MINISTRY OF RURAL REHABILITATION AND DEVELOPMENT (MRRD) Afghanistan Rural Enterprise Development Program (AREDP)

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1 MINISTRY OF RURAL REHABILITATION AND DEVELOPMENT (MRRD) Afghanistan Rural Enterprise Development Program (AREDP)

2 AREDP OVERVIEW Improve employment opportunities and income of rural men and women; and sustainability of targeted local enterprises by: Strengthening the private sector through integrated, value chain, top to bottom knowledge based interventions, bottom to top community enterprise development and by addressing credit and capital needs on all levels and in all locations.

3 Description Parwan Bamyan Nangarhar Balkh Hirat Total Number of districts Number of villages/cdcs /14/2015 3

4 PRINCIPLES OF OPERATIONS SUSTAINABILI TY COORDINATI ON AND PARTNERSHI P CLIENT CENTERED AREDP FLEXIBILITY DEMAND DRIVEN SIMPLICITY

5 AREDP AT A GLANCE Community Based Enterprise Development Access to Finance Small and Medium Enterprise Development Gender Mainstreaming Safeguard Unit Training and Capacity Building 5/14/2015 5

6 AREDP PROGRAM COMPONENTS Small and Medium Enterprise Development Program Management Community-Led Enterprise Development

7 GENDER MAINSTREAMING IN COMMUNITY-BASED ENTERPRISE DEVELOPMENT (CED)

8 OVERVIEW COMMUNITY-BASED ENTERPRISE DEVELOPMENT Description Female Male Total Female % Saving Groups % Members 44,518 46,299 90,817 49% Enterprise Groups % Savings (Afs in million) % Number of Borrowers 11,892 8,962 20,854 57% Number of Loans Issued 15,877 10,706 26,583 60% Loan disbursed (Afs in million) % Graduation form Micro to Small Enterprises %

9 AREDP NEW APPROACH UNDER CED Koochies Project: Background: Started in 2013 and provides enterprise development opportunities to koochies from rural areas by exposing them to business development skills and create linkages to market at the provincial level and national level: Gender mainstreaming: 98 Koochies selected for business incubation - 44 male and 54 Female On job trainings delivered on: Marketing, Selling, Custom Care, Financial management and costing for both male and female. Women start contributing into household economy. People with Disability (PWD) Project: Background: Started in 2013 and provides equal opportunity for people with disability so that they equally can contribute to local economy. Gender mainstreaming: 143 PWDs successfully started entrepreneurship - 87 Male and 56 Female On job training delivered on: marketing, costumer care, selling techniques, financial management and costing with market linkage for both male and female 5/14/2015 9

10 AREDP NEW APPROACH UNDER CED Business Development Service Provider (BDSP): Background: Provide sustainable enterprise development support to the people at the rural areas. It has initiated from transferring staff members to BDSP so that they can be the first business development providers and supporter in the community. Gender mainstreaming: All 116 Provincial Enterprise Facilitators fully transformed into BDSPs - 59 Male and 57 Female Training in Business Development Service Provision was given to BDSP including women BDSP so that they can provide service to the clients at the community level One District One Product: Background: Started in 2013; piloted in Kandahar. To standardize products, develop value chain and facilitate access to market. It also facilitate access to technical, financial and business development service. Share experience with stakeholders for getting wider support for ODOP. Gender mainstreaming: Products Selected in Diary and Horticulture sectors, particularly in view of import substitution 95 beneficiaries selected - 35 female and 60 male. Trainings conducted on Technical skills Development, Financial bookkeeping, Marketing & Promotion etc 5/14/

11 OVERVIEW COMMUNITY-BASED ENTERPRISE DEVELOPMENT Loan Sectors (Overall vs. female) Saving Group Loans by Sector VSLA Loans by Sector 45% 40% 35% 42% 40% 60% 50% 53% 50% 30% 40% 25% 20% 15% 10% 5% 0% 3% 2% 0% 0% 0% 0% 0% 0% 5% 5% 7% 11% 7% 5% 16% 16% 15% 12% 5% 8% 30% 20% 10% 0% 4% 3% 0% 0% 1% 0% 0% 0% 1% 1% 6% 4% 2% 2% 22% 20% 14% 11% 4% 5% percentage of SG Loans (Overall) Female percentage of VSLA Loans (Overall) Female 5/14/

12 OVERVIEW COMMUNITY-BASED ENTERPRISE DEVELOPMENT Saving Groups Members (Some Analysis) Male Members Occupation Female Members Occupation Others Shopkeeper 4% 7% Daily Labour 18% Farmer 71% Others Handicrafts/Ta 7% iloring Livestock 7% 8% Farmer 21% House Wife 57% Farmer Daily Labour Shopkeeper Others Male Members Age (Years) House Wife Farmer Livestock Handicrafts/Tailoring Others Female Members Age (Years) 35 To 45 29% 45 To 60 14% 18 To 25 29% 35 To 45 28% 45 To 60 11% 18 To 25 34% 25 To 35 28% 25 To 35 27% 18 To To To To To To To To 60 5/14/

13 GENDER MAINSTREAMING IN SMALL AND MEDIUM ENTERPRISE DEVELOPMENT

14 OVERVIEW SMALL AND MEDIUM ENTERPRISES Description SME Registered SME Supported Applications Received TF & EV studies Business Plan developed Number of community Enterprises graduated to SMEs Total , Number of SMEs received technical training and exposure visits Soft Skills Training Provided (Marketing, Accounting, ESS, Administration) SME members Employment: 46% of enterprises increased direct employment by 30% or more; of which 22.5% are female. Revenue: 41% SMEs increased net revenue by 20% or more; of which 23% are female-led SMEs /14/

15 OVERVIEW SMALL AND MEDIUM ENTERPRISE Provided innovation award to some of the SMEs to further encourage their creativity towards rural economic development. Recruitment of female Provincial Enterprise Officer and Village Facilitators. SME always exploring gender responsive enterprises. Built capacity of women in technical and non technical skills. Creating linkages to market Four Exhibitions in Kabul and two exhibitions in India - for 150 rural women entrepreneurs. 54,227 beneficiaries trained - 53% female. 5/14/

16 Highlights from the field 5/14/

17 Highlights from the field 5/14/

18 THANK YOU Together Towards a Competitive Afghanistan! 5/14/

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