Building a Viable Microfinance Sector in Afghanistan

AREU research on the impact of microcredit on informal credit systems and rural livelihoods illustrated the viability challenges microfinance institutions (MFIs) and their clients were facing. This briefing paper examines the changes the microfinance sector is undertaking, such as the introduction of more reliable business plans, creating internal audit units to improve control systems and reduce opportunities for fraud, and institutionalising an MFI report card system, to improve performance.