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| Case Stories | - Case1
- Case2
- Case 3
- Case 4
- Case 5
- Case 6
| | | Case Story 1: Expanding a business |  | Fierce fighting between the ousted Taliban insurgents and Northern Alliance in 1998 forced 45-year-old Zubaida along with her family to flee her village in Gulbahar district of Kapisa province and move to the capital Kabul. She lives in a one-room shack located in a hill in 15th district of Kabul city, where thousands of other impoverished families are also living in illegal tenements. Since her husband moved to Iran to work as daily labor, she was left alone to take care of her family. She started sewing clothes for her neighbors and soon became a good tailor and was earning some 3,000 ($60) each month. But this could hardly meet the daily expenditures of her family, so she started to look for money to expand her business. Zubaida heard that Ariana Financial Services provides small loans to needy and impoverished families, therefore she applied | | andthe first loan of 7,000Afs(US$140) from AFS in September 2004. With the help of a 2nd loan of 10,500Afs(US$210) from AFS Zubaida expanded her tailoring business and bought new clothes and prepared scarves, curtains, bed covers, etc and supplied them to various shops in the city Zubaida’s business improved and she planned to establish a shop and for this purpose she needed an amount of 30,000Afs (US$600). In the mean time,
she had already earned some 15,000 Afs (US$300) from her previous two loans. She applied for third loan of 15,000Afs (US$300) in January 2006 to make her dream true. She received the loan and succeeded to set up a small shop selling fruits, rice, soap, chewing gums, and groceries. The shop is located in front of her house. Now Zubaida's business has further flourished and the numbers of her customers are increasing day by day. She is now selling more commodities such as floor, cooking oil, gas balloons etc in her shop. Her husband has returned from Iran and he is working in the shop. Zubaida has been able to send her two daughters and two sons to a nearby school. She received her fourth loan of 20,500Afs (US$410) in December 2006 from AFS. She paid back all loans in full and on time. Currently, she has worth 150,000Afs (US$3,000) items in her shop. Her monthly income has risen from Rs. 3,000Afs (US$60) in 2004 to Rs.10,000Afs (US$200) in2007. She wishes to be a famous businesswoman in future. | | | | Case Story 2: Micro Possibilities!!
An inspiring Case study; contribution from Child Fund Afghanistan (CFA). |  | The family returned to their small house that was considerably damaged during the war and years of neglect. They wanted to rebuild the house but due to financial problems decided to stall the reconstruction till later. Sosan's husband started by selling animal skin in the city. He worked hard but even then the income didn't help meet ends.
Child Fund Afghanistan (CFA) is a large multi-sector development agency which operates its microfinance program from Kunduz in North Afghanistan. CFA advocates to the villagers to start small economic activities that will help support their families. When CFA started their microfinance lending in Kunduz, Sosan too applied for a loan. She wanted to participate in helping earn more income for the household by investing the loan in her husbands business.
| | Ms. Sosan Naeem is a 28 year old woman; who lives with her husband, two sons and her old mother. Sosan previously lived in Pakistan as a refuge for 12 years before moving back to Afghanistan in 2003 She received a first loan cycle of US$ 150 of which she invested 0 in her husband's business and with the remaining US$ 50 she bought a lamb for rearing and milking. With time and effort Sosan's husbands business expanded. He was able to buy more skin to sell and earn better margins. This helped improve the household income. They are now thinking of rebuilding their house in the near future and also thinking of other new businesses. Sosan hopes that she can get a larger loan next to further invest in the business.
| | Ms. Sosan Naeem is a 28 year old woman; who lives with her husband, two sons and her old mother. Sosan previously lived in Pakistan as a refuge for 12 years before moving back to Afghanistan in 2003 | | | | | | Case Story 3: Pictures talk!!
Never walk on the traveled path; it only leads you where the others have already been! A case study from Afghanistan Microfinance Finance Institution (AMFI) Eid Mohammad in his shop after investing his loan from the MFI. |  | Eid Mohammad is a 25 year old man. Mohammad's father disappeared during the war in Kabul, and since then he has been the only one supporting his family. He recognized his responsibility and carries them with diligence. In the beginning he ran business from a food cart in front of a school but this hardly helped him meet ends.
When CHFS microfinance organization, AMFI started their lending program in Ghazni Bazaar, Eid Mohammad also applied for a loan to expand
| | his small business. He joined a group of four people and received a 500$ loan from the first cycle of the loan At that time, his daily turnover was 5$ per day and so he collected 150$ per month. After receiving the loan from AMFI he rented a small shop. From here he started selling food stuffs and daily needs, working hard to improve the standard of living for his family.
Mohammad's turnover steadily increased, and now he does a business of 20$ a day, which collectively becomes approximately 600$ /month. He is very happy with his current business and is also applying for a new loan to invest in his business to help it grow further. Mohammad is satisfied and happy with AMFI Program as the loan genuinely helped him provide for his needs, and improve support to his family. | | | | | | Case Story 4: Stitching new dreams
Shaima, winner of the Afghan 2005 Global Micro-entrepreneurship (GMA) awards, category Business outside of Kabul |  | Shaima stayed at home looking after her children, but soon as civil war started and as Takhar was the war line between the Taliban and the Mujaheding she had to escape with her family to Badakshan. She stayed there for five years. Her husband was working in a shop to provide for his family and Shaima enrolled in a tailoring course.
After the fall of the Taliban, Shaima and her family returned to Takhar and she began tailoring from home. She had four students to earn some extra income. As she worked on her own, she was unable to do as much work as she needed. She borrowed 0 from ARMP-AKDN and started a cooperative with her group, and after a year her students were able to begin tailoring from their own homes.
Now Shaima is a group leader of twenty women, she is training in tailoring skills. They work together to stitch Afghan local dresses that are then sold in the city. She tells us that her husband is working for the local Government and earns Afs 2000 per month which is not sufficient to provide for their needs.
| | She has recently taken a second loan, as she needs more money for working capital. They used to be able to make four or five Afghani dresses per month but with the additional money she is now able to make fifteen dresses a month. Today Shaima has ten sewing machines in her house and has established relationships with several local shop owners that purchase her wares. She is very happy with ARMP-AKDN program as the loan helps her provide for her needs, and also support along with her husband's income. | | | | | | Case Story 5: Small Journeys
The ripple affect of microloans. (Contribution by BRAC, Afghanistan)
| Hasmat Ullah, (top picture) joined BRAC April 2003 as a branch accountant and was promoted in March 2004 to branch manager for the Charikhar office.
This was due to his dedication to work, capacity and commitment to learn. He lost his father when he was seven years old and is the only earning member
in a family of five. Hasmat is happy with his work and is proud of his contribution to the development of microfinance.
| | | | Khanom Gul (middle picture) is a micro loan client of BRAC, in CharikharProvince. She is the president of her village organization. A BRAC micro loan helped
her establish a small sewing business from home. She sells the clothes at local shops in the village. Khanom Gul has since become an admired member of her society.
She freely advocates to women to start small economic activities that will help support their families.
| | | Palwasha (bottom picture) is also a client of BRAC in the Mirbachakot district of Kabul. She took her first loan of 5000 Afs. from BRAC in October 2004 and purchased
sewing material. Palwasha sells her finished products to the neighbors in the area and earns an average of 1500 Afs a week through her business. This economic activity
has given her the confidence she lacked and helped improve her family's living. These loans have had a ripple effect because it is not only the borrowers who benefit from the loans, but also their families and the villages. There is access to better services and employment generation is taking place.
| | | Case Story 6: A Small enterprise thrives in Helmand | | | For three years, Faizullah, 35, has been trying to eke out a living in one of the most insecure regions in Afghanistan.
Faizullah started his own small business, a shop selling motor parts in the immediate vicinity of the Helmand–Kandahar Highway.
Like many Afghans, Faizullah dreams of a better life for his family. He wants his children to grow up without scarcity and misery. This is what motivated him tobuild his own business.
After three years of running his shop with his minimum personal capital, it wasn’t growing as much as he wishesAnd there were no banks or any other financial institutions in Helmand to seek assistance from, given the volatile security situation | | | When BRAC Afghanistan set up its lending operation in Helmand Province in March 2007, a wide window of opportunities opened up for Afghan entrepreneurs, like Faizullah,in the region. At the same time, those who have long wanted to start their own business but never had the capital to do so can now get financia assistance.
Faizullah, after an informal orientation with BRAC credit officers, decided to avail of a credit facility. In May 2007, he took a loan for 150,000 Afs from BRAC’S Lashkargah office to expand his business.
The loan term was payable in equal monthly installments for 12 months. Before taking the loan from BRAC, his stock of goods was valued at 500,000 Afs. With the creditfrom BRAC, he expanded his inventory to 800,000 Afs worth of goods. His hard work finally paid off. His improved economic activity has given him the confidence to think bigger with his business venture.
And with the successful utilization and repayment of his first loan — no overdue or delinquency payment history — BRAC Lashkargah considers Faizullah as one of itsmost reliable clients. As such, it was easy for him to request and be extended a repeat loan facility.
Exactly a year after his first ever SME loan, Faizullah’s application for a 200,000 Afs loan was accepted, payable with 12 equal monthly installments of 19,584 Afs.His business has grown steadily since, and his monthly salary has gone up from 20,000 to 30,000 Afs.
With more income to take home, his family’s quality of life has also improved. But the ripple effect of Faizullah’s and other entrepreneurs’ success through such loan programs extends beyond the household. Community members also benefit. As businesses expand, more jobs and access to services are created. | | | | |
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