Initially activities will focus on rural villages and surrounding markets, and gradually, operations are intended to expand to semi urban markets. An additional one-year pilot project will be launched in Ghazni city to define a future urban city strategy.
The six provinces targeted have a total of 7,320 villages with an average of 76 households per village, so in total, DCMS is targeting 50,000 potential clients as receivers of financial services.
Two multipurpose loan products will be offered in order to target as broad a client group as possible, loan sizes ranges from USD 80-1,000 to individuals or groups. DCMS will also introduce savings products with the aim to develop saving habits in members and contribute to group discipline.
DACAAR's experience with microfinance in the last three years has shown that more than 75 per cent of families in existing DACAAR programme areas demand loans. Until now, microfinance operations have been implemented as part of DACAAR's Rural Development Programme. Most of the potential microfinance clients are traditional farmers and livestock holders. In addition, DCMS intends to reach target groups such as landless, women, nomads, migrant labourers, craftsmen and shopkeepers in rural areas.
DCMS will work as a separate institution within DACAAR aiming at developing into a independent institution within three years and becoming financially self-sufficient within five years.
The new microfinance institution is developed in cooperation with and funded by MISFA (Microfinance Investment Support Facility for Afghanistan) of the Afghan Ministry of Rural Rehabilitation and Development.
For more information:
DCMS Manager Najibullah Samim
Tel: (93) (0) 79 30 88 76
Public Information Officer Alexandra
Tel: (93) (0) 79 33 77 53