered various topics such as principles of Murabeha, Istisna, Qarzul Hassan and Sood, financial agreements, logistic and procurement orders, payment methodology, loan disbursement and financial statements.

The participants of the training have benefited from the training and will apply the concept in their respective villages. AREDP will continue carrying such a relevant training across the program area in order to promote micro finance within the compliance of Islamic Sharia Law.

AREDP has been working in Nangarhar since 2010 and has established community-based saving groups and carried out 644 trainings in the areas of enterprise development, book keeping, marketing, accounting, planning, finance for 10,297 members of the VSLAs, EGs, SGs and SMEs.

Issue No. 4, Nov - Dec 2014

Afghanistan Rural Enterprise Development Program (AREDP)

Business Development Service Provider (BDSP)

Encouraging effective working environment and promoting quality service, AREDP initiated the Business Developer Service Provider (BDSP) concept within its programing. The BDSP is a result oriented concept that is very new for Afghanistan and encourages paying against work delivered rather than time spent for service. AREDP piloted this concept in the field and converted Provincial Enterprises Facilitators (PEF) into BDSP from contract based employment. By applying this concept, AREDP took a step forward and created a sustainable and competitive business environment at the rural level. Initially, the BDSPs were reluctant towards this change however, AREDP’s continual support and providing capacity building opportunties encouraged them to take initiative to provide quality service. According to Nawroz Ali, a BDSP working for AREDP, ‘this concept was new to all staff members who were converted to BDSP from regular employees. ‘Initially we were very concerned about our

jobs and our ability to earn our salary. However, the end result was rewarding and very satisfactory because we demonstrated that we were producing concrete results’. To ensure good quality deliverables, Nawroz Ali invested his own money and bought a computer so that he can be more effective in providing service. Shoaib Rahim is managing the SME department in AREDP and he has been observing the process. He stated that in the last decade Afghans became very complacent with earning steady and fixed income or salaries regardless of how much they produced. The BDSP concept gradually creating healthy and positive competition in the business environment. The BDSP concept is result oriented and therefore, is very effective and efficient in delivering proper services. The BDSP concept was piloted only in a few provinces and was evaluated by a team of experts from AREDP to assess the outcomes. The assessment showed that after converting the regular employees to BDSPs, the work delivered

has improved to certain level. In particular the number of community visits and support provided by the BDSP staff has increased by 23%. It also illustrated that BDSPs are putting more efforts in their work and constantly has been asking AREDP to invest in professional development opportunities. The BDSPs are now more focused on the deliverables and therefore, are more organized by planning their work and are spending more hours with communities then they were prior to the introduction of this new concept. To ensure good service is available at the community level, throughout this process, AREDP has supported the BDSPs by provided capacity building and learning opportunities to enable the staff to utilize their skills and time effectively and efficiently. In the next coming months, AREDP will direct its support to providing necessary training to the BDSPs in order to build their confidence. Gradually this concept will be replicated throughout the program starting from community to the national level.

Nargis successfully etablished livestock business

Nargis is a 56-year old woman from Khewa district of Nangarhar province. Nargis lost her husband a few years ago and now lives with her two younger children while the older children are married and live on their own. Nargis never been educated and was very worried how she would take care of her children. However, her life has changed when she became member of SG in her village. She has undergone a number of trainings supported by AREDP and gradually applied for her first loan and started to establish livestock business. In the beginning, Nargis started with one caw and sold milk from her house.

As she found this business quite lucrative, she borrowed her second loan to buy a few sheeps. Nargis started from nothing and today she owes four cows, one calf and three sheeps. Now Nargis makes more then 6000 AFs per month by selling dairy products.

Nargis said: “I am not educated and thought

I will never be able to provide proper financial support to my family. I never hoped that my life would change until I joined Kiwad Enterprise Group and now my life has improved in a better way’. AREDP supports many other women like Nargis and gave them sparkle of hope that changes their life. Many other women in Nangarhar are using Nargis example and are encouraged to join the program.

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Issue No. 4, Nov - Dec 2014

Afghanistan Rural Enterprise Development Program (AREDP)

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Toolkits and Innovation Awards handed over in Kandahar

AREDP handed over Sample Technology and Innovation Awards to Small and Medium Enterprises in Kandahar province in November, 2014. The ceremony was attended by representatives from MRRD programs and donor agencies, as well as SME members from different districts of Kandahar province. The toolkits were given to 40 SMEs of Dand, Daman and Arghandab districts of Kandahar province which will enhance poultry and dairy processing sectors in the province. Haji Fahim the owner of Hazrat Ji Ba Ba Dairy Enterprise and the winner of the AREDP’s innovation award says: “AREDP is one of the programs that provides tangible support to the poor rural people. The contributions by AREDP are

Robina is a 27-year old girl who lives in Landabouj village, Kama district of Nangarhar province. She studied up to seventh grade but poverty and poor economy did not allow Robina to complete her studies. Her father works as carpenter and makes nearly 10,000 Afs per month and this is not sufficient to feed the whole family.

Full of enthusiasm and self-motivated Robina could not support her family due to social and cultural restrictions. She has chosen to work within the premises of her home; sewing clothes for the village people. She has started tailoring work at home and five years later she has

truly remarkable and will bring significant positive changes in our lives.” The toolkits worth 6 million Afs consisting of 22 solar system and 23 milk and dairy processing machinery. Meanwhile, four tractors and one complete solar system were also given to five poultry and dairy sector winners of the innovation award. This contribution will improve quality of service delivery and ultimately will create more employment opportunities for rural men and women in the targeted areas.AREDP has been working in Kandahar since 2011 and support more than 81 SMEs. Today thousands of people benefiting from these community- based projects across the program areas.

become well known tailor as well as main source of her family income.

From the outset, Robina had some skills in tailoring but since she did not have proper education she did not know how to set up her own business. Robina became beneficiaries of Saving Group, she went through a number of basic business skills as such, recording her transactions, creating client list and basics of business management.

The trainings brought positive changes in her business and now she makes 5000 – 6000 Afs on month. Robina also borrowed 20,000 Afs loan and bought tailoring machines and expanded her business by recruiting three more women from her own village.

Recently, AREDP provided Robina tailoring toolkits containing such as sewing machine, gas slender, iron, scissor and tailoring desks. Robina will continue expanding her business and give opportunities to more women who do not have opportunity to work.

“With AREDP’s help today I am a successful Entrepreneur”

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Issue No. 4, Nov - Dec 2014

Afghanistan Rural Enterprise Development Program (AREDP)

The thirty years of war has affected people’s lives in Afghanistan significantly; in particular it has left many people with physical disabilities. Currently, it is estimated that over 850,000 people in Afghanistan suffer from various forms of disabilities and most of them are deprived from access to job or any employment opportunities. Traditionally, people with disabilities have not been exposed even to basic education and many of them become burden for their families and communities.

AREDP is working with all segments of communities in rural areas and considers social inclusion integral part of its mandate. Therefore, in 2013 AREDP initiated a pilot program focused on Koochies and People with Disabilities (PwDs). Through this program, AREDP selects potential entrepreneurs with physical disabilities and includes them in the incubation process. The incubation is a unique business development process that supports and nurtures newly started entrepreneurs for certain period of time until they are mature.

Abdul Bashir is one of the beneficiaries of the program who lives in Big Mohammad Khail village in Bagram district of Parwan province.Before joining AREDP, Abdul Bashir had hard times, totally frustrated with having no job and no proper income for feeding his 8 family members. While joining AREDP, he was selected as a member of a Saving Group in his village. Besides, he has received enterprise development training workshops and exposure visits

to learn business and marketing skills from AREDP, the program has also helped him to start a business. He opened a grocery shop in his village and now he earns 700-1000 Afs on daily basis.

“I owe my life to AREDP, before I had no job and no proper income to support my family. Today I am the owner of a grocery shop I am very happy and thankful to AREDP for their sincere support.” Said Abdul BashirAREDP has brought hopes in the lives of other 70 PwDs in Afghanistan. The pilot project started in March 2013 with 20 PWDs and after its successful implementation it was replicated in other target areas under the program coverage. AREDP continues expanding such interventions for sustainable livelihoods of women and women in the rural areas.

AREDP brings hope to my life

Contact Information

Afghanistan Rural Enterprise Development Program | Ministry of Rural Rehabilitation and DevelopmentDarulaman, Nila Bagh Road, Kabul, Afghanistan

Website: www.aredp-mrrd.gov.afFollow us on Facebook: www.facebook.com/officialaredpFor subscription to our newsletter email us at: communication.aredp@mrrd.gov.af

AREDP at a Glance

Number of provinces covered 6

Number of districts covered 28

Number of saving groups established 8,158

Number of female saving groups 3,944

Amount of loan disbursed 172 m Afs

Amount of loan recovered 129 m Afs

Number of loan 26,583

Number of borrowers 20,854

Number of female borrowers 11,892

Number of Enterprise Groups 2,037

About AREDP:

AREDP is geared towards “improving employment opportunities and income of the rural men and women and substantially of targeted local enterprises. AREDP aims to achieve these goals by enhancing participation of rural poor in economic activities; supporting them through business development services, access to finance, improving market linkages, product development and value chains.