Kabul, October 28, 2026 – The Microfinance and Investment Support Facility for Afghanistan (MISFA) signed a two-year Mudaraba agreement amounting to AFN300 million with Ghazanfar Bank, one of the leading commercial banks in Afghanistan.
The Mudaraba capital will be extended to Microfinance Institutions (MFIs) for the provision of microfinance services to Micro, Small and Medium sized Enterprises (MSMEs) across the country. Ghazanfar Bank has committed an additional AFN30 million for this purpose.
Through this arrangement, MISFA aims to play a catalytic role in familiarizing the commercial banks with the investment opportunities at MFIs and encouraging them to gradually increase their exposure to MFIs. This approach will gradually strengthen the trust between MFIs that currently heavily rely on MISFA for funding, and the banking sector which have significant deposit reserves but are unfamiliar with the process of supporting MFIs.
In the long run, this will help MFIs diversify their sources of financing and reduce their reliance on MISFA.
In April 2024, MISFA signed a three-year Mudaraba agreement with Ghazanfar Bank totaling AFN1 billion to support SME financing across the country. As of the end September 2026, the SME portfolio financed through this Mudaraba pool stood at AFN1.05billion serving 375 active clients.
MISFA is now supporting ten MFIs/Banks (OXUS-A, Mutahid, FMFB-AF, Ghazanfar Bank, MAMI, Lamen, Shahy Khazana, Aurum, Hassel and the Islamic Bank of Afghanistan).
MISFA is the largest financier of the MSME sector in Afghanistan.
