FINANCING PRODUCTS

Presently, ADF Islamic financing products include:

Murabaha: Financing trade transaction including import and
export
Salam: Pre-harvest financing
Ijara wa Iqtina: Financial lease for agricultural equipment Contact Us
Wakala: For working capital
www.adf-af.org
Estisna: Purchase of equipment or machinery not yet
manufactured, and agricultural related construction
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AGRICULTURAL
Zahra: A sharia compliant lending product offered by financial
intermediary partners to existing female-led agribusinesses. DEVELOPMENT FUND
ADF also offers a Bano Financing Product to woman-owned Providing Islamic financing to farmers and agri-entrepreneurs
agribusinesses, designed to improve access to credit for women Kabul Office
entrepreneurs who typically operate smaller sized agribusinesses.
0731777788 - 0202504835
The product features allow for longer maturities at lower profit [email protected]
rates. Khalid Arsalan St. Darulaman Rd. Kabul
Afghanistan
Your Agribusiness Partner
TECHNICAL SERVICES Bamyan Office
0782199001 - 0771496559
As part of its development objective, the ADF has a specialized [email protected]
Technical Services unit that provides technical support services 2nd floor of Shahan Bamyan Trade
Center, Shahr-e-Naw, Dasht Isa Khan,
for approved clients. The unit also provides input to the credit
PD1, Bamyan, Afghanistan
approval process and is responsible for checking compliance with
environmental and health standards. Balkh Office
0794453333 - 0798168115
TERMS AND CONDITIONS [email protected]
Bagh-e-Huzor, Wolayat Street, ACCI
Building, Balkh Afghanistan
The financing term, or the number of months the financing is
approved for, should correspond to the financing purpose and the
borrower’s ability to generate the funds to repay the financing. Nangarhar Office
The maximum grace period for principal of financing is one year.
0728697069 - 0786086113
Grace periods for mark-up on Sharia financing is allowed based [email protected]
on the structure of the transaction. House #13, PD4, ACCI Field Office,
Profit rate ranges from %15-6. Nangarhar, Afghanistan
Financing agricultural inputs will be due at the end of a crop cycle
or when the harvest is sold. Kandahar Office
The general maximum financing term for an individual financing 0748164445 - 0700341410
or portfolio financing is five years. [email protected]
Aino Mina, ACCI Building, Kandahar
Afghanistan

ELIGIBILITY
Herat Office

1 Applicants should be citizens of Afghanistan 0799125458 - 0797251979

2 Applicants should have TIN (Tax Identification Number). [email protected]
Third Floor, HCCI Building, ADF Office,
3 Agribusinesses should be registered with the Central
Herat Afghanistan
Registration Office or with other related government
authorities of Afghanistan.
4 Applicant should have a minimum of one-year proved
experience in agribusiness sector.
5 Applicant should not be involved in any illegal activities.
 The ADF focuses on financing competitive value chains with the highest
MISSION potential to promote economic growth. Within such value chains the
primary goal is to identify and support commercially viable enterprises
The ADF’s mission is to facilitate agricultural development and
with the required capital to maintain or expand operations or invest in
contribute to Afghanistan’s economy by providing finance to commercial
upgrading to access new market opportunities.
farmers and agribusiness entrepreneurs. In pursuing its mission,
the ADF supports the MAIL’s broader goals of restoring Afghanistan
licit agricultural economy and contributing to the growth of the rural
economy. Investing in agriculture is vital since the sector accounts for HOW TO GET THE FINANCING?
a quarter of the Afghan economy and plays an important role in the
livelihood of approximately %76 of the population who live in rural areas. Groups of small commercial farmers and business entrepreneurs
In addition, %50 of all households in the country derive at least part of engaged in agriculture can approach the ADF offices in Jalalabad, Herat,
their income from agriculture. However, a lack of credit continues to Mazar-e-Sharif, Kandahar, Bamyan and Kabul. Depending on the scale
constrain the Afghan agriculture sector nationally. of their operation, experienced financing advisors will initiate a financing
application, or will refer them to ADF’s financing partners.

OBJECTIVES
FINANCING PRODUCTS
As an experienced and successful entity, ADF has a unique position in the
hierarchy of agricultural and agribusiness financing in Afghanistan. The The ADF provides Islamic financing products that align to the purposes
ADF primary objectives are: for which ADF financing is mainly used: working capital, inventory
financing, inputs and supplies, purchase of equipment, packaging and
ABOUT ADF To provide effective and responsible short, medium, and long-term financing storage facilities and warehousing and transport. Financing terms range
1
to the agricultural sector, thereby supporting the sector growth and from a period of 36-12 months for agribusiness borrowers and can be
The Agricultural Development Fund or ADF is a standalone non- development. up to 60 months in the case of financial institutions. Minimum financing
bank financial institution constituted as a development fund to 2
To lead as an apex agriculture financing institution, leveraging its own funds, size is AFN 1,700,000.
provide Islamic financing and technical assistance to farmers and to increase its outreach and strengthen the agriculture financing value chain.
agribusiness entrepreneurs through a variety of intermediaries as well 3 To strengthen agricultural value chains through technical support and
as direct lending, in an unprecedented effort to revolutionize Afghan consulting services.
agriculture.

WHO CAN BENEFIT FROM THE FINANCING? ADF’s Islamic Finance, which is certified and supervised by its Sharia
Advisory Board, ensures that all transactions are based on Sharia
In response to the considerable untapped financing needs in agriculture, Principles, are transparent, and are free of Riba, Gharar, Maysir and
the ADF seeks to provide funding either directly to agri-enterprises unfair advantage, and cannot be used for any haram activities or assets.
or indirectly through intermediaries such as financial institutions and
Since its inception in 2010, the ADF has approved almost AFN 14 agriculture related entities. Its target market segments include:
billion in financings and disbursed funds of more than AFN 11.4 Billion
directly benefiting 60,567 farmers and agribusinesses in Afghanistan.
The ADF has a solid governance structure, Sharia Advisory Board and
Islamic product offering, prudent operational policies and systems,
professionally trained staff, and an established footprint to serving FINANCIAL INTERMEDIARIES NON-FINANCIAL INTERMEDIARIES

clients in 32 provinces across the country.

Today, the ADF is the leading provider of finance to Afghanistan’s Banks Agribusinesses
agriculture sector with a head office in Kabul, four regional offices in
(Balkh, Herat, Kandahar and Nangarhar), and two satellite offices, one Microfinance Institutions Commercial farmers
at MAIL and one in Bamyan Province.
Farmer Associations &
Cooperatives
Other Non-Bank
Financial Institutions
Women-owned
Agribusinesses

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