Kabul, July 1, 2025 — The Microfinance Investment Support Facility for Afghanistan (MISFA) has signed a funding agreement with Shahy Khazana Microfinance (SKM), a newly established microfinance institution in Afghanistan committed to providing Sharia-compliant financial services.
As part of the agreement, MISFA will extend AFN 60 million to SKM as Qard-al-Hasan (interest-free loan). This funding will enable SKM to expand its Islamic finance portfolio and utilize the generated proceeds to cover operational expenses.
Supporting new entrants in the microfinance sector is a strategic priority for MISFA. The current number of microfinance institutions in Afghanistan remains limited and is insufficient to meet the country’s growing demand for financial services—especially in light of the improved security environment, which presents significant opportunities for sector expansion.
Prior to the funding, MISFA conducted a pre-disbursement assessment of SKM. Based on SKM’s commitment to addressing the identified institutional gaps, MISFA approved the initial capital support. MISFA will continue to monitor the institution’s performance and may consider further funding, contingent on SKM’s adherence to regulatory requirements, implementation of recommendations, and satisfactory operational outcomes.
Founded in November 2024, SKM is a for-profit microfinance institution. Its mission is to promote economic growth and financial inclusion by offering accessible, ethical, and Sharia-compliant financial services aimed at empowering underserved populations and fostering entrepreneurship.
